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Is Gabriel India Limited (NSE:GABRIEL) Overpaying Its CEO?

Simply Wall St

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Manoj Kolhatkar has been the CEO of Gabriel India Limited (NSE:GABRIEL) since 2011. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Gabriel India

How Does Manoj Kolhatkar's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Gabriel India Limited has a market cap of ₹21b, and is paying total annual CEO compensation of ₹28m. (This figure is for the year to March 2018). Notably, the salary of ₹28m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations from ₹7.0b to ₹28b, and the median CEO total compensation was ₹16m.

Thus we can conclude that Manoj Kolhatkar receives more in total compensation than the median of a group of companies in the same market, and of similar size to Gabriel India Limited. However, this doesn't necessarily mean the pay 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.

You can see, below, how CEO compensation at Gabriel India has changed over time.

NSEI:GABRIEL CEO Compensation, May 14th 2019

Is Gabriel India Limited Growing?

Gabriel India Limited has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). Its revenue is up 20% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Gabriel India Limited Been A Good Investment?

I think that the total shareholder return of 64%, over three years, would leave most Gabriel India Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

We compared total CEO remuneration at Gabriel India Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Gabriel India shares with their own money (free access).

If you want to buy a stock that is better than Gabriel India, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.