Here's Why Shareholders May Want To Be Cautious With Increasing Haleos Labs Limited's (NSE:SMSLIFE) CEO Pay Packet

Key Insights

• Haleos Labs' Annual General Meeting to take place on 30th of September
• Total pay for CEO Talluri Veera Venkata Murthy includes ₹19.8m salary
• The total compensation is 290% higher than the average for the industry
• Haleos Labs' EPS declined by 11% over the past three years while total shareholder return over the past three years was 86%

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The share price of Haleos Labs Limited (NSE:SMSLIFE) has increased significantly over the past few years. However, the earnings growth has not kept up with the share price momentum, suggesting that some other factors may be driving the price direction. The upcoming AGM on 30th of September may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

See our latest analysis for Haleos Labs

How Does Total Compensation For Talluri Veera Venkata Murthy Compare With Other Companies In The Industry?

Our data indicates that Haleos Labs Limited has a market capitalization of ₹3.6b, and total annual CEO compensation was reported as ₹20m for the year to March 2025. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is ₹19.8m, represents most of the total compensation being paid.

In comparison with other companies in the Indian Pharmaceuticals industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹5.1m. This suggests that Talluri Veera Venkata Murthy is paid more than the median for the industry. What's more, Talluri Veera Venkata Murthy holds ₹575m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 99% of total compensation represents salary and 0.79361173% is other remuneration. Haleos Labs pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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.

Haleos Labs Limited's Growth

Over the last three years, Haleos Labs Limited has shrunk its earnings per share by 11% per year. It achieved revenue growth of 3.3% over the last year.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Haleos Labs Limited Been A Good Investment?

Boasting a total shareholder return of 86% over three years, Haleos Labs Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Talluri Veera Venkata receives almost all of their compensation through a salary. 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. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for Haleos Labs that investors should look into moving forward.

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.