We Think The Compensation For Vaisala Oyj's (HEL:VAIAS) CEO Looks About Right

Key Insights

• Vaisala Oyj's Annual General Meeting to take place on 25th of March
• CEO Kai Oistamo's total compensation includes salary of €532.0k
• Total compensation is similar to the industry average
• Vaisala Oyj's total shareholder return over the past three years was 8.3% while its EPS grew by 18% over the past three years

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Performance at Vaisala Oyj (HEL:VAIAS) has been reasonably good and CEO Kai Oistamo has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 25th of March, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Vaisala Oyj

Comparing Vaisala Oyj's CEO Compensation With The Industry

Our data indicates that Vaisala Oyj has a market capitalization of €1.7b, and total annual CEO compensation was reported as €1.3m for the year to December 2024. Notably, that's a decrease of 29% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €532k.

On comparing similar companies from the Finnish Electronic industry with market caps ranging from €913m to €2.9b, we found that the median CEO total compensation was €1.3m. From this we gather that Kai Oistamo is paid around the median for CEOs in the industry. What's more, Kai Oistamo holds €1.0m worth of shares in the company in their own name.

On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. Vaisala Oyj sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Vaisala Oyj's Growth Numbers

Vaisala Oyj's earnings per share (EPS) grew 18% per year over the last three years. Its revenue is up 4.5% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Vaisala Oyj Been A Good Investment?

With a total shareholder return of 8.3% over three years, Vaisala Oyj has done okay by shareholders, but there's always room for improvement. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Vaisala Oyj (free visualization of insider trades).

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.