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How Should Investors React To Goldiam International Limited's (NSE:GOLDIAM) CEO Pay?

In This Article:

Rashesh Bhansali is the CEO of Goldiam International Limited (NSE:GOLDIAM). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Goldiam International

How Does Rashesh Bhansali's Compensation Compare With Similar Sized Companies?

Our data indicates that Goldiam International Limited is worth ₹2.7b, and total annual CEO compensation was reported as ₹15m for the year to March 2019. That's a notable increase of 22% on last year. We think total compensation is more important but we note that the CEO salary is lower, at ₹12m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹2.4m.

As you can see, Rashesh Bhansali is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Goldiam International Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Goldiam International has changed over time.

NSEI:GOLDIAM CEO Compensation, September 25th 2019
NSEI:GOLDIAM CEO Compensation, September 25th 2019

Is Goldiam International Limited Growing?

Over the last three years Goldiam International Limited has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). In the last year, its revenue is up 26%.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Goldiam International Limited Been A Good Investment?

Boasting a total shareholder return of 86% over three years, Goldiam International Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We compared the total CEO remuneration paid by Goldiam International Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.