Devyani International Limited's (NSE:DEVYANI) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Devyani International to hold its Annual General Meeting on 28th of July
• CEO Virag Joshi's total compensation includes salary of ₹46.5m
• Total compensation is similar to the industry average
• Over the past three years, Devyani International's EPS fell by 62% and over the past three years, the total shareholder return was 8.3%

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Under the guidance of CEO Virag Joshi, Devyani International Limited (NSE:DEVYANI) has performed reasonably well recently. As shareholders go into the upcoming AGM on 28th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Devyani International

How Does Total Compensation For Virag Joshi Compare With Other Companies In The Industry?

According to our data, Devyani International Limited has a market capitalization of ₹217b, and paid its CEO total annual compensation worth ₹49m over the year to March 2025. We note that's an increase of 14% above last year. We note that the salary portion, which stands at ₹46.5m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Hospitality industry with market capitalizations ranging between ₹173b and ₹552b had a median total CEO compensation of ₹51m. From this we gather that Virag Joshi is paid around the median for CEOs in the industry. What's more, Virag Joshi holds ₹1.5b 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% is other remuneration. Devyani International is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Devyani International Limited's Growth

Over the last three years, Devyani International Limited has shrunk its earnings per share by 62% per year. It achieved revenue growth of 39% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Devyani International Limited Been A Good Investment?

Devyani International Limited has not done too badly by shareholders, with a total return of 8.3%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

Devyani International pays its CEO a majority of compensation through a salary. Some shareholders will be pleased by the relatively good results, however, the results could still be improved. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in Devyani International we think you should know about.

Switching gears from Devyani International, 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.