We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Indoco Remedies Limited's (NSE:INDOCO) CEO For Now

Performance at Indoco Remedies Limited (NSE:INDOCO) has been reasonably good and CEO Sundeep Bambolkar has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22 September 2022. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Indoco Remedies

Comparing Indoco Remedies Limited's CEO Compensation With The Industry

Our data indicates that Indoco Remedies Limited has a market capitalization of ₹33b, and total annual CEO compensation was reported as ₹46m for the year to March 2022. Notably, that's an increase of 65% over the year before. Notably, the salary which is ₹29.7m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from ₹16b to ₹64b, the reported median CEO total compensation was ₹31m. This suggests that Sundeep Bambolkar is paid more than the median for the industry. What's more, Sundeep Bambolkar holds ₹167m 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	₹30m	₹20m	65%
Other	₹16m	₹8.2m	35%
Total Compensation	₹46m	₹28m	100%

Speaking on an industry level, nearly 97% of total compensation represents salary, while the remainder of 3% 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 dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Indoco Remedies Limited's Growth

Indoco Remedies Limited's earnings per share (EPS) grew 140% per year over the last three years. In the last year, its revenue is up 16%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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?

Boasting a total shareholder return of 131% over three years, Indoco Remedies Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Indoco Remedies that investors should be aware of in a dynamic business environment.

Switching gears from Indoco Remedies, 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.

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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.