Shareholders Will Probably Not Have Any Issues With Matrimony.com Limited's (NSE:MATRIMONY) CEO Compensation

Key Insights

• Matrimony.com's Annual General Meeting to take place on 9th of August
• Salary of ₹22.4m is part of CEO Murugavel Janakiraman's total remuneration
• The total compensation is 53% less than the average for the industry
• Matrimony.com's three-year loss to shareholders was 35% while its EPS grew by 7.5% over the past three years

The performance at Matrimony.com Limited (NSE:MATRIMONY) has been rather lacklustre of late and shareholders may be wondering what CEO Murugavel Janakiraman is planning to do about this. At the next AGM coming up on 9th of August, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

Check out our latest analysis for Matrimony.com

Comparing Matrimony.com Limited's CEO Compensation With The Industry

According to our data, Matrimony.com Limited has a market capitalization of ₹16b, and paid its CEO total annual compensation worth ₹24m over the year to March 2024. That's a slight decrease of 4.7% on the prior year. Notably, the salary which is ₹22.4m, represents most of the total compensation being paid.

In comparison with other companies in the India Interactive Media and Services industry with market capitalizations ranging from ₹8.4b to ₹34b, the reported median CEO total compensation was ₹51m. Accordingly, Matrimony.com pays its CEO under the industry median. Furthermore, Murugavel Janakiraman directly owns ₹8.1b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹22m	₹21m	93%
Other	₹1.7m	₹4.0m	7%
Total Compensation	₹24m	₹25m	100%

On an industry level, roughly 44% of total compensation represents salary and 56% is other remuneration. Matrimony.com is paying a higher share of its remuneration through a salary in comparison to the overall 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.

A Look at Matrimony.com Limited's Growth Numbers

Matrimony.com Limited's earnings per share (EPS) grew 7.5% per year over the last three years. It achieved revenue growth of 5.6% over the last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Matrimony.com Limited Been A Good Investment?

With a total shareholder return of -35% over three years, Matrimony.com Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders have earned a negative share price return is certainly disconcerting. The lacklustre earnings growth perhaps may have something to do with the downward trend in the share price. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Matrimony.com that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.

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