Metsä Board Oyj's (HEL:METSB) CEO Looks Like They Deserve Their Pay Packet

It would be hard to discount the role that CEO Mika Joukio has played in delivering the impressive results at Metsä Board Oyj (HEL:METSB) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 24 March 2022. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Metsä Board Oyj

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

Our data indicates that Metsä Board Oyj has a market capitalization of €3.3b, and total annual CEO compensation was reported as €2.1m for the year to December 2021. That's a notable decrease of 12% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €519k.

For comparison, other companies in the same industry with market capitalizations ranging between €1.8b and €5.8b had a median total CEO compensation of €2.0m. So it looks like Metsä Board Oyj compensates Mika Joukio in line with the median for the industry. What's more, Mika Joukio holds €2.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	€519k	€511k	25%
Other	€1.5m	€1.8m	75%
Total Compensation	€2.1m	€2.3m	100%

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. It's interesting to note that Metsä Board Oyj allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Metsä Board Oyj's Growth

Metsä Board Oyj has seen its earnings per share (EPS) increase by 13% a year over the past three years. It achieved revenue growth of 10% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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?

Most shareholders would probably be pleased with Metsä Board Oyj for providing a total return of 75% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which doesn't sit too well with us) in Metsä Board Oyj we think you should know about.

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.

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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.