Shareholders Will Probably Not Have Any Issues With Pekabex S.A.'s (WSE:PBX) CEO Compensation

Key Insights

• Pekabex's Annual General Meeting to take place on 25th of June
• Total pay for CEO Robert Jedrzejowski includes zł1.07m salary
• The total compensation is 69% less than the average for the industry
• Over the past three years, Pekabex's EPS fell by 2.8% and over the past three years, the total shareholder return was 5.9%

Performance at Pekabex S.A. (WSE:PBX) has been rather uninspiring recently and shareholders may be wondering how CEO Robert Jedrzejowski plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 25th of June. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for Pekabex

How Does Total Compensation For Robert Jedrzejowski Compare With Other Companies In The Industry?

At the time of writing, our data shows that Pekabex S.A. has a market capitalization of zł650m, and reported total annual CEO compensation of zł1.1m for the year to December 2023. That's a notable increase of 51% on last year. We note that the salary portion, which stands at zł1.07m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Polish Construction industry with market capitalizations between zł405m and zł1.6b, we discovered that the median CEO total compensation of that group was zł3.5m. That is to say, Robert Jedrzejowski is paid under the industry median.

Component	2023	2022	Proportion (2023)
Salary	zł1.1m	zł706k	99%
Other	zł11k	zł10k	1%
Total Compensation	zł1.1m	zł716k	100%

On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. Pekabex has gone down a largely traditional route, paying Robert Jedrzejowski a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Pekabex S.A.'s Growth

Over the last three years, Pekabex S.A. has shrunk its earnings per share by 2.8% per year. It saw its revenue drop 9.0% over the last year.

A lack of EPS improvement is not good to see. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Pekabex S.A. Been A Good Investment?

With a total shareholder return of 5.9% over three years, Pekabex S.A. has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Robert receives almost all of their compensation through a salary. Shareholder returns while positive, need to be looked at along with earnings, which have failed to grow and this could mean that the current momentum may not continue. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Pekabex (free visualization of insider trades).

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.

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