Stock Analysis

We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Network18 Media & Investments Limited's (NSE:NETWORK18) CEO For Now

NSEI:NETWORK18
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CEO Rahul Joshi has done a decent job of delivering relatively good performance at Network18 Media & Investments Limited (NSE:NETWORK18) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29 September 2022. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Network18 Media & Investments

Comparing Network18 Media & Investments Limited's CEO Compensation With The Industry

According to our data, Network18 Media & Investments Limited has a market capitalization of ₹72b, and paid its CEO total annual compensation worth ₹76m over the year to March 2022. That's a notable increase of 8.9% on last year. Notably, the salary which is ₹61.4m, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between ₹32b and ₹128b, we discovered that the median CEO total compensation of that group was ₹16m. This suggests that Rahul Joshi is paid more than the median for the industry.

Component20222021Proportion (2022)
Salary ₹61m ₹61m 81%
Other ₹15m ₹8.6m 19%
Total Compensation₹76m ₹70m100%

Talking in terms of the industry, salary represented approximately 100% of total compensation out of all the companies we analyzed, while other remuneration made up 0.2491% of the pie. Network18 Media & Investments pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
NSEI:NETWORK18 CEO Compensation September 23rd 2022

A Look at Network18 Media & Investments Limited's Growth Numbers

Network18 Media & Investments Limited has seen its earnings per share (EPS) increase by 114% a year over the past three years. In the last year, its revenue is up 17%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Network18 Media & Investments Limited Been A Good Investment?

Boasting a total shareholder return of 213% over three years, Network18 Media & Investments Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

Shareholders may want to check for free if Network18 Media & Investments insiders are buying or selling shares.

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.

Valuation is complex, but we're here to simplify it.

Discover if Network18 Media & Investments might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.