Shareholders Will Probably Be Cautious Of Increasing AS Tallinna Vesi's (TAL:TVE1T) CEO Compensation At The Moment

Key Insights

• AS Tallinna Vesi to hold its Annual General Meeting on 22nd of May
• CEO Aleksandr Timofejev's total compensation includes salary of €118.0k
• The overall pay is 36% below the industry average
• AS Tallinna Vesi's EPS declined by 1.8% over the past three years while total shareholder loss over the past three years was 11%

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Performance at AS Tallinna Vesi (TAL:TVE1T) has not been particularly rosy recently and shareholders will likely be holding CEO Aleksandr Timofejev and the board accountable for this. At the upcoming AGM on 22nd of May, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

Check out our latest analysis for AS Tallinna Vesi

How Does Total Compensation For Aleksandr Timofejev Compare With Other Companies In The Industry?

At the time of writing, our data shows that AS Tallinna Vesi has a market capitalization of €217m, and reported total annual CEO compensation of €140k for the year to December 2024. Notably, that's an increase of 8.5% over the year before. Notably, the salary which is €118.0k, represents most of the total compensation being paid.

For comparison, other companies in the Europe Water Utilities industry with market capitalizations ranging between €89m and €357m had a median total CEO compensation of €217k. This suggests that Aleksandr Timofejev is paid below the industry median.

Component	2024	2023	Proportion (2024)
Salary	€118k	€113k	84%
Other	€22k	€16k	16%
Total Compensation	€140k	€129k	100%

Speaking on an industry level, nearly 57% of total compensation represents salary, while the remainder of 43% is other remuneration. AS Tallinna Vesi is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

AS Tallinna Vesi's Growth

AS Tallinna Vesi has reduced its earnings per share by 1.8% a year over the last three years. Its revenue is up 5.9% over the last year.

A lack of EPS improvement is not good to see. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has AS Tallinna Vesi Been A Good Investment?

Since shareholders would have lost about 11% over three years, some AS Tallinna Vesi investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in AS Tallinna Vesi we think you should know about.

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.

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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.