We Think Shareholders May Want To Consider A Review Of Sitowise Group Oyj's (HEL:SITOWS) CEO Compensation Package

Key Insights

• Sitowise Group Oyj will host its Annual General Meeting on 2nd of April
• Total pay for CEO Heikki Haasmaa includes €311.3k salary
• Total compensation is similar to the industry average
• Over the past three years, Sitowise Group Oyj's EPS fell by 58% and over the past three years, the total loss to shareholders 62%

Shareholders will probably not be too impressed with the underwhelming results at Sitowise Group Oyj (HEL:SITOWS) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 2nd of April. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Sitowise Group Oyj

How Does Total Compensation For Heikki Haasmaa Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sitowise Group Oyj has a market capitalization of €86m, and reported total annual CEO compensation of €458k for the year to December 2024. We note that's a small decrease of 6.2% on last year. We note that the salary portion, which stands at €311.3k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Finland Construction industry with market capitalizations below €186m, reported a median total CEO compensation of €408k. So it looks like Sitowise Group Oyj compensates Heikki Haasmaa in line with the median for the industry. What's more, Heikki Haasmaa holds €168k worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	€311k	€207k	68%
Other	€147k	€281k	32%
Total Compensation	€458k	€488k	100%

On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. Sitowise Group Oyj pays out 68% 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.

Sitowise Group Oyj's Growth

Over the last three years, Sitowise Group Oyj has shrunk its earnings per share by 58% per year. Its revenue is down 8.5% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Sitowise Group Oyj Been A Good Investment?

Few Sitowise Group Oyj shareholders would feel satisfied with the return of -62% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which doesn't sit too well with us) in Sitowise Group Oyj we think you should know about.

Important note: Sitowise Group Oyj is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.