Increases to IVP Limited's (NSE:IVP) CEO Compensation Might Cool off for now

Key Insights

• IVP will host its Annual General Meeting on 8th of August
• Total pay for CEO Mandar Joshi includes ₹19.9m salary
• The total compensation is 264% higher than the average for the industry
• Over the past three years, IVP's EPS grew by 40% and over the past three years, the total shareholder return was 69%

Under the guidance of CEO Mandar Joshi, IVP Limited (NSE:IVP) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 8th of August. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for IVP

How Does Total Compensation For Mandar Joshi Compare With Other Companies In The Industry?

At the time of writing, our data shows that IVP Limited has a market capitalization of ₹2.1b, and reported total annual CEO compensation of ₹20m for the year to March 2024. That's just a smallish increase of 7.0% on last year. Notably, the salary of ₹20m is the entirety of the CEO compensation.

In comparison with other companies in the Indian Chemicals industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹5.5m. This suggests that Mandar Joshi is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	₹20m	₹19m	100%
Other	-	-	-
Total Compensation	₹20m	₹19m	100%

On an industry level, roughly 86% of total compensation represents salary and 14% is other remuneration. Speaking on a company level, IVP prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

IVP Limited's Growth

IVP Limited has seen its earnings per share (EPS) increase by 40% a year over the past three years. It saw its revenue drop 17% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has IVP Limited Been A Good Investment?

Boasting a total shareholder return of 69% over three years, IVP Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

IVP 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 5 warning signs for IVP (of which 2 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: IVP is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.

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