Most Shareholders Will Probably Agree With J. B. Chemicals & Pharmaceuticals Limited's (NSE:JBCHEPHARM) CEO Compensation

Key Insights

• J. B. Chemicals & Pharmaceuticals to hold its Annual General Meeting on 21st of August
• Total pay for CEO Nikhil Chopra includes ₹35.1m salary
• The total compensation is similar to the average for the industry
• Over the past three years, J. B. Chemicals & Pharmaceuticals' EPS grew by 9.3% and over the past three years, the total shareholder return was 137%

Under the guidance of CEO Nikhil Chopra, J. B. Chemicals & Pharmaceuticals Limited (NSE:JBCHEPHARM) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 21st of August. We present our case of why we think CEO compensation looks fair.

Check out our latest analysis for J. B. Chemicals & Pharmaceuticals

How Does Total Compensation For Nikhil Chopra Compare With Other Companies In The Industry?

At the time of writing, our data shows that J. B. Chemicals & Pharmaceuticals Limited has a market capitalization of ₹306b, and reported total annual CEO compensation of ₹71m for the year to March 2024. We note that's an increase of 9.0% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹35m.

In comparison with other companies in the Indian Pharmaceuticals industry with market capitalizations ranging from ₹168b to ₹537b, the reported median CEO total compensation was ₹72m. This suggests that J. B. Chemicals & Pharmaceuticals remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	₹35m	₹37m	49%
Other	₹36m	₹29m	51%
Total Compensation	₹71m	₹65m	100%

Speaking on an industry level, nearly 98% of total compensation represents salary, while the remainder of 2% is other remuneration. In J. B. Chemicals & Pharmaceuticals' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at J. B. Chemicals & Pharmaceuticals Limited's Growth Numbers

J. B. Chemicals & Pharmaceuticals Limited has seen its earnings per share (EPS) increase by 9.3% a year over the past three years. It achieved revenue growth of 10% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has J. B. Chemicals & Pharmaceuticals Limited Been A Good Investment?

Boasting a total shareholder return of 137% over three years, J. B. Chemicals & Pharmaceuticals 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.

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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

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 2 warning signs for J. B. Chemicals & Pharmaceuticals that investors should be aware of in a dynamic business environment.

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.