Yahoo Finance Does Eros International Media Limited's (NSE:EROSMEDIA) CEO Pay Compare Well With Peers?
Sunil Lulla has been the CEO of Eros International Media Limited (NSE:EROSMEDIA) since 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.
View our latest analysis for Eros International Media
How Does Sunil Lulla's Compensation Compare With Similar Sized Companies?
Our data indicates that Eros International Media Limited is worth ₹1.5b, and total annual CEO compensation was reported as ₹48m for the year to March 2019. Notably, the salary of ₹47m is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹2.4m.
Thus we can conclude that Sunil Lulla receives more in total compensation than the median of a group of companies in the same market, and of similar size to Eros International Media Limited. However, this doesn't necessarily mean the pay 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 4.1% each year (using a line of best fit). It achieved revenue growth of 8.5% over the last year.
I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Eros International Media Limited Been A Good Investment?
Since shareholders would have lost about 92% over three years, some Eros International Media Limited shareholders would surely be feeling negative emotions. 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.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Eros International Media shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.
