There Could Be A Chance Trakcja S.A.'s (WSE:TRK) CEO Will Have Their Compensation Increased

Key Insights

• Trakcja to hold its Annual General Meeting on 24th of June
• Total pay for CEO Andrzej Kozera includes zł504.0k salary
• The total compensation is 51% less than the average for the industry
• Trakcja's total shareholder return over the past three years was 33% while its EPS grew by 106% over the past three years

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Shareholders will probably not be disappointed by the robust results at Trakcja S.A. (WSE:TRK) recently and they will be keeping this in mind as they go into the AGM on 24th of June. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

Check out our latest analysis for Trakcja

How Does Total Compensation For Andrzej Kozera Compare With Other Companies In The Industry?

At the time of writing, our data shows that Trakcja S.A. has a market capitalization of zł1.0b, and reported total annual CEO compensation of zł628k for the year to December 2024. Notably, that's an increase of 24% over the year before. We note that the salary portion, which stands at zł504.0k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Polish Construction industry with market capitalizations between zł372m and zł1.5b, we discovered that the median CEO total compensation of that group was zł1.3m. This suggests that Andrzej Kozera is paid below the industry median.

On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. According to our research, Trakcja has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Trakcja S.A.'s Growth

Trakcja S.A.'s earnings per share (EPS) grew 106% per year over the last three years. In the last year, its revenue changed by just 0.1%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Trakcja S.A. Been A Good Investment?

Trakcja S.A. has generated a total shareholder return of 33% over three years, so most shareholders would be reasonably content. 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...

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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Trakcja (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Trakcja, 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.