Here's Why D. B. Corp Limited's (NSE:DBCORP) CEO May Deserve A Raise

Key Insights

• D. B to hold its Annual General Meeting on 3rd of September
• CEO Sudhir Agarwal's total compensation includes salary of ₹26.6m
• Total compensation is 57% below industry average
• Over the past three years, D. B's EPS grew by 40% and over the past three years, the total shareholder return was 353%

Shareholders will be pleased by the impressive results for D. B. Corp Limited (NSE:DBCORP) recently and CEO Sudhir Agarwal has played a key role. At the upcoming AGM on 3rd of September, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for D. B

How Does Total Compensation For Sudhir Agarwal Compare With Other Companies In The Industry?

Our data indicates that D. B. Corp Limited has a market capitalization of ₹59b, and total annual CEO compensation was reported as ₹27m for the year to March 2024. That's just a smallish increase of 6.3% on last year. Notably, the salary of ₹27m is the entirety of the CEO compensation.

On comparing similar companies from the Indian Media industry with market caps ranging from ₹34b to ₹134b, we found that the median CEO total compensation was ₹62m. This suggests that Sudhir Agarwal is paid below the industry median. Moreover, Sudhir Agarwal also holds ₹2.7b worth of D. B stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹27m	₹25m	100%
Other	-	-	-
Total Compensation	₹27m	₹25m	100%

Talking in terms of the industry, salary represented approximately 90% of total compensation out of all the companies we analyzed, while other remuneration made up 10% of the pie. On a company level, D. B prefers to reward its CEO through a salary, opting not to pay Sudhir Agarwal through non-salary benefits. 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.

D. B. Corp Limited's Growth

Over the past three years, D. B. Corp Limited has seen its earnings per share (EPS) grow by 40% per year. Its revenue is up 11% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 D. B. Corp Limited Been A Good Investment?

Boasting a total shareholder return of 353% over three years, D. B. Corp Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

D. B rewards its CEO solely through a salary, ignoring non-salary benefits completely. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for D. B that investors should look into moving forward.

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.