Our Take On Nixu Oyj's (HEL:NIXU) CEO Salary

Petri Kairinen became the CEO of Nixu Oyj (HEL:NIXU) in 2014, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Nixu Oyj.

View our latest analysis for Nixu Oyj

Comparing Nixu Oyj's CEO Compensation With the industry

At the time of writing, our data shows that Nixu Oyj has a market capitalization of €68m, and reported total annual CEO compensation of €277k for the year to December 2019. Notably, that's an increase of 25% over the year before. Notably, the salary which is €229.0k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below €164m, reported a median total CEO compensation of €277k. This suggests that Nixu Oyj remunerates its CEO largely in line with the industry average. What's more, Petri Kairinen holds €346k worth of shares in the company in their own name.

On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. It's interesting to note that Nixu Oyj pays out a greater portion of remuneration through salary, compared to the industry. 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 Nixu Oyj's Growth Numbers

Nixu Oyj has reduced its earnings per share by 88% a year over the last three years. It achieved revenue growth of 18% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Nixu Oyj Been A Good Investment?

Since shareholders would have lost about 18% over three years, some Nixu 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 touched on above, Nixu Oyj is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But revenue growth seems to be inching northward, a heartening sign for the company. In contrast, over the same time span, shareholder returns are negative. EPS growth is also negative, adding insult to injury. It's tough for us to say Petri is overpaid but a mixed bag in terms of performance will surely irk shareholders and reduce chances of a 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 1 warning sign for Nixu Oyj that investors should look into moving forward.

Important note: Nixu 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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