The CEO of 11 bit studios S.A. (WSE:11B) is Grzegorz Miechowski, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for 11 bit studios.
Comparing 11 bit studios S.A.'s CEO Compensation With the industry
According to our data, 11 bit studios S.A. has a market capitalization of zł1.1b, and paid its CEO total annual compensation worth zł771k over the year to December 2019. Notably, that's a decrease of 32% over the year before. In particular, the salary of zł490.8k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the same industry with market capitalizations ranging between zł386m and zł1.5b had a median total CEO compensation of zł3.4m. This suggests that Grzegorz Miechowski is paid below the industry median. Moreover, Grzegorz Miechowski also holds zł84m worth of 11 bit studios stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. 11 bit studios is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at 11 bit studios S.A.'s Growth Numbers
Over the past three years, 11 bit studios S.A. has seen its earnings per share (EPS) grow by 80% per year. It achieved revenue growth of 35% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has 11 bit studios S.A. Been A Good Investment?
We think that the total shareholder return of 174%, over three years, would leave most 11 bit studios S.A. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
As we noted earlier, 11 bit studios pays its CEO lower than the norm for similar-sized companies belonging to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for 11 bit studios (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from 11 bit studios, 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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