Shareholders Will Most Likely Find Dish TV India Limited's (NSE:DISHTV) CEO Compensation Acceptable

Despite strong share price growth of 36% for Dish TV India Limited (NSE:DISHTV) over the last few years, earnings growth has been disappointing, which suggests something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 29 December 2022. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Check out our latest analysis for Dish TV India

Comparing Dish TV India Limited's CEO Compensation With The Industry

According to our data, Dish TV India Limited has a market capitalization of ₹33b, and paid its CEO total annual compensation worth ₹45m over the year to March 2022. This means that the compensation hasn't changed much from last year. In particular, the salary of ₹40.9m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Media industry with market capitalizations ranging from ₹17b to ₹66b, the reported median CEO total compensation was ₹45m. This suggests that Dish TV India remunerates its CEO largely in line with the industry average.

Component	2022	2021	Proportion (2022)
Salary	₹41m	₹35m	91%
Other	₹3.9m	₹8.7m	9%
Total Compensation	₹45m	₹44m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Dish TV India is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Dish TV India Limited's Growth

Over the last three years, Dish TV India Limited has shrunk its earnings per share by 7.4% per year. Its revenue is down 15% over the previous year.

Overall this is not a very positive result for shareholders. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Dish TV India Limited Been A Good Investment?

We think that the total shareholder return of 36%, over three years, would leave most Dish TV India Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Dish TV India that you should be aware of before investing.

Switching gears from Dish TV India, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.