Here's What We Learned About The CEO Pay At Dhunseri Ventures Limited (NSE:DVL)

Aruna Dhanuka became the CEO of Dhunseri Ventures Limited (NSE:DVL) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Dhunseri Ventures.

View our latest analysis for Dhunseri Ventures

Comparing Dhunseri Ventures Limited's CEO Compensation With the industry

According to our data, Dhunseri Ventures Limited has a market capitalization of ₹2.6b, and paid its CEO total annual compensation worth ₹13m over the year to March 2020. Notably, that's an increase of 24% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹4.8m.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹6.5m. Accordingly, our analysis reveals that Dhunseri Ventures Limited pays Aruna Dhanuka north of the industry median. What's more, Aruna Dhanuka holds ₹7.4m 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 represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. Dhunseri Ventures pays a modest slice of remuneration through salary, as compared 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 Dhunseri Ventures Limited's Growth Numbers

Dhunseri Ventures Limited's earnings per share (EPS) grew 6.3% per year over the last three years. In the last year, its revenue is up 36%.

It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Dhunseri Ventures Limited Been A Good Investment?

Since shareholders would have lost about 38% over three years, some Dhunseri Ventures Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Dhunseri Ventures Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The growth in the business has been uninspiring, but the shareholder returns for Dhunseri Ventures have arguably been worse, over the last three years. And the situation doesn't look all that good when you see Aruna is remunerated higher than the industry average. Taking all this into account, it could be hard to get shareholder support for giving Aruna a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for Dhunseri Ventures you should be aware of, and 1 of them is a bit unpleasant.

Important note: Dhunseri Ventures 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. 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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