Why Gokul Refoils & Solvent Ltd's (NSE:GOKUL) CEO Pay Matters To You
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The CEO of Gokul Refoils & Solvent Ltd (NSE:GOKUL) is Praveen Khandelwal. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Gokul Refoils & Solvent
How Does Praveen Khandelwal's Compensation Compare With Similar Sized Companies?
According to our data, Gokul Refoils & Solvent Ltd has a market capitalization of ₹1.7b, and pays its CEO total annual compensation worth ₹6.0m. (This figure is for the year to March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹6.0m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.
As you can see, Praveen Khandelwal is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Gokul Refoils & Solvent Ltd is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Gokul Refoils & Solvent has changed from year to year.
Is Gokul Refoils & Solvent Ltd Growing?
On average over the last three years, Gokul Refoils & Solvent Ltd has shrunk earnings per share by 19% each year (measured with a line of best fit). In the last year, its revenue is up 11%.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Gokul Refoils & Solvent Ltd Been A Good Investment?
With a three year total loss of 14%, Gokul Refoils & Solvent Ltd would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared the total CEO remuneration paid by Gokul Refoils & Solvent Ltd, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! So you may want to check if insiders are buying Gokul Refoils & Solvent shares with their own money (free access).
If you want to buy a stock that is better than Gokul Refoils & Solvent, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
