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In 2004 Nandan Chandavarkar was appointed CEO of FDC Limited (NSE:FDC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for FDC

How Does Nandan Chandavarkar's Compensation Compare With Similar Sized Companies?

According to our data, FDC Limited has a market capitalization of ₹33b, and pays its CEO total annual compensation worth ₹18m. (This figure is for the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹6.6m. We looked at a group of companies with market capitalizations from ₹14b to ₹56b, and the median CEO total compensation was ₹21m.

That means Nandan Chandavarkar receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at FDC, below.

Is FDC Limited Growing?

FDC Limited saw earnings per share stay pretty flat over the last three years, albeit with a slight decrease, according to the line of best fit. Its revenue is up 1.5% over last year.

Unfortunately there is a complete lack of earnings per share improvement, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has FDC Limited Been A Good Investment?

With a total shareholder return of 7.7% over three years, FDC Limited has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Nandan Chandavarkar is paid around the same as most CEOs of similar size companies.

The company isn't growing earnings per share, and nor have the total returns inspired us. We do not think the CEO pay is a problem, but we'd venture the company should look to improve its business metrics (and share price) before paying any more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at FDC.

Important note: FDC may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.