Eris Lifesciences Limited's (NSE:ERIS) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Eris Lifesciences to hold its Annual General Meeting on 25th of September
• Total pay for CEO Amit Bakshi includes ₹17.5m salary
• The total compensation is similar to the average for the industry
• Over the past three years, Eris Lifesciences' EPS grew by 0.6% and over the past three years, the total shareholder return was 88%

CEO Amit Bakshi has done a decent job of delivering relatively good performance at Eris Lifesciences Limited (NSE:ERIS) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25th of September. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Eris Lifesciences

How Does Total Compensation For Amit Bakshi Compare With Other Companies In The Industry?

Our data indicates that Eris Lifesciences Limited has a market capitalization of ₹190b, and total annual CEO compensation was reported as ₹49m for the year to March 2024. This was the same amount the CEO received in the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹17m.

In comparison with other companies in the Indian Pharmaceuticals industry with market capitalizations ranging from ₹84b to ₹268b, the reported median CEO total compensation was ₹48m. From this we gather that Amit Bakshi is paid around the median for CEOs in the industry. What's more, Amit Bakshi holds ₹81b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹17m	₹17m	36%
Other	₹31m	₹31m	64%
Total Compensation	₹49m	₹49m	100%

Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 0.95087163% is other remuneration. Eris Lifesciences sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Eris Lifesciences Limited's Growth

Earnings per share at Eris Lifesciences Limited are much the same as they were three years ago, albeit with slightly higher. In the last year, its revenue is up 30%.

It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Eris Lifesciences Limited Been A Good Investment?

Boasting a total shareholder return of 88% over three years, Eris Lifesciences Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Eris Lifesciences that investors should look into moving forward.

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.