Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2009 Sunil Lulla was appointed CEO of Eros International Media Limited (NSE:EROSMEDIA). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Sunil Lulla’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Eros International Media Limited has a market cap of ₹5.8b, and is paying total annual CEO compensation of ₹44m. (This number is for the twelve months until March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹43m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.
It would therefore appear that Eros International Media Limited pays Sunil Lulla more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Eros International Media, below.
Is Eros International Media Limited Growing?
Over the last three years Eros International Media Limited has grown its earnings per share (EPS) by an average of 2.6% per year (using a line of best fit). It achieved revenue growth of 15% over the last year.
This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn’t bad, either. So while we’d stop just short of calling this a top performer, but we think it is well worth watching. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Eros International Media Limited Been A Good Investment?
With a three year total loss of 70%, Eros International Media Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared the total CEO remuneration paid by Eros International Media Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Eros International Media (free visualization of insider trades).
If you want to buy a stock that is better than Eros International Media, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.