Zydus Lifesciences Limited's (NSE:ZYDUSLIFE) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Zydus Lifesciences will host its Annual General Meeting on 9th of August
• Total pay for CEO Sharvil Patel includes ₹180.0m salary
• Total compensation is 43% above industry average
• Zydus Lifesciences' total shareholder return over the past three years was 117% while its EPS grew by 21% over the past three years

Under the guidance of CEO Sharvil Patel, Zydus Lifesciences Limited (NSE:ZYDUSLIFE) has performed reasonably well recently. As shareholders go into the upcoming AGM on 9th of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Zydus Lifesciences

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

At the time of writing, our data shows that Zydus Lifesciences Limited has a market capitalization of ₹1.3t, and reported total annual CEO compensation of ₹300m for the year to March 2024. Notably, that's an increase of 14% over the year before. In particular, the salary of ₹180.0m, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Pharmaceuticals industry with market capitalizations above ₹670b, reported a median total CEO compensation of ₹210m. Accordingly, our analysis reveals that Zydus Lifesciences Limited pays Sharvil Patel north of the industry median. What's more, Sharvil Patel holds ₹18m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹180m	₹180m	60%
Other	₹120m	₹83m	40%
Total Compensation	₹300m	₹263m	100%

On an industry level, roughly 98% of total compensation represents salary and 2% is other remuneration. Zydus Lifesciences pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Zydus Lifesciences Limited's Growth

Zydus Lifesciences Limited's earnings per share (EPS) grew 21% per year over the last three years. In the last year, its revenue is up 13%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Zydus Lifesciences Limited Been A Good Investment?

Boasting a total shareholder return of 117% over three years, Zydus Lifesciences Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Zydus Lifesciences.

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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