We Take A Look At Why HealthCare Global Enterprises Limited's (NSE:HCG) CEO Compensation Is Well Earned

Key Insights

• HealthCare Global Enterprises' Annual General Meeting to take place on 25th of September
• Total pay for CEO Raj Gore includes ₹22.1m salary
• Total compensation is similar to the industry average
• HealthCare Global Enterprises' EPS grew by 88% over the past three years while total shareholder return over the past three years was 69%

We have been pretty impressed with the performance at HealthCare Global Enterprises Limited (NSE:HCG) recently and CEO Raj Gore deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 25th of September. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for HealthCare Global Enterprises

Comparing HealthCare Global Enterprises Limited's CEO Compensation With The Industry

According to our data, HealthCare Global Enterprises Limited has a market capitalization of ₹57b, and paid its CEO total annual compensation worth ₹33m over the year to March 2024. That's a modest increase of 5.0% on the prior year. Notably, the salary which is ₹22.1m, represents most of the total compensation being paid.

On comparing similar companies from the Indian Healthcare industry with market caps ranging from ₹33b to ₹134b, we found that the median CEO total compensation was ₹34m. This suggests that HealthCare Global Enterprises remunerates its CEO largely in line with the industry average. What's more, Raj Gore holds ₹16m 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	₹22m	₹21m	67%
Other	₹11m	₹11m	33%
Total Compensation	₹33m	₹32m	100%

On an industry level, roughly 91% of total compensation represents salary and 9% is other remuneration. HealthCare Global Enterprises sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at HealthCare Global Enterprises Limited's Growth Numbers

HealthCare Global Enterprises Limited's earnings per share (EPS) grew 88% per year over the last three years. It achieved revenue growth of 13% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, 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 HealthCare Global Enterprises Limited Been A Good Investment?

Most shareholders would probably be pleased with HealthCare Global Enterprises Limited for providing a total return of 69% 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for HealthCare Global Enterprises that you should be aware of before investing.

Switching gears from HealthCare Global Enterprises, 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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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.