Stock Analysis

It's Unlikely That Metsä Board Oyj's (HEL:METSB) CEO Will See A Huge Pay Rise This Year

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Key Insights

  • Metsä Board Oyj to hold its Annual General Meeting on 23rd of March
  • Salary of €535.7k is part of CEO Mika Joukio's total remuneration
  • Total compensation is 34% above industry average
  • Metsä Board Oyj's EPS grew by 42% over the past three years while total shareholder return over the past three years was 92%

CEO Mika Joukio has done a decent job of delivering relatively good performance at Metsä Board Oyj (HEL:METSB) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 23rd of March. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Metsä Board Oyj

How Does Total Compensation For Mika Joukio Compare With Other Companies In The Industry?

At the time of writing, our data shows that Metsä Board Oyj has a market capitalization of €3.0b, and reported total annual CEO compensation of €2.5m for the year to December 2022. Notably, that's an increase of 20% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at €536k.

In comparison with other companies in the Finland Forestry industry with market capitalizations ranging from €1.9b to €6.0b, the reported median CEO total compensation was €1.8m. Accordingly, our analysis reveals that Metsä Board Oyj pays Mika Joukio north of the industry median. Furthermore, Mika Joukio directly owns €2.5m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20222021Proportion (2022)
Salary €536k €519k 22%
Other €1.9m €1.5m 78%
Total Compensation€2.5m €2.1m100%

Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. In Metsä Board 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.

HLSE:METSB CEO Compensation March 17th 2023

A Look at Metsä Board Oyj's Growth Numbers

Over the past three years, Metsä Board Oyj has seen its earnings per share (EPS) grow by 42% per year. In the last year, its revenue is up 19%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Metsä Board Oyj Been A Good Investment?

We think that the total shareholder return of 92%, over three years, would leave most Metsä Board Oyj shareholders smiling. 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.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Metsä Board Oyj (of which 2 are significant!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Valuation is complex, but we're helping make it simple.

Find out whether Metsä Board Oyj is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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