How Does Silly Monks Entertainment's (NSE:SILLYMONKS) CEO Salary Compare to Peers?

Tekulapalli Reddy has been the CEO of Silly Monks Entertainment Limited (NSE:SILLYMONKS) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Silly Monks Entertainment.

View our latest analysis for Silly Monks Entertainment

Comparing Silly Monks Entertainment Limited's CEO Compensation With the industry

Our data indicates that Silly Monks Entertainment Limited has a market capitalization of ₹242m, and total annual CEO compensation was reported as ₹7.8m for the year to March 2020. Notably, that's an increase of 21% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹7.8m.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹1.8m. This suggests that Tekulapalli Reddy is paid more than the median for the industry. Moreover, Tekulapalli Reddy also holds ₹82m worth of Silly Monks Entertainment stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. On a company level, Silly Monks Entertainment prefers to reward its CEO through a salary, opting not to pay Tekulapalli Reddy 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.

Silly Monks Entertainment Limited's Growth

Over the last three years, Silly Monks Entertainment Limited has shrunk its earnings per share by 117% per year. Its revenue is down 18% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Silly Monks Entertainment Limited Been A Good Investment?

With a three year total loss of 64% for the shareholders, Silly Monks Entertainment Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Silly Monks Entertainment pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Silly Monks Entertainment Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Disappointingly, share price gains over the last three years have failed to materialize. Add to that declining EPS growth, and you have the perfect recipe for shareholder irritation. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 2 which shouldn't be ignored) in Silly Monks Entertainment we think you should know about.

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. 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.
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