We Think Some Shareholders May Hesitate To Increase Saregama India Limited's (NSE:SAREGAMA) CEO Compensation

Key Insights

• Saregama India's Annual General Meeting to take place on 10th of September
• Total pay for CEO Vikram Mehra includes ₹113.5m salary
• The total compensation is 641% higher than the average for the industry
• Saregama India's total shareholder return over the past three years was 28% while its EPS grew by 5.8% over the past three years

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CEO Vikram Mehra has done a decent job of delivering relatively good performance at Saregama India Limited (NSE:SAREGAMA) recently. As shareholders go into the upcoming AGM on 10th 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 may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Saregama India

Comparing Saregama India Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Saregama India Limited has a market capitalization of ₹95b, and reported total annual CEO compensation of ₹126m for the year to March 2025. That's a modest increase of 4.0% on the prior year. We note that the salary portion, which stands at ₹113.5m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the India Entertainment industry with market capitalizations ranging between ₹35b and ₹141b had a median total CEO compensation of ₹17m. Accordingly, our analysis reveals that Saregama India Limited pays Vikram Mehra north of the industry median. What's more, Vikram Mehra holds ₹773m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Saregama India is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Saregama India Limited's Growth

Saregama India Limited's earnings per share (EPS) grew 5.8% per year over the last three years. Its revenue is up 39% over the last year.

We like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Saregama India Limited Been A Good Investment?

With a total shareholder return of 28% over three years, Saregama India Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Saregama India that investors should be aware of in a dynamic business environment.

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.