Here's Why We Think Wirtualna Polska Holding S.A.'s (WSE:WPL) CEO Compensation Looks Fair

Key Insights

• Wirtualna Polska Holding to hold its Annual General Meeting on 23rd of June
• Total pay for CEO Jacek Swiderski includes zł3.60m salary
• The overall pay is 35% below the industry average
• Over the past three years, Wirtualna Polska Holding's EPS fell by 5.8% and over the past three years, the total shareholder return was 0.3%

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Performance at Wirtualna Polska Holding S.A. (WSE:WPL) has been rather uninspiring recently and shareholders may be wondering how CEO Jacek Swiderski plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 23rd of June. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Wirtualna Polska Holding

Comparing Wirtualna Polska Holding S.A.'s CEO Compensation With The Industry

According to our data, Wirtualna Polska Holding S.A. has a market capitalization of zł2.4b, and paid its CEO total annual compensation worth zł3.6m over the year to December 2024. Notably, that's a decrease of 17% over the year before. Notably, the salary of zł3.6m is the entirety of the CEO compensation.

On examining similar-sized companies in the Poland Interactive Media and Services industry with market capitalizations between zł1.5b and zł5.9b, we discovered that the median CEO total compensation of that group was zł5.5m. That is to say, Jacek Swiderski is paid under the industry median.

On an industry level, roughly 65% of total compensation represents salary and 35% is other remuneration. On a company level, Wirtualna Polska Holding prefers to reward its CEO through a salary, opting not to pay Jacek Swiderski through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Wirtualna Polska Holding S.A.'s Growth Numbers

Wirtualna Polska Holding S.A. has reduced its earnings per share by 5.8% a year over the last three years. It achieved revenue growth of 9.2% over the last year.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Wirtualna Polska Holding S.A. Been A Good Investment?

Wirtualna Polska Holding S.A. has not done too badly by shareholders, with a total return of 0.3%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

Wirtualna Polska Holding pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. While it's true that shareholders have seen decent returns, it's hard to overlook the lack of earnings growth and this makes us wonder if the current returns can continue. Shareholders might want to question the board about these concerns, and revisit their investment thesis for the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Wirtualna Polska Holding that you should be aware of before investing.

Switching gears from Wirtualna Polska Holding, 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. 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. Simply Wall St has no position in any stocks mentioned.