Shareholders Will Probably Hold Off On Increasing Colgate-Palmolive (India) Limited's (NSE:COLPAL) CEO Compensation For The Time Being

Key Insights

• Colgate-Palmolive (India) will host its Annual General Meeting on 22nd of July
• CEO Prabha Narasimhan's total compensation includes salary of ₹19.3m
• Total compensation is 57% above industry average
• Colgate-Palmolive (India)'s EPS grew by 10% over the past three years while total shareholder return over the past three years was 64%

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CEO Prabha Narasimhan has done a decent job of delivering relatively good performance at Colgate-Palmolive (India) Limited (NSE:COLPAL) recently. As shareholders go into the upcoming AGM on 22nd 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 want to keep CEO compensation within reason.

Check out our latest analysis for Colgate-Palmolive (India)

How Does Total Compensation For Prabha Narasimhan Compare With Other Companies In The Industry?

According to our data, Colgate-Palmolive (India) Limited has a market capitalization of ₹654b, and paid its CEO total annual compensation worth ₹121m over the year to March 2025. Notably, that's an increase of 32% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹19m.

On examining similar-sized companies in the Indian Personal Products industry with market capitalizations between ₹343b and ₹1.0t, we discovered that the median CEO total compensation of that group was ₹77m. Hence, we can conclude that Prabha Narasimhan is remunerated higher than the industry median.

Component	2025	2024	Proportion (2025)
Salary	₹19m	₹17m	16%
Other	₹101m	₹74m	84%
Total Compensation	₹121m	₹92m	100%

Speaking on an industry level, nearly 84% of total compensation represents salary, while the remainder of 16% is other remuneration. Colgate-Palmolive (India) 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.

A Look at Colgate-Palmolive (India) Limited's Growth Numbers

Colgate-Palmolive (India) Limited's earnings per share (EPS) grew 10% per year over the last three years. Its revenue is up 6.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Colgate-Palmolive (India) Limited Been A Good Investment?

We think that the total shareholder return of 64%, over three years, would leave most Colgate-Palmolive (India) 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...

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 Colgate-Palmolive (India) that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.