Stock Analysis

Why Dom Development SA's (WSE:DOM) CEO Pay Matters To You

WSE:DOM
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In 1996 Jaroslaw Szanajca was appointed CEO of Dom Development SA (WSE:DOM). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Dom Development

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How Does Jaroslaw Szanajca's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Dom Development SA has a market cap of zł1.6b, and is paying total annual CEO compensation of zł2m. That's a modest increase of 2.1% on the prior year year. When we examined a selection of companies with market caps ranging from zł744m to zł3.0b, we found the median CEO compensation was zł1m.

As you can see, Jaroslaw Szanajca is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Dom Development SA is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Dom Development, below.

WSE:DOM CEO Compensation October 17th 18
WSE:DOM CEO Compensation October 17th 18

Is Dom Development SA Growing?

Over the last three years Dom Development SA has grown its earnings per share (EPS) by an average of 45% per year. In the last year, its revenue is up 32%.

This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Dom Development SA Been A Good Investment?

I think that the total shareholder return of 64%, over three years, would leave most Dom Development SA shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO is paid more than is normal for a company of its size.

In Summary...

We the total CEO remuneration paid by Dom Development SA, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Dom Development SA.

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.

About WSE:DOM

Dom Development

Engages in the development and sale of residential and commercial real estate properties, and related support activities in Poland.

Outstanding track record with flawless balance sheet and pays a dividend.

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