A Quick Analysis On Dixon Technologies (India)'s (NSE:DIXON) CEO Salary

This article will reflect on the compensation paid to Atul Lall who has served as CEO of Dixon Technologies (India) Limited (NSE:DIXON) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Dixon Technologies (India).

Check out our latest analysis for Dixon Technologies (India)

Comparing Dixon Technologies (India) Limited's CEO Compensation With the industry

At the time of writing, our data shows that Dixon Technologies (India) Limited has a market capitalization of ₹102b, and reported total annual CEO compensation of ₹46m for the year to March 2020. We note that's an increase of 67% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹16m.

On comparing similar companies from the same industry with market caps ranging from ₹74b to ₹236b, we found that the median CEO total compensation was ₹35m. Accordingly, our analysis reveals that Dixon Technologies (India) Limited pays Atul Lall north of the industry median. Furthermore, Atul Lall directly owns ₹4.1b worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 98% of total compensation represents salary, while the remainder of 2.3% is other remuneration. It's interesting to note that Dixon Technologies (India) allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Dixon Technologies (India) Limited's Growth Numbers

Over the past three years, Dixon Technologies (India) Limited has seen its earnings per share (EPS) grow by 26% per year. It achieved revenue growth of 6.3% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Dixon Technologies (India) Limited Been A Good Investment?

We think that the total shareholder return of 233%, over three years, would leave most Dixon Technologies (India) Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As we noted earlier, Dixon Technologies (India) pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Atul's performance creates value for the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Dixon Technologies (India) that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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. 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.
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