We Think The Compensation For Procter & Gamble Health Limited's (NSE:PGHL) CEO Looks About Right

CEO Milind Thatte has done a decent job of delivering relatively good performance at Procter & Gamble Health Limited (NSE:PGHL) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 23 November 2022. We present our case of why we think CEO compensation looks fair.

Check out the opportunities and risks within the IN Pharmaceuticals industry.

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

At the time of writing, our data shows that Procter & Gamble Health Limited has a market capitalization of ₹71b, and reported total annual CEO compensation of ₹39m for the year to June 2022. We note that's an increase of 20% above last year. Notably, the salary of ₹39m is the entirety of the CEO compensation.

On examining similar-sized companies in the industry with market capitalizations between ₹32b and ₹129b, we discovered that the median CEO total compensation of that group was ₹46m. This suggests that Procter & Gamble Health remunerates its CEO largely in line with the industry average.

Component	2022	2021	Proportion (2022)
Salary	₹39m	₹32m	100%
Other	-	-	-
Total Compensation	₹39m	₹32m	100%

On an industry level, around 92% of total compensation represents salary and 8% 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 salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Procter & Gamble Health Limited's Growth

Procter & Gamble Health Limited's earnings per share (EPS) grew 14% per year over the last three years. Its revenue is up 12% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and 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 Procter & Gamble Health Limited Been A Good Investment?

Procter & Gamble Health Limited has generated a total shareholder return of 8.3% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

Procter & Gamble Health rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Procter & Gamble Health.

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.