It's Unlikely That Shareholders Will Increase Kojamo Oyj's (HEL:KOJAMO) Compensation By Much This Year

Key Insights

• Kojamo Oyj's Annual General Meeting to take place on 14th of March
• Salary of €625.4k is part of CEO Jani Nieminen's total remuneration
• The total compensation is 51% less than the average for the industry
• Kojamo Oyj's three-year loss to shareholders was 31% while its EPS was down 70% over the past three years

The underwhelming performance at Kojamo Oyj (HEL:KOJAMO) recently has probably not pleased shareholders. The next AGM coming up on 14th of March will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. From our analysis below, we think CEO compensation looks appropriate for now.

View our latest analysis for Kojamo Oyj

Comparing Kojamo Oyj's CEO Compensation With The Industry

Our data indicates that Kojamo Oyj has a market capitalization of €2.6b, and total annual CEO compensation was reported as €625k for the year to December 2023. That's a notable decrease of 36% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth €625k.

For comparison, other companies in the Finnish Real Estate industry with market capitalizations ranging between €1.8b and €5.8b had a median total CEO compensation of €1.3m. That is to say, Jani Nieminen is paid under the industry median. What's more, Jani Nieminen holds €1.1m worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	€625k	€970k	100%
Other	-	-	-
Total Compensation	€625k	€970k	100%

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. On a company level, Kojamo Oyj prefers to reward its CEO through a salary, opting not to pay Jani Nieminen through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Kojamo Oyj's Growth Numbers

Over the last three years, Kojamo Oyj has shrunk its earnings per share by 70% per year. It achieved revenue growth of 7.0% over the last year.

The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Kojamo Oyj Been A Good Investment?

Few Kojamo Oyj shareholders would feel satisfied with the return of -31% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Kojamo Oyj rewards its CEO solely through a salary, ignoring non-salary benefits completely. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Kojamo Oyj that investors should look into moving forward.

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.