We Discuss Whether Aurobindo Pharma Limited's (NSE:AUROPHARMA) CEO Is Due For A Pay Rise

Key Insights

• Aurobindo Pharma to hold its Annual General Meeting on 10th of September
• Salary of ₹28.2m is part of CEO Kambam Reddy's total remuneration
• The total compensation is 67% less than the average for the industry
• Over the past three years, Aurobindo Pharma's EPS grew by 13% and over the past three years, the total shareholder return was 93%

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The solid performance at Aurobindo Pharma Limited (NSE:AUROPHARMA) has been impressive and shareholders will probably be pleased to know that CEO Kambam Reddy has delivered. At the upcoming AGM on 10th of September, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Aurobindo Pharma

Comparing Aurobindo Pharma Limited's CEO Compensation With The Industry

According to our data, Aurobindo Pharma Limited has a market capitalization of ₹601b, and paid its CEO total annual compensation worth ₹55m over the year to March 2025. Notably, that's an increase of 21% over the year before. Notably, the salary which is ₹28.2m, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Indian Pharmaceuticals industry with market capitalizations ranging between ₹352b and ₹1.1t had a median total CEO compensation of ₹163m. In other words, Aurobindo Pharma pays its CEO lower than the industry median. Moreover, Kambam Reddy also holds ₹34b worth of Aurobindo Pharma stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 99% of total compensation represents salary and 0.89343488% is other remuneration. In Aurobindo Pharma's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Aurobindo Pharma Limited's Growth Numbers

Aurobindo Pharma Limited has seen its earnings per share (EPS) increase by 13% a year over the past three years. Its revenue is up 7.8% over the last year.

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. 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 Aurobindo Pharma Limited Been A Good Investment?

We think that the total shareholder return of 93%, over three years, would leave most Aurobindo Pharma Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 Aurobindo Pharma that you should be aware of before investing.

Switching gears from Aurobindo Pharma, 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. 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.