WithSecure Oyj's (HEL:WITH) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• WithSecure Oyj will host its Annual General Meeting on 20th of March
• Salary of €510.0k is part of CEO Juhani Hintikka's total remuneration
• Total compensation is similar to the industry average
• WithSecure Oyj's three-year loss to shareholders was 36% while its EPS was down 56% over the past three years

The results at WithSecure Oyj (HEL:WITH) have been quite disappointing recently and CEO Juhani Hintikka bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 20th of March. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for WithSecure Oyj

How Does Total Compensation For Juhani Hintikka Compare With Other Companies In The Industry?

At the time of writing, our data shows that WithSecure Oyj has a market capitalization of €185m, and reported total annual CEO compensation of €510k for the year to December 2023. We note that's a decrease of 8.3% compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth €510k.

In comparison with other companies in the Finnish Software industry with market capitalizations ranging from €91m to €365m, the reported median CEO total compensation was €451k. So it looks like WithSecure Oyj compensates Juhani Hintikka in line with the median for the industry. Furthermore, Juhani Hintikka directly owns €643k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	€510k	€556k	100%
Other	-	-	-
Total Compensation	€510k	€556k	100%

On an industry level, around 87% of total compensation represents salary and 13% is other remuneration. On a company level, WithSecure Oyj prefers to reward its CEO through a salary, opting not to pay Juhani Hintikka through non-salary benefits. 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 WithSecure Oyj's Growth Numbers

Over the last three years, WithSecure Oyj has shrunk its earnings per share by 56% per year. It achieved revenue growth of 6.0% over the last year.

Overall this is not a very positive result for shareholders. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has WithSecure Oyj Been A Good Investment?

With a total shareholder return of -36% over three years, WithSecure Oyj shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

WithSecure Oyj pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for WithSecure Oyj that investors should look into moving forward.

Important note: WithSecure 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. 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.