Should You Be Pleased About The CEO Pay At Eros International Media Limited's (NSE:EROSMEDIA)
In 2009 Sunil Lulla was appointed CEO of Eros International Media Limited (NSE:EROSMEDIA). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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See our latest analysis for Eros International Media
How Does Sunil Lulla's Compensation Compare With Similar Sized Companies?
According to our data, Eros International Media Limited has a market capitalization of ₹6.6b, and pays its CEO total annual compensation worth ₹44m. (This figure is for the year to March 2018). Notably, the salary of ₹43m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.
It would therefore appear that Eros International Media Limited pays Sunil Lulla more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Eros International Media, below.
Is Eros International Media Limited Growing?
On average over the last three years, Eros International Media Limited has grown earnings per share (EPS) by 2.6% each year (using a line of best fit). It achieved revenue growth of 15% over the last year.
This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Eros International Media Limited Been A Good Investment?
With a three year total loss of 61%, Eros International Media Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Eros International Media Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Eros International Media.
Important note: Eros International Media may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
