In 2014 Ravi Chawla was appointed CEO of Gulf Oil Lubricants India Limited (NSE:GULFOILLUB). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Ravi Chawla’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Gulf Oil Lubricants India Limited has a market cap of ₹41b, and is paying total annual CEO compensation of ₹40m. (This figure is for the year to 2018). While we always look at total compensation first, we note that the salary component is less, at ₹19m. When we examined a selection of companies with market caps ranging from ₹14b to ₹56b, we found the median CEO compensation was ₹22m.
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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Gulf Oil Lubricants India has changed from year to year.
Is Gulf Oil Lubricants India Limited Growing?
On average over the last three years, Gulf Oil Lubricants India Limited has grown earnings per share (EPS) by 22% each year (using a line of best fit). Its revenue is up 28% over last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Gulf Oil Lubricants India Limited Been A Good Investment?
Boasting a total shareholder return of 67% over three years, Gulf Oil Lubricants India Limited has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by Gulf Oil Lubricants India Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Gulf Oil Lubricants India shares with their own money (free access).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.