Here's Why The Indian Hotels Company Limited's (NSE:INDHOTEL) CEO May Deserve A Raise

Key Insights

• Indian Hotels to hold its Annual General Meeting on 14th of June
• Salary of ₹105.6m is part of CEO Puneet Chhatwal's total remuneration
• The overall pay is 70% below the industry average
• Indian Hotels' EPS grew by 106% over the past three years while total shareholder return over the past three years was 350%

Shareholders will be pleased by the impressive results for The Indian Hotels Company Limited (NSE:INDHOTEL) recently and CEO Puneet Chhatwal has played a key role. At the upcoming AGM on 14th of June, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

View our latest analysis for Indian Hotels

How Does Total Compensation For Puneet Chhatwal Compare With Other Companies In The Industry?

At the time of writing, our data shows that The Indian Hotels Company Limited has a market capitalization of ₹833b, and reported total annual CEO compensation of ₹193m for the year to March 2024. That's just a smallish increase of 5.9% on last year. Notably, the salary which is ₹105.6m, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the Indian Hospitality industry with market capitalizations over ₹667b, the reported median total CEO compensation was ₹644m. Accordingly, Indian Hotels pays its CEO under the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹106m	₹74m	55%
Other	₹87m	₹108m	45%
Total Compensation	₹193m	₹182m	100%

On an industry level, around 91% of total compensation represents salary and 9% is other remuneration. In Indian Hotels' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at The Indian Hotels Company Limited's Growth Numbers

The Indian Hotels Company Limited's earnings per share (EPS) grew 106% per year over the last three years. It achieved revenue growth of 17% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has The Indian Hotels Company Limited Been A Good Investment?

Boasting a total shareholder return of 350% over three years, The Indian Hotels Company Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Indian Hotels that you should be aware of before investing.

Switching gears from Indian Hotels, 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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