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

Key Insights

• Eurocash's Annual General Meeting to take place on 15th of May
• Total pay for CEO Pawel Surowka includes zł2.04m salary
• The total compensation is similar to the average for the industry
• Eurocash's total shareholder return over the past three years was 14% while its EPS grew by 42% over the past three years

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

CEO Pawel Surowka has done a decent job of delivering relatively good performance at Eurocash S.A. (WSE:EUR) recently. As shareholders go into the upcoming AGM on 15th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Eurocash

Comparing Eurocash S.A.'s CEO Compensation With The Industry

At the time of writing, our data shows that Eurocash S.A. has a market capitalization of zł1.5b, and reported total annual CEO compensation of zł2.1m for the year to December 2024. Notably, that's a decrease of 50% over the year before. We note that the salary portion, which stands at zł2.04m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Poland Consumer Retailing industry with market caps ranging from zł758m to zł3.0b, we found that the median CEO total compensation was zł2.9m. So it looks like Eurocash compensates Pawel Surowka in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	zł2.0m	zł4.1m	98%
Other	zł32k	zł32k	2%
Total Compensation	zł2.1m	zł4.1m	100%

Talking in terms of the industry, salary represented approximately 49% of total compensation out of all the companies we analyzed, while other remuneration made up 51% of the pie. Eurocash is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Eurocash S.A.'s Growth

Over the past three years, Eurocash S.A. has seen its earnings per share (EPS) grow by 42% per year. In the last year, its revenue changed by just 0.6%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 Eurocash S.A. Been A Good Investment?

Eurocash S.A. has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Pawel receives almost all of their compensation through a salary. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Eurocash that investors should be aware of in a dynamic business environment.

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.

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

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.