We Think Dwarikesh Sugar Industries Limited's (NSE:DWARKESH) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Dwarikesh Sugar Industries will host its Annual General Meeting on 19th of August
• Salary of ₹15.2m is part of CEO Balkishan Maheshwari's total remuneration
• Total compensation is 376% above industry average
• Dwarikesh Sugar Industries' EPS declined by 48% over the past three years while total shareholder loss over the past three years was 61%

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Shareholders will probably not be too impressed with the underwhelming results at Dwarikesh Sugar Industries Limited (NSE:DWARKESH) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 19th of August. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Dwarikesh Sugar Industries

How Does Total Compensation For Balkishan Maheshwari Compare With Other Companies In The Industry?

Our data indicates that Dwarikesh Sugar Industries Limited has a market capitalization of ₹7.4b, and total annual CEO compensation was reported as ₹17m for the year to March 2025. Notably, that's an increase of 8.3% over the year before. In particular, the salary of ₹15.2m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Food industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹3.6m. This suggests that Balkishan Maheshwari is paid more than the median for the industry.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. In Dwarikesh Sugar Industries' case, non-salary compensation represents a greater slice of total remuneration, in comparison 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 Dwarikesh Sugar Industries Limited's Growth Numbers

Dwarikesh Sugar Industries Limited has reduced its earnings per share by 48% a year over the last three years. Its revenue is down 3.8% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Dwarikesh Sugar Industries Limited Been A Good Investment?

With a total shareholder return of -61% over three years, Dwarikesh Sugar Industries Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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 pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Dwarikesh Sugar Industries (1 shouldn't be ignored!) that you should be aware of before investing here.

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.