We Take A Look At Why Jyothy Labs Limited's (NSE:JYOTHYLAB) CEO Compensation Is Well Earned

Key Insights

• Jyothy Labs will host its Annual General Meeting on 11th of September
• Total pay for CEO Moothedath Jyothy includes ₹43.6m salary
• The overall pay is comparable to the industry average
• Jyothy Labs' total shareholder return over the past three years was 82% while its EPS grew by 29% over the past three years

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

It would be hard to discount the role that CEO Moothedath Jyothy has played in delivering the impressive results at Jyothy Labs Limited (NSE:JYOTHYLAB) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 11th of September. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Jyothy Labs

How Does Total Compensation For Moothedath Jyothy Compare With Other Companies In The Industry?

According to our data, Jyothy Labs Limited has a market capitalization of ₹124b, and paid its CEO total annual compensation worth ₹44m over the year to March 2025. We note that's an increase of 10% above last year. In particular, the salary of ₹43.6m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the India Household Products industry with market capitalizations between ₹88b and ₹282b, we discovered that the median CEO total compensation of that group was ₹48m. From this we gather that Moothedath Jyothy is paid around the median for CEOs in the industry. What's more, Moothedath Jyothy holds ₹3.5b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 92% of total compensation represents salary, while the remainder of 8% is other remuneration. Jyothy Labs pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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.

Jyothy Labs Limited's Growth

Jyothy Labs Limited's earnings per share (EPS) grew 29% per year over the last three years. In the last year, its revenue is up 1.5%.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Jyothy Labs Limited Been A Good Investment?

We think that the total shareholder return of 82%, over three years, would leave most Jyothy Labs 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...

Moothedath receives almost all of their compensation through a salary. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Jyothy Labs that investors should think about before committing capital to this stock.

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.

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.