Here's Why Budimex SA's (WSE:BDX) CEO May Have Their Pay Bumped Up

Key Insights

• Budimex to hold its Annual General Meeting on 29th of May
• CEO Artur Popko's total compensation includes salary of zł1.68m
• The overall pay is 71% below the industry average
• Budimex's EPS grew by 9.5% over the past three years while total shareholder return over the past three years was 253%

We've discovered 1 warning sign about Budimex. View them for free.

Shareholders will be pleased by the robust performance of Budimex SA (WSE:BDX) recently and this will be kept in mind in the upcoming AGM on 29th of May. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

See our latest analysis for Budimex

How Does Total Compensation For Artur Popko Compare With Other Companies In The Industry?

Our data indicates that Budimex SA has a market capitalization of zł16b, and total annual CEO compensation was reported as zł3.8m for the year to December 2024. That's a notable decrease of 13% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at zł1.7m.

On examining similar-sized companies in the Polish Construction industry with market capitalizations between zł7.5b and zł24b, we discovered that the median CEO total compensation of that group was zł13m. That is to say, Artur Popko is paid under the industry median. What's more, Artur Popko holds zł1.3m worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	zł1.7m	zł1.6m	44%
Other	zł2.1m	zł2.8m	56%
Total Compensation	zł3.8m	zł4.4m	100%

Speaking on an industry level, nearly 81% of total compensation represents salary, while the remainder of 19% is other remuneration. Budimex pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Budimex SA's Growth Numbers

Over the past three years, Budimex SA has seen its earnings per share (EPS) grow by 9.5% per year. Its revenue is down 4.1% over the previous year.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is 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 Budimex SA Been A Good Investment?

We think that the total shareholder return of 253%, over three years, would leave most Budimex SA shareholders smiling. 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...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Budimex that you should be aware of before investing.

Switching gears from Budimex, 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.