How Much Is B.A.G. Films and Media's (NSE:BAGFILMS) CEO Getting Paid?

The CEO of B.A.G. Films and Media Limited (NSE:BAGFILMS) is Anuradha Shukla, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for B.A.G. Films and Media.

Check out our latest analysis for B.A.G. Films and Media

How Does Total Compensation For Anuradha Shukla Compare With Other Companies In The Industry?

At the time of writing, our data shows that B.A.G. Films and Media Limited has a market capitalization of ₹524m, and reported total annual CEO compensation of ₹14m for the year to March 2020. Notably, that's an increase of 11% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹14m.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹13m. From this we gather that Anuradha Shukla is paid around the median for CEOs in the industry. Furthermore, Anuradha Shukla directly owns ₹61m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 98% of total compensation represents salary and 2.3% is other remuneration. At the company level, B.A.G. Films and Media pays Anuradha Shukla solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at B.A.G. Films and Media Limited's Growth Numbers

Over the last three years, B.A.G. Films and Media Limited has shrunk its earnings per share by 98% per year. It saw its revenue drop 28% over the last year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has B.A.G. Films and Media Limited Been A Good Investment?

Given the total shareholder loss of 55% over three years, many shareholders in B.A.G. Films and Media Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

B.A.G. Films and Media rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, B.A.G. Films and Media Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 2 which shouldn't be ignored) in B.A.G. Films and Media we think you should know about.

Important note: B.A.G. Films and Media 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.

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