Stock Analysis

Shareholders May Be More Conservative With RPG Life Sciences Limited's (NSE:RPGLIFE) CEO Compensation For Now

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Performance at RPG Life Sciences Limited (NSE:RPGLIFE) has been reasonably good and CEO Yugal Kishor Sikri has done a decent job of steering the company in the right direction. 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 31 August 2021. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for RPG Life Sciences

How Does Total Compensation For Yugal Kishor Sikri Compare With Other Companies In The Industry?

According to our data, RPG Life Sciences Limited has a market capitalization of ₹8.1b, and paid its CEO total annual compensation worth ₹39m over the year to March 2021. Notably, that's an increase of 77% over the year before. Notably, the salary which is ₹23.7m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹3.0m. Hence, we can conclude that Yugal Kishor Sikri is remunerated higher than the industry median.

Component20212019Proportion (2021)
Salary ₹24m ₹11m 61%
Other ₹15m ₹11m 39%
Total Compensation₹39m ₹22m100%

On an industry level, roughly 94% of total compensation represents salary and 6% is other remuneration. It's interesting to note that RPG Life Sciences allocates a smaller portion of compensation to salary 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.

NSEI:RPGLIFE CEO Compensation August 25th 2021

A Look at RPG Life Sciences Limited's Growth Numbers

RPG Life Sciences Limited has seen its earnings per share (EPS) increase by 44% a year over the past three years. Its revenue is up 8.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has RPG Life Sciences Limited Been A Good Investment?

Most shareholders would probably be pleased with RPG Life Sciences Limited for providing a total return of 80% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for RPG Life Sciences 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.
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