This article will reflect on the compensation paid to Jari Rosendal who has served as CEO of Kemira Oyj (HEL:KEMIRA) since 2014. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Jari Rosendal Compare With Other Companies In The Industry?
According to our data, Kemira Oyj has a market capitalization of €2.0b, and paid its CEO total annual compensation worth €1.7m over the year to December 2020. That's a notable increase of 54% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €714k.
For comparison, other companies in the same industry with market capitalizations ranging between €1.7b and €5.3b had a median total CEO compensation of €1.0m. Hence, we can conclude that Jari Rosendal is remunerated higher than the industry median. Furthermore, Jari Rosendal directly owns €1.7m worth of shares in the company.
On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. Kemira Oyj sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Kemira Oyj's Growth
Kemira Oyj has seen its earnings per share (EPS) increase by 19% a year over the past three years. It saw its revenue drop 8.7% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Kemira Oyj Been A Good Investment?
Most shareholders would probably be pleased with Kemira Oyj for providing a total return of 43% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As we noted earlier, Kemira Oyj pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, Kemira Oyj has produced strong EPS growth and shareholder returns over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Jari's performance creates value for the company.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Kemira Oyj that investors should be aware of in a dynamic business environment.
Switching gears from Kemira 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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