This Is Why TOYA S.A.'s (WSE:TOA) CEO Compensation Looks Appropriate

Key Insights

• TOYA's Annual General Meeting to take place on 24th of June
• CEO Grzegorz Pinkosz's total compensation includes salary of zł1.16m
• Total compensation is 63% below industry average
• TOYA's total shareholder return over the past three years was 41% while its EPS was down 1.0% over the past three years

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The performance at TOYA S.A. (WSE:TOA) has been rather lacklustre of late and shareholders may be wondering what CEO Grzegorz Pinkosz is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 24th of June. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

Check out our latest analysis for TOYA

How Does Total Compensation For Grzegorz Pinkosz Compare With Other Companies In The Industry?

At the time of writing, our data shows that TOYA S.A. has a market capitalization of zł612m, and reported total annual CEO compensation of zł1.2m for the year to December 2024. That's just a smallish increase of 3.5% on last year. We note that the salary portion, which stands at zł1.16m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Polish Consumer Durables industry with market capitalizations ranging from zł372m to zł1.5b, the reported median CEO total compensation was zł3.2m. This suggests that Grzegorz Pinkosz is paid below the industry median. Furthermore, Grzegorz Pinkosz directly owns zł1.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 92% of total compensation represents salary, while the remainder of 8% is other remuneration. Investors will find it interesting that TOYA pays the bulk of its rewards through a traditional salary, instead of 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.

A Look at TOYA S.A.'s Growth Numbers

TOYA S.A. has reduced its earnings per share by 1.0% a year over the last three years. Its revenue is up 14% over the last year.

The lack of EPS growth is certainly uninspiring. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 TOYA S.A. Been A Good Investment?

Boasting a total shareholder return of 41% over three years, TOYA S.A. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Grzegorz receives almost all of their compensation through a salary. Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean these strong returns 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for TOYA that you should be aware of before investing.

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.