Most Shareholders Will Probably Find That The Compensation For Panacea Biotec Limited's (NSE:PANACEABIO) CEO Is Reasonable

Key Insights

• Panacea Biotec's Annual General Meeting to take place on 30th of September
• Salary of ₹6.00m is part of CEO Rajesh Jain's total remuneration
• Total compensation is 62% below industry average
• Panacea Biotec's EPS declined by 78% over the past three years while total shareholder return over the past three years was 207%

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Performance at Panacea Biotec Limited (NSE:PANACEABIO) has been rather uninspiring recently and shareholders may be wondering how CEO Rajesh Jain plans to fix this. At the next AGM coming up on 30th of September, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for Panacea Biotec

How Does Total Compensation For Rajesh Jain Compare With Other Companies In The Industry?

At the time of writing, our data shows that Panacea Biotec Limited has a market capitalization of ₹25b, and reported total annual CEO compensation of ₹9.5m for the year to March 2025. That's a fairly small increase of 5.5% over the previous year. We note that the salary portion, which stands at ₹6.00m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the India Biotechs industry with market caps ranging from ₹8.9b to ₹35b, we found that the median CEO total compensation was ₹25m. This suggests that Rajesh Jain is paid below the industry median. Furthermore, Rajesh Jain directly owns ₹12b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2025	2024	Proportion (2025)
Salary	₹6.0m	₹6.0m	63%
Other	₹3.5m	₹3.0m	37%
Total Compensation	₹9.5m	₹9.0m	100%

On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. Panacea Biotec is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Panacea Biotec Limited's Growth

Panacea Biotec Limited has reduced its earnings per share by 78% a year over the last three years. In the last year, its revenue is up 12%.

Few shareholders would be pleased to read that EPS have declined. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Panacea Biotec Limited Been A Good Investment?

We think that the total shareholder return of 207%, over three years, would leave most Panacea Biotec Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. These are are some concerns that shareholders may want to address the board when they revisit their investment thesis.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Panacea Biotec that investors should think about before committing capital to this stock.

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.