Shareholders May Not Be So Generous With Dilip Buildcon Limited's (NSE:DBL) CEO Compensation And Here's Why

Key Insights

• Dilip Buildcon to hold its Annual General Meeting on 16th of September
• Salary of ₹110.0m is part of CEO Devendra Jain's total remuneration
• The overall pay is 246% above the industry average
• Dilip Buildcon's EPS grew by 118% over the past three years while total shareholder return over the past three years was 88%

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CEO Devendra Jain has done a decent job of delivering relatively good performance at Dilip Buildcon Limited (NSE:DBL) recently. As shareholders go into the upcoming AGM on 16th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Dilip Buildcon

Comparing Dilip Buildcon Limited's CEO Compensation With The Industry

According to our data, Dilip Buildcon Limited has a market capitalization of ₹75b, and paid its CEO total annual compensation worth ₹180m over the year to March 2025. This was the same amount the CEO received in the prior year. In particular, the salary of ₹110.0m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Indian Construction industry with market capitalizations between ₹35b and ₹141b, we discovered that the median CEO total compensation of that group was ₹52m. This suggests that Devendra Jain is paid more than the median for the industry. What's more, Devendra Jain holds ₹16b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. In Dilip Buildcon's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Dilip Buildcon Limited's Growth Numbers

Dilip Buildcon Limited's earnings per share (EPS) grew 118% per year over the last three years. In the last year, its revenue is down 12%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Dilip Buildcon Limited Been A Good Investment?

Boasting a total shareholder return of 88% over three years, Dilip Buildcon 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.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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 3 warning signs for Dilip Buildcon (2 are potentially serious!) that you should be aware of before investing here.

Switching gears from Dilip Buildcon, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.