In This Article:
Keld Pedersen has been the CEO of Gujarat Pipavav Port Limited (NSE:GPPL) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.
See our latest analysis for Gujarat Pipavav Port
How Does Keld Pedersen’s Compensation Compare With Similar Sized Companies?
According to our data, Gujarat Pipavav Port Limited has a market capitalization of ₹48.4b, and pays its CEO total annual compensation worth ₹53m. That’s a notable increase of 56% on last year. We looked at a group of companies with market capitalizations from ₹29.3b to ₹117.2b, and the median CEO compensation was ₹2m.
It would therefore appear that Gujarat Pipavav Port Limited pays Keld Pedersen 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. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Gujarat Pipavav Port, below.
Is Gujarat Pipavav Port Limited Growing?
Gujarat Pipavav Port Limited has reduced its earnings per share by an average of 10% a year, over the last three years. In the last year, its revenue is down -5.0%.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Gujarat Pipavav Port Limited Been A Good Investment?
Since shareholders would have lost about 39% over three years, some Gujarat Pipavav Port 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 total CEO remuneration at Gujarat Pipavav Port Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. Notably, the CEO remuneration is actually up on last year. This analysis suggests to us that the CEO is paid too generously! So you may want to check if insiders are buying Gujarat Pipavav Port Limited shares with their own money (free access).