Stock Analysis

Is Sanoma Oyj's (HEL:SAA1V) CEO Pay Justified?

Susan Duinhoven has been the CEO of Sanoma Oyj (HEL:SAA1V) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Sanoma Oyj

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How Does Susan Duinhoven's Compensation Compare With Similar Sized Companies?

According to our data, Sanoma Oyj has a market capitalization of €1.7b, and paid its CEO total annual compensation worth €1.1m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €585k. When we examined a selection of companies with market caps ranging from €915m to €2.9b, we found the median CEO total compensation was €1.3m.

So Susan Duinhoven receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. Shareholders might be interested in this free visualization of analyst forecasts.

The graphic below shows how CEO compensation at Sanoma Oyj has changed from year to year.

HLSE:SAA1V CEO Compensation, October 3rd 2019
HLSE:SAA1V CEO Compensation, October 3rd 2019

Is Sanoma Oyj Growing?

Over the last three years Sanoma Oyj has grown its earnings per share (EPS) by an average of 56% per year (using a line of best fit). Its revenue is down 1.4% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end.

Has Sanoma Oyj Been A Good Investment?

Sanoma Oyj has generated a total shareholder return of 31% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Susan Duinhoven is paid around what is normal the leaders of comparable size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Sanoma Oyj (free visualization of insider trades).

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.

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.

About HLSE:SANOMA

Sanoma Oyj

Operates as a media and learning company in Finland, the Netherlands, Poland, Spain, Belgium, and internationally.

Reasonable growth potential with slight risk.

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