It's Unlikely That The CEO Of Boreo Oyj (HEL:BOREO) Will See A Huge Pay Rise This Year

Key Insights

• Boreo Oyj to hold its Annual General Meeting on 17th of April
• Salary of €261.5k is part of CEO Kari Nerg's total remuneration
• Total compensation is similar to the industry average
• Boreo Oyj's EPS grew by 8.6% over the past three years while total shareholder loss over the past three years was 49%

The underwhelming share price performance of Boreo Oyj (HEL:BOREO) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 17th of April. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Boreo Oyj

Comparing Boreo Oyj's CEO Compensation With The Industry

According to our data, Boreo Oyj has a market capitalization of €64m, and paid its CEO total annual compensation worth €315k over the year to December 2023. That's a notable decrease of 8.6% on last year. We note that the salary portion, which stands at €261.5k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Finnish Electronic industry with market capitalizations below €186m, we found that the median total CEO compensation was €331k. This suggests that Boreo Oyj remunerates its CEO largely in line with the industry average. Moreover, Kari Nerg also holds €162k worth of Boreo Oyj stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	€262k	€245k	83%
Other	€53k	€100k	17%
Total Compensation	€315k	€344k	100%

Speaking on an industry level, nearly 83% of total compensation represents salary, while the remainder of 17% is other remuneration. There isn't a significant difference between Boreo Oyj and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Boreo Oyj's Growth Numbers

Over the past three years, Boreo Oyj has seen its earnings per share (EPS) grow by 8.6% per year. In the last year, its revenue is up 1.1%.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Boreo Oyj Been A Good Investment?

Few Boreo Oyj shareholders would feel satisfied with the return of -49% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. 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 be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the 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 Boreo Oyj (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.