This Is Why Ganesha Ecosphere Limited’s (NSE:GANECOS) CEO Can Expect A Bump Up In Their Pay Packet

Shareholders will be pleased by the robust performance of Ganesha Ecosphere Limited (NSE:GANECOS) recently and this will be kept in mind in the upcoming AGM on 30 September 2022. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

See our latest analysis for Ganesha Ecosphere

Comparing Ganesha Ecosphere Limited’s CEO Compensation With The Industry

Our data indicates that Ganesha Ecosphere Limited has a market capitalization of ₹14b, and total annual CEO compensation was reported as ₹14m for the year to March 2022. That’s a notable increase of 45% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹3.0m.

On comparing similar companies from the same industry with market caps ranging from ₹8.1b to ₹32b, we found that the median CEO total compensation was ₹23m. In other words, Ganesha Ecosphere pays its CEO lower than the industry median. Furthermore, Sharad Sharma directly owns ₹602m worth of shares in the company, implying that they are deeply invested in the company’s success.

Component	2022	2021	Proportion (2022)
Salary	₹3.0m	₹1.8m	22%
Other	₹11m	₹7.5m	78%
Total Compensation	₹14m	₹9.3m	100%

Speaking on an industry level, nearly 100% of total compensation represents salary, while the remainder of 0.1149% is other remuneration. Ganesha Ecosphere pays a modest slice of remuneration through salary, as compared to the broader industry. It’s important to note that a slant towards non-salary compensation suggests that total pay is tied to the company’s performance.

Ganesha Ecosphere Limited’s Growth

Over the past three years, Ganesha Ecosphere Limited has seen its earnings per share (EPS) grow by 9.3% per year. In the last year, its revenue is up 27%.

We like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn’t shabby. We wouldn’t say this is necessarily top notch growth, but it is certainly promising. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Ganesha Ecosphere Limited Been A Good Investment?

We think that the total shareholder return of 151%, over three years, would leave most Ganesha Ecosphere 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.

To Conclude…

While the company seems to be headed in the right direction performance-wise, there’s always room for improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Ganesha Ecosphere (1 doesn’t sit too well with us!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.