Shareholders May Be More Conservative With Dhampur Sugar Mills Limited's (NSE:DHAMPURSUG) CEO Compensation For Now

Under the guidance of CEO Gautam Goel, Dhampur Sugar Mills Limited (NSE:DHAMPURSUG) 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 30 August 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Dhampur Sugar Mills

How Does Total Compensation For Gautam Goel Compare With Other Companies In The Industry?

Our data indicates that Dhampur Sugar Mills Limited has a market capitalization of ₹20b, and total annual CEO compensation was reported as ₹45m for the year to March 2021. We note that's an increase of 11% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹15m.

For comparison, other companies in the same industry with market capitalizations ranging between ₹7.4b and ₹30b had a median total CEO compensation of ₹13m. Hence, we can conclude that Gautam Goel is remunerated higher than the industry median. What's more, Gautam Goel holds ₹1.3b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	₹15m	₹14m	33%
Other	₹30m	₹27m	67%
Total Compensation	₹45m	₹41m	100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. In Dhampur Sugar Mills' 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.

A Look at Dhampur Sugar Mills Limited's Growth Numbers

Dhampur Sugar Mills Limited has seen its earnings per share (EPS) increase by 22% a year over the past three years. Its revenue is up 6.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Dhampur Sugar Mills Limited Been A Good Investment?

We think that the total shareholder return of 269%, over three years, would leave most Dhampur Sugar Mills Limited shareholders smiling. 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Dhampur Sugar Mills that investors should be aware of in a dynamic business environment.

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.
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