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Persistent Systems Limited's (NSE:PERSISTENT) CEO Compensation Is Looking A Bit Stretched At The Moment

Simply Wall St · 07/15/2025 00:16

Key Insights

  • Persistent Systems to hold its Annual General Meeting on 21st of July
  • Salary of ₹89.0m is part of CEO Sandeep Kalra's total remuneration
  • Total compensation is 174% above industry average
  • Persistent Systems' total shareholder return over the past three years was 253% while its EPS grew by 28% over the past three years

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Performance at Persistent Systems Limited (NSE:PERSISTENT) has been reasonably good and CEO Sandeep Kalra has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 21st of July, 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 Persistent Systems

How Does Total Compensation For Sandeep Kalra Compare With Other Companies In The Industry?

According to our data, Persistent Systems Limited has a market capitalization of ₹837b, and paid its CEO total annual compensation worth ₹1.5b over the year to March 2025. That's a notable increase of 93% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹89m.

For comparison, other companies in the Indian IT industry with market capitalizations above ₹688b, reported a median total CEO compensation of ₹540m. Hence, we can conclude that Sandeep Kalra is remunerated higher than the industry median.

Component 2025 2024 Proportion (2025)
Salary ₹89m ₹83m 6%
Other ₹1.4b ₹683m 94%
Total Compensation ₹1.5b ₹766m 100%

On an industry level, around 81% of total compensation represents salary and 19% is other remuneration. Persistent Systems sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
NSEI:PERSISTENT CEO Compensation July 15th 2025

Persistent Systems Limited's Growth

Persistent Systems Limited has seen its earnings per share (EPS) increase by 28% a year over the past three years. It achieved revenue growth of 22% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Persistent Systems Limited Been A Good Investment?

Most shareholders would probably be pleased with Persistent Systems Limited for providing a total return of 253% over three years. 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.

To Conclude...

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.

Shareholders may want to check for free if Persistent Systems insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.