This article will reflect on the compensation paid to Wieslaw Zyznowski who has served as CEO of Mercator Medical S.A. (WSE:MRC) since 2010. This analysis will also assess whether Mercator Medical pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Wieslaw Zyznowski Compare With Other Companies In The Industry?
At the time of writing, our data shows that Mercator Medical S.A. has a market capitalization of zł1.8b, and reported total annual CEO compensation of zł470k for the year to December 2019. This means that the compensation hasn’t changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth zł470k.
For comparison, other companies in the same industry with market capitalizations ranging between zł783m and zł3.1b had a median total CEO compensation of zł3.0m. Accordingly, Mercator Medical pays its CEO under the industry median. Moreover, Wieslaw Zyznowski also holds zł71m worth of Mercator Medical stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. Speaking on a company level, Mercator Medical prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Mercator Medical S.A.’s Growth
Mercator Medical S.A. has seen its earnings per share (EPS) increase by 22% a year over the past three years. In the last year, its revenue is up 37%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Historical performance can sometimes be a good indicator on what’s coming up next but if you want to peer into the company’s future you might be interested in this free visualization of analyst forecasts.
Has Mercator Medical S.A. Been A Good Investment?
Most shareholders would probably be pleased with Mercator Medical S.A. for providing a total return of 825% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Mercator Medical rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Wieslaw is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Since earnings growth is heading in a positive direction; many would agree with our assessment that the pay is modest. And given most shareholders are probably very happy with recent shareholder returns, they might even think Wieslaw deserves a raise!
CEO pay is simply one of the many factors that need to be considered while examining business performance. That’s why we did our research, and identified 3 warning signs for Mercator Medical (of which 2 are a bit concerning!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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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