Increases to CEO Compensation Might Be Put On Hold For Now at Wielton S.A. (WSE:WLT)

Key Insights

• Wielton will host its Annual General Meeting on 24th of June
• Total pay for CEO Pawel Szataniak includes zł252.0k salary
• The overall pay is 295% above the industry average
• Wielton's EPS declined by 80% over the past three years while total shareholder return over the past three years was 6.4%

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The share price of Wielton S.A. (WSE:WLT) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 24th of June. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

View our latest analysis for Wielton

How Does Total Compensation For Pawel Szataniak Compare With Other Companies In The Industry?

At the time of writing, our data shows that Wielton S.A. has a market capitalization of zł367m, and reported total annual CEO compensation of zł2.4m for the year to December 2024. That's a modest increase of 4.9% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at zł252k.

On comparing similar-sized companies in the Poland Machinery industry with market capitalizations below zł745m, we found that the median total CEO compensation was zł607k. Hence, we can conclude that Pawel Szataniak is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	zł252k	zł841k	11%
Other	zł2.1m	zł1.4m	89%
Total Compensation	zł2.4m	zł2.3m	100%

On an industry level, around 82% of total compensation represents salary and 18% is other remuneration. It's interesting to note that Wielton allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Wielton S.A.'s Growth

Over the last three years, Wielton S.A. has shrunk its earnings per share by 80% per year. Its revenue is down 30% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Wielton S.A. Been A Good Investment?

Wielton S.A. has generated a total shareholder return of 6.4% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for Wielton (2 can't be ignored!) that you should be aware of before investing here.

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.