The slow growth in the pharmaceutical sector— which only turned worse in May this year— has led to many CEOs of pharma companies opting to take a pay cut or settling for a flat pay in the last financial year. A report by pharma market research company, AIOCD Pharmasofttech AWACS, reveals that growth in the pharmaceutical sector reached the slowest in seven quarters in April–June 2019!
The CEO of Cipla had to suffer a 20 per cent fall in pay, due to the decrease in the number of stock options exercised. However, his pay package remained somewhat similar to what he got the previous year.
It is reported that Dilip Shanghvi, founder and managing director, Sun Pharmaceutical Industries, took a 99 per cent pay cut, earning a salary of just one rupee in addition to the perquisites amounting to Rs 262,000.
Nilesh Gupta, managing director, Lupin, took an 80 per cent year-on-year pay cut, as the Company suffered 32 per cent drop in net profit.
The CEO of Cadila continued to take home the same annual remuneration of Rs 25 crore, even though the Company did earn four per cent more profits.
At Torrent Pharmaceutical’s, the CEO’s pay package of Rs 15 crore per year saw no change even though the net profit of the Company fell by 35 per cent.
Dr Reddy’s Laboratories seems to have done better than others in the sector, with profits going up by 92 per cent. Therefore, not surprisingly, the pay package of the Company’s MD and co-chairman rose by 60 per cent.