Should You Worry About Ganesh Housing Corporation Limited's (NSE:GANESHHOUC) CEO Pay?
Shekhar Patel became the CEO of Ganesh Housing Corporation Limited (NSE:GANESHHOUC) in 1994. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Ganesh Housing
How Does Shekhar Patel's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Ganesh Housing Corporation Limited has a market cap of ₹2.0b, and is paying total annual CEO compensation of ₹12m. (This figure is for the year to March 2018). Notably, the salary of ₹12m is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.5m.
It would therefore appear that Ganesh Housing Corporation Limited pays Shekhar Patel more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Ganesh Housing has changed over time.
Is Ganesh Housing Corporation Limited Growing?
On average over the last three years, Ganesh Housing Corporation Limited has shrunk earnings per share by 14% each year (measured with a line of best fit). It saw its revenue drop -47% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. 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 shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Ganesh Housing Corporation Limited Been A Good Investment?
Since shareholders would have lost about 49% over three years, some Ganesh Housing Corporation Limited shareholders would surely be feeling negative emotions. 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 Ganesh Housing Corporation Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. In our opinion the CEO might be paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ganesh Housing.
If you want to buy a stock that is better than Ganesh Housing, this free list of high return, low debt companies is a great place to look.
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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.
