Anil Dua has been the CEO of Dish TV India Limited (NSE:DISHTV) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Dish TV India
How Does Total Compensation For Anil Dua Compare With Other Companies In The Industry?
At the time of writing, our data shows that Dish TV India Limited has a market capitalization of ₹22b, and reported total annual CEO compensation of ₹41m for the year to March 2020. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at ₹34.2m constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations ranging from ₹15b to ₹58b, the reported median CEO total compensation was ₹47m. From this we gather that Anil Dua is paid around the median for CEOs in the industry.
Component | 2020 | 2019 | Proportion (2020) |
Salary | ₹34m | ₹40m | 83% |
Other | ₹7.1m | ₹1.9m | 17% |
Total Compensation | ₹41m | ₹42m | 100% |
On an industry level, roughly 98% of total compensation represents salary and 2.3% is other remuneration. In Dish TV India's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Dish TV India Limited's Growth Numbers
Over the last three years, Dish TV India Limited has shrunk its earnings per share by 82% per year. It saw its revenue drop 28% over the last year.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Dish TV India Limited Been A Good Investment?
With a three year total loss of 83% for the shareholders, Dish TV India Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
As previously discussed, Anil is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Dish TV India (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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This article by Simply Wall St is general in nature. 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.
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About NSEI:DISHTV
Dish TV India
Provides direct to home (DTH) and teleport services in India.
Moderate growth potential and slightly overvalued.