It's Unlikely That The CEO Of Selvita S.A. (WSE:SLV) Will See A Huge Pay Rise This Year

Key Insights

• Selvita's Annual General Meeting to take place on 20th of June
• CEO Boguslaw Sieczkowski's total compensation includes salary of zł658.1k
• The total compensation is similar to the average for the industry
• Over the past three years, Selvita's EPS grew by 43% and over the past three years, the total loss to shareholders 16%

In the past three years, the share price of Selvita S.A. (WSE:SLV) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 20th of June could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Selvita

How Does Total Compensation For Boguslaw Sieczkowski Compare With Other Companies In The Industry?

Our data indicates that Selvita S.A. has a market capitalization of zł1.2b, and total annual CEO compensation was reported as zł1.1m for the year to December 2023. That's a notable decrease of 21% on last year. In particular, the salary of zł658.1k, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Poland Life Sciences industry with market capitalizations ranging between zł405m and zł1.6b had a median total CEO compensation of zł1.5m. From this we gather that Boguslaw Sieczkowski is paid around the median for CEOs in the industry. Moreover, Boguslaw Sieczkowski also holds zł59m worth of Selvita stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	zł658k	zł480k	60%
Other	zł443k	zł918k	40%
Total Compensation	zł1.1m	zł1.4m	100%

Talking in terms of the industry, salary represented approximately 52% of total compensation out of all the companies we analyzed, while other remuneration made up 48% of the pie. Selvita pays out 60% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Selvita S.A.'s Growth Numbers

Over the past three years, Selvita S.A. has seen its earnings per share (EPS) grow by 43% per year. In the last year, its revenue is down 9.4%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Selvita S.A. Been A Good Investment?

Since shareholders would have lost about 16% over three years, some Selvita S.A. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

Shareholders may want to check for free if Selvita insiders are buying or selling shares.

Switching gears from Selvita, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com