Key Things To Understand About Mostostal Zabrze's (WSE:MSZ) CEO Pay Cheque

Dariusz Pietyszuk became the CEO of Mostostal Zabrze S.A. (WSE:MSZ) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Mostostal Zabrze.

Check out our latest analysis for Mostostal Zabrze

Comparing Mostostal Zabrze S.A.'s CEO Compensation With the industry

Our data indicates that Mostostal Zabrze S.A. has a market capitalization of zł72m, and total annual CEO compensation was reported as zł802k for the year to December 2019. We note that's an increase of 46% above last year. We note that the salary portion, which stands at zł468.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below zł750m, reported a median total CEO compensation of zł967k. From this we gather that Dariusz Pietyszuk is paid around the median for CEOs in the industry.

On an industry level, around 75% of total compensation represents salary and 25% is other remuneration. Mostostal Zabrze pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Mostostal Zabrze S.A.'s Growth

Mostostal Zabrze S.A.'s earnings per share (EPS) grew 99% per year over the last three years. In the last year, its revenue is down 6.0%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Mostostal Zabrze S.A. Been A Good Investment?

Since shareholders would have lost about 33% over three years, some Mostostal Zabrze S.A. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As previously discussed, Dariusz is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But EPS growth is moving in a favorable direction, certainly a positive sign. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

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 2 warning signs for Mostostal Zabrze that investors should think about before committing capital to this stock.

Important note: Mostostal Zabrze is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.
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