Increases to CEO Compensation Might Be Put On Hold For Now at SALUS, Ljubljana, d. d. (LJSE:SALR)

Key Insights

• SALUS Ljubljana d. d to hold its Annual General Meeting on 17th of April
• Total pay for CEO Ziga Hieng includes €367.2k salary
• The total compensation is 112% higher than the average for the industry
• SALUS Ljubljana d. d's EPS declined by 0.7% over the past three years while total shareholder return over the past three years was 79%

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SALUS, Ljubljana, d. d. (LJSE:SALR) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 17th of April. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for SALUS Ljubljana d. d

How Does Total Compensation For Ziga Hieng Compare With Other Companies In The Industry?

At the time of writing, our data shows that SALUS, Ljubljana, d. d. has a market capitalization of €240m, and reported total annual CEO compensation of €718k for the year to December 2024. That's a notable increase of 60% on last year. We note that the salary of €367.2k makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Slovenia Healthcare industry with market capitalizations ranging between €89m and €358m had a median total CEO compensation of €339k. Hence, we can conclude that Ziga Hieng is remunerated higher than the industry median. What's more, Ziga Hieng holds €6.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	€367k	€346k	51%
Other	€350k	€102k	49%
Total Compensation	€718k	€448k	100%

Talking in terms of the industry, salary represented approximately 57% of total compensation out of all the companies we analyzed, while other remuneration made up 43% of the pie. Our data reveals that SALUS Ljubljana d. d allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at SALUS, Ljubljana, d. d.'s Growth Numbers

SALUS, Ljubljana, d. d. saw earnings per share stay pretty flat over the last three years. Its revenue is up 8.2% over the last year.

Its a bit disappointing to see that the company has failed to grow its EPS. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has SALUS, Ljubljana, d. d. Been A Good Investment?

Most shareholders would probably be pleased with SALUS, Ljubljana, d. d. for providing a total return of 79% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for SALUS Ljubljana d. d that investors should be aware of in a dynamic business environment.

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.