We think De Nora India Limited's (NSE:DENORA) CEO May Struggle To See Much Of A Pay Rise This Year

Key Insights

• De Nora India to hold its Annual General Meeting on 18th of September
• CEO Vinay Chopra's total compensation includes salary of ₹3.96m
• The overall pay is comparable to the industry average
• De Nora India's total shareholder return over the past three years was 4.3% while its EPS was down 51% over the past three years

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Performance at De Nora India Limited (NSE:DENORA) has been reasonably good and CEO Vinay Chopra has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 18th of September. We present our case of why we think CEO compensation looks fair.

View our latest analysis for De Nora India

How Does Total Compensation For Vinay Chopra Compare With Other Companies In The Industry?

According to our data, De Nora India Limited has a market capitalization of ₹4.5b, and paid its CEO total annual compensation worth ₹6.7m over the year to March 2025. Notably, that's a decrease of 25% over the year before. Notably, the salary which is ₹3.96m, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the Indian Electrical industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹5.4m. From this we gather that Vinay Chopra is paid around the median for CEOs in the industry.

On an industry level, around 85% of total compensation represents salary and 15% is other remuneration. De Nora India sets aside a smaller share of compensation for salary, in comparison to the overall 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.

De Nora India Limited's Growth

De Nora India Limited has reduced its earnings per share by 51% a year over the last three years. Its revenue is up 26% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has De Nora India Limited Been A Good Investment?

De Nora India Limited has generated a total shareholder return of 4.3% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Although the company has performed relatively well, we still think there are some areas that could be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for De Nora India that you should be aware of before investing.

Switching gears from De Nora India, 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.