Shareholders Will Likely Find Dollar Industries Limited's (NSE:DOLLAR) CEO Compensation Acceptable

Shareholders may be wondering what CEO Vinod Gupta plans to do to improve the less than great performance at Dollar Industries Limited (NSE:DOLLAR) recently. At the next AGM coming up on 28 July 2021, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

Check out our latest analysis for Dollar Industries

Comparing Dollar Industries Limited's CEO Compensation With the industry

Our data indicates that Dollar Industries Limited has a market capitalization of ₹17b, and total annual CEO compensation was reported as ₹11m for the year to March 2021. We note that's a small decrease of 4.5% on last year. Notably, the salary which is ₹9.69m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from ₹7.5b to ₹30b, the reported median CEO total compensation was ₹17m. In other words, Dollar Industries pays its CEO lower than the industry median. Moreover, Vinod Gupta also holds ₹656m 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	2021	2020	Proportion (2021)
Salary	₹9.7m	₹10m	89%
Other	₹1.2m	₹1.2m	11%
Total Compensation	₹11m	₹11m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Dollar Industries pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Dollar Industries Limited's Growth Numbers

Over the past three years, Dollar Industries Limited has seen its earnings per share (EPS) grow by 9.3% per year. Its revenue is up 7.2% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Dollar Industries Limited Been A Good Investment?

Given the total shareholder loss of 1.3% over three years, many shareholders in Dollar Industries Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The lack lustre share price performance may have something to do with the flat earnings growth. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board and assess if the board's plan is likely to improve company performance.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Dollar Industries that investors should look into moving forward.

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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