We Take A Look At Why Wonderla Holidays Limited's (NSE:WONDERLA) CEO Has Earned Their Pay Packet

Key Insights

• Wonderla Holidays will host its Annual General Meeting on 21st of August
• CEO Arun Chittilappilly's total compensation includes salary of ₹14.4m
• The total compensation is similar to the average for the industry
• Wonderla Holidays' EPS grew by 78% over the past three years while total shareholder return over the past three years was 254%

It would be hard to discount the role that CEO Arun Chittilappilly has played in delivering the impressive results at Wonderla Holidays Limited (NSE:WONDERLA) recently. Coming up to the next AGM on 21st of August, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Wonderla Holidays

How Does Total Compensation For Arun Chittilappilly Compare With Other Companies In The Industry?

At the time of writing, our data shows that Wonderla Holidays Limited has a market capitalization of ₹44b, and reported total annual CEO compensation of ₹52m for the year to March 2024. Notably, that's an increase of 60% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹14m.

For comparison, other companies in the Indian Hospitality industry with market capitalizations ranging between ₹17b and ₹67b had a median total CEO compensation of ₹49m. So it looks like Wonderla Holidays compensates Arun Chittilappilly in line with the median for the industry. Furthermore, Arun Chittilappilly directly owns ₹16b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹14m	₹7.2m	27%
Other	₹38m	₹26m	73%
Total Compensation	₹52m	₹33m	100%

On an industry level, roughly 91% of total compensation represents salary and 9% is other remuneration. In Wonderla Holidays' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Wonderla Holidays Limited's Growth

Wonderla Holidays Limited's earnings per share (EPS) grew 78% per year over the last three years. It achieved revenue growth of 1.5% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few 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 Wonderla Holidays Limited Been A Good Investment?

Most shareholders would probably be pleased with Wonderla Holidays Limited for providing a total return of 254% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Wonderla Holidays that you should be aware of before investing.

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.