Here's Why Glenmark Pharmaceuticals Limited's (NSE:GLENMARK) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Glenmark Pharmaceuticals to hold its Annual General Meeting on 26th of September
• Salary of ₹149.9m is part of CEO Glenn Saldanha's total remuneration
• Total compensation is similar to the industry average
• Glenmark Pharmaceuticals' total shareholder return over the past three years was 445% while its EPS was down 3.1% over the past three years

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Glenmark Pharmaceuticals Limited (NSE:GLENMARK) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 26th of September. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Check out our latest analysis for Glenmark Pharmaceuticals

How Does Total Compensation For Glenn Saldanha Compare With Other Companies In The Industry?

Our data indicates that Glenmark Pharmaceuticals Limited has a market capitalization of ₹588b, and total annual CEO compensation was reported as ₹181m for the year to March 2025. That's a fairly small increase of 7.2% over the previous year. We note that the salary portion, which stands at ₹149.9m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Pharmaceuticals industry with market capitalizations ranging between ₹352b and ₹1.1t had a median total CEO compensation of ₹156m. From this we gather that Glenn Saldanha is paid around the median for CEOs in the industry. Moreover, Glenn Saldanha also holds ₹2.1b worth of Glenmark Pharmaceuticals 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	₹150m	₹135m	83%
Other	₹31m	₹34m	17%
Total Compensation	₹181m	₹169m	100%

Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 0.79361173% is other remuneration. Glenmark Pharmaceuticals sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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.

Glenmark Pharmaceuticals Limited's Growth

Over the last three years, Glenmark Pharmaceuticals Limited has shrunk its earnings per share by 3.1% per year. Its revenue is up 4.6% over the last year.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Glenmark Pharmaceuticals Limited Been A Good Investment?

We think that the total shareholder return of 445%, over three years, would leave most Glenmark Pharmaceuticals Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Glenmark Pharmaceuticals that you should be aware of before investing.

Important note: Glenmark Pharmaceuticals 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.