Yahoo Finance Why Bittium Oyj's (HEL:BITTI) CEO Pay Matters To You
In 2015 Hannu Huttunen was appointed CEO of Bittium Oyj (HEL:BITTI). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Bittium Oyj
How Does Hannu Huttunen's Compensation Compare With Similar Sized Companies?
According to our data, Bittium Oyj has a market capitalization of €227m, and pays its CEO total annual compensation worth €221k. (This figure is for the year to December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth €221k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €91m to €365m. The median total CEO compensation was €252k.
So Hannu Huttunen receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Bittium Oyj has changed over time.
Is Bittium Oyj Growing?
On average over the last three years, Bittium Oyj has grown earnings per share (EPS) by 22% each year (using a line of best fit). It achieved revenue growth of 27% over the last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has Bittium Oyj Been A Good Investment?
Bittium Oyj has generated a total shareholder return of 3.2% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Hannu Huttunen is paid around what is normal the leaders of comparable size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bittium Oyj.
If you want to buy a stock that is better than Bittium Oyj, this free list of high return, low debt companies is a great place to look.
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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.
