Increases to HT Media Limited's (NSE:HTMEDIA) CEO Compensation Might Cool off for now

Key Insights

• HT Media to hold its Annual General Meeting on 27th of September
• Total pay for CEO Praveen Someshwar includes ₹52.5m salary
• The overall pay is 1,109% above the industry average
• Over the past three years, HT Media's EPS fell by 12% and over the past three years, the total shareholder return was 92%

HT Media Limited (NSE:HTMEDIA) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 27th of September. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

View our latest analysis for HT Media

How Does Total Compensation For Praveen Someshwar Compare With Other Companies In The Industry?

According to our data, HT Media Limited has a market capitalization of ₹6.1b, and paid its CEO total annual compensation worth ₹57m over the year to March 2023. We note that's an increase of 18% above last year. In particular, the salary of ₹52.5m, 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 under ₹17b, the reported median total CEO compensation was ₹4.7m. This suggests that Praveen Someshwar is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	₹52m	₹45m	91%
Other	₹4.9m	₹3.7m	9%
Total Compensation	₹57m	₹49m	100%

Speaking on an industry level, nearly 96% of total compensation represents salary, while the remainder of 4% is other remuneration. HT Media is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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 HT Media Limited's Growth Numbers

Over the last three years, HT Media Limited has shrunk its earnings per share by 12% per year. Revenue was pretty flat on last year.

Overall this is not a very positive result for shareholders. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has HT Media Limited Been A Good Investment?

We think that the total shareholder return of 92%, over three years, would leave most HT Media 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. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for HT Media you should be aware of, and 1 of them doesn't sit too well with us.

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.

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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.