Sun TV Network Limited's (NSE:SUNTV) CEO Compensation Looks Acceptable To Us And Here's Why
Key Insights
- Sun TV Network will host its Annual General Meeting on 19th of September
- Salary of ₹14.3m is part of CEO Rajaraman Mahesh kumar's total remuneration
- Total compensation is similar to the industry average
- Sun TV Network's EPS declined by 1.9% over the past three years while total shareholder return over the past three years was 19%
The share price of Sun TV Network Limited (NSE:SUNTV) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. The upcoming AGM on 19th of September may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. 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 Sun TV Network
How Does Total Compensation For Rajaraman Mahesh kumar Compare With Other Companies In The Industry?
At the time of writing, our data shows that Sun TV Network Limited has a market capitalization of ₹219b, and reported total annual CEO compensation of ₹23m for the year to March 2025. We note that's an increase of 28% above last year. In particular, the salary of ₹14.3m, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the Indian Media industry with market capitalizations ranging from ₹177b to ₹565b, the reported median CEO total compensation was ₹19m. So it looks like Sun TV Network compensates Rajaraman Mahesh kumar in line with the median for the industry.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹14m | ₹12m | 63% |
| Other | ₹8.4m | ₹5.5m | 37% |
| Total Compensation | ₹23m | ₹18m | 100% |
On an industry level, roughly 100% of total compensation represents salary and 0.30108504% is other remuneration. Sun TV Network sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Sun TV Network Limited's Growth Numbers
Sun TV Network Limited has reduced its earnings per share by 1.9% a year over the last three years. In the last year, its revenue is down 6.0%.
Its a bit disappointing to see that the company has failed to grow its EPS. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Sun TV Network Limited Been A Good Investment?
Sun TV Network Limited has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
To Conclude...
Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Sun TV Network 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.