Juha Gröhn became the CEO of Atria Oyj (HEL:ATRAV) in 2011, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Atria Oyj
Comparing Atria Oyj's CEO Compensation With the industry
According to our data, Atria Oyj has a market capitalization of €267m, and paid its CEO total annual compensation worth €736k over the year to December 2019. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is €522.9k, represents most of the total compensation being paid.
For comparison, other companies in the same industry with market capitalizations ranging between €169m and €676m had a median total CEO compensation of €663k. From this we gather that Juha Gröhn is paid around the median for CEOs in the industry. Furthermore, Juha Gröhn directly owns €201k worth of shares in the company.
| Component | 2019 | 2017 | Proportion (2019) |
| Salary | €523k | €501k | 71% |
| Other | €213k | €215k | 29% |
| Total Compensation | €736k | €716k | 100% |
On an industry level, around 61% of total compensation represents salary and 39% is other remuneration. Atria Oyj is paying a higher share of its remuneration through a salary in comparison to the overall 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 Atria Oyj's Growth Numbers
Over the last three years, Atria Oyj has shrunk its earnings per share by 1.3% per year. Its revenue is up 2.6% over the last year.
A lack of EPS improvement is not good to see. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Atria Oyj Been A Good Investment?
Given the total shareholder loss of 14% over three years, many shareholders in Atria Oyj are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
As we noted earlier, Atria Oyj pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
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. That's why we did some digging and identified 2 warning signs for Atria Oyj that investors should think about before committing capital to this stock.
Switching gears from Atria Oyj, 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. 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.
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About HLSE:ATRAV
Atria Oyj
Produces and markets meat and food products in Finland, Sweden, Denmark, Estonia, and Russia.
Undervalued with moderate growth potential.
