What We Learned About Gielda Papierów Wartosciowych w Warszawie's (WSE:GPW) CEO Compensation

Marek Dietl has been the CEO of Gielda Papierów Wartosciowych w Warszawie S.A. (WSE:GPW) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Gielda Papierów Wartosciowych w Warszawie.

View our latest analysis for Gielda Papierów Wartosciowych w Warszawie

Comparing Gielda Papierów Wartosciowych w Warszawie S.A.'s CEO Compensation With the industry

Our data indicates that Gielda Papierów Wartosciowych w Warszawie S.A. has a market capitalization of zł1.8b, and total annual CEO compensation was reported as zł550k for the year to December 2019. Notably, that's an increase of 30% over the year before. Notably, the salary which is zł422.0k, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between zł750m and zł3.0b, we discovered that the median CEO total compensation of that group was zł2.6m. That is to say, Marek Dietl is paid under the industry median.

On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. Gielda Papierów Wartosciowych w Warszawie is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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.

A Look at Gielda Papierów Wartosciowych w Warszawie S.A.'s Growth Numbers

Gielda Papierów Wartosciowych w Warszawie S.A. has reduced its earnings per share by 8.6% a year over the last three years. In the last year, its revenue is up 7.0%.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Gielda Papierów Wartosciowych w Warszawie S.A. Been A Good Investment?

Gielda Papierów Wartosciowych w Warszawie S.A. has served shareholders reasonably well, with a total return of 20% over three years. 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...

As previously discussed, Marek is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. While we have not been overly impressed by shareholder returns, EPS growth has been negative over the last three years, a real headache for the company. It's tough for us to say that Marek is earning a high compensation, but any bump in pay is unlikely at this stage since shareholders will likely hold off support until performance improves.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Gielda Papierów Wartosciowych w Warszawie that investors should think about before committing capital to this stock.

Important note: Gielda Papierów Wartosciowych w Warszawie is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. 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.
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