Why We Think The CEO Of Digitalist Group Plc (HEL:DIGIGR) May Soon See A Pay Rise

Key Insights

• Digitalist Group to hold its Annual General Meeting on 29th of April
• Salary of €123.0k is part of CEO Magnus Leijonborg's total remuneration
• The total compensation is 41% less than the average for the industry
• Digitalist Group's EPS grew by 14% over the past three years while total shareholder return over the past three years was 38%

Our free stock report includes 4 warning signs investors should be aware of before investing in Digitalist Group. Read for free now.

The impressive results at Digitalist Group Plc (HEL:DIGIGR) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 29th of April which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Digitalist Group

Comparing Digitalist Group Plc's CEO Compensation With The Industry

According to our data, Digitalist Group Plc has a market capitalization of €25m, and paid its CEO total annual compensation worth €153k over the year to December 2024. This was the same as last year. In particular, the salary of €123.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Finnish IT industry with market capitalizations below €173m, reported a median total CEO compensation of €260k. In other words, Digitalist Group pays its CEO lower than the industry median. What's more, Magnus Leijonborg holds €125k worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	€123k	€123k	80%
Other	€30k	€30k	20%
Total Compensation	€153k	€153k	100%

On an industry level, roughly 67% of total compensation represents salary and 33% is other remuneration. Digitalist Group pays out 80% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Digitalist Group Plc's Growth

Digitalist Group Plc's earnings per share (EPS) grew 14% per year over the last three years. It saw its revenue drop 3.2% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Digitalist Group Plc Been A Good Investment?

Boasting a total shareholder return of 38% over three years, Digitalist Group Plc has done well by shareholders. 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.

To Conclude...

Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Digitalist Group (of which 3 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: Digitalist Group 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. 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.