It's Unlikely That DC Infotech and Communication Limited's (NSE:DCI) CEO Will See A Huge Pay Rise This Year

Key Insights

• DC Infotech and Communication to hold its Annual General Meeting on 28th of September
• Total pay for CEO Chetankumar Timbadia includes ₹6.00m salary
• The overall pay is 234% above the industry average
• DC Infotech and Communication's total shareholder return over the past three years was 629% while its EPS grew by 64% over the past three years

Performance at DC Infotech and Communication Limited (NSE:DCI) has been reasonably good and CEO Chetankumar Timbadia has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 28th 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 will still be cautious of paying the CEO excessively.

View our latest analysis for DC Infotech and Communication

Comparing DC Infotech and Communication Limited's CEO Compensation With The Industry

According to our data, DC Infotech and Communication Limited has a market capitalization of ₹1.8b, and paid its CEO total annual compensation worth ₹6.0m over the year to March 2023. This was the same amount the CEO received in the prior year. Notably, the salary of ₹6.0m is the entirety of the CEO compensation.

For comparison, other companies in the Indian Electronic industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹1.8m. This suggests that Chetankumar Timbadia is paid more than the median for the industry. Furthermore, Chetankumar Timbadia directly owns ₹544m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹6.0m	₹6.0m	100%
Other	-	-	-
Total Compensation	₹6.0m	₹6.0m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Speaking on a company level, DC Infotech and Communication 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.

DC Infotech and Communication Limited's Growth

Over the past three years, DC Infotech and Communication Limited has seen its earnings per share (EPS) grow by 64% per year. Its revenue is up 35% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 DC Infotech and Communication Limited Been A Good Investment?

Most shareholders would probably be pleased with DC Infotech and Communication Limited for providing a total return of 629% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

DC Infotech and Communication rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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. We identified 2 warning signs for DC Infotech and Communication (1 is a bit concerning!) that you should be aware of before investing here.

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.

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.