We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Artemis Medicare Services Limited's (NSE:ARTEMISMED) CEO For Now

Key Insights

• Artemis Medicare Services to hold its Annual General Meeting on 24th of July
• Salary of ₹64.8m is part of CEO Devlina Chakravarty's total remuneration
• The total compensation is 480% higher than the average for the industry
• Artemis Medicare Services' total shareholder return over the past three years was 540% while its EPS grew by 94% over the past three years

Under the guidance of CEO Devlina Chakravarty, Artemis Medicare Services Limited (NSE:ARTEMISMED) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 24th of July. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Artemis Medicare Services

Comparing Artemis Medicare Services Limited's CEO Compensation With The Industry

Our data indicates that Artemis Medicare Services Limited has a market capitalization of ₹32b, and total annual CEO compensation was reported as ₹183m for the year to March 2024. We note that's an increase of 32% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹65m.

On comparing similar companies from the Indian Healthcare industry with market caps ranging from ₹17b to ₹67b, we found that the median CEO total compensation was ₹32m. Accordingly, our analysis reveals that Artemis Medicare Services Limited pays Devlina Chakravarty north of the industry median. What's more, Devlina Chakravarty holds ₹675m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹65m	₹46m	35%
Other	₹119m	₹93m	65%
Total Compensation	₹183m	₹139m	100%

On an industry level, roughly 97% of total compensation represents salary and 3% is other remuneration. It's interesting to note that Artemis Medicare Services allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Artemis Medicare Services Limited's Growth

Over the past three years, Artemis Medicare Services Limited has seen its earnings per share (EPS) grow by 94% per year. It achieved revenue growth of 19% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Artemis Medicare Services Limited Been A Good Investment?

Boasting a total shareholder return of 540% over three years, Artemis Medicare Services Limited has done well by shareholders. 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.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Artemis Medicare Services that investors should look into moving forward.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com