The CEO Of L&T Technology Services Limited (NSE:LTTS) Might See A Pay Rise On The Horizon

Key Insights

• L&T Technology Services to hold its Annual General Meeting on 16th of June
• CEO Amit Pal Chadha's total compensation includes salary of ₹54.5m
• The overall pay is 77% below the industry average
• L&T Technology Services' EPS grew by 9.6% over the past three years while total shareholder return over the past three years was 39%

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Shareholders will probably not be disappointed by the robust results at L&T Technology Services Limited (NSE:LTTS) recently and they will be keeping this in mind as they go into the AGM on 16th of June. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

Check out our latest analysis for L&T Technology Services

Comparing L&T Technology Services Limited's CEO Compensation With The Industry

Our data indicates that L&T Technology Services Limited has a market capitalization of ₹460b, and total annual CEO compensation was reported as ₹181m for the year to March 2025. That's a notable increase of 17% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹55m.

On comparing similar companies from the Indian Professional Services industry with market caps ranging from ₹343b to ₹1.0t, we found that the median CEO total compensation was ₹800m. That is to say, Amit Pal Chadha is paid under the industry median. Moreover, Amit Pal Chadha also holds ₹666m worth of L&T Technology Services stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

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. L&T Technology Services pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

L&T Technology Services Limited's Growth

L&T Technology Services Limited has seen its earnings per share (EPS) increase by 9.6% a year over the past three years. It achieved revenue growth of 11% over the last year.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has L&T Technology Services Limited Been A Good Investment?

Boasting a total shareholder return of 39% over three years, L&T Technology Services 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...

The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and 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 L&T Technology Services 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. 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.