How Much Is Madhya Pradesh Today Media's (NSE:MPTODAY) CEO Getting Paid?

Hradayesh Dixit has been the CEO of Madhya Pradesh Today Media Limited (NSE:MPTODAY) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Madhya Pradesh Today Media

Comparing Madhya Pradesh Today Media Limited's CEO Compensation With the industry

According to our data, Madhya Pradesh Today Media Limited has a market capitalization of ₹64m, and paid its CEO total annual compensation worth ₹6.0m over the year to March 2020. That's a notable increase of 25% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹6.0m.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹13m. This suggests that Hradayesh Dixit is paid below the industry median. Furthermore, Hradayesh Dixit directly owns ₹17m worth of shares in the company, implying that they are deeply invested in the company's success.

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. Speaking on a company level, Madhya Pradesh Today Media prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Madhya Pradesh Today Media Limited's Growth

Over the last three years, Madhya Pradesh Today Media Limited has shrunk its earnings per share by 8.8% per year. In the last year, its revenue is down 19%.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Madhya Pradesh Today Media Limited Been A Good Investment?

With a three year total loss of 89% for the shareholders, Madhya Pradesh Today Media Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Madhya Pradesh Today Media pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, Madhya Pradesh Today Media pays its CEO lower than the norm for similar-sized companies belonging to the same industry. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. Although we wouldn’t say CEO compensation is high, it’s tough to foresee shareholders warming up to thoughts of a bump anytime soon.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Madhya Pradesh Today Media (2 can't be ignored!) that you should be aware of before investing here.

Important note: Madhya Pradesh Today Media is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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