We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Advani Hotels & Resorts (India) Limited's (NSE:ADVANIHOTR) CEO For Now

Key Insights

• Advani Hotels & Resorts (India) will host its Annual General Meeting on 29th of September
• CEO Prahlad Advani's total compensation includes salary of ₹12.6m
• The overall pay is 290% above the industry average
• Over the past three years, Advani Hotels & Resorts (India)'s EPS grew by 13% and over the past three years, the total shareholder return was 69%

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Under the guidance of CEO Prahlad Advani, Advani Hotels & Resorts (India) Limited (NSE:ADVANIHOTR) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Advani Hotels & Resorts (India)

Comparing Advani Hotels & Resorts (India) Limited's CEO Compensation With The Industry

According to our data, Advani Hotels & Resorts (India) Limited has a market capitalization of ₹5.5b, and paid its CEO total annual compensation worth ₹15m over the year to March 2025. Notably, that's an increase of 41% over the year before. In particular, the salary of ₹12.6m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Hospitality industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹3.7m. Hence, we can conclude that Prahlad Advani is remunerated higher than the industry median. Furthermore, Prahlad Advani directly owns ₹106m worth of shares in the company, implying that they are deeply invested in the company's success.

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 1% of the pie. Advani Hotels & Resorts (India) sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Advani Hotels & Resorts (India) Limited's Growth

Advani Hotels & Resorts (India) Limited's earnings per share (EPS) grew 13% per year over the last three years. In the last year, its revenue is up 1.1%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Advani Hotels & Resorts (India) Limited Been A Good Investment?

We think that the total shareholder return of 69%, over three years, would leave most Advani Hotels & Resorts (India) Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Advani Hotels & Resorts (India) that you should be aware of before investing.

Important note: Advani Hotels & Resorts (India) is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.