Shareholders Will Probably Hold Off On Increasing Glenmark Pharmaceuticals Limited's (NSE:GLENMARK) CEO Compensation For The Time Being

CEO Glenn Saldanha has done a decent job of delivering relatively good performance at Glenmark Pharmaceuticals Limited (NSE:GLENMARK) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 27 September 2022. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Glenmark Pharmaceuticals

Comparing Glenmark Pharmaceuticals Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Glenmark Pharmaceuticals Limited has a market capitalization of ₹108b, and reported total annual CEO compensation of ₹158m for the year to March 2022. That's a notable increase of 14% on last year. Notably, the salary which is ₹129.7m, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from ₹80b to ₹255b, we found that the median CEO total compensation was ₹85m. Hence, we can conclude that Glenn Saldanha is remunerated higher than the industry median. What's more, Glenn Saldanha holds ₹375m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	₹130m	₹110m	82%
Other	₹28m	₹28m	18%
Total Compensation	₹158m	₹139m	100%

On an industry level, around 95% of total compensation represents salary and 5% is other remuneration. Glenmark Pharmaceuticals pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Glenmark Pharmaceuticals Limited's Growth Numbers

Glenmark Pharmaceuticals Limited's earnings per share (EPS) grew 2.5% per year over the last three years. Its revenue is up 6.8% over the last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Glenmark Pharmaceuticals Limited Been A Good Investment?

With a total shareholder return of 11% over three years, Glenmark Pharmaceuticals Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this 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. 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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Glenmark Pharmaceuticals.

Switching gears from Glenmark Pharmaceuticals, 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.

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

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.