De Nora India Limited's (NSE:DENORA) CEO Looks Like They Deserve Their Pay Packet

It would be hard to discount the role that CEO Vinay Chopra has played in delivering the impressive results at De Nora India Limited (NSE:DENORA) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 28 September 2022. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for De Nora India

Comparing De Nora India Limited's CEO Compensation With The Industry

Our data indicates that De Nora India Limited has a market capitalization of ₹4.3b, and total annual CEO compensation was reported as ₹4.3m for the year to March 2022. Notably, that's an increase of 11% over the year before. Notably, the salary which is ₹2.64m, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below ₹16b, reported a median total CEO compensation of ₹5.0m. So it looks like De Nora India compensates Vinay Chopra in line with the median for the industry.

Component	2022	2021	Proportion (2022)
Salary	₹2.6m	₹2.8m	62%
Other	₹1.6m	₹1.0m	38%
Total Compensation	₹4.3m	₹3.8m	100%

Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. In De Nora India's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

De Nora India Limited's Growth

De Nora India Limited's earnings per share (EPS) grew 323% per year over the last three years. Its revenue is up 97% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has De Nora India Limited Been A Good Investment?

Boasting a total shareholder return of 261% over three years, De Nora 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.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 2 warning signs for De Nora 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. 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.