In This Article:
József Váradi is the CEO of Wizz Air Holdings Plc (LON:WIZZ). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Wizz Air Holdings
How Does József Váradi's Compensation Compare With Similar Sized Companies?
According to our data, Wizz Air Holdings Plc has a market capitalization of UK£2.5b, and pays its CEO total annual compensation worth €1.3m. (This number is for the twelve months until March 2018). While we always look at total compensation first, we note that the salary component is less, at €601k. We examined companies with market caps from €1.8b to €5.7b, and discovered that the median CEO total compensation of that group was €2.1m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Wizz Air Holdings has changed over time.
Is Wizz Air Holdings Plc Growing?
Wizz Air Holdings Plc has reduced its earnings per share by an average of 3.4% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 21% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Wizz Air Holdings Plc Been A Good Investment?
Boasting a total shareholder return of 83% over three years, Wizz Air Holdings Plc has done well by shareholders. 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...
It appears that Wizz Air Holdings Plc remunerates its CEO below most similar sized companies.
József Váradi receives relatively low remuneration compared to similar sized companies. And while the company isn't growing earnings per share, total returns have been pleasing. Although we could see higher EPS growth, we'd argue the remuneration is not an issue, based on these observations. So you may want to check if insiders are buying Wizz Air Holdings shares with their own money (free access).