A Quick Analysis On Raj Television Network's (NSE:RAJTV) CEO Compensation

Mani Raajhendhran has been the CEO of Raj Television Network Limited (NSE:RAJTV) since 1994, and this article will examine the executive's compensation 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 Raj Television Network.

View our latest analysis for Raj Television Network

How Does Total Compensation For Mani Raajhendhran Compare With Other Companies In The Industry?

According to our data, Raj Television Network Limited has a market capitalization of ₹1.8b, and paid its CEO total annual compensation worth ₹13m over the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary of ₹13m is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹13m. This suggests that Raj Television Network remunerates its CEO largely in line with the industry average. What's more, Mani Raajhendhran holds ₹201m 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 96% of total compensation out of all the companies we analyzed, while other remuneration made up 4.0% of the pie. At the company level, Raj Television Network pays Mani Raajhendhran solely through a salary, preferring to go down a conventional route. 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.

Raj Television Network Limited's Growth

Over the past three years, Raj Television Network Limited has seen its earnings per share (EPS) grow by 89% per year. It saw its revenue drop 20% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Raj Television Network Limited Been A Good Investment?

With a three year total loss of 41% for the shareholders, Raj Television Network Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Raj Television Network pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Mani is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Raj Television Network that you should be aware of before investing.

Switching gears from Raj Television Network, 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.

If you’re looking to trade Raj Television Network, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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