Key Insights
- Lupin to hold its Annual General Meeting on 11th of August
- Salary of ₹170.0m is part of CEO Vinita Gupta's total remuneration
- The overall pay is comparable to the industry average
- Lupin's total shareholder return over the past three years was 187% while its EPS grew by 100% over the past three years
It would be hard to discount the role that CEO Vinita Gupta has played in delivering the impressive results at Lupin Limited (NSE:LUPIN) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 11th of August. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Check out our latest analysis for Lupin
How Does Total Compensation For Vinita Gupta Compare With Other Companies In The Industry?
According to our data, Lupin Limited has a market capitalization of ₹860b, and paid its CEO total annual compensation worth ₹271m over the year to March 2025. Notably, that's an increase of 15% over the year before. We note that the salary portion, which stands at ₹170.0m constitutes the majority of total compensation received by the CEO.
On comparing similar companies in the Indian Pharmaceuticals industry with market capitalizations above ₹701b, we found that the median total CEO compensation was ₹240m. This suggests that Lupin remunerates its CEO largely in line with the industry average. Furthermore, Vinita Gupta directly owns ₹616m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹170m | ₹141m | 63% |
| Other | ₹101m | ₹94m | 37% |
| Total Compensation | ₹271m | ₹236m | 100% |
On an industry level, around 99% of total compensation represents salary and 1% is other remuneration. In Lupin's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Lupin Limited's Growth
Lupin Limited's earnings per share (EPS) grew 100% per year over the last three years. It achieved revenue growth of 13% over the last year.
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 Lupin Limited Been A Good Investment?
Boasting a total shareholder return of 187% over three years, Lupin Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
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. That's why we did some digging and identified 1 warning sign for Lupin that you should be aware of before investing.
Switching gears from Lupin, 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.
Valuation is complex, but we're here to simplify it.
Discover if Lupin might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.