Juha Varelius became the CEO of Qt Group Oyj (HEL:QTCOM) in 2016. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Qt Group Oyj

How Does Juha Varelius's Compensation Compare With Similar Sized Companies?

Our data indicates that Qt Group Oyj is worth €460m, and total annual CEO compensation was reported as €327k for the year to December 2019. That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at €306k. We looked at a group of companies with market capitalizations from €183m to €732m, and the median CEO total compensation was €453k.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Qt Group Oyj stands. On a sector level, around 82% of total compensation represents salary and 18% is other remuneration. Qt Group Oyj is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation

That means Juha Varelius receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see a visual representation of the CEO compensation at Qt Group Oyj, below.

Is Qt Group Oyj Growing?

On average over the last three years, Qt Group Oyj has seen earnings per share (EPS) move in a favourable direction by 17% each year (using a line of best fit). Its revenue is up 28% over 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. It could be important to check this free visual depiction of what analysts expect for the future.

Has Qt Group Oyj Been A Good Investment?

I think that the total shareholder return of 181%, over three years, would leave most Qt Group Oyj shareholders smiling. 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...

Juha Varelius is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Moving away from CEO compensation for the moment, we've identified 1 warning sign for Qt Group Oyj that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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