It's Unlikely That Dreamfolks Services Limited's (NSE:DREAMFOLKS) CEO Will See A Huge Pay Rise This Year

Key Insights

• Dreamfolks Services will host its Annual General Meeting on 29th of September
• Salary of ₹47.4m is part of CEO Liberatha Kallat's total remuneration
• Total compensation is 542% above industry average
• Over the past three years, Dreamfolks Services' EPS grew by 30% and over the past three years, the total loss to shareholders 69%

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In the past three years, the share price of Dreamfolks Services Limited (NSE:DREAMFOLKS) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 29th of September. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Dreamfolks Services

Comparing Dreamfolks Services Limited's CEO Compensation With The Industry

According to our data, Dreamfolks Services Limited has a market capitalization of ₹6.3b, and paid its CEO total annual compensation worth ₹56m over the year to March 2025. That's a notable increase of 12% on last year. We note that the salary portion, which stands at ₹47.4m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the India Infrastructure industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹8.7m. Accordingly, our analysis reveals that Dreamfolks Services Limited pays Liberatha Kallat north of the industry median. What's more, Liberatha Kallat holds ₹1.5b 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 88% of total compensation out of all the companies we analyzed, while other remuneration made up 12% of the pie. Our data reveals that Dreamfolks Services 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 Dreamfolks Services Limited's Growth Numbers

Dreamfolks Services Limited has seen its earnings per share (EPS) increase by 30% a year over the past three years. Its revenue is up 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Dreamfolks Services Limited Been A Good Investment?

Few Dreamfolks Services Limited shareholders would feel satisfied with the return of -69% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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 2 warning signs for Dreamfolks Services that investors should think about before committing capital to this stock.

Switching gears from Dreamfolks Services, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.