In This Article:
Kjell Forsén has been the CEO of Vaisala Oyj (HEL:VAIAS) since 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Vaisala Oyj
How Does Kjell Forsén’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Vaisala Oyj has a market cap of €603m, and is paying total annual CEO compensation of €2m. We note that’s an increase of 39% above last year. When we examined a selection of companies with market caps ranging from €350m to €1.4b, we found the median CEO compensation was €660k.
As you can see, Kjell Forsén is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Vaisala Oyj is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Vaisala Oyj, below.
Is Vaisala Oyj Growing?
Vaisala Oyj has increased its earnings per share (EPS) by an average of 11% a year, over the last three years Its revenue is up 6.0% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Vaisala Oyj Been A Good Investment?
I think that the total shareholder return of 54%, over three years, would leave most Vaisala Oyj shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We compared total CEO remuneration at Vaisala Oyj with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Vaisala Oyj shares (free trial).