Increases to Apetit Oyj's (HEL:APETIT) CEO Compensation Might Cool off for now

Key Insights

• Apetit Oyj will host its Annual General Meeting on 11th of April
• Salary of €399.0k is part of CEO Esa Mäki's total remuneration
• The overall pay is 41% above the industry average
• Apetit Oyj's total shareholder return over the past three years was 17% while its EPS grew by 46% over the past three years

Under the guidance of CEO Esa Mäki, Apetit Oyj (HEL:APETIT) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 11th of April. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Apetit Oyj

Comparing Apetit Oyj's CEO Compensation With The Industry

Our data indicates that Apetit Oyj has a market capitalization of €87m, and total annual CEO compensation was reported as €488k for the year to December 2023. We note that's an increase of 32% above last year. We note that the salary portion, which stands at €399.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Finnish Food industry with market capitalizations below €185m, we found that the median total CEO compensation was €345k. Accordingly, our analysis reveals that Apetit Oyj pays Esa Mäki north of the industry median. Furthermore, Esa Mäki directly owns €113k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	€399k	€337k	82%
Other	€89k	€34k	18%
Total Compensation	€488k	€371k	100%

Speaking on an industry level, nearly 55% of total compensation represents salary, while the remainder of 45% is other remuneration. Apetit Oyj is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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.

Apetit Oyj's Growth

Apetit Oyj's earnings per share (EPS) grew 46% per year over the last three years. In the last year, its revenue is down 3.4%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Apetit Oyj Been A Good Investment?

Apetit Oyj has served shareholders reasonably well, with a total return of 17% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 1 which can't be ignored) in Apetit Oyj we think you should know about.

Important note: Apetit 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.