In This Article:
Ravi Chawla has been the CEO of Gulf Oil Lubricants India Limited (NSE:GULFOILLUB) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.
View our latest analysis for Gulf Oil Lubricants India
How Does Ravi Chawla's Compensation Compare With Similar Sized Companies?
Our data indicates that Gulf Oil Lubricants India Limited is worth ₹44b, and total annual CEO compensation was reported as ₹48m for the year to March 2019. That's a notable increase of 20% on last year. We think total compensation is more important but we note that the CEO salary is lower, at ₹22m. We examined companies with market caps from ₹28b to ₹113b, and discovered that the median CEO total compensation of that group was ₹27m.
It would therefore appear that Gulf Oil Lubricants India Limited pays Ravi Chawla 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, below, how CEO compensation at Gulf Oil Lubricants India has changed over time.
Is Gulf Oil Lubricants India Limited Growing?
Gulf Oil Lubricants India Limited has increased its earnings per share (EPS) by an average of 18% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 22%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Gulf Oil Lubricants India Limited Been A Good Investment?
With a total shareholder return of 21% over three years, Gulf Oil Lubricants India Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We examined the amount Gulf Oil Lubricants India Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Shareholders may want to check for free if Gulf Oil Lubricants India insiders are buying or selling shares.