Why We Think Remedy Entertainment Oyj's (HEL:REMEDY) CEO Compensation Is Not Excessive At All

Key Insights

• Remedy Entertainment Oyj will host its Annual General Meeting on 10th of April
• Salary of €210.2k is part of CEO Tero Virtala's total remuneration
• The total compensation is 52% less than the average for the industry
• Remedy Entertainment Oyj's three-year loss to shareholders was 60% while its EPS was down 83% over the past three years

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The performance at Remedy Entertainment Oyj (HEL:REMEDY) has been rather lacklustre of late and shareholders may be wondering what CEO Tero Virtala is planning to do about this. At the next AGM coming up on 10th of April, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Remedy Entertainment Oyj

Comparing Remedy Entertainment Oyj's CEO Compensation With The Industry

Our data indicates that Remedy Entertainment Oyj has a market capitalization of €188m, and total annual CEO compensation was reported as €290k for the year to December 2024. That's a notable increase of 38% on last year. In particular, the salary of €210.2k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Finland Entertainment industry with market capitalizations ranging from €91m to €363m, the reported median CEO total compensation was €600k. Accordingly, Remedy Entertainment Oyj pays its CEO under the industry median. What's more, Tero Virtala holds €8.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 67% of total compensation out of all the companies we analyzed, while other remuneration made up 33% of the pie. Our data reveals that Remedy Entertainment Oyj allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Remedy Entertainment Oyj's Growth

Remedy Entertainment Oyj has reduced its earnings per share by 83% a year over the last three years. In the last year, its revenue is up 49%.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Remedy Entertainment Oyj Been A Good Investment?

The return of -60% over three years would not have pleased Remedy Entertainment Oyj shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning. The poor performance of the share price might have something to do with the lack of earnings growth. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

Shareholders may want to check for free if Remedy Entertainment Oyj insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.