Increases to CEO Compensation Might Be Put On Hold For Now at Morepen Laboratories Limited (NSE:MOREPENLAB)

Under the guidance of CEO Sushil Suri, Morepen Laboratories Limited (NSE:MOREPENLAB) has performed reasonably well recently. As shareholders go into the upcoming AGM on 27 September 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Morepen Laboratories

How Does Total Compensation For Sushil Suri Compare With Other Companies In The Industry?

According to our data, Morepen Laboratories Limited has a market capitalization of ₹16b, and paid its CEO total annual compensation worth ₹91m over the year to March 2022. Notably, that's an increase of 69% over the year before. Notably, the salary which is ₹87.3m, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from ₹8.0b to ₹32b, we found that the median CEO total compensation was ₹15m. Hence, we can conclude that Sushil Suri is remunerated higher than the industry median. What's more, Sushil Suri holds ₹213m 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	₹87m	₹51m	96%
Other	₹3.5m	₹3.0m	4%
Total Compensation	₹91m	₹54m	100%

Talking in terms of the industry, salary represented approximately 95% of total compensation out of all the companies we analyzed, while other remuneration made up 5% of the pie. Morepen Laboratories has gone down a largely traditional route, paying Sushil Suri a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Morepen Laboratories Limited's Growth

Over the past three years, Morepen Laboratories Limited has seen its earnings per share (EPS) grow by 26% per year. It achieved revenue growth of 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Morepen Laboratories Limited Been A Good Investment?

Boasting a total shareholder return of 46% over three years, Morepen Laboratories 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.

In Summary...

Morepen Laboratories pays its CEO a majority of compensation through a salary. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Morepen Laboratories that investors should be aware of in a dynamic business environment.

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.