Tulikivi Corporation's (HEL:TULAV) CEO Looks Like They Deserve Their Pay Packet

Key Insights

• Tulikivi to hold its Annual General Meeting on 25th of April
• Total pay for CEO Heikki Vauhkonen includes €204.0k salary
• The total compensation is similar to the average for the industry
• Over the past three years, Tulikivi's EPS grew by 151% and over the past three years, the total shareholder return was 46%

The performance at Tulikivi Corporation (HEL:TULAV) has been quite strong recently and CEO Heikki Vauhkonen has played a role in it. Coming up to the next AGM on 25th of April, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for Tulikivi

Comparing Tulikivi Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Tulikivi Corporation has a market capitalization of €27m, and reported total annual CEO compensation of €272k for the year to December 2023. That's just a smallish increase of 3.9% on last year. In particular, the salary of €204.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Finland Building industry with market capitalizations under €188m, the reported median total CEO compensation was €371k. So it looks like Tulikivi compensates Heikki Vauhkonen in line with the median for the industry. Moreover, Heikki Vauhkonen also holds €3.0m worth of Tulikivi stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	€204k	€197k	75%
Other	€68k	€65k	25%
Total Compensation	€272k	€262k	100%

Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. It's interesting to note that Tulikivi pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Tulikivi Corporation's Growth Numbers

Tulikivi Corporation has seen its earnings per share (EPS) increase by 151% a year over the past three years. It achieved revenue growth of 3.2% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Tulikivi Corporation Been A Good Investment?

Most shareholders would probably be pleased with Tulikivi Corporation for providing a total return of 46% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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 makes us a bit uncomfortable) in Tulikivi we think you should know about.

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.

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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.