Raj Television Network Limited's (NSE:RAJTV) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Raj Television Network's Annual General Meeting to take place on 30th of September
• Total pay for CEO Mani Raajhendhran includes ₹12.0m salary
• The overall pay is 150% above the industry average
• Over the past three years, Raj Television Network's EPS fell by 85% and over the past three years, the total shareholder return was 36%

Despite strong share price growth of 36% for Raj Television Network Limited (NSE:RAJTV) over the last few years, earnings growth has been disappointing, which suggests something is amiss. The upcoming AGM on 30th of September may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

See our latest analysis for Raj Television Network

Comparing Raj Television Network Limited's CEO Compensation With The Industry

According to our data, Raj Television Network Limited has a market capitalization of ₹2.5b, and paid its CEO total annual compensation worth ₹12m over the year to March 2024. There was no change in the compensation 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 Indian Media industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹4.8m. This suggests that Mani Raajhendhran is paid more than the median for the industry. Moreover, Mani Raajhendhran also holds ₹285m worth of Raj Television Network stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹12m	₹12m	100%
Other	-	-	-
Total Compensation	₹12m	₹12m	100%

Speaking on an industry level, nearly 96% of total compensation represents salary, while the remainder of 4% is other remuneration. Speaking on a company level, Raj Television Network prefers to tread along a traditional path, disbursing all compensation through a salary. 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 reduced its earnings per share by 85% a year over the last three years. Its revenue is up 7.6% over the last year.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Raj Television Network Limited Been A Good Investment?

We think that the total shareholder return of 36%, over three years, would leave most Raj Television Network Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Raj Television Network rewards its CEO solely through a salary, ignoring non-salary benefits completely. While the return to shareholders does look promising, it's hard to ignore the lack of earnings growth and this makes us question whether these strong returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Raj Television Network (1 is a bit unpleasant!) that you should be aware of before investing here.

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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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.