Shareholders May Be More Conservative With Suominen Oyj's (HEL:SUY1V) CEO Compensation For Now

Performance at Suominen Oyj (HEL:SUY1V) has been reasonably good and CEO Petri Helsky has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 24 March 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Suominen Oyj

Comparing Suominen Oyj's CEO Compensation With the industry

At the time of writing, our data shows that Suominen Oyj has a market capitalization of €213m, and reported total annual CEO compensation of €1.1m for the year to December 2021. That's a notable increase of 27% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €439k.

In comparison with other companies in the industry with market capitalizations ranging from €90m to €360m, the reported median CEO total compensation was €787k. Accordingly, our analysis reveals that Suominen Oyj pays Petri Helsky north of the industry median. What's more, Petri Helsky holds €146k worth of shares in the company in their own name.

Component	2021	2020	Proportion (2021)
Salary	€439k	€425k	41%
Other	€632k	€416k	59%
Total Compensation	€1.1m	€840k	100%

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. There isn't a significant difference between Suominen Oyj and the broader market, in terms of salary allocation in the overall compensation package. 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 Suominen Oyj's Growth Numbers

Over the past three years, Suominen Oyj has seen its earnings per share (EPS) grow by 92% per year. It saw its revenue drop 3.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Suominen Oyj Been A Good Investment?

Boasting a total shareholder return of 71% over three years, Suominen Oyj has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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.

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 Suominen Oyj that investors should be aware of in a dynamic business environment.

Important note: Suominen 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.