A Quick Analysis On T.V. Today Network's (NSE:TVTODAY) CEO Compensation

Kalli Bhandal has been the CEO of T.V. Today Network Limited (NSE:TVTODAY) since 2018, 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 T.V. Today Network.

View our latest analysis for T.V. Today Network

How Does Total Compensation For Kalli Bhandal Compare With Other Companies In The Industry?

According to our data, T.V. Today Network Limited has a market capitalization of ₹15b, and paid its CEO total annual compensation worth ₹94m over the year to March 2020. Notably, that's an increase of 47% over the year before. In particular, the salary of ₹47.4m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from ₹7.3b to ₹29b, we found that the median CEO total compensation was ₹29m. Accordingly, our analysis reveals that T.V. Today Network Limited pays Kalli Bhandal north of the industry median.

Talking in terms of the industry, salary represented approximately 98% of total compensation out of all the companies we analyzed, while other remuneration made up 2.3% of the pie. It's interesting to note that T.V. Today Network allocates a smaller portion of compensation to salary in comparison 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.

T.V. Today Network Limited's Growth

Over the past three years, T.V. Today Network Limited has seen its earnings per share (EPS) grow by 1.1% per year. Its revenue is down 5.9% over the previous year.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has T.V. Today Network Limited Been A Good Investment?

Since shareholders would have lost about 40% over three years, some T.V. Today Network Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, Kalli is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Over the last three years, shareholder returns have been downright disappointing for T.V. Today Network, and although EPS growth is steady, it hasn't set the world on fire. And the situation doesn't look all that good when you see Kalli is remunerated higher than the industry average. All things considered, we believe shareholders would be disappointed to see Kalli's compensation grow without first seeing an improvement in the performance of the company.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling T.V. Today Network (free visualization of insider trades).

Important note: T.V. Today Network is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

If you decide to trade T.V. Today Network, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.