Piotr Janeczek has been the CEO of Stalprodukt S.A. (WSE:STP) since 2004, 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 Stalprodukt.
View our latest analysis for Stalprodukt
How Does Total Compensation For Piotr Janeczek Compare With Other Companies In The Industry?
At the time of writing, our data shows that Stalprodukt S.A. has a market capitalization of zł1.2b, and reported total annual CEO compensation of zł2.8m for the year to December 2019. That's a notable increase of 31% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at zł1.3m.
For comparison, other companies in the same industry with market capitalizations ranging between zł750m and zł3.0b had a median total CEO compensation of zł3.4m. So it looks like Stalprodukt compensates Piotr Janeczek in line with the median for the industry. Furthermore, Piotr Janeczek directly owns zł25m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | zł1.3m | zł1.3m | 47% |
| Other | zł1.5m | zł806k | 53% |
| Total Compensation | zł2.8m | zł2.1m | 100% |
Speaking on an industry level, nearly 47% of total compensation represents salary, while the remainder of 53% is other remuneration. Stalprodukt is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Stalprodukt S.A.'s Growth Numbers
Over the last three years, Stalprodukt S.A. has shrunk its earnings per share by 20% per year. Its revenue is down 13% over the previous year.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Stalprodukt S.A. Been A Good Investment?
Given the total shareholder loss of 56% over three years, many shareholders in Stalprodukt S.A. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As we noted earlier, Stalprodukt pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Stalprodukt that investors should be aware of in a dynamic business environment.
Switching gears from Stalprodukt, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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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About WSE:STP
Excellent balance sheet and slightly overvalued.
