Kishore Mohanty became the CEO of Gammon Infrastructure Projects Limited (NSE:GAMMNINFRA) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Gammon Infrastructure Projects
How Does Kishore Mohanty's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Gammon Infrastructure Projects Limited has a market cap of ₹292m, and is paying total annual CEO compensation of ₹24m. (This figure is for the year to March 2018). Notably, the salary of ₹23m is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.5m.
As you can see, Kishore Mohanty is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Gammon Infrastructure Projects Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Gammon Infrastructure Projects has changed from year to year.
Is Gammon Infrastructure Projects Limited Growing?
Over the last three years Gammon Infrastructure Projects Limited has grown its earnings per share (EPS) by an average of 9.5% per year (using a line of best fit). It saw its revenue drop -20% over the last year.
I would prefer it if there was revenue growth, but I'm happy with the EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Gammon Infrastructure Projects Limited Been A Good Investment?
With a three year total loss of 94%, Gammon Infrastructure Projects Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Gammon Infrastructure Projects Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.