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Is CD Projekt S.A.'s (WSE:CDR) CEO Paid At A Competitive Rate?

Simply Wall St

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Marcin Iwinski is the CEO of CD Projekt S.A. (WSE:CDR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for CD Projekt

How Does Marcin Iwinski's Compensation Compare With Similar Sized Companies?

Our data indicates that CD Projekt S.A. is worth zł21b, and total annual CEO compensation is zł2.6m. (This is based on the year to December 2018). That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at zł336k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of zł15b to zł45b. The median total CEO compensation was zł2.1m.

So Marcin Iwinski is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at CD Projekt, below.

WSE:CDR CEO Compensation, June 9th 2019

Is CD Projekt S.A. Growing?

Over the last three years CD Projekt S.A. has shrunk its earnings per share by an average of 36% per year (measured with a line of best fit). Its revenue is down -16% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has CD Projekt S.A. Been A Good Investment?

I think that the total shareholder return of 720%, over three years, would leave most CD Projekt S.A. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Marcin Iwinski is paid around the same as most CEOs of similar size companies.

The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we can't see a reason to suggest the pay is inappropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling CD Projekt shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.