Here's What We Think About AstraZeneca Pharma India's (NSE:ASTRAZEN) CEO Pay

This article will reflect on the compensation paid to Gagan Bedi who has served as CEO of AstraZeneca Pharma India Limited (NSE:ASTRAZEN) since 2017. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for AstraZeneca Pharma India.

View our latest analysis for AstraZeneca Pharma India

How Does Total Compensation For Gagan Bedi Compare With Other Companies In The Industry?

At the time of writing, our data shows that AstraZeneca Pharma India Limited has a market capitalization of ₹107b, and reported total annual CEO compensation of ₹48m for the year to March 2020. That's a notable increase of 27% on last year. We note that the salary portion, which stands at ₹39.8m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from ₹74b to ₹237b, the reported median CEO total compensation was ₹70m. This suggests that Gagan Bedi is paid below the industry median.

Talking in terms of the industry, salary represented approximately 98% of total compensation out of all the companies we analyzed, while other remuneration made up 2.0% of the pie. AstraZeneca Pharma India pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

AstraZeneca Pharma India Limited's Growth

AstraZeneca Pharma India Limited's earnings per share (EPS) grew 22% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 AstraZeneca Pharma India Limited Been A Good Investment?

Boasting a total shareholder return of 261% over three years, AstraZeneca Pharma India Limited has done well by shareholders. 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...

As we touched on above, AstraZeneca Pharma India Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for AstraZeneca Pharma India that investors should be aware of in a dynamic business environment.

Switching gears from AstraZeneca Pharma India, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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