How Should Investors Feel About Kemira Oyj's (HEL:KEMIRA) CEO Pay?

In this article:

Jari Rosendal became the CEO of Kemira Oyj (HEL:KEMIRA) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Kemira Oyj

How Does Jari Rosendal's Compensation Compare With Similar Sized Companies?

According to our data, Kemira Oyj has a market capitalization of €2.1b, and pays its CEO total annual compensation worth €1.0m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €567k. We examined companies with market caps from €903m to €2.9b, and discovered that the median CEO total compensation of that group was €1.1m.

That means Jari Rosendal 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, below, how CEO compensation at Kemira Oyj has changed over time.

HLSE:KEMIRA CEO Compensation, September 16th 2019
HLSE:KEMIRA CEO Compensation, September 16th 2019

Is Kemira Oyj Growing?

On average over the last three years, Kemira Oyj has grown earnings per share (EPS) by 7.4% each year (using a line of best fit). Its revenue is up 4.9% over last year.

I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.

Has Kemira Oyj Been A Good Investment?

Most shareholders would probably be pleased with Kemira Oyj for providing a total return of 41% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Jari Rosendal is paid around what is normal the leaders of comparable size companies.

The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Kemira Oyj (free visualization of insider trades).

If you want to buy a stock that is better than Kemira 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.

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