Here's Why Shareholders May Want To Be Cautious With Increasing Dodla Dairy Limited's (NSE:DODLA) CEO Pay Packet

Key Insights

• Dodla Dairy to hold its Annual General Meeting on 14th of July
• Salary of ₹35.0m is part of CEO Busireddy Venkat Reddy's total remuneration
• Total compensation is 43% above industry average
• Over the past three years, Dodla Dairy's EPS grew by 24% and over the past three years, the total shareholder return was 194%

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Under the guidance of CEO Busireddy Venkat Reddy, Dodla Dairy Limited (NSE:DODLA) has performed reasonably well recently. As shareholders go into the upcoming AGM on 14th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Dodla Dairy

How Does Total Compensation For Busireddy Venkat Reddy Compare With Other Companies In The Industry?

According to our data, Dodla Dairy Limited has a market capitalization of ₹85b, and paid its CEO total annual compensation worth ₹37m over the year to March 2025. That's a notable increase of 8.4% on last year. We note that the salary portion, which stands at ₹35.0m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Food industry with market capitalizations ranging between ₹34b and ₹137b had a median total CEO compensation of ₹26m. Accordingly, our analysis reveals that Dodla Dairy Limited pays Busireddy Venkat Reddy north of the industry median. What's more, Busireddy Venkat Reddy holds ₹854m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Although there is a difference in how total compensation is set, Dodla Dairy more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Dodla Dairy Limited's Growth Numbers

Over the past three years, Dodla Dairy Limited has seen its earnings per share (EPS) grow by 24% per year. It achieved revenue growth of 19% 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Dodla Dairy Limited Been A Good Investment?

Boasting a total shareholder return of 194% over three years, Dodla Dairy 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.

To Conclude...

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.

Whatever your view on compensation, you might want to check if insiders are buying or selling Dodla Dairy shares (free trial).

Switching gears from Dodla Dairy, 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.