It's Unlikely That Rainbow Children's Medicare Limited's (NSE:RAINBOW) CEO Will See A Huge Pay Rise This Year

Key Insights

• Rainbow Children's Medicare will host its Annual General Meeting on 5th of July
• Salary of ₹45.8m is part of CEO Ramesh Kancharla's total remuneration
• The total compensation is 67% higher than the average for the industry
• Rainbow Children's Medicare's EPS grew by 18% over the past three years while total shareholder return over the past three years was 222%

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Under the guidance of CEO Ramesh Kancharla, Rainbow Children's Medicare Limited (NSE:RAINBOW) has performed reasonably well recently. As shareholders go into the upcoming AGM on 5th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Rainbow Children's Medicare

Comparing Rainbow Children's Medicare Limited's CEO Compensation With The Industry

Our data indicates that Rainbow Children's Medicare Limited has a market capitalization of ₹154b, and total annual CEO compensation was reported as ₹46m for the year to March 2025. That's a notable decrease of 33% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹46m.

On comparing similar companies from the Indian Healthcare industry with market caps ranging from ₹86b to ₹274b, we found that the median CEO total compensation was ₹28m. Hence, we can conclude that Ramesh Kancharla is remunerated higher than the industry median. Moreover, Ramesh Kancharla also holds ₹57b worth of Rainbow Children's Medicare 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 96% of total compensation out of all the companies we analyzed, while other remuneration made up 4% of the pie. Speaking on a company level, Rainbow Children's Medicare prefers to tread along a traditional path, disbursing all compensation through a salary. 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 Rainbow Children's Medicare Limited's Growth Numbers

Rainbow Children's Medicare Limited's earnings per share (EPS) grew 18% per year over the last three years. Its revenue is up 17% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Rainbow Children's Medicare Limited Been A Good Investment?

Most shareholders would probably be pleased with Rainbow Children's Medicare Limited for providing a total return of 222% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Rainbow Children's Medicare pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Rainbow Children's Medicare (free visualization of insider trades).

Switching gears from Rainbow Children's Medicare, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.