We Think Restaurant Brands Asia Limited's (NSE:RBA) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Restaurant Brands Asia's Annual General Meeting to take place on 21st of August
• Salary of ₹39.9m is part of CEO Rajeev Varman's total remuneration
• The overall pay is 34% above the industry average
• Restaurant Brands Asia's EPS declined by 0.3% over the past three years while total shareholder loss over the past three years was 38%

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Restaurant Brands Asia Limited (NSE:RBA) has not performed well recently and CEO Rajeev Varman will probably need to up their game. At the upcoming AGM on 21st of August, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Restaurant Brands Asia

How Does Total Compensation For Rajeev Varman Compare With Other Companies In The Industry?

According to our data, Restaurant Brands Asia Limited has a market capitalization of ₹46b, and paid its CEO total annual compensation worth ₹66m over the year to March 2025. We note that's an increase of 66% above last year. In particular, the salary of ₹39.9m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Indian Hospitality industry with market capitalizations between ₹18b and ₹70b, we discovered that the median CEO total compensation of that group was ₹49m. Hence, we can conclude that Rajeev Varman is remunerated higher than the industry median. Moreover, Rajeev Varman also holds ₹133m worth of Restaurant Brands Asia stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 95% of total compensation represents salary and 5% is other remuneration. Restaurant Brands Asia pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Restaurant Brands Asia Limited's Growth Numbers

Over the last three years, Restaurant Brands Asia Limited has not seen its earnings per share change much, though they have deteriorated slightly. Its revenue is up 5.2% over the last year.

Its a bit disappointing to see that the company has failed to grow its EPS. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Restaurant Brands Asia Limited Been A Good Investment?

With a total shareholder return of -38% over three years, Restaurant Brands Asia Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Restaurant Brands Asia that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.