Hikal Limited's (NSE:HIKAL) CEO Might Not Expect Shareholders To Be So Generous This Year
Key Insights
- Hikal to hold its Annual General Meeting on 23rd of September
- Salary of ₹49.4m is part of CEO Sameer Hiremath's total remuneration
- The overall pay is 97% above the industry average
- Hikal's three-year loss to shareholders was 22% while its EPS was down 14% over the past three years
Shareholders will probably not be too impressed with the underwhelming results at Hikal Limited (NSE:HIKAL) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 23rd of September. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.
See our latest analysis for Hikal
How Does Total Compensation For Sameer Hiremath Compare With Other Companies In The Industry?
At the time of writing, our data shows that Hikal Limited has a market capitalization of ₹33b, and reported total annual CEO compensation of ₹60m for the year to March 2025. That's a notable increase of 26% on last year. In particular, the salary of ₹49.4m, makes up a huge portion of the total compensation being paid to the CEO.
On examining similar-sized companies in the Indian Pharmaceuticals industry with market capitalizations between ₹18b and ₹70b, we discovered that the median CEO total compensation of that group was ₹31m. Accordingly, our analysis reveals that Hikal Limited pays Sameer Hiremath north of the industry median. Moreover, Sameer Hiremath also holds ₹155m worth of Hikal 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 | ₹49m | ₹45m | 82% |
| Other | ₹11m | ₹3.0m | 18% |
| Total Compensation | ₹60m | ₹48m | 100% |
Talking in terms of the industry, salary represented approximately 99% of total compensation out of all the companies we analyzed, while other remuneration made up 0.79361173% of the pie. Hikal sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Hikal Limited's Growth Numbers
Hikal Limited has reduced its earnings per share by 14% a year over the last three years. In the last year, its revenue is up 1.7%.
Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Hikal Limited Been A Good Investment?
Since shareholders would have lost about 22% over three years, some Hikal Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Hikal (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.