Here's What We Think About Zee Entertainment Enterprises' (NSE:ZEEL) CEO Pay

Simply Wall St
December 28, 2020
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This article will reflect on the compensation paid to Punit Goenka who has served as CEO of Zee Entertainment Enterprises Limited (NSE:ZEEL) since 2008. This analysis will also assess whether Zee Entertainment Enterprises pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Zee Entertainment Enterprises

How Does Total Compensation For Punit Goenka Compare With Other Companies In The Industry?

Our data indicates that Zee Entertainment Enterprises Limited has a market capitalization of ₹212b, and total annual CEO compensation was reported as ₹90m for the year to March 2020. That's a notable increase of 8.7% on last year. We note that the salary portion, which stands at ₹62.8m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the industry with market capitalizations between ₹147b and ₹471b, we discovered that the median CEO total compensation of that group was ₹206m. That is to say, Punit Goenka is paid under the industry median.

Component20202019Proportion (2020)
Salary ₹63m ₹59m 70%
Other ₹27m ₹24m 30%
Total Compensation₹90m ₹83m100%

On an industry level, roughly 98% of total compensation represents salary and 2.1% is other remuneration. Zee Entertainment Enterprises pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

NSEI:ZEEL CEO Compensation December 29th 2020

A Look at Zee Entertainment Enterprises Limited's Growth Numbers

Over the last three years, Zee Entertainment Enterprises Limited has shrunk its earnings per share by 51% per year. Its revenue is down 15% 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. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Zee Entertainment Enterprises Limited Been A Good Investment?

Since shareholders would have lost about 61% over three years, some Zee Entertainment Enterprises Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Punit is compensated less 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, and EPSgrowth has been equally disappointing. Although we wouldn’t say CEO compensation is high, it’s tough to foresee shareholders warming up to thoughts of a bump anytime soon.

So you may want to check if insiders are buying Zee Entertainment Enterprises shares with their own money (free access).

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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