Here's Why Wockhardt Limited's (NSE:WOCKPHARMA) CEO May Deserve A Raise

Key Insights

• Wockhardt will host its Annual General Meeting on 8th of August
• Salary of ₹24.1m is part of CEO Murtaza Khorakiwala's total remuneration
• The total compensation is 70% less than the average for the industry
• Wockhardt's EPS grew by 24% over the past three years while total shareholder return over the past three years was 589%

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The solid performance at Wockhardt Limited (NSE:WOCKPHARMA) has been impressive and shareholders will probably be pleased to know that CEO Murtaza Khorakiwala has delivered. At the upcoming AGM on 8th of August, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

Check out our latest analysis for Wockhardt

Comparing Wockhardt Limited's CEO Compensation With The Industry

Our data indicates that Wockhardt Limited has a market capitalization of ₹262b, and total annual CEO compensation was reported as ₹25m for the year to March 2025. Notably, that's an increase of 19% over the year before. Notably, the salary which is ₹24.1m, represents most of the total compensation being paid.

For comparison, other companies in the Indian Pharmaceuticals industry with market capitalizations ranging between ₹175b and ₹560b had a median total CEO compensation of ₹84m. This suggests that Murtaza Khorakiwala is paid below the industry median. Moreover, Murtaza Khorakiwala also holds ₹474m worth of Wockhardt stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 99% of total compensation represents salary and 0.95087163% is other remuneration. Wockhardt has gone down a largely traditional route, paying Murtaza Khorakiwala a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Wockhardt Limited's Growth

Wockhardt Limited's earnings per share (EPS) grew 24% per year over the last three years. It achieved revenue growth of 7.2% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Wockhardt Limited Been A Good Investment?

We think that the total shareholder return of 589%, over three years, would leave most Wockhardt Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Murtaza receives almost all of their compensation through a salary. Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which shouldn't be ignored) in Wockhardt we think you should know about.

Important note: Wockhardt is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.