How Is Bliss GVS Pharma's (NSE:BLISSGVS) CEO Paid Relative To Peers?

Shibroor Kamath has been the CEO of Bliss GVS Pharma Limited (NSE:BLISSGVS) since 2006, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Bliss GVS Pharma pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Bliss GVS Pharma

How Does Total Compensation For Shibroor Kamath Compare With Other Companies In The Industry?

At the time of writing, our data shows that Bliss GVS Pharma Limited has a market capitalization of ₹19b, and reported total annual CEO compensation of ₹23m for the year to March 2020. We note that's an increase of 18% above last year. Notably, the salary of ₹23m is the entirety of the CEO compensation.

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. Accordingly, our analysis reveals that Bliss GVS Pharma Limited pays Shibroor Kamath north of the industry median. What's more, Shibroor Kamath holds ₹6.4b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 99% of total compensation out of all the companies we analyzed, while other remuneration made up 1.2% of the pie. On a company level, Bliss GVS Pharma prefers to reward its CEO through a salary, opting not to pay Shibroor Kamath through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Bliss GVS Pharma Limited's Growth Numbers

Bliss GVS Pharma Limited has reduced its earnings per share by 12% a year over the last three years. Its revenue is down 38% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Bliss GVS Pharma Limited Been A Good Investment?

Since shareholders would have lost about 11% over three years, some Bliss GVS Pharma Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Bliss GVS Pharma pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, Bliss GVS Pharma pays its CEO higher than the norm for similar-sized companies belonging to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. To make matters worse, EPS growth has also been negative during this period. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bliss GVS Pharma (free visualization of insider trades).

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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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