Here's Why Incap Oyj's (HEL:ICP1V) CEO May Deserve A Raise

The solid performance at Incap Oyj (HEL:ICP1V) has been impressive and shareholders will probably be pleased to know that CEO Otto Pukk has delivered. At the upcoming AGM on 27 April 2021, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for Incap Oyj

How Does Total Compensation For Otto Pukk Compare With Other Companies In The Industry?

Our data indicates that Incap Oyj has a market capitalization of €159m, and total annual CEO compensation was reported as €199k for the year to December 2020. That's a slight decrease of 5.6% on the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth €199k.

For comparison, other companies in the same industry with market capitalizations ranging between €83m and €333m had a median total CEO compensation of €400k. This suggests that Otto Pukk is paid below the industry median.

Component	2020	2019	Proportion (2020)
Salary	€199k	€181k	100%
Other	-	€30k	-
Total Compensation	€199k	€211k	100%

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. Speaking on a company level, Incap Oyj prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Incap Oyj's Growth

Incap Oyj has seen its earnings per share (EPS) increase by 41% a year over the past three years. It achieved revenue growth of 49% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Incap Oyj Been A Good Investment?

We think that the total shareholder return of 431%, over three years, would leave most Incap Oyj shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Incap Oyj rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Incap Oyj (1 can't be ignored!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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