What Did Dixon Technologies (India)'s (NSE:DIXON) CEO Take Home Last Year?

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).

View our latest analysis for Dixon Technologies (India)

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

Our data indicates that Dixon Technologies (India) Limited has a market capitalization of ₹161b, and total annual CEO compensation was reported as ₹46m for the year to March 2020. Notably, that's an increase of 67% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹16m.

In comparison with other companies in the industry with market capitalizations ranging from ₹73b to ₹234b, the reported median CEO total compensation was ₹35m. Accordingly, our analysis reveals that Dixon Technologies (India) Limited pays Atul Lall north of the industry median. What's more, Atul Lall holds ₹5.7b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 95% of total compensation represents salary and 5.3% is other remuneration. Dixon Technologies (India) sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Dixon Technologies (India) Limited's Growth

Over the past three years, Dixon Technologies (India) Limited has seen its earnings per share (EPS) grow by 24% per year. Its revenue is down 4.7% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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?

Most shareholders would probably be pleased with Dixon Technologies (India) Limited for providing a total return of 239% over three years. 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...

As previously discussed, Atul is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. Considering such exceptional results for the company, we'd venture to say 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 can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Dixon Technologies (India) that investors should be aware of in a dynamic business environment.

Switching gears from Dixon Technologies (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. 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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