November 30, 2023

Healthcare Global

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We Think Shareholders Will Probably Be Generous With HealthCare Global Enterprises Limited’s (NSE:HCG) CEO Compensation

Key Insights

  • HealthCare Global Enterprises’ Annual General Meeting to take place on 20th of September
  • CEO Raj Gore’s total compensation includes salary of ₹21.0m
  • Total compensation is similar to the industry average
  • Over the past three years, HealthCare Global Enterprises’ EPS grew by 97% and over the past three years, the total shareholder return was 196%

It would be hard to discount the role that CEO Raj Gore has played in delivering the impressive results at HealthCare Global Enterprises Limited (NSE:HCG) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 20th of September. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for HealthCare Global Enterprises

Comparing HealthCare Global Enterprises Limited’s CEO Compensation With The Industry

According to our data, HealthCare Global Enterprises Limited has a market capitalization of ₹50b, and paid its CEO total annual compensation worth ₹32m over the year to March 2023. This means that the compensation hasn’t changed much from last year. Notably, the salary which is ₹21.0m, represents most of the total compensation being paid.

On comparing similar companies from the Indian Healthcare industry with market caps ranging from ₹33b to ₹133b, we found that the median CEO total compensation was ₹32m. From this we gather that Raj Gore is paid around the median for CEOs in the industry. Furthermore, Raj Gore directly owns ₹14m worth of shares in the company, implying that they are deeply invested in the company’s success.

Component 2023 2022 Proportion (2023)
Salary ₹21m ₹21m 67%
Other ₹11m ₹10m 33%
Total Compensation ₹32m ₹31m 100%

Speaking on an industry level, nearly 95% of total compensation represents salary, while the remainder of 5% is other remuneration. In HealthCare Global Enterprises’ case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion – which is generally tied to performance, is lower.

NSEI:HCG CEO Compensation September 14th 2023

A Look at HealthCare Global Enterprises Limited’s Growth Numbers

HealthCare Global Enterprises Limited’s earnings per share (EPS) grew 97% per year over the last three years. Its revenue is up 18% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 HealthCare Global Enterprises Limited Been A Good Investment?

Most shareholders would probably be pleased with HealthCare Global Enterprises Limited for providing a total return of 196% 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…

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. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is an important area to keep your eyes on, but we’ve also need to pay attention to other attributes of the company. That’s why we did our research, and identified 2 warning signs for HealthCare Global Enterprises (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Important note: HealthCare Global Enterprises is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Valuation is complex, but we’re helping make it simple.

Find out whether HealthCare Global Enterprises is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.