Shareholders May Be A Bit More Conservative With Robit Oyj's (HEL:ROBIT) CEO Compensation For Now

Key Insights

• Robit Oyj to hold its Annual General Meeting on 8th of April
• CEO Arto Halonen's total compensation includes salary of €207.0k
• The total compensation is similar to the average for the industry
• Robit Oyj's EPS grew by 9.2% over the past three years while total shareholder loss over the past three years was 48%

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Shareholders of Robit Oyj (HEL:ROBIT) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 8th of April. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Robit Oyj

How Does Total Compensation For Arto Halonen Compare With Other Companies In The Industry?

At the time of writing, our data shows that Robit Oyj has a market capitalization of €32m, and reported total annual CEO compensation of €227k for the year to December 2024. Notably, that's an increase of 12% over the year before. We note that the salary portion, which stands at €207.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Finnish Machinery industry with market capitalizations below €185m, reported a median total CEO compensation of €255k. So it looks like Robit Oyj compensates Arto Halonen in line with the median for the industry. Furthermore, Arto Halonen directly owns €73k worth of shares in the company.

Talking in terms of the industry, salary represented approximately 74% of total compensation out of all the companies we analyzed, while other remuneration made up 26% of the pie. According to our research, Robit Oyj has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Robit Oyj's Growth

Over the past three years, Robit Oyj has seen its earnings per share (EPS) grow by 9.2% per year. It saw its revenue drop 2.8% over the last year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Robit Oyj Been A Good Investment?

With a total shareholder return of -48% over three years, Robit Oyj shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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 Robit Oyj that investors should think about before committing capital to this stock.

Switching gears from Robit Oyj, 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.