It Looks Like Shareholders Would Probably Approve Bank Millennium S.A.'s (WSE:MIL) CEO Compensation Package

Key Insights

• Bank Millennium will host its Annual General Meeting on 27th of March
• CEO Joao Lima Bras Jorge's total compensation includes salary of zł2.62m
• The overall pay is comparable to the industry average
• Bank Millennium's total shareholder return over the past three years was 119% while its EPS grew by 101% over the past three years

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We have been pretty impressed with the performance at Bank Millennium S.A. (WSE:MIL) recently and CEO Joao Lima Bras Jorge deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 27th of March. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Bank Millennium

Comparing Bank Millennium S.A.'s CEO Compensation With The Industry

Our data indicates that Bank Millennium S.A. has a market capitalization of zł17b, and total annual CEO compensation was reported as zł4.7m for the year to December 2024. That's just a smallish increase of 7.8% on last year. Notably, the salary which is zł2.62m, represents a considerable chunk of the total compensation being paid.

On examining similar-sized companies in the Polish Banks industry with market capitalizations between zł7.7b and zł25b, we discovered that the median CEO total compensation of that group was zł4.8m. From this we gather that Joao Lima Bras Jorge is paid around the median for CEOs in the industry. Furthermore, Joao Lima Bras Jorge directly owns zł5.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	zł2.6m	zł2.4m	56%
Other	zł2.1m	zł1.9m	44%
Total Compensation	zł4.7m	zł4.4m	100%

On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. Although there is a difference in how total compensation is set, Bank Millennium more or less reflects the market in terms of setting the salary. 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.

Bank Millennium S.A.'s Growth

Bank Millennium S.A. has seen its earnings per share (EPS) increase by 101% a year over the past three years. In the last year, its revenue is down 7.6%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Bank Millennium S.A. Been A Good Investment?

Most shareholders would probably be pleased with Bank Millennium S.A. for providing a total return of 119% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Bank Millennium that investors should be aware of in a dynamic business environment.

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. 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.