We Think FDC Limited's (NSE:FDC) CEO Compensation Looks Fair

Key Insights

• FDC to hold its Annual General Meeting on 25th of September
• Total pay for CEO Nandan Chandavarkar includes ₹14.0m salary
• The overall pay is comparable to the industry average
• FDC's EPS grew by 14% over the past three years while total shareholder return over the past three years was 73%

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The performance at FDC Limited (NSE:FDC) has been quite strong recently and CEO Nandan Chandavarkar has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 25th of September. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for FDC

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

According to our data, FDC Limited has a market capitalization of ₹77b, and paid its CEO total annual compensation worth ₹37m over the year to March 2025. That's a notable increase of 24% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹14m.

On comparing similar companies from the Indian Pharmaceuticals industry with market caps ranging from ₹35b to ₹141b, we found that the median CEO total compensation was ₹35m. So it looks like FDC compensates Nandan Chandavarkar in line with the median for the industry. What's more, Nandan Chandavarkar holds ₹2.4b 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 99% of total compensation out of all the companies we analyzed, while other remuneration made up 0.79361173% of the pie. In FDC's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

A Look at FDC Limited's Growth Numbers

FDC Limited's earnings per share (EPS) grew 14% per year over the last three years. In the last year, its revenue is up 3.6%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has FDC Limited Been A Good Investment?

Most shareholders would probably be pleased with FDC Limited for providing a total return of 73% over three years. 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for FDC (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

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.

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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.