How Much Is Poly Medicure Limited (NSE:POLYMED) CEO Getting Paid?

Himanshu Baid has been the CEO of Poly Medicure Limited (NSE:POLYMED) since 1995, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Poly Medicure pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Poly Medicure

Comparing Poly Medicure Limited's CEO Compensation With the industry

Our data indicates that Poly Medicure Limited has a market capitalization of ₹45b, and total annual CEO compensation was reported as ₹62m for the year to March 2020. We note that's an increase of 41% above last year. Notably, the salary which is ₹34.8m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from ₹29b to ₹117b, the reported median CEO total compensation was ₹127m. In other words, Poly Medicure pays its CEO lower than the industry median. Moreover, Himanshu Baid also holds ₹6.1b worth of Poly Medicure stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 99% of total compensation out of all the companies we analyzed, while other remuneration made up 1.3% of the pie. Poly Medicure pays a modest slice of remuneration through salary, as compared to the broader 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.

Poly Medicure Limited's Growth

Poly Medicure Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. In the last year, its revenue is up 8.2%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Poly Medicure Limited Been A Good Investment?

We think that the total shareholder return of 108%, over three years, would leave most Poly Medicure 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.

In Summary...

As we noted earlier, Poly Medicure pays its CEO lower than the norm for similar-sized companies belonging to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. And given most shareholders are probably very happy with recent shareholder returns, they might even think Himanshu deserves a raise!

Whatever your view on compensation, you might want to check if insiders are buying or selling Poly Medicure shares (free trial).

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. 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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