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Does Evli Pankki Oyj's (HEL:EVLI) CEO Salary Reflect Performance?

Simply Wall St

In 2006 Maunu Lehtimaki was appointed CEO of Evli Pankki Oyj (HEL:EVLI). First, this article will compare CEO compensation with compensation at similar sized companies. 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.

Check out our latest analysis for Evli Pankki Oyj

How Does Maunu Lehtimaki's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Evli Pankki Oyj has a market cap of €202m, and reported total annual CEO compensation of €440k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €382k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €90m to €358m. The median total CEO compensation was €221k.

It would therefore appear that Evli Pankki Oyj pays Maunu Lehtimaki 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. 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, below, how CEO compensation at Evli Pankki Oyj has changed over time.

HLSE:EVLI CEO Compensation, November 4th 2019

Is Evli Pankki Oyj Growing?

On average over the last three years, Evli Pankki Oyj has grown earnings per share (EPS) by 8.0% each year (using a line of best fit). In the last year, its revenue is down 2.1%.

I would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.

Has Evli Pankki Oyj Been A Good Investment?

Boasting a total shareholder return of 54% over three years, Evli Pankki Oyj has done well by shareholders. 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 total CEO remuneration at Evli Pankki Oyj with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Over the last three years returns to investors have been great, though we might have liked stronger business growth. Considering this fine result for investors, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Evli Pankki Oyj.

If you want to buy a stock that is better than Evli Pankki Oyj, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.