In This Article:
In 2001 Gunupati Prasad was appointed CEO of Dr Reddy’s Laboratories Limited (NSE:DRREDDY). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Dr. Reddy’s Laboratories
How Does Gunupati Prasad’s Compensation Compare With Similar Sized Companies?
Our data indicates that Dr Reddy’s Laboratories Limited is worth ₹404.3b, and total annual CEO compensation is ₹77m. That’s below the compensation, last year. We looked at a group of companies with market capitalizations from ₹293.0b to ₹879.1b, and the median CEO compensation was ₹86m.
That means Gunupati Prasad receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Dr. Reddy’s Laboratories has changed from year to year.
Is Dr Reddy’s Laboratories Limited Growing?
Dr Reddy’s Laboratories Limited has reduced its earnings per share by an average of 31% a year, over the last three years. Its revenue is up 3.8% over last year.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Dr Reddy’s Laboratories Limited Been A Good Investment?
With a three year total loss of 41%, Dr Reddy’s Laboratories Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
Remuneration for Gunupati Prasad is close enough to the median pay for a CEO of a similar sized company .
The company isn’t growing EPS, and shareholder returns have been disappointing. Few would argue that it’s wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Dr Reddy’s Laboratories Limited shares (free trial).