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Hari Bhartia became the CEO of Jubilant Life Sciences Limited (NSE:JUBILANT) in 1982. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Jubilant Life Sciences
How Does Hari Bhartia's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Jubilant Life Sciences Limited has a market cap of ₹73b, and is paying total annual CEO compensation of ₹134m. (This number is for the twelve months until March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹27m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹28b to ₹110b. The median total CEO compensation was ₹24m.
It would therefore appear that Jubilant Life Sciences Limited pays Hari Bhartia more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Jubilant Life Sciences has changed over time.
Is Jubilant Life Sciences Limited Growing?
Over the last three years Jubilant Life Sciences Limited has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). In the last year, its revenue is up 21%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Jubilant Life Sciences Limited Been A Good Investment?
Most shareholders would probably be pleased with Jubilant Life Sciences Limited for providing a total return of 43% over three years. 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...
We compared total CEO remuneration at Jubilant Life Sciences Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.