Increases to Raj Television Network Limited's (NSE:RAJTV) CEO Compensation Might Cool off for now

Key Insights

• Raj Television Network's Annual General Meeting to take place on 30th of September
• CEO Mani Raajhendhran's total compensation includes salary of ₹12.0m
• Total compensation is 151% above industry average
• Raj Television Network's total shareholder return over the past three years was 40% while its EPS grew by 101% over the past three years

Under the guidance of CEO Mani Raajhendhran, Raj Television Network Limited (NSE:RAJTV) has performed reasonably well recently. As shareholders go into the upcoming AGM on 30th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Raj Television Network

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

Our data indicates that Raj Television Network Limited has a market capitalization of ₹2.5b, and total annual CEO compensation was reported as ₹12m for the year to March 2023. This was the same as last year. Notably, the salary of ₹12m is the entirety of the CEO compensation.

For comparison, other companies in the Indian Media industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹4.8m. Accordingly, our analysis reveals that Raj Television Network Limited pays Mani Raajhendhran north of the industry median. Furthermore, Mani Raajhendhran directly owns ₹279m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹12m	₹12m	100%
Other	-	-	-
Total Compensation	₹12m	₹12m	100%

Speaking on an industry level, nearly 94% of total compensation represents salary, while the remainder of 6% is other remuneration. At the company level, Raj Television Network pays Mani Raajhendhran solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Raj Television Network Limited's Growth Numbers

Raj Television Network Limited has seen its earnings per share (EPS) increase by 101% a year over the past three years. Its revenue is up 41% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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?

Most shareholders would probably be pleased with Raj Television Network Limited for providing a total return of 40% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Raj Television Network rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Raj Television Network that investors should look into moving forward.

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.

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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.