What Does Radaan Mediaworks India's (NSE:RADAAN) CEO Pay Reveal?

Radha Sarathkumar is the CEO of Radaan Mediaworks India Limited (NSE:RADAAN), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Radaan Mediaworks India.

Check out our latest analysis for Radaan Mediaworks India

How Does Total Compensation For Radha Sarathkumar Compare With Other Companies In The Industry?

According to our data, Radaan Mediaworks India Limited has a market capitalization of ₹41m, and paid its CEO total annual compensation worth ₹12m over the year to March 2020. We note that's a decrease of 53% compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹12m.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹1.6m. Accordingly, our analysis reveals that Radaan Mediaworks India Limited pays Radha Sarathkumar north of the industry median. Furthermore, Radha Sarathkumar directly owns ₹21m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Speaking on a company level, Radaan Mediaworks India prefers to tread along a traditional path, disbursing all compensation through a salary. 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 Radaan Mediaworks India Limited's Growth Numbers

Over the last three years, Radaan Mediaworks India Limited has shrunk its earnings per share by 29% per year. Its revenue is down 35% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Radaan Mediaworks India Limited Been A Good Investment?

With a three year total loss of 69% for the shareholders, Radaan Mediaworks India Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Radaan Mediaworks India rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Radaan Mediaworks India pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. To make matters worse, EPS growth has also been negative during this period. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 6 warning signs for Radaan Mediaworks India (of which 4 are significant!) that you should know about in order to have a holistic understanding of the stock.

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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