We Take A Look At Why Shilpa Medicare Limited's (NSE:SHILPAMED) CEO Has Earned Their Pay Packet
Key Insights
- Shilpa Medicare to hold its Annual General Meeting on 23rd of September
- Salary of ₹35.0m is part of CEO Vishnukanth Bhutada's total remuneration
- The overall pay is comparable to the industry average
- Shilpa Medicare's total shareholder return over the past three years was 110% while its EPS grew by 17% over the past three years
The performance at Shilpa Medicare Limited (NSE:SHILPAMED) has been quite strong recently and CEO Vishnukanth Bhutada has played a role in it. Coming up to the next AGM on 23rd of September, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
See our latest analysis for Shilpa Medicare
How Does Total Compensation For Vishnukanth Bhutada Compare With Other Companies In The Industry?
According to our data, Shilpa Medicare Limited has a market capitalization of ₹81b, and paid its CEO total annual compensation worth ₹35m 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 ₹35m.
On examining similar-sized companies in the Indian Pharmaceuticals industry with market capitalizations between ₹35b and ₹141b, we discovered that the median CEO total compensation of that group was ₹33m. From this we gather that Vishnukanth Bhutada is paid around the median for CEOs in the industry. What's more, Vishnukanth Bhutada holds ₹6.4b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹35m | ₹35m | 100% |
| Other | - | - | - |
| Total Compensation | ₹35m | ₹35m | 100% |
Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 0.79361173% is other remuneration. At the company level, Shilpa Medicare pays Vishnukanth Bhutada solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Shilpa Medicare Limited's Growth Numbers
Shilpa Medicare Limited's earnings per share (EPS) grew 17% per year over the last three years. It achieved revenue growth of 11% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Shilpa Medicare Limited Been A Good Investment?
Boasting a total shareholder return of 110% over three years, Shilpa Medicare Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Shilpa Medicare rewards its CEO solely through a salary, ignoring non-salary benefits completely. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
So you may want to check if insiders are buying Shilpa Medicare shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.