Shareholders Will Probably Hold Off On Increasing Luka Koper d.d.'s (LJSE:LKPG) CEO Compensation For The Time Being

Key Insights

• Luka Koper d.d to hold its Annual General Meeting on 24th of June
• CEO Nevenka Krzan's total compensation includes salary of €216.9k
• The overall pay is 176% above the industry average
• Luka Koper d.d's total shareholder return over the past three years was 168% while its EPS grew by 18% over the past three years

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CEO Nevenka Krzan has done a decent job of delivering relatively good performance at Luka Koper d.d. (LJSE:LKPG) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 24th of June. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Luka Koper d.d

Comparing Luka Koper d.d.'s CEO Compensation With The Industry

At the time of writing, our data shows that Luka Koper d.d. has a market capitalization of €784m, and reported total annual CEO compensation of €278k for the year to December 2024. We note that's an increase of 24% above last year. We note that the salary portion, which stands at €216.9k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Slovenia Infrastructure industry with market capitalizations between €346m and €1.4b, we discovered that the median CEO total compensation of that group was €101k. Hence, we can conclude that Nevenka Krzan is remunerated higher than the industry median.

On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. Luka Koper d.d pays out 78% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Luka Koper d.d.'s Growth Numbers

Over the past three years, Luka Koper d.d. has seen its earnings per share (EPS) grow by 18% per year. In the last year, its revenue is up 9.4%.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Luka Koper d.d. Been A Good Investment?

Boasting a total shareholder return of 168% over three years, Luka Koper d.d. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Luka Koper d.d that investors should be aware of in a dynamic business environment.

Switching gears from Luka Koper d.d, 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. 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.