It Looks Like The CEO Of Telekom Slovenije, d.d. (LJSE:TLSG) May Be Underpaid Compared To Peers

Key Insights

• Telekom Slovenije d.d's Annual General Meeting to take place on 19th of June
• CEO Bostjan Kosak's total compensation includes salary of €184.9k
• The overall pay is 54% below the industry average
• Telekom Slovenije d.d's EPS grew by 13% over the past three years while total shareholder return over the past three years was 95%

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The impressive results at Telekom Slovenije, d.d. (LJSE:TLSG) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 19th of June which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for Telekom Slovenije d.d

Comparing Telekom Slovenije, d.d.'s CEO Compensation With The Industry

At the time of writing, our data shows that Telekom Slovenije, d.d. has a market capitalization of €598m, and reported total annual CEO compensation of €199k for the year to December 2024. That's just a smallish increase of 7.2% on last year. In particular, the salary of €184.9k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Slovenia Telecom industry with market capitalizations ranging from €348m to €1.4b, the reported median CEO total compensation was €430k. Accordingly, Telekom Slovenije d.d pays its CEO under the industry median.

Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. Telekom Slovenije d.d pays out 93% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Telekom Slovenije, d.d.'s Growth

Telekom Slovenije, d.d.'s earnings per share (EPS) grew 13% per year over the last three years. It achieved revenue growth of 2.0% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Telekom Slovenije, d.d. Been A Good Investment?

Most shareholders would probably be pleased with Telekom Slovenije, d.d. for providing a total return of 95% over three years. 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.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Telekom Slovenije d.d that you should be aware of before investing.

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.