We Think Some Shareholders May Hesitate To Increase T.V. Today Network Limited's (NSE:TVTODAY) CEO Compensation

Shareholders of T.V. Today Network Limited (NSE:TVTODAY) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 16 September 2021. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for T.V. Today Network

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

At the time of writing, our data shows that T.V. Today Network Limited has a market capitalization of ₹18b, and reported total annual CEO compensation of ₹94m for the year to March 2021. This means that the compensation hasn't changed much from last year. We note that the salary of ₹52.4m makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from ₹7.4b to ₹30b, we found that the median CEO total compensation was ₹31m. Hence, we can conclude that Kalli Bhandal is remunerated higher than the industry median.

Component	2021	2020	Proportion (2021)
Salary	₹52m	₹47m	56%
Other	₹41m	₹46m	44%
Total Compensation	₹94m	₹94m	100%

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. T.V. Today Network sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at T.V. Today Network Limited's Growth Numbers

Over the past three years, T.V. Today Network Limited has seen its earnings per share (EPS) grow by 3.4% per year. It saw its revenue drop 8.7% over the last year.

We would argue that the lack of revenue growth in the last year is less than ideal, 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?

With a three year total loss of 22% for the shareholders, T.V. Today Network Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for T.V. Today Network that investors should think about before committing capital to this stock.

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.

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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.
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