Stock Analysis

We Think Shareholders May Want To Consider A Review Of Dish TV India Limited's (NSE:DISHTV) CEO Compensation Package

NSEI:DISHTV
Source: Shutterstock

Dish TV India Limited (NSE:DISHTV) has not performed well recently and CEO Anil Dua will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 30 December 2021. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See 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 ₹32b, and paid its CEO total annual compensation worth ₹44m over the year to March 2021. That's a modest increase of 5.9% on the prior year. We note that the salary portion, which stands at ₹35.1m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from ₹15b to ₹60b, we found that the median CEO total compensation was ₹37m. This suggests that Dish TV India remunerates its CEO largely in line with the industry average.

Component20212020Proportion (2021)
Salary ₹35m ₹34m 80%
Other ₹8.7m ₹7.1m 20%
Total Compensation₹44m ₹41m100%

Speaking on an industry level, nearly 100% of total compensation represents salary, while the remainder of 0.2491% is other remuneration. Dish TV India pays a modest slice of remuneration through salary, as compared to the broader industry. 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.

ceo-compensation
NSEI:DISHTV CEO Compensation December 24th 2021

Dish TV India Limited's Growth

Over the last three years, Dish TV India Limited has shrunk its earnings per share by 30% per year. In the last year, its revenue is down 12%.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Dish TV India Limited Been A Good Investment?

With a total shareholder return of -53% over three years, Dish TV India Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Dish TV India that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.