Shareholders Will Probably Not Have Any Issues With Dabur India Limited's (NSE:DABUR) CEO Compensation

Key Insights

• Dabur India will host its Annual General Meeting on 8th of August
• CEO Mohit Malhotra's total compensation includes salary of ₹109.5m
• The overall pay is comparable to the industry average
• Over the past three years, Dabur India's EPS grew by 2.8% and over the past three years, the total shareholder return was 12%

Performance at Dabur India Limited (NSE:DABUR) has been reasonably good and CEO Mohit Malhotra has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 8th of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Dabur India

How Does Total Compensation For Mohit Malhotra Compare With Other Companies In The Industry?

Our data indicates that Dabur India Limited has a market capitalization of ₹1.1t, and total annual CEO compensation was reported as ₹146m for the year to March 2024. That's a notable increase of 9.6% on last year. In particular, the salary of ₹109.5m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Personal Products industry with market capitalizations above ₹670b, reported a median total CEO compensation of ₹157m. From this we gather that Mohit Malhotra is paid around the median for CEOs in the industry. What's more, Mohit Malhotra holds ₹905m 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	₹109m	₹100m	75%
Other	₹37m	₹34m	25%
Total Compensation	₹146m	₹134m	100%

Talking in terms of the industry, salary represented approximately 95% of total compensation out of all the companies we analyzed, while other remuneration made up 5% of the pie. Dabur India pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Dabur India Limited's Growth

Dabur India Limited has seen its earnings per share (EPS) increase by 2.8% a year over the past three years. Its revenue is up 7.6% over the last year.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Dabur India Limited Been A Good Investment?

With a total shareholder return of 12% over three years, Dabur India Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

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. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

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. That's why we did some digging and identified 1 warning sign for Dabur India that you should be aware of before investing.

Important note: Dabur India 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com