Most Shareholders Will Probably Agree With Divi's Laboratories Limited's (NSE:DIVISLAB) CEO Compensation

Key Insights

• Divi's Laboratories' Annual General Meeting to take place on 11th of August
• CEO Kiran Divi's total compensation includes salary of ₹9.20m
• The overall pay is comparable to the industry average
• Divi's Laboratories' EPS declined by 9.5% over the past three years while total shareholder return over the past three years was 69%

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Under the guidance of CEO Kiran Divi, Divi's Laboratories Limited (NSE:DIVISLAB) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 11th of August. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for Divi's Laboratories

How Does Total Compensation For Kiran Divi Compare With Other Companies In The Industry?

According to our data, Divi's Laboratories Limited has a market capitalization of ₹1.7t, and paid its CEO total annual compensation worth ₹308m over the year to March 2025. We note that's an increase of 35% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹9.2m.

In comparison with other companies in the Indian Life Sciences industry with market capitalizations over ₹701b, the reported median total CEO compensation was ₹309m. This suggests that Divi's Laboratories remunerates its CEO largely in line with the industry average. What's more, Kiran Divi holds ₹350b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2025	2024	Proportion (2025)
Salary	₹9.2m	₹9.2m	3%
Other	₹299m	₹218m	97%
Total Compensation	₹308m	₹228m	100%

Talking in terms of the industry, salary represented approximately 79% of total compensation out of all the companies we analyzed, while other remuneration made up 21% of the pie. Divi's Laboratories has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Divi's Laboratories Limited's Growth Numbers

Over the last three years, Divi's Laboratories Limited has shrunk its earnings per share by 9.5% per year. In the last year, its revenue is up 19%.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Divi's Laboratories Limited Been A Good Investment?

We think that the total shareholder return of 69%, over three years, would leave most Divi's Laboratories 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...

Divi's Laboratories prefers rewarding its CEO through non-salary benefits. Although the company has performed relatively well, we still think there are some areas that could be improved. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Divi's Laboratories that investors should be aware of in a dynamic business environment.

Switching gears from Divi's Laboratories, 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.