How Does Just Dial's (NSE:JUSTDIAL) CEO Pay Compare With Company Performance?

The CEO of Just Dial Limited (NSE:JUSTDIAL) is Venkatachalam Mani, and this article examines 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 Just Dial.

See our latest analysis for Just Dial

How Does Total Compensation For Venkatachalam Mani Compare With Other Companies In The Industry?

At the time of writing, our data shows that Just Dial Limited has a market capitalization of ₹41b, and reported total annual CEO compensation of ₹30m for the year to March 2020. That's a notable increase of 42% on last year. In particular, the salary of ₹18.0m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations ranging from ₹15b to ₹58b, the reported median CEO total compensation was ₹30m. From this we gather that Venkatachalam Mani is paid around the median for CEOs in the industry. What's more, Venkatachalam Mani holds ₹13b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. Our data reveals that Just Dial allocates salary more or less in line with the wider market. 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 Just Dial Limited's Growth Numbers

Just Dial Limited has seen its earnings per share (EPS) increase by 24% a year over the past three years. It saw its revenue drop 23% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Just Dial Limited Been A Good Investment?

Boasting a total shareholder return of 51% over three years, Just Dial 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.

To Conclude...

As we touched on above, Just Dial Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Investors would surely be happy to see that returns have been great, and that EPS is up. Indeed, many might consider that Venkatachalam is compensated rather modestly, given the solid company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.

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. We did our research and spotted 2 warning signs for Just Dial 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. 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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