Performances at The Great Eastern Shipping Company Limited (NSE: GESHIP) has been reasonably good and CEO Bharat Sheth has done a decent job of leading the company in the right direction. As shareholders enter the next AGM on July 29, 2021, CEO compensation is unlikely to be their focus, but rather the steps management takes to continue the growth momentum. However, some shareholders will still be careful to overpay the CEO.
Check out our latest review for Great Eastern Shipping
The Great Eastern Shipping Company Limited CEO Compensation Comparison with Industry
Our data indicates that the Great Eastern Shipping Company Limited has a market capitalization of 53 billion yen and the total annual CEO compensation has been reported at 85 million yen for the year through March 2021. These include a decrease of 9.8% compared to the previous year. Although this analysis focuses on total compensation, it should be recognized that the salary share is lower, valued at 32 million euros.
Looking at similar-sized companies in the industry with market capitalizations between 30 and 119 billion yen, we found that the median total compensation of CEOs in this group was 9.1 million yen. This suggests that Bharat Sheth is paid more than the industry median. In addition, Bharat Sheth directly owns 5.9 billion yen of company stock, which implies that they are deeply invested in the success of the company.
|Making up||2021||2020||Proportion (2021)|
|Salary||₹ 32m||₹ 32m||37%|
|Other||₹ 53m||₹ 62m||63%|
At the industry level, almost 62% of total compensation is salary, while the remainder 38% is other compensation. Great Eastern Shipping pays a modest bracket of pay through salary, compared to the industry as a whole. It is important to note that an inclination towards non-salary compensation suggests that total compensation is linked to the performance of the company.
A look at the growth figures of the Great Eastern Shipping Company Limited
Over the past three years, The Great Eastern Shipping Company Limited has seen its earnings per share (EPS) increase by 107% per year. Its turnover is down 9.5% compared to the previous year.
Overall, this is a positive result for shareholders, which shows that the company has improved in recent years. While it would be good to see income growth, profits matter more in the end. While we don’t have an analyst forecast for the company, shareholders might want to take a look at this detailed historical chart of earnings, income and cash flow.
Was the Great Eastern Shipping Company Limited a good investment?
Most shareholders would likely be happy with Great Eastern Shipping Company Limited for a total return of 38% over three years. This strong performance could mean that some shareholders would not object to the CEO being paid more than is normal for a company of its size.
Seeing that the company has performed decently, only a few shareholders, if any, might have questions about CEO compensation at the next AGM. However, any decision to increase CEO compensation could face some objections from shareholders as the CEO is already paid more than the industry average.
CEO compensation is just one of the many factors that should be taken into account when reviewing company performance. We have identified 3 warning signs for Great Eastern Shipping (1 makes us a little uncomfortable!) Which you should be aware of before investing here.
Arguably, the quality of the company is much more important than the compensation levels of CEOs. So look at this free list of interesting companies that have a HIGH return on equity and low leverage.
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