Jorma Jokela has been the CEO of Ferratum Oyj (ETR:FRU) since 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Ferratum Oyj
How Does Jorma Jokela’s Compensation Compare With Similar Sized Companies?
According to our data, Ferratum Oyj has a market capitalization of €208m, and pays its CEO total annual compensation worth €211k. That’s below the compensation, last year. We looked at a group of companies with market capitalizations from €88m to €351m, and the median CEO compensation was €597k.
Most shareholders would consider it a positive that Jorma Jokela takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Ferratum Oyj, below.
Is Ferratum Oyj Growing?
On average over the last three years, Ferratum Oyj has grown earnings per share (EPS) by 24% each year. Its revenue is up 22% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Ferratum Oyj Been A Good Investment?
Since shareholders would have lost about 57% over three years, some Ferratum Oyj shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
It appears that Ferratum Oyj remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we don’t think, Jorma Jokela is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.
This sort of circumstance certainly justifies further research, because the investment returns might still come in the future.