How Much Is Jagran Prakashan Limited (NSE:JAGRAN) CEO Getting Paid?

The CEO of Jagran Prakashan Limited (NSE:JAGRAN) is Sanjay Gupta, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Jagran Prakashan pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Jagran Prakashan

Comparing Jagran Prakashan Limited's CEO Compensation With the industry

At the time of writing, our data shows that Jagran Prakashan Limited has a market capitalization of ₹14b, and reported total annual CEO compensation of ₹31m for the year to March 2020. That's just a smallish increase of 7.1% on last year. We note that the salary portion, which stands at ₹28.8m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from ₹7.3b to ₹29b, we found that the median CEO total compensation was ₹29m. This suggests that Jagran Prakashan remunerates its CEO largely in line with the industry average. What's more, Sanjay Gupta holds ₹2.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 98% of total compensation out of all the companies we analyzed, while other remuneration made up 2.3% of the pie. Jagran Prakashan 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.

Jagran Prakashan Limited's Growth

Jagran Prakashan Limited has reduced its earnings per share by 29% a year over the last three years. It saw its revenue drop 41% over the last 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 Jagran Prakashan Limited Been A Good Investment?

Given the total shareholder loss of 68% over three years, many shareholders in Jagran Prakashan Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As previously discussed, Sanjay is compensated close to the median for companies of its size, and which belong to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Jagran Prakashan that investors should look into moving forward.

Switching gears from Jagran Prakashan, 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. 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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