Is Izolacja Jarocin Spolka Akcyjna’s (WSE:IZO) CEO Incentives Align With Yours?

Piotr Widawski became the CEO of Izolacja Jarocin Spolka Akcyjna (WSE:IZO) in 1999. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Izolacja Jarocin Spolka Akcyjna

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

According to our data, Izolacja Jarocin Spolka Akcyjna has a market capitalization of zł6m, and pays its CEO total annual compensation worth zł224k. Notably, that’s an increase of 10% over the year before. We looked at a group of companies with market capitalizations under zł756m, and the median CEO compensation was zł398k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.

The graphic below shows how CEO compensation at Izolacja Jarocin Spolka Akcyjna has changed from year to year.

WSE:IZO CEO Compensation October 26th 18
WSE:IZO CEO Compensation October 26th 18

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 64% per year. In the last year, its revenue is up 22%.

This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this free more detailed historical graph of earnings, revenue and cash flow.

Has Izolacja Jarocin Spolka Akcyjna Been A Good Investment?

Izolacja Jarocin Spolka Akcyjna has served shareholders reasonably well, with a total return of 26% 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…

It looks like Izolacja Jarocin Spolka Akcyjna pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Piotr Widawski is overcompensated.

Few would complain about reasonable CEO remuneration when the business is growing earnings per share. It would be an additional positive if insiders are buying shares. I like to research companies that do not pay too much to the CEO. For example you might check if insiders are buying shares.

But note: Izolacja Jarocin Spolka Akcyjna may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.