In This Article:
Udayant Malhoutra has been the CEO of Dynamatic Technologies Limited (NSE:DYNAMATECH) since 1989. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Dynamatic Technologies
How Does Udayant Malhoutra's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Dynamatic Technologies Limited has a market cap of ₹7.7b, and is paying total annual CEO compensation of ₹8.4m. (This number is for the twelve months until March 2019). Notably, the salary of ₹8.4m is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹2.4m.
As you can see, Udayant Malhoutra is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Dynamatic Technologies Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Dynamatic Technologies has changed over time.
Is Dynamatic Technologies Limited Growing?
On average over the last three years, Dynamatic Technologies Limited has shrunk earnings per share by 6.5% each year (measured with a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Dynamatic Technologies Limited Been A Good Investment?
Given the total loss of 59% over three years, many shareholders in Dynamatic Technologies Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Dynamatic Technologies Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.