Here's Why FDC Limited's (NSE:FDC) CEO Compensation Is The Least Of Shareholders' Concerns

CEO Nandan Chandavarkar has done a decent job of delivering relatively good performance at FDC Limited (NSE:FDC) recently. 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 22 September 2022. We present our case of why we think CEO compensation looks fair.

Check out our latest analysis for FDC

How Does Total Compensation For Nandan Chandavarkar Compare With Other Companies In The Industry?

At the time of writing, our data shows that FDC Limited has a market capitalization of ₹46b, and reported total annual CEO compensation of ₹24m for the year to March 2022. Notably, that's a decrease of 9.9% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹11m.

For comparison, other companies in the same industry with market capitalizations ranging between ₹16b and ₹64b had a median total CEO compensation of ₹31m. So it looks like FDC compensates Nandan Chandavarkar in line with the median for the industry. Furthermore, Nandan Chandavarkar directly owns ₹1.4b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	₹11m	₹10m	44%
Other	₹13m	₹16m	56%
Total Compensation	₹24m	₹26m	100%

Speaking on an industry level, nearly 97% of total compensation represents salary, while the remainder of 3% is other remuneration. FDC pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

FDC Limited's Growth

Over the past three years, FDC Limited has seen its earnings per share (EPS) grow by 3.9% per year. In the last year, its revenue is up 7.0%.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has FDC Limited Been A Good Investment?

Most shareholders would probably be pleased with FDC Limited for providing a total return of 66% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for FDC that investors should look into moving forward.

Switching gears from FDC, 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.

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.