We Discuss Whether Caplin Point Laboratories Limited's (NSE:CAPLIPOINT) CEO Is Due For A Pay Rise
Key Insights
- Caplin Point Laboratories will host its Annual General Meeting on 22nd of September
- CEO Sridhar Ganesan's total compensation includes salary of ₹5.30m
- The total compensation is 90% less than the average for the industry
- Caplin Point Laboratories' EPS grew by 22% over the past three years while total shareholder return over the past three years was 219%
The impressive results at Caplin Point Laboratories Limited (NSE:CAPLIPOINT) recently will be great news for shareholders. At the upcoming AGM on 22nd of September, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
View our latest analysis for Caplin Point Laboratories
How Does Total Compensation For Sridhar Ganesan Compare With Other Companies In The Industry?
According to our data, Caplin Point Laboratories Limited has a market capitalization of ₹173b, and paid its CEO total annual compensation worth ₹5.7m over the year to March 2025. That's a notable decrease of 39% on last year. We note that the salary portion, which stands at ₹5.30m constitutes the majority of total compensation received by the CEO.
On examining similar-sized companies in the Indian Pharmaceuticals industry with market capitalizations between ₹88b and ₹282b, we discovered that the median CEO total compensation of that group was ₹60m. In other words, Caplin Point Laboratories pays its CEO lower than the industry median. Moreover, Sridhar Ganesan also holds ₹224m worth of Caplin Point Laboratories stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹5.3m | ₹8.9m | 93% |
| Other | ₹400k | ₹400k | 7% |
| Total Compensation | ₹5.7m | ₹9.3m | 100% |
On an industry level, around 99% of total compensation represents salary and 0.67220116% is other remuneration. Although there is a difference in how total compensation is set, Caplin Point Laboratories more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Caplin Point Laboratories Limited's Growth
Caplin Point Laboratories Limited's earnings per share (EPS) grew 22% per year over the last three years. It achieved revenue growth of 13% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Caplin Point Laboratories Limited Been A Good Investment?
Most shareholders would probably be pleased with Caplin Point Laboratories Limited for providing a total return of 219% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
Whatever your view on compensation, you might want to check if insiders are buying or selling Caplin Point Laboratories shares (free trial).
Important note: Caplin Point Laboratories 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. 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.