Shareholders Will Likely Find Gujarat Industries Power Company Limited's (NSE:GIPCL) CEO Compensation Acceptable

Key Insights

• Gujarat Industries Power will host its Annual General Meeting on 20th of September
• CEO Vatsala Vasudeva's total compensation includes salary of ₹4.20m
• The overall pay is 48% below the industry average
• Over the past three years, Gujarat Industries Power's EPS fell by 0.5% and over the past three years, the total shareholder return was 122%

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Shareholders may be wondering what CEO Vatsala Vasudeva plans to do to improve the less than great performance at Gujarat Industries Power Company Limited (NSE:GIPCL) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 20th of September. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for Gujarat Industries Power

How Does Total Compensation For Vatsala Vasudeva Compare With Other Companies In The Industry?

At the time of writing, our data shows that Gujarat Industries Power Company Limited has a market capitalization of ₹29b, and reported total annual CEO compensation of ₹4.7m for the year to March 2025. That's mostly flat as compared to the prior year's compensation. In particular, the salary of ₹4.20m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Indian Renewable Energy industry with market caps ranging from ₹18b to ₹71b, we found that the median CEO total compensation was ₹9.0m. In other words, Gujarat Industries Power pays its CEO lower than the industry median.

On an industry level, around 94% of total compensation represents salary and 6% is other remuneration. There isn't a significant difference between Gujarat Industries Power and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Gujarat Industries Power Company Limited's Growth

Earnings per share at Gujarat Industries Power Company Limited are much the same as they were three years ago, albeit slightly lower. It saw its revenue drop 1.4% over the last year.

A lack of EPS improvement is not good to see. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Gujarat Industries Power Company Limited Been A Good Investment?

Most shareholders would probably be pleased with Gujarat Industries Power Company Limited for providing a total return of 122% over three years. 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...

While the return to shareholders does look promising, it's hard to ignore the lack of earnings growth and this makes us wonder if these strong returns can continue. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Gujarat Industries Power that you should be aware of before investing.

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.