Shareholders Will Probably Hold Off On Increasing Barbeque-Nation Hospitality Limited's (NSE:BARBEQUE) CEO Compensation For The Time Being

Key Insights

• Barbeque-Nation Hospitality to hold its Annual General Meeting on 6th of August
• Salary of ₹13.0m is part of CEO Rahul Agrawal's total remuneration
• Total compensation is similar to the industry average
• Barbeque-Nation Hospitality's EPS grew by 76% over the past three years while total shareholder loss over the past three years was 41%

The underwhelming share price performance of Barbeque-Nation Hospitality Limited (NSE:BARBEQUE) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 6th of August. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Barbeque-Nation Hospitality

How Does Total Compensation For Rahul Agrawal Compare With Other Companies In The Industry?

Our data indicates that Barbeque-Nation Hospitality Limited has a market capitalization of ₹22b, and total annual CEO compensation was reported as ₹23m for the year to March 2024. Notably, that's an increase of 11% over the year before. Notably, the salary which is ₹13.0m, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Indian Hospitality industry with market capitalizations ranging between ₹8.4b and ₹33b had a median total CEO compensation of ₹23m. So it looks like Barbeque-Nation Hospitality compensates Rahul Agrawal in line with the median for the industry. Furthermore, Rahul Agrawal directly owns ₹56m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹13m	₹15m	56%
Other	₹10m	₹5.7m	44%
Total Compensation	₹23m	₹21m	100%

On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. In Barbeque-Nation Hospitality's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Barbeque-Nation Hospitality Limited's Growth

Over the past three years, Barbeque-Nation Hospitality Limited has seen its earnings per share (EPS) grow by 76% per year. Its revenue is up 1.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Barbeque-Nation Hospitality Limited Been A Good Investment?

Few Barbeque-Nation Hospitality Limited shareholders would feel satisfied with the return of -41% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

So you may want to check if insiders are buying Barbeque-Nation Hospitality shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.

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