Should Shareholders Reconsider Fiskars Oyj Abp's (HEL:FSKRS) CEO Compensation Package?

Key Insights

• Fiskars Oyj Abp will host its Annual General Meeting on 12th of March
• Salary of €1.26m is part of CEO Nathalie Ahlstrom's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Fiskars Oyj Abp's EPS fell by 32% and over the past three years, the total loss to shareholders 18%

Fiskars Oyj Abp (HEL:FSKRS) has not performed well recently and CEO Nathalie Ahlstrom will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 12th of March. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Fiskars Oyj Abp

Comparing Fiskars Oyj Abp's CEO Compensation With The Industry

Our data indicates that Fiskars Oyj Abp has a market capitalization of €1.2b, and total annual CEO compensation was reported as €1.5m for the year to December 2024. This means that the compensation hasn't changed much from last year. Notably, the salary which is €1.26m, represents most of the total compensation being paid.

On examining similar-sized companies in the Finland Consumer Durables industry with market capitalizations between €928m and €3.0b, we discovered that the median CEO total compensation of that group was €1.9m. This suggests that Fiskars Oyj Abp remunerates its CEO largely in line with the industry average. Moreover, Nathalie Ahlstrom also holds €2.1m worth of Fiskars Oyj Abp stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	€1.3m	€1.3m	85%
Other	€228k	€224k	15%
Total Compensation	€1.5m	€1.5m	100%

On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. Fiskars Oyj Abp is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Fiskars Oyj Abp's Growth Numbers

Fiskars Oyj Abp has reduced its earnings per share by 32% a year over the last three years. Its revenue is up 2.4% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. 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 Fiskars Oyj Abp Been A Good Investment?

With a three year total loss of 18% for the shareholders, Fiskars Oyj Abp would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 2 which are a bit unpleasant) in Fiskars Oyj Abp we think you should know about.

Switching gears from Fiskars Oyj Abp, 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.