The CEO Of Dekpol S.A. (WSE:DEK) Might See A Pay Rise On The Horizon

Key Insights

• Dekpol to hold its Annual General Meeting on 27th of June
• Total pay for CEO Mariusz Tuchlin includes zł415.1k salary
• Total compensation is 70% below industry average
• Over the past three years, Dekpol's EPS grew by 7.5% and over the past three years, the total shareholder return was 143%

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Shareholders will probably not be disappointed by the robust results at Dekpol S.A. (WSE:DEK) recently and they will be keeping this in mind as they go into the AGM on 27th of June. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

Check out our latest analysis for Dekpol

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

At the time of writing, our data shows that Dekpol S.A. has a market capitalization of zł500m, and reported total annual CEO compensation of zł423k for the year to December 2024. There was no change in the compensation compared to last year. We note that the salary portion, which stands at zł415.1k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Polish Construction industry with market capitalizations below zł744m, reported a median total CEO compensation of zł1.4m. That is to say, Mariusz Tuchlin is paid under the industry median.

On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. Dekpol has gone down a largely traditional route, paying Mariusz Tuchlin a high salary, giving it preference over non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

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

Over the past three years, Dekpol S.A. has seen its earnings per share (EPS) grow by 7.5% per year. Its revenue is down 15% over the previous year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Dekpol S.A. Been A Good Investment?

Boasting a total shareholder return of 143% over three years, Dekpol S.A. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Dekpol pays its CEO a majority of compensation through a salary. While the company seems to be headed in the right direction performance-wise, there's always room for 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. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them 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. We did our research and spotted 1 warning sign for Dekpol that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.