We Think Teleste Oyj's (HEL:TLT1V) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Teleste Oyj to hold its Annual General Meeting on 23rd of April
• Salary of €283.5k is part of CEO Esa Harju's total remuneration
• The total compensation is 43% higher than the average for the industry
• Teleste Oyj's three-year loss to shareholders was 40% while its EPS was down 68% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at Teleste Oyj (HEL:TLT1V) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 23rd of April. 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.

View our latest analysis for Teleste Oyj

How Does Total Compensation For Esa Harju Compare With Other Companies In The Industry?

Our data indicates that Teleste Oyj has a market capitalization of €49m, and total annual CEO compensation was reported as €379k for the year to December 2024. That's slightly lower by 4.8% over the previous year. Notably, the salary which is €283.5k, represents most of the total compensation being paid.

For comparison, other companies in the Finland Communications industry with market capitalizations below €176m, reported a median total CEO compensation of €266k. This suggests that Esa Harju is paid more than the median for the industry. Furthermore, Esa Harju directly owns €68k worth of shares in the company.

On an industry level, roughly 70% of total compensation represents salary and 30% is other remuneration. Although there is a difference in how total compensation is set, Teleste Oyj more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Teleste Oyj's Growth

Over the last three years, Teleste Oyj has shrunk its earnings per share by 68% per year. In the last year, its revenue is down 12%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. 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 Teleste Oyj Been A Good Investment?

With a total shareholder return of -40% over three years, Teleste Oyj shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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've identified 1 warning sign for Teleste Oyj that investors should be aware of in a dynamic business environment.

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. 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.