Shareholders Will Probably Not Have Any Issues With Relais Group Oyj's (HEL:RELAIS) CEO Compensation

Key Insights

• Relais Group Oyj to hold its Annual General Meeting on 10th of April
• Salary of €310.0k is part of CEO Arni Ekholm's total remuneration
• Total compensation is 39% below industry average
• Relais Group Oyj's three-year loss to shareholders was 29% while its EPS grew by 8.1% over the past three years

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The performance at Relais Group Oyj (HEL:RELAIS) has been rather lacklustre of late and shareholders may be wondering what CEO Arni Ekholm is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 10th of April. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for Relais Group Oyj

Comparing Relais Group Oyj's CEO Compensation With The Industry

Our data indicates that Relais Group Oyj has a market capitalization of €247m, and total annual CEO compensation was reported as €356k for the year to December 2024. We note that's an increase of 35% above last year. Notably, the salary which is €310.0k, represents most of the total compensation being paid.

On examining similar-sized companies in the Finland Trade Distributors industry with market capitalizations between €91m and €363m, we discovered that the median CEO total compensation of that group was €580k. In other words, Relais Group Oyj pays its CEO lower than the industry median. Furthermore, Arni Ekholm directly owns €921k worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	€310k	€248k	87%
Other	€46k	€16k	13%
Total Compensation	€356k	€264k	100%

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. Relais Group Oyj pays out 87% 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 Relais Group Oyj's Growth Numbers

Relais Group Oyj has seen its earnings per share (EPS) increase by 8.1% a year over the past three years. In the last year, its revenue is up 13%.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings. .

Has Relais Group Oyj Been A Good Investment?

Since shareholders would have lost about 29% over three years, some Relais Group Oyj investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss is certainly disheartening. Perhaps the poor price performance may have something to do with the the fact that earnings per share growth has not been performing as strongly either. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Relais Group Oyj that investors should look into moving forward.

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.