We Think Some Shareholders May Hesitate To Increase Gujarat Pipavav Port Limited's (NSE:GPPL) CEO Compensation

Key Insights

• Gujarat Pipavav Port will host its Annual General Meeting on 4th of September
• Salary of ₹9.44m is part of CEO Girish Aggarwal's total remuneration
• The overall pay is 237% above the industry average
• Gujarat Pipavav Port's total shareholder return over the past three years was 103% while its EPS grew by 20% over the past three years

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Performance at Gujarat Pipavav Port Limited (NSE:GPPL) has been reasonably good and CEO Girish Aggarwal has done a decent job of steering the company in the right direction. 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 4th of September. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Gujarat Pipavav Port

How Does Total Compensation For Girish Aggarwal Compare With Other Companies In The Industry?

At the time of writing, our data shows that Gujarat Pipavav Port Limited has a market capitalization of ₹73b, and reported total annual CEO compensation of ₹33m for the year to March 2025. Notably, that's an increase of 41% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹9.4m.

In comparison with other companies in the India Infrastructure industry with market capitalizations ranging from ₹35b to ₹140b, the reported median CEO total compensation was ₹9.8m. Hence, we can conclude that Girish Aggarwal is remunerated higher than the industry median. Moreover, Girish Aggarwal also holds ₹453k worth of Gujarat Pipavav Port stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. In Gujarat Pipavav Port's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Gujarat Pipavav Port Limited's Growth Numbers

Gujarat Pipavav Port Limited has seen its earnings per share (EPS) increase by 20% a year over the past three years. Its revenue is down 3.2% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Gujarat Pipavav Port Limited Been A Good Investment?

Boasting a total shareholder return of 103% over three years, Gujarat Pipavav Port Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Gujarat Pipavav Port that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.