Shareholders Will Most Likely Find Consti Oyj's (HEL:CONSTI) CEO Compensation Acceptable

Key Insights

• Consti Oyj's Annual General Meeting to take place on 2nd of April
• Salary of €347.5k is part of CEO Esa Korkeela's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Consti Oyj's EPS grew by 24% and over the past three years, the total shareholder return was 10%

Under the guidance of CEO Esa Korkeela, Consti Oyj (HEL:CONSTI) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 2nd of April. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Consti Oyj

Comparing Consti Oyj's CEO Compensation With The Industry

According to our data, Consti Oyj has a market capitalization of €86m, and paid its CEO total annual compensation worth €440k over the year to December 2024. Notably, that's a decrease of 32% over the year before. In particular, the salary of €347.5k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Finland Construction industry with market capitalizations below €186m, we found that the median total CEO compensation was €408k. So it looks like Consti Oyj compensates Esa Korkeela in line with the median for the industry. What's more, Esa Korkeela holds €5.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	€348k	€346k	79%
Other	€93k	€301k	21%
Total Compensation	€440k	€647k	100%

Talking in terms of the industry, salary represented approximately 52% of total compensation out of all the companies we analyzed, while other remuneration made up 48% of the pie. It's interesting to note that Consti Oyj pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Consti Oyj's Growth

Consti Oyj's earnings per share (EPS) grew 24% per year over the last three years. It achieved revenue growth of 1.9% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Consti Oyj Been A Good Investment?

Consti Oyj has served shareholders reasonably well, with a total return of 10% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Consti Oyj that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.