Is Qt Group Oyj's (HEL:QTCOM) CEO Overpaid Relative To Its Peers?
Juha Varelius has been the CEO of Qt Group Oyj (HEL:QTCOM) since 2016. 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 - 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.
View our latest analysis for Qt Group Oyj
How Does Juha Varelius's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Qt Group Oyj has a market cap of €318m, and is paying total annual CEO compensation of €444k. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at €305k. We examined companies with market caps from €181m to €724m, and discovered that the median CEO total compensation of that group was €423k.
That means Juha Varelius receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Qt Group Oyj, below.
Is Qt Group Oyj Growing?
Qt Group Oyj has reduced its earnings per share by an average of 3.5% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 14%.
Few shareholders would be pleased to read that earnings per share are lower over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Qt Group Oyj Been A Good Investment?
Most shareholders would probably be pleased with Qt Group Oyj for providing a total return of 123% over three years. 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...
Remuneration for Juha Varelius is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies. Shareholders may want to check for free if Qt Group Oyj insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
