How Much is Raj Television Network Limited's (NSE:RAJTV) CEO Getting Paid?

In 1994, Mani Raajhendhran was appointed CEO of Raj Television Network Limited (NSE:RAJTV). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Raj Television Network

How Does Mani Raajhendhran's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Raj Television Network Limited has a market cap of ₹1.7b, and reported total annual CEO compensation of ₹13m for the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹13m. We took a group of companies with market capitalizations below ₹15b, and calculated the median CEO total compensation to be ₹3.6m.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Raj Television Network stands. Talking in terms of the sector, salary represented approximately 99% of total compensation out of all the companies we analysed, while other remuneration made up 1.3% of the pie. Speaking on a company level, Raj Television Network prefers to tread along a traditional path, disbursing all compensation through a salary.

It would therefore appear that Raj Television Network Limited pays Mani Raajhendhran more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. The graphic below shows how CEO compensation at Raj Television Network has changed from year to year.

Is Raj Television Network Limited Growing?

Over the last three years Raj Television Network Limited has seen earnings per share (EPS) move in a positive direction by an average of 107% per year (using a line of best fit). It achieved revenue growth of 12% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but shareholders might want to examine this 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 48%, 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.

In Summary...

We compared total CEO remuneration at Raj Television Network Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. On another note, we've spotted 2 warning signs for Raj Television Network that investors should look into moving forward.

Important note: Raj Television Network may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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