Zavarovalnica Triglav, d.d.'s (LJSE:ZVTG) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Zavarovalnica Triglav d.d will host its Annual General Meeting on 4th of June
• CEO Andrej Slapar's total compensation includes salary of €227.9k
• Total compensation is 70% below industry average
• Over the past three years, Zavarovalnica Triglav d.d's EPS fell by 21% and over the past three years, the total shareholder return was 26%

The performance at Zavarovalnica Triglav, d.d. (LJSE:ZVTG) has been rather lacklustre of late and shareholders may be wondering what CEO Andrej Slapar is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 4th of June. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Zavarovalnica Triglav d.d

How Does Total Compensation For Andrej Slapar Compare With Other Companies In The Industry?

Our data indicates that Zavarovalnica Triglav, d.d. has a market capitalization of €815m, and total annual CEO compensation was reported as €375k for the year to December 2023. That's a fairly small increase of 7.1% over the previous year. Notably, the salary which is €227.9k, represents most of the total compensation being paid.

In comparison with other companies in the Europe Insurance industry with market capitalizations ranging from €368m to €1.5b, the reported median CEO total compensation was €1.2m. Accordingly, Zavarovalnica Triglav d.d pays its CEO under the industry median. Furthermore, Andrej Slapar directly owns €48k worth of shares in the company.

On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. It's interesting to note that Zavarovalnica Triglav d.d pays out a greater portion of remuneration through salary, compared to the industry. 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 Zavarovalnica Triglav, d.d.'s Growth Numbers

Over the last three years, Zavarovalnica Triglav, d.d. has shrunk its earnings per share by 21% per year. It achieved revenue growth of 12% over the last year.

Few shareholders would be pleased to read that EPS have declined. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that EPS has gone backwards over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Zavarovalnica Triglav, d.d. Been A Good Investment?

With a total shareholder return of 26% over three years, Zavarovalnica Triglav, d.d. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

While it's true that shareholders have seen decent returns, it's hard to overlook the lack of earnings growth and this makes us wonder if the current returns can continue. These are are some concerns that shareholders may want to address the board when they revisit their investment thesis.

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 3 warning signs for Zavarovalnica Triglav d.d you should be aware of, and 2 of them don't sit too well with us.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.