Shareholders Will Most Likely Find Terveystalo Oyj's (HEL:TTALO) CEO Compensation Acceptable

Key Insights

• Terveystalo Oyj to hold its Annual General Meeting on 8th of April
• Salary of €452.0k is part of CEO Ville Iho's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Terveystalo Oyj's EPS fell by 3.6% and over the past three years, the total shareholder return was 13%

Despite positive share price growth of 13% for Terveystalo Oyj (HEL:TTALO) over the last few years, earnings growth has been disappointing, which suggests something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 8th of April. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Terveystalo Oyj

Comparing Terveystalo Oyj's CEO Compensation With The Industry

Our data indicates that Terveystalo Oyj has a market capitalization of €1.5b, and total annual CEO compensation was reported as €1.0m for the year to December 2024. That's a notable increase of 58% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €452k.

In comparison with other companies in the Finland Healthcare industry with market capitalizations ranging from €927m to €3.0b, the reported median CEO total compensation was €1.4m. From this we gather that Ville Iho is paid around the median for CEOs in the industry. Moreover, Ville Iho also holds €270k worth of Terveystalo Oyj stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	€452k	€410k	45%
Other	€555k	€227k	55%
Total Compensation	€1.0m	€637k	100%

On an industry level, roughly 53% of total compensation represents salary and 47% is other remuneration. In Terveystalo Oyj's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Terveystalo Oyj's Growth Numbers

Over the last three years, Terveystalo Oyj has shrunk its earnings per share by 3.6% per year. It achieved revenue growth of 4.2% over the last year.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Terveystalo Oyj Been A Good Investment?

Terveystalo Oyj has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Terveystalo Oyj that investors should be aware of in a dynamic business environment.

Switching gears from Terveystalo 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. 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.