Biznes Fakty
Orlen. CEO remuneration for 2024 for Daniel Obajtek and Ireneusz Fąfara
Orlen has revealed its CEO compensation for 2024. Daniel Obajtek held the role until February 5 and earned PLN 651,000 for just over a month’s service. Ireneusz Fąfara, who assumed leadership of the group in April of the previous year, received slightly more than one million PLN for over eight months.
Orlen has released a report for 2024 which, alongside the annual financial outcomes, also discloses details regarding the compensation of management and supervisory bodies for that timeframe.
Compensation of Orlen’s management team
The group’s report indicates, among other details, that Daniel Obajtek, while serving as president of Orlen, was compensated PLN 651 thousand for the duration from January 1, 2024, to February 5, 2024. Conversely, Ireneusz Fąfara, the current president of Orlen, earned PLN 1.7 million from April 11, 2024, to December 31, 2024.
Following Obajtek’s removal from the presidency until Fąfara’s appointment, Witold Literacki filled these responsibilities, later becoming a member of the management board and vice-president for corporate affairs. As reported in Tuesday’s disclosure, for the period from February 6, 2024, to December 31, 2024, he received a salary of PLN 1,268,000.
Daniel Obajtek PAP/Tytus ŻmijewskiOrlen also stated that regarding bonuses potentially owed to members of the management board for 2024, to be disbursed in the subsequent year, Fąfara is eligible for PLN 998 thousand, and Literacki for PLN 1 million 253 thousand. No bonus for Obajtek was included in this context.
Moreover, the company reported that the settlement owed to Obajtek for 2024 due to the termination of his employment amounts to PLN 1.49 million. The report also highlighted that Obajtek’s earnings for 2023 totaled PLN 1.672 million.
Orlen’s financial performance for 2024
As per Orlen’s consolidated annual report released on Tuesday, the Orlen Group recorded a net profit of PLN 1.383 billion in 2024, compared to PLN 20.969 billion in 2023. In 2024, the Orlen Group’s EBITDA reached PLN 21.961 billion, down from PLN 35.5 billion before write-offs.
In a letter addressed to Orlen shareholders, the company’s president stressed that the financial results were impacted by PLN 13.5 billion in write-offs, often stemming from previous erroneous management decisions. “Despite this, we achieved commendable operational results and executed strategic development investments,” Fąfara remarked.
Orlen specifies that the compensation for management board members is established by the supervisory board based on a resolution from the General Meeting in accordance with the Act regarding the principles of shaping remuneration for individuals managing certain companies and recommendations from the Nomination and Remuneration Committee functioning within that framework.
The primary components of the remuneration system for Orlen’s management board include: monthly fixed salary, variable compensation contingent on the achievement of management objectives, severance pay arising from contract termination by the company, as well as compensation related to the non-competition clause. All remuneration elements are governed by an agreement made between the members of the Orlen management board and the company.
According to Orlen, management board members are entitled to variable remuneration based on the terms specified in the agreement, the annex of which includes the Regulations of the Motivational System for the Management Board. The level of variable remuneration is determined by the performance of specific tasks—both qualitative and quantitative—established by the supervisory board.
The Orlen Group is a multi-energy conglomerate that operates refineries in Poland, the Czech Republic, and Lithuania, and maintains a network of gas stations, including locations in Germany, Slovakia, Hungary, and Austria. It is actively developing its oil and gas extraction segment, petrochemical sector, and energy division, which encompasses renewable energy sources. Additionally, it plans to advance nuclear energy utilizing small, modular SMR reactors.
