What Did AstraZeneca Pharma India's (NSE:ASTRAZEN) CEO Take Home Last Year?

Gagan Bedi became the CEO of AstraZeneca Pharma India Limited (NSE:ASTRAZEN) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether AstraZeneca Pharma India pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for AstraZeneca Pharma India

Comparing AstraZeneca Pharma India Limited's CEO Compensation With the industry

At the time of writing, our data shows that AstraZeneca Pharma India Limited has a market capitalization of ₹83b, and reported total annual CEO compensation of ₹48m for the year to March 2020. We note that's an increase of 27% above last year. Notably, the salary which is ₹39.8m, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between ₹30b and ₹120b had a median total CEO compensation of ₹48m. This suggests that AstraZeneca Pharma India remunerates its CEO largely in line with the industry average.

Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 1.1% is other remuneration. AstraZeneca Pharma India sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

AstraZeneca Pharma India Limited's Growth

AstraZeneca Pharma India Limited has seen its earnings per share (EPS) increase by 53% a year over the past three years. It achieved revenue growth of 14% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has AstraZeneca Pharma India Limited Been A Good Investment?

We think that the total shareholder return of 267%, over three years, would leave most AstraZeneca Pharma India Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As previously discussed, Gagan is compensated close to the median for companies of its size, and which belong to the same industry. Investors would surely be happy to see that returns have been great, and that earnings per share are up. Indeed, many might consider that Gagan is compensated rather modestly, given the solid company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.

Shareholders may want to check for free if AstraZeneca Pharma India insiders are buying or selling shares.

Important note: AstraZeneca Pharma India is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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. 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.
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