We Think Some Shareholders May Hesitate To Increase 63 moons technologies limited's (NSE:63MOONS) CEO Compensation

Key Insights

• 63 moons technologies' Annual General Meeting to take place on 27th of September
• Salary of ₹17.7m is part of CEO Soundaram Rajendran's total remuneration
• The overall pay is 67% above the industry average
• Over the past three years, 63 moons technologies' EPS grew by 121% and over the past three years, the total shareholder return was 343%

Performance at 63 moons technologies limited (NSE:63MOONS) has been reasonably good and CEO Soundaram Rajendran has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 27th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

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 ₹19b, and total annual CEO compensation was reported as ₹18m for the year to March 2024. 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.

In comparison with other companies in the Indian Software industry with market capitalizations ranging from ₹8.4b to ₹33b, the reported median CEO total compensation was ₹11m. Accordingly, our analysis reveals that 63 moons technologies limited pays Soundaram Rajendran north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹18m	₹18m	100%
Other	-	-	-
Total Compensation	₹18m	₹18m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Speaking on a company level, 63 moons technologies prefers to tread along a traditional path, disbursing all compensation through a salary. 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 63 moons technologies limited's Growth Numbers

63 moons technologies limited has seen its earnings per share (EPS) increase by 121% a year over the past three years. It achieved revenue growth of 8.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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?

Most shareholders would probably be pleased with 63 moons technologies limited for providing a total return of 343% 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...

63 moons technologies pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for 63 moons technologies that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.