Is NEUCA SA's (WSE:NEU) CEO Incentives Align With Yours?

Piotr Sucharski became the CEO of NEUCA SA (WSE:NEU) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for NEUCA

How Does Piotr Sucharski's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that NEUCA SA has a market cap of zł1.2b, and is paying total annual CEO compensation of zł1m. That's a notable increase of 83% on last year. We looked at a group of companies with market capitalizations from zł748m to zł3.0b, and the median CEO compensation was zł1m.

So Piotr Sucharski is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at NEUCA has changed over time.

Is NEUCA SA Growing?

On average over the last three years, NEUCA SA has shrunk earnings per share by 4.2% each year. Its revenue is up 4.4% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.

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

Has NEUCA SA Been A Good Investment?

Since shareholders would have lost about 23% over three years, some NEUCA SA shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Piotr Sucharski is paid around what is normal the leaders of comparable size companies.

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. This contrasts with the growth in CEO remuneration, in the last year. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Shareholders may want to check for free if NEUCA SA insiders are buying or selling shares.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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.