Dollar Industries Limited's (NSE:DOLLAR) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Dollar Industries will host its Annual General Meeting on 2nd of August
• Total pay for CEO Vinod Gupta includes ₹18.0m salary
• The overall pay is comparable to the industry average
• Dollar Industries' total shareholder return over the past three years was 47% while its EPS grew by 1.9% over the past three years

Performance at Dollar Industries Limited (NSE:DOLLAR) has been reasonably good and CEO Vinod Gupta has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 2nd of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

Check out our latest analysis for Dollar Industries

Comparing Dollar Industries Limited's CEO Compensation With The Industry

According to our data, Dollar Industries Limited has a market capitalization of ₹29b, and paid its CEO total annual compensation worth ₹20m over the year to March 2024. This was the same amount the CEO received in the prior year. We note that the salary portion, which stands at ₹18.0m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Luxury industry with market capitalizations ranging between ₹17b and ₹67b had a median total CEO compensation of ₹25m. This suggests that Dollar Industries remunerates its CEO largely in line with the industry average. Moreover, Vinod Gupta also holds ₹1.2b worth of Dollar Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹18m	₹18m	92%
Other	₹1.5m	₹1.5m	8%
Total Compensation	₹20m	₹20m	100%

Talking in terms of the industry, salary represented approximately 99% of total compensation out of all the companies we analyzed, while other remuneration made up 0.75879388% of the pie. There isn't a significant difference between Dollar Industries and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Dollar Industries Limited's Growth Numbers

Dollar Industries Limited's earnings per share (EPS) grew 1.9% per year over the last three years. It achieved revenue growth of 13% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Dollar Industries Limited Been A Good Investment?

Boasting a total shareholder return of 47% over three years, Dollar Industries Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for Dollar Industries (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Dollar Industries, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com