It's Unlikely That IVP Limited's (NSE:IVP) CEO Will See A Huge Pay Rise This Year

Key Insights

• IVP's Annual General Meeting to take place on 31st of July
• CEO Mandar Joshi's total compensation includes salary of ₹20.9m
• The overall pay is 248% above the industry average
• IVP's total shareholder return over the past three years was 17% while its EPS was down 14% over the past three years

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The share price of IVP Limited (NSE:IVP) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 31st of July. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

Check out 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 ₹2.0b, and reported total annual CEO compensation of ₹21m for the year to March 2025. That's a fairly small increase of 4.9% over the previous year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹21m.

On comparing similar-sized companies in the Indian Chemicals industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹6.0m. Hence, we can conclude that Mandar Joshi is remunerated higher than the industry median.

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. On a company level, IVP prefers to reward its CEO through a salary, opting not to pay Mandar Joshi through non-salary benefits. 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 IVP Limited's Growth Numbers

Over the last three years, IVP Limited has shrunk its earnings per share by 14% per year. It saw its revenue drop 1.3% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has IVP Limited Been A Good Investment?

With a total shareholder return of 17% over three years, IVP Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

IVP pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 4 warning signs for IVP (1 is a bit concerning!) that you should be aware of before investing here.

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.