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S. Sridhar has been the CEO of Pfizer Limited (NSE:PFIZER) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Pfizer
How Does S. Sridhar's Compensation Compare With Similar Sized Companies?
Our data indicates that Pfizer Limited is worth ₹144b, and total annual CEO compensation is ₹34m. (This number is for the twelve months until March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹24m. We examined companies with market caps from ₹69b to ₹222b, and discovered that the median CEO total compensation of that group was ₹40m.
So S. Sridhar receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Pfizer, below.
Is Pfizer Limited Growing?
On average over the last three years, Pfizer Limited has grown earnings per share (EPS) by 17% each year (using a line of best fit). Its revenue is up 5.7% over last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Pfizer Limited Been A Good Investment?
Boasting a total shareholder return of 75% over three years, Pfizer 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...
S. Sridhar is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Pfizer (free visualization of insider trades).