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

Bank Millennium S.A. (WSE:MIL) has not performed well recently and CEO Joao Lima Bras Jorge will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 24 March 2021. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Bank Millennium

How Does Total Compensation For Joao Lima Bras Jorge Compare With Other Companies In The Industry?

At the time of writing, our data shows that Bank Millennium S.A. has a market capitalization of zł4.7b, and reported total annual CEO compensation of zł4.8m for the year to December 2020. That's a slight decrease of 5.8% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at zł2.3m.

For comparison, other companies in the same industry with market capitalizations ranging between zł3.9b and zł12b had a median total CEO compensation of zł3.3m. Hence, we can conclude that Joao Lima Bras Jorge is remunerated higher than the industry median. What's more, Joao Lima Bras Jorge holds zł912k worth of shares in the company in their own name.

Component	2020	2019	Proportion (2020)
Salary	zł2.3m	zł2.3m	47%
Other	zł2.6m	zł2.9m	53%
Total Compensation	zł4.8m	zł5.1m	100%

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. In Bank Millennium's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Bank Millennium S.A.'s Growth

Over the last three years, Bank Millennium S.A. has shrunk its earnings per share by 68% per year. Its revenue is up 2.7% over the last year.

Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Bank Millennium S.A. Been A Good Investment?

Few Bank Millennium S.A. shareholders would feel satisfied with the return of -57% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for Bank Millennium (of which 1 can't be ignored!) 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.

When trading Bank Millennium or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.