We Think The Compensation For Krishna Institute of Medical Sciences Limited's (NSE:KIMS) CEO Looks About Right

Key Insights

• Krishna Institute of Medical Sciences to hold its Annual General Meeting on 29th of August
• Salary of ₹20.0m is part of CEO Abhinay Bollineni's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Krishna Institute of Medical Sciences' EPS grew by 6.3% and over the past three years, the total shareholder return was 205%

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Performance at Krishna Institute of Medical Sciences Limited (NSE:KIMS) has been reasonably good and CEO Abhinay Bollineni has done a decent job of steering the company in the right direction. 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 29th of August. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Krishna Institute of Medical Sciences

How Does Total Compensation For Abhinay Bollineni Compare With Other Companies In The Industry?

At the time of writing, our data shows that Krishna Institute of Medical Sciences Limited has a market capitalization of ₹295b, and reported total annual CEO compensation of ₹26m for the year to March 2025. That's a notable increase of 18% on last year. We note that the salary portion, which stands at ₹20.0m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Indian Healthcare industry with market capitalizations between ₹175b and ₹560b, we discovered that the median CEO total compensation of that group was ₹24m. So it looks like Krishna Institute of Medical Sciences compensates Abhinay Bollineni in line with the median for the industry. What's more, Abhinay Bollineni holds ₹203m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 97% of total compensation represents salary and 3% is other remuneration. It's interesting to note that Krishna Institute of Medical Sciences allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Krishna Institute of Medical Sciences Limited's Growth

Krishna Institute of Medical Sciences Limited's earnings per share (EPS) grew 6.3% per year over the last three years. In the last year, its revenue is up 25%.

We think the revenue growth is good. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Krishna Institute of Medical Sciences Limited Been A Good Investment?

We think that the total shareholder return of 205%, over three years, would leave most Krishna Institute of Medical Sciences Limited shareholders smiling. 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 decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Krishna Institute of Medical Sciences that investors should be aware of in a dynamic business environment.

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.