Shareholders May Not Be So Generous With Qt Group Oyj's (HEL:QTCOM) CEO Compensation And Here's Why

Key Insights

• Qt Group Oyj to hold its Annual General Meeting on 9th of April
• Salary of €412.0k is part of CEO Juha Varelius's total remuneration
• The total compensation is similar to the average for the industry
• Qt Group Oyj's EPS grew by 35% over the past three years while total shareholder loss over the past three years was 37%

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The underwhelming share price performance of Qt Group Oyj (HEL:QTCOM) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 9th of April. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Qt Group Oyj

How Does Total Compensation For Juha Varelius Compare With Other Companies In The Industry?

According to our data, Qt Group Oyj has a market capitalization of €2.0b, and paid its CEO total annual compensation worth €492k over the year to December 2024. That's a slight decrease of 6.2% on the prior year. We note that the salary portion, which stands at €412.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Finnish Software industry with market capitalizations ranging between €922m and €2.9b had a median total CEO compensation of €635k. So it looks like Qt Group Oyj compensates Juha Varelius in line with the median for the industry. What's more, Juha Varelius holds €62m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 87% of total compensation represents salary and 13% is other remuneration. Our data reveals that Qt Group Oyj allocates salary more or less in line with the wider market. 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 Qt Group Oyj's Growth Numbers

Qt Group Oyj's earnings per share (EPS) grew 35% per year over the last three years. Its revenue is up 16% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings. .

Has Qt Group Oyj Been A Good Investment?

Few Qt Group Oyj shareholders would feel satisfied with the return of -37% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

Shareholders may want to check for free if Qt Group Oyj insiders are buying or selling shares.

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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.