It Looks Like The CEO Of Indraprastha Medical Corporation Limited (NSE:INDRAMEDCO) May Be Underpaid Compared To Peers

Key Insights

• Indraprastha Medical will host its Annual General Meeting on 24th of September
• Total pay for CEO Shivakumar Pattabhiraman includes ₹27.5m salary
• The total compensation is 34% less than the average for the industry
• Over the past three years, Indraprastha Medical's EPS grew by 38% and over the past three years, the total shareholder return was 642%

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The impressive results at Indraprastha Medical Corporation Limited (NSE:INDRAMEDCO) recently will be great news for shareholders. At the upcoming AGM on 24th of September, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for Indraprastha Medical

Comparing Indraprastha Medical Corporation Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Indraprastha Medical Corporation Limited has a market capitalization of ₹44b, and reported total annual CEO compensation of ₹29m for the year to March 2025. We note that's an increase of 9.1% above last year. In particular, the salary of ₹27.5m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Healthcare industry with market capitalizations ranging from ₹18b to ₹70b, the reported median CEO total compensation was ₹44m. That is to say, Shivakumar Pattabhiraman is paid under the industry median.

Talking in terms of the industry, salary represented approximately 97% of total compensation out of all the companies we analyzed, while other remuneration made up 3% of the pie. Investors will find it interesting that Indraprastha Medical pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Indraprastha Medical Corporation Limited's Growth Numbers

Indraprastha Medical Corporation Limited's earnings per share (EPS) grew 38% per year over the last three years. Its revenue is up 6.8% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Indraprastha Medical Corporation Limited Been A Good Investment?

Most shareholders would probably be pleased with Indraprastha Medical Corporation Limited for providing a total return of 642% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Shivakumar receives almost all of their compensation through a salary. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Indraprastha Medical that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.