Shareholders Will Probably Hold Off On Increasing Poly Medicure Limited's (NSE:POLYMED) CEO Compensation For The Time Being

Key Insights

• Poly Medicure will host its Annual General Meeting on 28th of September
• Salary of ₹55.1m is part of CEO Himanshu Baid's total remuneration
• The total compensation is 185% higher than the average for the industry
• Poly Medicure's total shareholder return over the past three years was 215% while its EPS grew by 24% over the past three years

Performance at Poly Medicure Limited (NSE:POLYMED) has been reasonably good and CEO Himanshu Baid 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 28th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Poly Medicure

How Does Total Compensation For Himanshu Baid Compare With Other Companies In The Industry?

According to our data, Poly Medicure Limited has a market capitalization of ₹135b, and paid its CEO total annual compensation worth ₹130m over the year to March 2023. Notably, that's an increase of 21% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹55m.

For comparison, other companies in the India Medical Equipment industry with market capitalizations ranging between ₹83b and ₹266b had a median total CEO compensation of ₹46m. Accordingly, our analysis reveals that Poly Medicure Limited pays Himanshu Baid north of the industry median. Moreover, Himanshu Baid also holds ₹17b worth of Poly Medicure stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	₹55m	₹49m	42%
Other	₹75m	₹58m	58%
Total Compensation	₹130m	₹107m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. It's interesting to note that Poly Medicure allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Poly Medicure Limited's Growth

Poly Medicure Limited's earnings per share (EPS) grew 24% per year over the last three years. Its revenue is up 24% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Poly Medicure Limited Been A Good Investment?

We think that the total shareholder return of 215%, over three years, would leave most Poly Medicure Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Poly Medicure that investors should look into moving forward.

Switching gears from Poly Medicure, 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.