Shareholders May Not Be So Generous With Themis Medicare Limited's (NSE:THEMISMED) CEO Compensation And Here's Why

Key Insights

• Themis Medicare will host its Annual General Meeting on 12th of September
• Total pay for CEO Sachin Patel includes ₹16.5m salary
• The overall pay is 233% above the industry average
• Themis Medicare's EPS declined by 29% over the past three years while total shareholder return over the past three years was 8.6%

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Despite Themis Medicare Limited's (NSE:THEMISMED) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 12th of September. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

View our latest analysis for Themis Medicare

How Does Total Compensation For Sachin Patel Compare With Other Companies In The Industry?

According to our data, Themis Medicare Limited has a market capitalization of ₹9.3b, and paid its CEO total annual compensation worth ₹16m over the year to March 2025. Notably, that's a decrease of 37% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹16m.

In comparison with other companies in the Indian Pharmaceuticals industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹4.9m. Hence, we can conclude that Sachin Patel is remunerated higher than the industry median. What's more, Sachin Patel holds ₹553m 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, roughly 99% of total compensation represents salary and 0.89343488% is other remuneration. Speaking on a company level, Themis Medicare prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Themis Medicare Limited's Growth Numbers

Over the last three years, Themis Medicare Limited has shrunk its earnings per share by 29% per year. Its revenue is down 6.9% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Themis Medicare Limited Been A Good Investment?

Themis Medicare Limited has not done too badly by shareholders, with a total return of 8.6%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

Themis Medicare pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. 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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Themis Medicare that investors should think about before committing capital to this stock.

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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.