Increases to CEO Compensation Might Be Put On Hold For Now at AstraZeneca Pharma India Limited (NSE:ASTRAZEN)

Under the guidance of CEO Gagan Bedi, AstraZeneca Pharma India Limited (NSE:ASTRAZEN) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 09 August 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for AstraZeneca Pharma India

Comparing AstraZeneca Pharma India Limited's CEO Compensation With the industry

Our data indicates that AstraZeneca Pharma India Limited has a market capitalization of ₹84b, and total annual CEO compensation was reported as ₹50m for the year to March 2021. That is, the compensation was roughly the same as last year. Notably, the salary which is ₹40.9m, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from ₹30b to ₹119b, we found that the median CEO total compensation was ₹27m. This suggests that Gagan Bedi is paid more than the median for the industry.

Component	2021	2020	Proportion (2021)
Salary	₹41m	₹40m	82%
Other	₹8.8m	₹8.4m	18%
Total Compensation	₹50m	₹48m	100%

On an industry level, around 92% of total compensation represents salary and 8% is other remuneration. It's interesting to note that AstraZeneca Pharma India allocates a smaller portion of compensation to salary in comparison to the broader industry. 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.

AstraZeneca Pharma India Limited's Growth

AstraZeneca Pharma India Limited has seen its earnings per share (EPS) increase by 53% a year over the past three years. Its revenue is down 2.2% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few 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 AstraZeneca Pharma India Limited Been A Good Investment?

Boasting a total shareholder return of 99% over three years, AstraZeneca Pharma India 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...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for AstraZeneca Pharma India that investors should think about before committing capital to this stock.

Important note: AstraZeneca Pharma India 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. 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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