Increases to Bliss GVS Pharma Limited's (NSE:BLISSGVS) CEO Compensation Might Cool off for now

Key Insights

• Bliss GVS Pharma to hold its Annual General Meeting on 25th of July
• Total pay for CEO Gagan Sharma includes ₹21.6m salary
• Total compensation is 350% above industry average
• Bliss GVS Pharma's total shareholder return over the past three years was 2.2% while its EPS grew by 2.7% over the past three years

Performance at Bliss GVS Pharma Limited (NSE:BLISSGVS) has been reasonably good and CEO Gagan Sharma has done a decent job of steering the company in the right direction. 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 25th of July. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Bliss GVS Pharma

Comparing Bliss GVS Pharma Limited's CEO Compensation With The Industry

Our data indicates that Bliss GVS Pharma Limited has a market capitalization of ₹12b, and total annual CEO compensation was reported as ₹22m for the year to March 2024. That's a notable increase of 20% on last year. Notably, the salary of ₹22m is the entirety of the CEO compensation.

On comparing similar-sized companies in the Indian Pharmaceuticals industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹4.8m. This suggests that Gagan Sharma is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	₹22m	₹18m	100%
Other	-	-	-
Total Compensation	₹22m	₹18m	100%

On an industry level, roughly 98% of total compensation represents salary and 2% is other remuneration. At the company level, Bliss GVS Pharma pays Gagan Sharma solely through a salary, preferring to go down a conventional route. 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.

A Look at Bliss GVS Pharma Limited's Growth Numbers

Bliss GVS Pharma Limited's earnings per share (EPS) grew 2.7% per year over the last three years. In the last year, its revenue is up 2.5%.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. 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?

With a total shareholder return of 2.2% over three years, Bliss GVS Pharma Limited has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

To Conclude...

Bliss GVS Pharma rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is potentially serious) in Bliss GVS Pharma we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com