Shareholders Will Probably Hold Off On Increasing Dixon Technologies (India) Limited's (NSE:DIXON) CEO Compensation For The Time Being

Key Insights

• Dixon Technologies (India) to hold its Annual General Meeting on 29th of September
• CEO Atul Lall's total compensation includes salary of ₹28.0m
• The total compensation is 592% higher than the average for the industry
• Over the past three years, Dixon Technologies (India)'s EPS grew by 40% and over the past three years, the total shareholder return was 174%

CEO Atul Lall has done a decent job of delivering relatively good performance at Dixon Technologies (India) Limited (NSE:DIXON) recently. 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 29th of September. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Dixon Technologies (India)

How Does Total Compensation For Atul Lall Compare With Other Companies In The Industry?

At the time of writing, our data shows that Dixon Technologies (India) Limited has a market capitalization of ₹286b, and reported total annual CEO compensation of ₹204m for the year to March 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹28m.

On comparing similar companies from the Indian Consumer Durables industry with market caps ranging from ₹166b to ₹531b, we found that the median CEO total compensation was ₹30m. Accordingly, our analysis reveals that Dixon Technologies (India) Limited pays Atul Lall north of the industry median. Moreover, Atul Lall also holds ₹10b worth of Dixon Technologies (India) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	₹28m	₹24m	14%
Other	₹176m	₹178m	86%
Total Compensation	₹204m	₹202m	100%

Talking in terms of the industry, salary represented approximately 100% of total compensation out of all the companies we analyzed, while other remuneration made up 0.2356% of the pie. Dixon Technologies (India) pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

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

Dixon Technologies (India) Limited's earnings per share (EPS) grew 40% per year over the last three years. It achieved revenue growth of 7.9% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

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

Boasting a total shareholder return of 174% over three years, Dixon Technologies (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.

To Conclude...

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.

Shareholders may want to check for free if Dixon Technologies (India) insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.