How Much is Amrutanjan Health Care's (NSE:AMRUTANJAN) CEO Getting Paid?

The CEO of Amrutanjan Health Care Limited (NSE:AMRUTANJAN) is Sambhu Sivalenka, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Amrutanjan Health Care pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Amrutanjan Health Care

How Does Total Compensation For Sambhu Sivalenka Compare With Other Companies In The Industry?

Our data indicates that Amrutanjan Health Care Limited has a market capitalization of ₹15b, and total annual CEO compensation was reported as ₹13m for the year to March 2020. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at ₹11.0m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between ₹7.4b and ₹29b had a median total CEO compensation of ₹18m. So it looks like Amrutanjan Health Care compensates Sambhu Sivalenka in line with the median for the industry. Moreover, Sambhu Sivalenka also holds ₹2.8b worth of Amrutanjan Health Care stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 1.2% is other remuneration. It's interesting to note that Amrutanjan Health Care allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Amrutanjan Health Care Limited's Growth

Over the past three years, Amrutanjan Health Care Limited has seen its earnings per share (EPS) grow by 42% per year. In the last year, its revenue is up 2.1%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Amrutanjan Health Care Limited Been A Good Investment?

Boasting a total shareholder return of 75% over three years, Amrutanjan Health Care 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...

As we touched on above, Amrutanjan Health Care Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. So one could argue that CEO compensation is quite modest, if you consider company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.

So you may want to check if insiders are buying Amrutanjan Health Care shares with their own money (free access).

Switching gears from Amrutanjan Health Care, 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.

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This article by Simply Wall St is general in nature. 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.
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