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

Key Insights

• Oriola Oyj's Annual General Meeting to take place on 2nd of April
• Total pay for CEO Katarina Gabrielson includes €427.0k salary
• The total compensation is 34% higher than the average for the industry
• Oriola Oyj's EPS declined by 97% over the past three years while total shareholder loss over the past three years was 34%

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The results at Oriola Oyj (HEL:OKDBV) have been quite disappointing recently and CEO Katarina Gabrielson bears some responsibility for this. At the upcoming AGM on 2nd of April, 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. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Oriola Oyj

How Does Total Compensation For Katarina Gabrielson Compare With Other Companies In The Industry?

At the time of writing, our data shows that Oriola Oyj has a market capitalization of €208m, and reported total annual CEO compensation of €486k for the year to December 2024. That's a notable decrease of 27% on last year. Notably, the salary which is €427.0k, represents most of the total compensation being paid.

On comparing similar companies from the Finland Healthcare industry with market caps ranging from €93m to €372m, we found that the median CEO total compensation was €361k. This suggests that Katarina Gabrielson is paid more than the median for the industry. Furthermore, Katarina Gabrielson directly owns €81k worth of shares in the company.

On an industry level, around 54% of total compensation represents salary and 46% is other remuneration. According to our research, Oriola Oyj has allocated a higher percentage of pay to salary in comparison to the wider 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.

Oriola Oyj's Growth

Over the last three years, Oriola Oyj has shrunk its earnings per share by 97% per year. In the last year, its revenue is up 12%.

Few shareholders would be pleased to read that EPS have declined. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. 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 Oriola Oyj Been A Good Investment?

Few Oriola Oyj shareholders would feel satisfied with the return of -34% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Oriola Oyj that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.