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

Key Insights

• Datamatics Global Services to hold its Annual General Meeting on 18th of September
• CEO Rahul Kanodia's total compensation includes salary of ₹33.0m
• Total compensation is 226% above industry average
• Over the past three years, Datamatics Global Services' EPS grew by 9.4% and over the past three years, the total shareholder return was 178%

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Performance at Datamatics Global Services Limited (NSE:DATAMATICS) has been reasonably good and CEO Rahul Kanodia has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 18th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Datamatics Global Services

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

According to our data, Datamatics Global Services Limited has a market capitalization of ₹54b, and paid its CEO total annual compensation worth ₹65m over the year to March 2025. That's a notable decrease of 18% on last year. In particular, the salary of ₹33.0m, makes up a fairly large portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Indian Professional Services industry with market capitalizations between ₹35b and ₹142b, we discovered that the median CEO total compensation of that group was ₹20m. This suggests that Rahul Kanodia is paid more than the median for the industry.

Speaking on an industry level, nearly 92% of total compensation represents salary, while the remainder of 8% is other remuneration. It's interesting to note that Datamatics Global Services allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Datamatics Global Services Limited's Growth Numbers

Over the past three years, Datamatics Global Services Limited has seen its earnings per share (EPS) grow by 9.4% per year. In the last year, its revenue is up 16%.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. 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 Datamatics Global Services Limited Been A Good Investment?

Boasting a total shareholder return of 178% over three years, Datamatics Global Services Limited has done well by shareholders. 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.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Datamatics Global Services that investors should be aware of in a dynamic business environment.

Important note: Datamatics Global Services is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.