AS Harju Elekter's (TAL:HAE1T) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• AS Harju Elekter's Annual General Meeting to take place on 26th of April
• Salary of €150.0k is part of CEO Tiit Atso's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, AS Harju Elekter's EPS fell by 3.8% and over the past three years, the total loss to shareholders 43%

Shareholders of AS Harju Elekter (TAL:HAE1T) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 26th of April will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

Check out our latest analysis for AS Harju Elekter

How Does Total Compensation For Tiit Atso Compare With Other Companies In The Industry?

At the time of writing, our data shows that AS Harju Elekter has a market capitalization of €87m, and reported total annual CEO compensation of €159k for the year to December 2023. We note that's a decrease of 8.6% compared to last year. In particular, the salary of €150.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Europe Electrical industry with market capitalizations below €188m, we found that the median total CEO compensation was €200k. From this we gather that Tiit Atso is paid around the median for CEOs in the industry. Furthermore, Tiit Atso directly owns €140k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	€150k	€142k	94%
Other	€9.0k	€32k	6%
Total Compensation	€159k	€174k	100%

On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. AS Harju Elekter is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at AS Harju Elekter's Growth Numbers

Over the last three years, AS Harju Elekter has shrunk its earnings per share by 3.8% per year. In the last year, its revenue is up 19%.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has AS Harju Elekter Been A Good Investment?

With a total shareholder return of -43% over three years, AS Harju Elekter shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for AS Harju Elekter you should be aware of, and 2 of them make us uncomfortable.

Switching gears from AS Harju Elekter, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.