In This Article:
In 2012 Juha Näkki was appointed CEO of Etteplan Oyj (HEL:ETTE). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Etteplan Oyj
How Does Juha Näkki's Compensation Compare With Similar Sized Companies?
Our data indicates that Etteplan Oyj is worth €226m, and total annual CEO compensation was reported as €550k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €496k. We looked at a group of companies with market capitalizations from €91m to €364m, and the median CEO total compensation was €267k.
It would therefore appear that Etteplan Oyj pays Juha Näkki more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Etteplan Oyj has changed from year to year.
Is Etteplan Oyj Growing?
Etteplan Oyj has increased its earnings per share (EPS) by an average of 28% a year, over the last three years (using a line of best fit). Its revenue is up 8.3% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has Etteplan Oyj Been A Good Investment?
Most shareholders would probably be pleased with Etteplan Oyj for providing a total return of 78% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared the total CEO remuneration paid by Etteplan Oyj, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Etteplan Oyj insiders are buying or selling shares.