How Much Did F-Secure Oyj's (HEL:FSC1V) CEO Pocket Last Year?

This article will reflect on the compensation paid to Samu Konttinen who has served as CEO of F-Secure Oyj (HEL:FSC1V) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for F-Secure Oyj.

See our latest analysis for F-Secure Oyj

Comparing F-Secure Oyj's CEO Compensation With the industry

At the time of writing, our data shows that F-Secure Oyj has a market capitalization of €517m, and reported total annual CEO compensation of €467k for the year to December 2019. That's a notable decrease of 24% on last year. We note that the salary portion, which stands at €275.8k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between €344m and €1.4b had a median total CEO compensation of €555k. This suggests that F-Secure Oyj remunerates its CEO largely in line with the industry average. What's more, Samu Konttinen holds €387k worth of shares in the company in their own name.

Speaking on an industry level, nearly 82% of total compensation represents salary, while the remainder of 18% is other remuneration. In F-Secure Oyj's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

F-Secure Oyj's Growth

F-Secure Oyj has reduced its earnings per share by 21% a year over the last three years. It achieved revenue growth of 2.8% over the last year.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has F-Secure Oyj Been A Good Investment?

Since shareholders would have lost about 23% over three years, some F-Secure Oyj investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, F-Secure Oyj pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

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 2 warning signs for F-Secure Oyj that investors should look into moving forward.

Switching gears from F-Secure Oyj, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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