Does Saregama India Limited's (NSE:SAREGAMA) CEO Salary Reflect Performance?

In This Article:

Vikram Mehra has been the CEO of Saregama India Limited (NSE:SAREGAMA) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

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View our latest analysis for Saregama India

How Does Vikram Mehra's Compensation Compare With Similar Sized Companies?

Our data indicates that Saregama India Limited is worth ₹9.5b, and total annual CEO compensation is ₹46m. (This number is for the twelve months until March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹33m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.

As you can see, Vikram Mehra is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Saregama India Limited is paying too much. 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 Saregama India, below.

NSEI:SAREGAMA CEO Compensation, May 23rd 2019
NSEI:SAREGAMA CEO Compensation, May 23rd 2019

Is Saregama India Limited Growing?

On average over the last three years, Saregama India Limited has grown earnings per share (EPS) by 66% each year (using a line of best fit). In the last year, its revenue is up 53%.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Saregama India Limited Been A Good Investment?

Boasting a total shareholder return of 78% over three years, Saregama India Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

We compared total CEO remuneration at Saregama India 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.