Is Rawlplug SA’s (WSE:RWL) CEO Overpaid Relative To Its Peers?

In 1999 Radoslaw Koelner was appointed CEO of Rawlplug SA (WSE:RWL). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Rawlplug

How Does Radoslaw Koelner’s Compensation Compare With Similar Sized Companies?

Our data indicates that Rawlplug SA is worth zł277m, and total annual CEO compensation is zł742k. That’s actually a decrease on the year before. We examined a group of similar sized companies, with market capitalizations of below zł752m. The median CEO compensation in that group is zł402k.

Thus we can conclude that Radoslaw Koelner receives more in total compensation than the median of a group of companies in the same market, and of similar size to Rawlplug SA. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

Is Rawlplug SA Growing?

On average over the last three years, Rawlplug SA has grown earnings per share (EPS) by 3.4% each year. Its revenue is up 9.2% over last year.

I would argue that the improvement in revenue isn’t particularly impressive, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Rawlplug SA Been A Good Investment?

Rawlplug SA has generated a total shareholder return of 5.0% over three years, so most shareholders wouldn’t be too disappointed. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary…

We examined the amount Rawlplug SA pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

We generally prefer to see stronger EPS growth, and we’re not particularly impressed with the total shareholder return, over the last three years. Considering this, we wouldn’t want to see any big pay rises, although we’d stop short of calling the CEO compensation unfair. Shareholders may want to check for free if Rawlplug SA insiders are buying or selling shares.

Or you might prefer examine intently this intuitive graph showing past earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.