We Discuss Why Sun TV Network Limited's (NSE:SUNTV) CEO May Deserve A Higher Pay Packet

Shareholders will probably not be disappointed by the robust results at Sun TV Network Limited (NSE:SUNTV) recently and they will be keeping this in mind as they go into the AGM on 23 September 2022. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

View 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 ₹200b, and reported total annual CEO compensation of ₹15m for the year to March 2022. That's a slight decrease of 3.1% on the prior year. We note that the salary portion, which stands at ₹11.7m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between ₹159b and ₹510b had a median total CEO compensation of ₹230m. This suggests that Rajaraman Mahesh kumar is paid below the industry median.

Component	2022	2021	Proportion (2022)
Salary	₹12m	₹12m	76%
Other	₹3.7m	₹4.2m	24%
Total Compensation	₹15m	₹16m	100%

Talking in terms of the industry, salary represented approximately 100% of total compensation out of all the companies we analyzed, while other remuneration made up 0.2491% of the pie. Sun TV Network pays a modest slice of remuneration through salary, as compared to the broader 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.

Sun TV Network Limited's Growth

Sun TV Network Limited has seen its earnings per share (EPS) increase by 8.1% a year over the past three years. It achieved revenue growth of 18% over the last year.

This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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?

With a total shareholder return of 24% over three years, Sun TV Network 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...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 2 warning signs for Sun TV Network that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.