It Looks Like The CEO Of Ganesh Housing Corporation Limited (NSE:GANESHHOUC) May Be Underpaid Compared To Peers

Key Insights

• Ganesh Housing will host its Annual General Meeting on 9th of September
• Salary of ₹12.0m is part of CEO Shekhar Patel's total remuneration
• Total compensation is 68% below industry average
• Ganesh Housing's EPS grew by 87% over the past three years while total shareholder return over the past three years was 423%

The impressive results at Ganesh Housing Corporation Limited (NSE:GANESHHOUC) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 9th of September which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Ganesh Housing

How Does Total Compensation For Shekhar Patel Compare With Other Companies In The Industry?

According to our data, Ganesh Housing Corporation Limited has a market capitalization of ₹67b, and paid its CEO total annual compensation worth ₹12m over the year to March 2024. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at ₹12.0m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Indian Real Estate industry with market capitalizations ranging from ₹34b to ₹134b, the reported median CEO total compensation was ₹38m. This suggests that Shekhar Patel is paid below the industry median. Furthermore, Shekhar Patel directly owns ₹25b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹12m	₹12m	98%
Other	₹222k	₹234k	2%
Total Compensation	₹12m	₹12m	100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Ganesh Housing pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Ganesh Housing Corporation Limited's Growth Numbers

Ganesh Housing Corporation Limited has seen its earnings per share (EPS) increase by 87% a year over the past three years. Its revenue is down 1.0% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Ganesh Housing Corporation Limited Been A Good Investment?

We think that the total shareholder return of 423%, over three years, would leave most Ganesh Housing Corporation Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Ganesh Housing pays its CEO a majority of compensation through a salary. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Ganesh Housing that you should be aware of before investing.

Important note: Ganesh Housing is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.