Is GPT Infraprojects Limited (NSE:GPTINFRA) Excessively Paying Its CEO?

In This Article:

Shree Tantia is the CEO of GPT Infraprojects Limited (NSE:GPTINFRA). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for GPT Infraprojects

How Does Shree Tantia's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that GPT Infraprojects Limited has a market cap of ₹1.1b, and reported total annual CEO compensation of ₹10m for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at ₹8.8m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹2.4m.

As you can see, Shree Tantia is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean GPT Infraprojects Limited 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.

You can see a visual representation of the CEO compensation at GPT Infraprojects, below.

NSEI:GPTINFRA CEO Compensation, October 28th 2019
NSEI:GPTINFRA CEO Compensation, October 28th 2019

Is GPT Infraprojects Limited Growing?

On average over the last three years, GPT Infraprojects Limited has shrunk earnings per share by 3.2% each year (measured with a line of best fit). It achieved revenue growth of 7.0% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has GPT Infraprojects Limited Been A Good Investment?

With a three year total loss of 68%, GPT Infraprojects Limited 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 total CEO remuneration at GPT Infraprojects Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.