Here's What We Learned About The CEO Pay At Raj Television Network Limited (NSE:RAJTV)

This article will reflect on the compensation paid to Mani Raajhendhran who has served as CEO of Raj Television Network Limited (NSE:RAJTV) since 1994. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Raj Television Network

Comparing Raj Television Network Limited's CEO Compensation With the industry

Our data indicates that Raj Television Network Limited has a market capitalization of ₹1.8b, and total annual CEO compensation was reported as ₹13m for the year to March 2020. That's mostly flat as compared to the prior year's compensation. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹13m.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹13m. From this we gather that Mani Raajhendhran is paid around the median for CEOs in the industry. What's more, Mani Raajhendhran holds ₹202m 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 98% of total compensation out of all the companies we analyzed, while other remuneration made up 2.3% of the pie. On a company level, Raj Television Network prefers to reward its CEO through a salary, opting not to pay Mani Raajhendhran through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with 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 5.0% per year. Its revenue is down 3.2% over the previous year.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Raj Television Network Limited Been A Good Investment?

With a three year total loss of 38% for the shareholders, Raj Television Network Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

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. But with negative shareholder returns and unimpressive EPS growth, shareholders will surely be disturbed. We'd stop short of saying CEO compensation is inappropriate, but without an improvement in performance, it's sure to draw criticism. Shareholders will also not want to see performance improving before agreeing to any raise.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Raj Television Network that investors should think about before committing capital to this stock.

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.

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