Here's Why Shareholders Should Examine Indoco Remedies Limited's (NSE:INDOCO) CEO Compensation Package More Closely

Key Insights

• Indoco Remedies will host its Annual General Meeting on 11th of September
• Total pay for CEO Sundeep Bambolkar includes ₹51.3m salary
• Total compensation is 186% above industry average
• Indoco Remedies' EPS declined by 84% over the past three years while total shareholder loss over the past three years was 24%

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The results at Indoco Remedies Limited (NSE:INDOCO) have been quite disappointing recently and CEO Sundeep Bambolkar bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 11th of September. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Indoco Remedies

Comparing Indoco Remedies Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Indoco Remedies Limited has a market capitalization of ₹25b, and reported total annual CEO compensation of ₹81m for the year to March 2025. That's just a smallish increase of 6.7% on last year. In particular, the salary of ₹51.3m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Pharmaceuticals industry with market capitalizations ranging between ₹8.8b and ₹35b had a median total CEO compensation of ₹28m. This suggests that Sundeep Bambolkar is paid more than the median for the industry. Furthermore, Sundeep Bambolkar directly owns ₹128m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 0.95087163% is other remuneration. In Indoco Remedies' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader 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.

A Look at Indoco Remedies Limited's Growth Numbers

Over the last three years, Indoco Remedies Limited has shrunk its earnings per share by 84% per year. It saw its revenue drop 8.3% over the last year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet 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 Indoco Remedies Limited Been A Good Investment?

Given the total shareholder loss of 24% over three years, many shareholders in Indoco Remedies Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Indoco Remedies 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.