The Compensation For 63 moons technologies limited's (NSE:63MOONS) CEO Looks Deserved And Here's Why

Key Insights

• 63 moons technologies to hold its Annual General Meeting on 27th of September
• CEO Soundaram Rajendran's total compensation includes salary of ₹17.7m
• The total compensation is similar to the average for the industry
• 63 moons technologies' EPS grew by 49% over the past three years while total shareholder return over the past three years was 316%

The performance at 63 moons technologies limited (NSE:63MOONS) has been quite strong recently and CEO Soundaram Rajendran has played a role in it. Coming up to the next AGM on 27th of September, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for 63 moons technologies

Comparing 63 moons technologies limited's CEO Compensation With The Industry

Our data indicates that 63 moons technologies limited has a market capitalization of ₹13b, and total annual CEO compensation was reported as ₹18m for the year to March 2023. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹18m.

On comparing similar companies from the Indian Software industry with market caps ranging from ₹8.3b to ₹33b, we found that the median CEO total compensation was ₹18m. So it looks like 63 moons technologies compensates Soundaram Rajendran in line with the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	₹18m	₹18m	100%
Other	-	₹40k	-
Total Compensation	₹18m	₹18m	100%

Speaking on an industry level, nearly 96% of total compensation represents salary, while the remainder of 4% is other remuneration. At the company level, 63 moons technologies pays Soundaram Rajendran solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

63 moons technologies limited's Growth

63 moons technologies limited's earnings per share (EPS) grew 49% per year over the last three years. In the last year, its revenue is up 124%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has 63 moons technologies limited Been A Good Investment?

Boasting a total shareholder return of 316% over three years, 63 moons technologies 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.

In Summary...

63 moons technologies rewards its CEO solely through a salary, ignoring non-salary benefits completely. Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for 63 moons technologies you should be aware of, and 1 of them is potentially serious.

Important note: 63 moons technologies 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.