It May Be Possible That Just Dial Limited's (NSE:JUSTDIAL) CEO Compensation Could Get Bumped Up

Key Insights

• Just Dial to hold its Annual General Meeting on 14th of September
• Total pay for CEO Venkatachalam Mani includes ₹30.0m salary
• The overall pay is 58% below the industry average
• Just Dial's EPS declined by 9.0% over the past three years while total shareholder return over the past three years was 106%

Shareholders will probably not be disappointed by the robust results at Just Dial Limited (NSE:JUSTDIAL) recently and they will be keeping this in mind as they go into the AGM on 14th of September. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

Check out our latest analysis for Just Dial

Comparing Just Dial Limited's CEO Compensation With The Industry

Our data indicates that Just Dial Limited has a market capitalization of ₹64b, and total annual CEO compensation was reported as ₹30m for the year to March 2023. That's a notable increase of 15% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹30m.

In comparison with other companies in the India Interactive Media and Services industry with market capitalizations ranging from ₹33b to ₹133b, the reported median CEO total compensation was ₹72m. That is to say, Venkatachalam Mani is paid under the industry median. What's more, Venkatachalam Mani holds ₹5.0b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	₹30m	₹26m	100%
Other	-	-	-
Total Compensation	₹30m	₹26m	100%

On an industry level, roughly 55% of total compensation represents salary and 45% is other remuneration. At the company level, Just Dial pays Venkatachalam Mani solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Just Dial Limited's Growth Numbers

Just Dial Limited has reduced its earnings per share by 9.0% a year over the last three years. It achieved revenue growth of 36% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 106% over three years, Just Dial Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Just Dial pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 1 warning sign for Just Dial that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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

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.