Here's Why Shareholders May Want To Be Cautious With Increasing Echo Investment S.A.'s (WSE:ECH) CEO Pay Packet

Key Insights

• Echo Investment will host its Annual General Meeting on 26th of June
• Salary of zł1.36m is part of CEO Nicklas Lindberg's total remuneration
• The overall pay is 125% above the industry average
• Over the past three years, Echo Investment's EPS fell by 13% and over the past three years, the total shareholder return was 42%

Under the guidance of CEO Nicklas Lindberg, Echo Investment S.A. (WSE:ECH) has performed reasonably well recently. As shareholders go into the upcoming AGM on 26th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Echo Investment

How Does Total Compensation For Nicklas Lindberg Compare With Other Companies In The Industry?

Our data indicates that Echo Investment S.A. has a market capitalization of zł2.0b, and total annual CEO compensation was reported as zł5.3m for the year to December 2023. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at zł1.4m.

In comparison with other companies in the Polish Real Estate industry with market capitalizations ranging from zł808m to zł3.2b, the reported median CEO total compensation was zł2.4m. Accordingly, our analysis reveals that Echo Investment S.A. pays Nicklas Lindberg north of the industry median. Moreover, Nicklas Lindberg also holds zł4.5m worth of Echo Investment 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	zł1.4m	zł1.4m	26%
Other	zł4.0m	zł4.0m	74%
Total Compensation	zł5.3m	zł5.4m	100%

Talking in terms of the industry, salary represented approximately 28% of total compensation out of all the companies we analyzed, while other remuneration made up 72% of the pie. Echo Investment is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Echo Investment S.A.'s Growth

Over the last three years, Echo Investment S.A. has shrunk its earnings per share by 13% per year. It achieved revenue growth of 28% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Echo Investment S.A. Been A Good Investment?

Most shareholders would probably be pleased with Echo Investment S.A. for providing a total return of 42% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Although the company has performed relatively well, we still think there are some areas that could be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Echo Investment you should be aware of, and 2 of them are potentially serious.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.

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