We Discuss Why ING Bank Slaski S.A.'s (WSE:ING) CEO Compensation May Be Closely Reviewed

Shareholders will probably not be too impressed with the underwhelming results at ING Bank Slaski S.A. (WSE:ING) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 15 April 2021. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for ING Bank Slaski

Comparing ING Bank Slaski S.A.'s CEO Compensation With the industry

Our data indicates that ING Bank Slaski S.A. has a market capitalization of zł23b, and total annual CEO compensation was reported as zł4.0m for the year to December 2020. That's a fairly small increase of 6.3% over the previous year. In particular, the salary of zł2.51m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations ranging from zł15b to zł46b, the reported median CEO total compensation was zł4.3m. This suggests that ING Bank Slaski remunerates its CEO largely in line with the industry average.

Component	2020	2019	Proportion (2020)
Salary	zł2.5m	zł2.5m	62%
Other	zł1.5m	zł1.3m	38%
Total Compensation	zł4.0m	zł3.8m	100%

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. Our data reveals that ING Bank Slaski allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at ING Bank Slaski S.A.'s Growth Numbers

ING Bank Slaski S.A. has reduced its earnings per share by 1.6% a year over the last three years. Revenue was pretty flat on last year.

A lack of EPS improvement is not good to see. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 ING Bank Slaski S.A. Been A Good Investment?

With a three year total loss of 9.0% for the shareholders, ING Bank Slaski S.A. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

Shareholders may want to check for free if ING Bank Slaski insiders are buying or selling shares.

Important note: ING Bank Slaski is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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