It Looks Like Panostaja Oyj's (HEL:PNA1V) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Panostaja Oyj will host its Annual General Meeting on 4th of February
• Total pay for CEO Tapio Tommila includes €213.0k salary
• The overall pay is comparable to the industry average
• Panostaja Oyj's EPS declined by 90% over the past three years while total shareholder loss over the past three years was 36%

Panostaja Oyj (HEL:PNA1V) has not performed well recently and CEO Tapio Tommila will probably need to up their game. At the upcoming AGM on 4th of February, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Panostaja Oyj

Comparing Panostaja Oyj's CEO Compensation With The Industry

Our data indicates that Panostaja Oyj has a market capitalization of €22m, and total annual CEO compensation was reported as €251k for the year to October 2024. That's slightly lower by 3.1% over the previous year. In particular, the salary of €213.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Finnish Professional Services industry with market capitalizations below €192m, reported a median total CEO compensation of €251k. This suggests that Panostaja Oyj remunerates its CEO largely in line with the industry average. Moreover, Tapio Tommila also holds €181k worth of Panostaja Oyj stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	€213k	€219k	85%
Other	€38k	€40k	15%
Total Compensation	€251k	€259k	100%

Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. There isn't a significant difference between Panostaja Oyj and the broader market, in terms of salary allocation in the overall compensation package. 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 Panostaja Oyj's Growth Numbers

Panostaja Oyj has reduced its earnings per share by 90% a year over the last three years. Its revenue is down 1.6% over the previous year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Panostaja Oyj Been A Good Investment?

The return of -36% over three years would not have pleased Panostaja Oyj shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a 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 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. We've identified 1 warning sign for Panostaja Oyj that investors should be aware of in a dynamic business environment.

Important note: Panostaja 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.