Shareholders May Be More Conservative With Dhunseri Ventures Limited's (NSE:DVL) CEO Compensation For Now

Key Insights

• Dhunseri Ventures to hold its Annual General Meeting on 20th of August
• Salary of ₹6.14m is part of CEO Aruna Dhanuka's total remuneration
• Total compensation is 649% above industry average
• Dhunseri Ventures' total shareholder return over the past three years was 71% while its EPS was down 18% over the past three years

Performance at Dhunseri Ventures Limited (NSE:DVL) has been reasonably good and CEO Aruna Dhanuka has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 20th of August. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Dhunseri Ventures

How Does Total Compensation For Aruna Dhanuka Compare With Other Companies In The Industry?

Our data indicates that Dhunseri Ventures Limited has a market capitalization of ₹16b, and total annual CEO compensation was reported as ₹40m for the year to March 2024. That's a slight decrease of 6.4% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹6.1m.

On examining similar-sized companies in the Indian Capital Markets industry with market capitalizations between ₹8.4b and ₹34b, we discovered that the median CEO total compensation of that group was ₹5.4m. Accordingly, our analysis reveals that Dhunseri Ventures Limited pays Aruna Dhanuka north of the industry median. What's more, Aruna Dhanuka holds ₹37m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹6.1m	₹6.0m	15%
Other	₹34m	₹37m	85%
Total Compensation	₹40m	₹43m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Dhunseri Ventures pays a modest slice of remuneration through salary, as compared 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.

A Look at Dhunseri Ventures Limited's Growth Numbers

Over the last three years, Dhunseri Ventures Limited has shrunk its earnings per share by 18% per year. It achieved revenue growth of 95% 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. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Dhunseri Ventures Limited Been A Good Investment?

Boasting a total shareholder return of 71% over three years, Dhunseri Ventures 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.

To Conclude...

Although the company has performed relatively well, we still think there are some areas that could be improved. Until EPS growth picks back up, we think shareholders may find it hard to justify increasing CEO pay given that they are already paid above industry average.

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. We've identified 2 warning signs for Dhunseri Ventures that investors should be aware of in a dynamic business environment.

Important note: Dhunseri Ventures is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.