This Is Why We Think Bittium Oyj's (HEL:BITTI) CEO Might Get A Pay Rise Approved By Shareholders

Shareholders will probably not be disappointed by the robust results at Bittium Oyj (HEL:BITTI) recently and they will be keeping this in mind as they go into the AGM on 14 April 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

View our latest analysis for Bittium Oyj

How Does Total Compensation For Hannu Huttunen Compare With Other Companies In The Industry?

Our data indicates that Bittium Oyj has a market capitalization of €238m, and total annual CEO compensation was reported as €241k for the year to December 2020. We note that's a decrease of 28% compared to last year. Notably, the salary which is €221.5k, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between €84m and €336m, we discovered that the median CEO total compensation of that group was €453k. This suggests that Hannu Huttunen is paid below the industry median. What's more, Hannu Huttunen holds €80k worth of shares in the company in their own name.

Component	2020	2019	Proportion (2020)
Salary	€222k	€221k	92%
Other	€19k	€113k	8%
Total Compensation	€241k	€334k	100%

Talking in terms of the industry, salary represented approximately 97% of total compensation out of all the companies we analyzed, while other remuneration made up 3% of the pie. Although there is a difference in how total compensation is set, Bittium Oyj more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Bittium Oyj's Growth

Over the past three years, Bittium Oyj has seen its earnings per share (EPS) grow by 75% per year. In the last year, its revenue is up 4.4%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Bittium Oyj Been A Good Investment?

With a total shareholder return of 23% over three years, Bittium Oyj shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. 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.

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 Bittium Oyj that investors should look into moving forward.

Important note: Bittium Oyj is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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