We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Bal Pharma Limited's (NSE:BALPHARMA) CEO For Now
Key Insights
- Bal Pharma will host its Annual General Meeting on 25th of September
- CEO Shailesh Siroya's total compensation includes salary of ₹18.3m
- The overall pay is 258% above the industry average
- Over the past three years, Bal Pharma's EPS grew by 16% and over the past three years, the total loss to shareholders 8.0%
As many shareholders of Bal Pharma Limited (NSE:BALPHARMA) will be aware, they have not made a gain on their investment in the past three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 25th of September. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
View our latest analysis for Bal Pharma
How Does Total Compensation For Shailesh Siroya Compare With Other Companies In The Industry?
Our data indicates that Bal Pharma Limited has a market capitalization of ₹1.3b, and total annual CEO compensation was reported as ₹18m for the year to March 2025. We note that's an increase of 80% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹18m.
In comparison with other companies in the Indian Pharmaceuticals industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹5.1m. This suggests that Shailesh Siroya is paid more than the median for the industry. Furthermore, Shailesh Siroya directly owns ₹256m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹18m | ₹10m | 100% |
| Other | - | - | - |
| Total Compensation | ₹18m | ₹10m | 100% |
Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 0.79361173% is other remuneration. On a company level, Bal Pharma prefers to reward its CEO through a salary, opting not to pay Shailesh Siroya through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Bal Pharma Limited's Growth
Over the past three years, Bal Pharma Limited has seen its earnings per share (EPS) grow by 16% per year. It saw its revenue drop 14% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Bal Pharma Limited Been A Good Investment?
Since shareholders would have lost about 8.0% over three years, some Bal Pharma Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Bal Pharma pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Bal Pharma you should be aware of, and 1 of them is a bit concerning.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.