Is Izolacja Jarocin Spolka Akcyjna (WSE:IZO) Excessively Paying Its CEO?

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In 1999 Piotr Widawski was appointed CEO of Izolacja Jarocin Spolka Akcyjna (WSE:IZO). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Izolacja Jarocin Spolka Akcyjna

How Does Piotr Widawski’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Izolacja Jarocin Spolka Akcyjna has a market cap of zł6.2m, and is paying total annual CEO compensation of zł223k. (This figure is for the year to 2017). Notably, the salary of zł223k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under zł744m, and the median CEO compensation was zł64k.

Thus we can conclude that Piotr Widawski receives more in total compensation than the median of a group of companies in the same market, and of similar size to Izolacja Jarocin Spolka Akcyjna. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Izolacja Jarocin Spolka Akcyjna, below.

WSE:IZO CEO Compensation February 1st 19
WSE:IZO CEO Compensation February 1st 19

Is Izolacja Jarocin Spolka Akcyjna Growing?

Over the last three years Izolacja Jarocin Spolka Akcyjna has grown its earnings per share (EPS) by an average of 43% per year (using a line of best fit). It achieved revenue growth of 4.2% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.

Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Izolacja Jarocin Spolka Akcyjna Been A Good Investment?

I think that the total shareholder return of 53%, over three years, would leave most Izolacja Jarocin Spolka Akcyjna shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary…

We examined the amount Izolacja Jarocin Spolka Akcyjna pays its CEO, and compared it to the amount paid by 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. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Izolacja Jarocin Spolka Akcyjna insiders are buying or selling shares.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings 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.