Why We Think GTPL Hathway Limited's (NSE:GTPL) CEO Compensation Is Not Excessive At All

Key Insights

• GTPL Hathway will host its Annual General Meeting on 29th of September
• CEO Anirudhsinh Jadeja's total compensation includes salary of ₹36.8m
• The total compensation is similar to the average for the industry
• Over the past three years, GTPL Hathway's EPS grew by 6.2% and over the past three years, the total shareholder return was 111%

CEO Anirudhsinh Jadeja has done a decent job of delivering relatively good performance at GTPL Hathway Limited (NSE:GTPL) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 29th of September. We present our case of why we think CEO compensation looks fair.

See our latest analysis for GTPL Hathway

Comparing GTPL Hathway Limited's CEO Compensation With The Industry

According to our data, GTPL Hathway Limited has a market capitalization of ₹19b, and paid its CEO total annual compensation worth ₹37m over the year to March 2023. We note that's an increase of 10% above last year. Notably, the salary of ₹37m is the entirety of the CEO compensation.

On examining similar-sized companies in the Indian Media industry with market capitalizations between ₹8.3b and ₹33b, we discovered that the median CEO total compensation of that group was ₹29m. So it looks like GTPL Hathway compensates Anirudhsinh Jadeja in line with the median for the industry. What's more, Anirudhsinh Jadeja holds ₹2.3b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	₹37m	₹33m	100%
Other	-	-	-
Total Compensation	₹37m	₹33m	100%

On an industry level, around 94% of total compensation represents salary and 6% is other remuneration. Speaking on a company level, GTPL Hathway prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at GTPL Hathway Limited's Growth Numbers

Over the past three years, GTPL Hathway Limited has seen its earnings per share (EPS) grow by 6.2% per year. In the last year, its revenue is up 15%.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has GTPL Hathway Limited Been A Good Investment?

Most shareholders would probably be pleased with GTPL Hathway Limited for providing a total return of 111% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

GTPL Hathway pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for GTPL Hathway that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.