It Looks Like Vineet Laboratories Limited's (NSE:VINEETLAB) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Vineet Laboratories' Annual General Meeting to take place on 25th of September
• CEO Gaddam Ramana's total compensation includes salary of ₹5.10m
• Total compensation is similar to the industry average
• Vineet Laboratories' three-year loss to shareholders was 45% while its EPS was down 124% over the past three years

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Vineet Laboratories Limited (NSE:VINEETLAB) has not performed well recently and CEO Gaddam Ramana will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 25th of September. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Vineet Laboratories

How Does Total Compensation For Gaddam Ramana Compare With Other Companies In The Industry?

According to our data, Vineet Laboratories Limited has a market capitalization of ₹321m, and paid its CEO total annual compensation worth ₹5.1m over the year to March 2025. There was no change in the compensation compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹5.1m.

On comparing similar-sized companies in the Indian Pharmaceuticals industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹5.1m. This suggests that Vineet Laboratories remunerates its CEO largely in line with the industry average. Moreover, Gaddam Ramana also holds ₹28m worth of Vineet Laboratories stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 99% of total compensation represents salary and 0.79361173% is other remuneration. On a company level, Vineet Laboratories prefers to reward its CEO through a salary, opting not to pay Gaddam Ramana through non-salary benefits. 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.

A Look at Vineet Laboratories Limited's Growth Numbers

Over the last three years, Vineet Laboratories Limited has shrunk its earnings per share by 124% per year. Its revenue is down 56% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Vineet Laboratories Limited Been A Good Investment?

With a total shareholder return of -45% over three years, Vineet Laboratories Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Vineet Laboratories rewards its CEO solely through a salary, ignoring non-salary benefits completely. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Vineet Laboratories (of which 2 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

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.