Most Shareholders Will Probably Find That The Compensation For Dabur India Limited's (NSE:DABUR) CEO Is Reasonable

Key Insights

• Dabur India's Annual General Meeting to take place on 7th of August
• Total pay for CEO Mohit Malhotra includes ₹118.2m salary
• The total compensation is 58% less than the average for the industry
• Dabur India's EPS grew by 0.4% over the past three years while total shareholder loss over the past three years was 4.7%

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Shareholders may be wondering what CEO Mohit Malhotra plans to do to improve the less than great performance at Dabur India Limited (NSE:DABUR) recently. At the next AGM coming up on 7th of August, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Dabur India

Comparing Dabur India Limited's CEO Compensation With The Industry

Our data indicates that Dabur India Limited has a market capitalization of ₹938b, and total annual CEO compensation was reported as ₹158m for the year to March 2025. Notably, that's an increase of 8.2% over the year before. In particular, the salary of ₹118.2m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Personal Products industry with market capitalizations over ₹701b, the reported median total CEO compensation was ₹381m. This suggests that Mohit Malhotra is paid below the industry median. What's more, Mohit Malhotra holds ₹806m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 75% of total compensation represents salary and 25% is other remuneration. There isn't a significant difference between Dabur India and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Dabur India Limited's Growth Numbers

Over the last three years, Dabur India Limited has not seen its earnings per share change much, though there is a slight positive movement. Its revenue is up 1.3% over the last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 Dabur India Limited Been A Good Investment?

Since shareholders would have lost about 4.7% over three years, some Dabur India Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Flat earnings growth may also be to blame for the uninspiring share price performance. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Dabur India 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.