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

Key Insights

• Poly Medicure's Annual General Meeting to take place on 26th of September
• CEO Himanshu Baid's total compensation includes salary of ₹57.8m
• The overall pay is 504% above the industry average
• Over the past three years, Poly Medicure's EPS grew by 18% and over the past three years, the total shareholder return was 160%

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. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26th of September. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Poly Medicure

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

At the time of writing, our data shows that Poly Medicure Limited has a market capitalization of ₹249b, and reported total annual CEO compensation of ₹172m for the year to March 2024. That's a notable increase of 32% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹58m.

For comparison, other companies in the India Medical Equipment industry with market capitalizations ranging between ₹167b and ₹535b had a median total CEO compensation of ₹28m. Hence, we can conclude that Himanshu Baid is remunerated higher than the industry median. Moreover, Himanshu Baid also holds ₹29b 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	2024	2023	Proportion (2024)
Salary	₹58m	₹55m	34%
Other	₹114m	₹75m	66%
Total Compensation	₹172m	₹130m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Poly Medicure sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Poly Medicure Limited's Growth

Over the past three years, Poly Medicure Limited has seen its earnings per share (EPS) grow by 18% per year. Its revenue is up 21% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 160%, over three years, would leave most Poly Medicure 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Poly Medicure 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.