In This Article:
Sunil Lulla became the CEO of Eros International Media Limited (NSE:EROSMEDIA) in 2009. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Eros International Media
How Does Sunil Lulla’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Eros International Media Limited has a market cap of ₹6.8b, and is paying total annual CEO compensation of ₹44m. That’s actually a decrease on the year before. We took a group of companies with market capitalizations below ₹14.7b, and calculated the median CEO compensation to be ₹2m.
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 shrunk earnings per share by 2.8% each year. Its revenue is down -10% over last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. 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.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Eros International Media Limited Been A Good Investment?
Given the total loss of 74% over three years, many shareholders in Eros International Media Limited are probably rather dissatisfied, to say the least. 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.
We think many shareholders would be underwhelmed with the business growth over the last three years.