We Take A Look At Why Marimekko Oyj's (HEL:MEKKO) CEO Has Earned Their Pay Packet

Key Insights

• Marimekko Oyj will host its Annual General Meeting on 13th of April
• Salary of €378.2k is part of CEO Tiina Alahuhta-Kasko's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Marimekko Oyj's EPS grew by 20% and over the past three years, the total shareholder return was 95%

We have been pretty impressed with the performance at Marimekko Oyj (HEL:MEKKO) recently and CEO Tiina Alahuhta-Kasko deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 13th of April. The focus will probably be on the future company strategy as shareholders 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 Marimekko Oyj

How Does Total Compensation For Tiina Alahuhta-Kasko Compare With Other Companies In The Industry?

Our data indicates that Marimekko Oyj has a market capitalization of €396m, and total annual CEO compensation was reported as €1.0m for the year to December 2022. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €378k.

On examining similar-sized companies in the Finland Luxury industry with market capitalizations between €183m and €732m, we discovered that the median CEO total compensation of that group was €1.0m. So it looks like Marimekko Oyj compensates Tiina Alahuhta-Kasko in line with the median for the industry. Moreover, Tiina Alahuhta-Kasko also holds €1.6m worth of Marimekko Oyj stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	€378k	€364k	36%
Other	€667k	€652k	64%
Total Compensation	€1.0m	€1.0m	100%

On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. Marimekko Oyj sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Marimekko Oyj's Growth Numbers

Over the past three years, Marimekko Oyj has seen its earnings per share (EPS) grow by 20% per year. In the last year, its revenue is up 9.4%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Marimekko Oyj Been A Good Investment?

Boasting a total shareholder return of 95% over three years, Marimekko Oyj has done well by shareholders. 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.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Marimekko Oyj.

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.