Here's Why Procter & Gamble Health Limited's (NSE:PGHL) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Procter & Gamble Health will host its Annual General Meeting on 5th of December
• CEO Milind Thatte's total compensation includes salary of ₹32.2m
• Total compensation is similar to the industry average
• Procter & Gamble Health's total shareholder return over the past three years was 5.7% while its EPS grew by 8.0% over the past three years

CEO Milind Thatte has done a decent job of delivering relatively good performance at Procter & Gamble Health Limited (NSE:PGHL) 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 5th of December. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Procter & Gamble Health

How Does Total Compensation For Milind Thatte Compare With Other Companies In The Industry?

Our data indicates that Procter & Gamble Health Limited has a market capitalization of ₹86b, and total annual CEO compensation was reported as ₹32m for the year to June 2024. Notably, that's an increase of 28% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹32m.

In comparison with other companies in the Indian Pharmaceuticals industry with market capitalizations ranging from ₹34b to ₹135b, the reported median CEO total compensation was ₹35m. This suggests that Procter & Gamble Health remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	₹32m	₹25m	100%
Other	-	-	-
Total Compensation	₹32m	₹25m	100%

On an industry level, around 97% of total compensation represents salary and 3% is other remuneration. At the company level, Procter & Gamble Health pays Milind Thatte solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Procter & Gamble Health Limited's Growth Numbers

Over the past three years, Procter & Gamble Health Limited has seen its earnings per share (EPS) grow by 8.0% per year. It saw its revenue drop 6.2% over the last year.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Procter & Gamble Health Limited Been A Good Investment?

Procter & Gamble Health Limited has generated a total shareholder return of 5.7% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Procter & Gamble Health rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Procter & Gamble Health 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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