Shareholders May Be More Conservative With The Indian Hotels Company Limited's (NSE:INDHOTEL) CEO Compensation For Now

Key Insights

• Indian Hotels will host its Annual General Meeting on 7th of July
• CEO Puneet Chhatwal's total compensation includes salary of ₹131.8m
• The overall pay is 36% above the industry average
• Indian Hotels' EPS grew by 57% over the past three years while total shareholder return over the past three years was 230%

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Under the guidance of CEO Puneet Chhatwal, The Indian Hotels Company Limited (NSE:INDHOTEL) 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 7th of July. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Indian Hotels

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

According to our data, The Indian Hotels Company Limited has a market capitalization of ₹1.1t, and paid its CEO total annual compensation worth ₹230m over the year to March 2025. Notably, that's an increase of 19% over the year before. We note that the salary of ₹131.8m makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Indian Hospitality industry with market capitalizations above ₹686b, reported a median total CEO compensation of ₹169m. This suggests that Puneet Chhatwal is paid more than the median for the industry.

Talking in terms of the industry, salary represented approximately 90% of total compensation out of all the companies we analyzed, while other remuneration made up 10% of the pie. It's interesting to note that Indian Hotels allocates a smaller portion of compensation to salary 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

Over the past three years, The Indian Hotels Company Limited has seen its earnings per share (EPS) grow by 57% per year. It achieved revenue growth of 24% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 The Indian Hotels Company Limited Been A Good Investment?

Boasting a total shareholder return of 230% over three years, The Indian Hotels Company Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Indian Hotels that investors should look into moving forward.

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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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.