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Rajendra Gandhi became the CEO of GRP Limited (NSE:GRPLTD) in 2007. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for GRP
How Does Rajendra Gandhi's Compensation Compare With Similar Sized Companies?
Our data indicates that GRP Limited is worth ₹1.4b, and total annual CEO compensation is ₹9.3m. (This number is for the twelve months until March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹8.4m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.2m.
It would therefore appear that GRP Limited pays Rajendra Gandhi 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.
The graphic below shows how CEO compensation at GRP has changed from year to year.
Is GRP Limited Growing?
On average over the last three years, GRP Limited has shrunk earnings per share by 30% each year (measured with a line of best fit). Its revenue is up 19% over last year.
Sadly for shareholders, earnings per share are actually down, 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. 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 could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has GRP Limited Been A Good Investment?
With a three year total loss of 2.9%, GRP Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount GRP Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.