Kempower Oyj's (HEL:KEMPOWR) CEO Will Probably Struggle To See A Pay Rise This Year

Key Insights

• Kempower Oyj's Annual General Meeting to take place on 7th of May
• CEO Tomi Ristimäki's total compensation includes salary of €330.4k
• The overall pay is 38% below the industry average
• Kempower Oyj's three-year loss to shareholders was 7.2% while its EPS was down 47% over the past three years

Our free stock report includes 1 warning sign investors should be aware of before investing in Kempower Oyj. Read for free now.

Performance at Kempower Oyj (HEL:KEMPOWR) has not been particularly rosy recently and shareholders will likely be holding CEO Tomi Ristimäki and the board accountable for this. At the upcoming AGM on 7th 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. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

Check out our latest analysis for Kempower Oyj

Comparing Kempower Oyj's CEO Compensation With The Industry

According to our data, Kempower Oyj has a market capitalization of €606m, and paid its CEO total annual compensation worth €478k over the year to December 2024. We note that's a small decrease of 3.2% on last year. We note that the salary portion, which stands at €330.4k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Finland Electrical industry with market capitalizations ranging between €353m and €1.4b had a median total CEO compensation of €769k. This suggests that Tomi Ristimäki is paid below the industry median. Moreover, Tomi Ristimäki also holds €273k worth of Kempower Oyj stock directly under their own name.

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. Kempower Oyj pays out 69% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Kempower Oyj's Growth Numbers

Over the last three years, Kempower Oyj has shrunk its earnings per share by 47% per year. It saw its revenue drop 17% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Kempower Oyj Been A Good Investment?

Given the total shareholder loss of 7.2% over three years, many shareholders in Kempower Oyj are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Kempower Oyj that investors should be aware of in a dynamic business environment.

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.