A Look At Eurotel's (WSE:ETL) CEO Remuneration

Krzysztof Stepokura has been the CEO of Eurotel S.A. (WSE:ETL) since 2007, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Eurotel.

See our latest analysis for Eurotel

How Does Total Compensation For Krzysztof Stepokura Compare With Other Companies In The Industry?

At the time of writing, our data shows that Eurotel S.A. has a market capitalization of zł100m, and reported total annual CEO compensation of zł298k for the year to December 2019. We note that's a decrease of 54% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at zł48k.

On comparing similar-sized companies in the industry with market capitalizations below zł735m, we found that the median total CEO compensation was zł560k. Accordingly, Eurotel pays its CEO under the industry median. Moreover, Krzysztof Stepokura also holds zł30m worth of Eurotel stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. In Eurotel's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

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

Eurotel S.A.'s earnings per share (EPS) grew 16% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Eurotel S.A. Been A Good Investment?

We think that the total shareholder return of 39%, over three years, would leave most Eurotel S.A. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As we noted earlier, Eurotel pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Krzysztof's performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Eurotel that investors should look into moving forward.

Important note: Eurotel is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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