Shareholders Will Probably Not Have Any Issues With mBank S.A.'s (WSE:MBK) CEO Compensation

Key Insights

• mBank to hold its Annual General Meeting on 27th of March
• CEO Cezary Stypulkowski's total compensation includes salary of zł3.51m
• The total compensation is similar to the average for the industry
• mBank's EPS declined by 39% over the past three years while total shareholder return over the past three years was 243%

CEO Cezary Stypulkowski has done a decent job of delivering relatively good performance at mBank S.A. (WSE:MBK) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 27th of March. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for mBank

Comparing mBank S.A.'s CEO Compensation With The Industry

Our data indicates that mBank S.A. has a market capitalization of zł31b, and total annual CEO compensation was reported as zł4.9m for the year to December 2023. That's a notable increase of 16% on last year. In particular, the salary of zł3.51m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Polish Banks industry with market capitalizations ranging between zł16b and zł48b had a median total CEO compensation of zł4.8m. So it looks like mBank compensates Cezary Stypulkowski in line with the median for the industry. What's more, Cezary Stypulkowski holds zł23m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	zł3.5m	zł3.6m	72%
Other	zł1.4m	zł617k	28%
Total Compensation	zł4.9m	zł4.2m	100%

On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. It's interesting to note that mBank pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at mBank S.A.'s Growth Numbers

Over the last three years, mBank S.A. has shrunk its earnings per share by 39% per year. In the last year, its revenue is up 35%.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 mBank S.A. Been A Good Investment?

Most shareholders would probably be pleased with mBank S.A. for providing a total return of 243% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The overall company performance has been commendable, however there are still areas for improvement. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for mBank that investors should look into moving forward.

Switching gears from mBank, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.