Datamatics Global Services Limited's (NSE:DATAMATICS) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Datamatics Global Services to hold its Annual General Meeting on 29th of September
• Total pay for CEO Rahul Kanodia includes ₹19.9m salary
• The total compensation is similar to the average for the industry
• Datamatics Global Services' total shareholder return over the past three years was 688% while its EPS grew by 51% over the past three years

It would be hard to discount the role that CEO Rahul Kanodia has played in delivering the impressive results at Datamatics Global Services Limited (NSE:DATAMATICS) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 29th of September. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Datamatics Global Services

Comparing Datamatics Global Services Limited's CEO Compensation With The Industry

Our data indicates that Datamatics Global Services Limited has a market capitalization of ₹34b, and total annual CEO compensation was reported as ₹21m for the year to March 2023. We note that's an increase of 58% above last year. We note that the salary portion, which stands at ₹19.9m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Indian Professional Services industry with market capitalizations between ₹17b and ₹66b, we discovered that the median CEO total compensation of that group was ₹19m. This suggests that Datamatics Global Services remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	₹20m	₹9.9m	97%
Other	₹600k	₹3.1m	3%
Total Compensation	₹21m	₹13m	100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Datamatics Global Services pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Datamatics Global Services Limited's Growth

Datamatics Global Services Limited's earnings per share (EPS) grew 51% per year over the last three years. It achieved revenue growth of 23% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Datamatics Global Services Limited Been A Good Investment?

We think that the total shareholder return of 688%, over three years, would leave most Datamatics Global Services Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Datamatics Global Services pays its CEO a majority of compensation through a salary. 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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Datamatics Global Services 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.

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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.