It's Unlikely That The CEO Of Revenio Group Oyj (HEL:REG1V) Will See A Huge Pay Rise This Year

Key Insights

• Revenio Group Oyj's Annual General Meeting to take place on 4th of April
• Salary of €254.8k is part of CEO Jouni Toijala's total remuneration
• The overall pay is comparable to the industry average
• Revenio Group Oyj's three-year loss to shareholders was 50% while its EPS grew by 13% over the past three years

Shareholders of Revenio Group Oyj (HEL:REG1V) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 4th of April. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Revenio Group Oyj

How Does Total Compensation For Jouni Toijala Compare With Other Companies In The Industry?

According to our data, Revenio Group Oyj has a market capitalization of €678m, and paid its CEO total annual compensation worth €712k over the year to December 2023. Notably, that's an increase of 69% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €255k.

In comparison with other companies in the Finnish Medical Equipment industry with market capitalizations ranging from €371m to €1.5b, the reported median CEO total compensation was €975k. So it looks like Revenio Group Oyj compensates Jouni Toijala in line with the median for the industry. Moreover, Jouni Toijala also holds €71k worth of Revenio Group Oyj stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	€255k	€236k	36%
Other	€457k	€184k	64%
Total Compensation	€712k	€420k	100%

On an industry level, around 57% of total compensation represents salary and 43% is other remuneration. Revenio Group 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.

Revenio Group Oyj's Growth

Revenio Group Oyj has seen its earnings per share (EPS) increase by 13% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Revenio Group Oyj Been A Good Investment?

The return of -50% over three years would not have pleased Revenio Group Oyj shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Revenio Group Oyj that investors should think about before committing capital to this stock.

Important note: Revenio Group 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.