How Does Asseco South Eastern Europe's (WSE:ASE) CEO Pay Compare With Company Performance?

This article will reflect on the compensation paid to Piotr Jelenski who has served as CEO of Asseco South Eastern Europe S.A. (WSE:ASE) since 2007. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Asseco South Eastern Europe.

View our latest analysis for Asseco South Eastern Europe

How Does Total Compensation For Piotr Jelenski Compare With Other Companies In The Industry?

Our data indicates that Asseco South Eastern Europe S.A. has a market capitalization of zł2.1b, and total annual CEO compensation was reported as zł3.5m for the year to December 2019. That's a notable increase of 47% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at zł365k.

On comparing similar companies from the same industry with market caps ranging from zł737m to zł2.9b, we found that the median CEO total compensation was zł2.6m. Accordingly, our analysis reveals that Asseco South Eastern Europe S.A. pays Piotr Jelenski north of the industry median. What's more, Piotr Jelenski holds zł39m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. It's interesting to note that Asseco South Eastern Europe allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Asseco South Eastern Europe S.A.'s Growth

Asseco South Eastern Europe S.A. has seen its earnings per share (EPS) increase by 25% a year over the past three years. Its revenue is up 17% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Asseco South Eastern Europe S.A. Been A Good Investment?

Boasting a total shareholder return of 297% over three years, Asseco South Eastern Europe S.A. has done well by shareholders. 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.

In Summary...

As we noted earlier, Asseco South Eastern Europe pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, Asseco South Eastern Europe has produced strong EPS growth and shareholder returns over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that Piotr deserves a raise!

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Asseco South Eastern Europe that investors should think about before committing capital to this stock.

Switching gears from Asseco South Eastern Europe, 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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