Should Shareholders Have Second Thoughts About A Pay Rise For Talenom Oyj's (HEL:TNOM) CEO This Year?

Key Insights

• Talenom Oyj to hold its Annual General Meeting on 19th of March
• Total pay for CEO Otto-Pekka Huhtala includes €231.4k salary
• The total compensation is 39% less than the average for the industry
• Talenom Oyj's three-year loss to shareholders was 63% while its EPS was down 19% over the past three years

Performance at Talenom Oyj (HEL:TNOM) has not been particularly rosy recently and shareholders will likely be holding CEO Otto-Pekka Huhtala and the board accountable for this. The next AGM coming up on 19th of March will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. The data we gathered below shows that CEO compensation looks acceptable for now.

View our latest analysis for Talenom Oyj

Comparing Talenom Oyj's CEO Compensation With The Industry

At the time of writing, our data shows that Talenom Oyj has a market capitalization of €149m, and reported total annual CEO compensation of €290k for the year to December 2024. We note that's an increase of 24% above last year. We note that the salary portion, which stands at €231.4k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Finnish Professional Services industry with market capitalizations between €92m and €367m, we discovered that the median CEO total compensation of that group was €478k. Accordingly, Talenom Oyj pays its CEO under the industry median. Furthermore, Otto-Pekka Huhtala directly owns €1.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	€231k	€214k	80%
Other	€59k	€20k	20%
Total Compensation	€290k	€234k	100%

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. Talenom Oyj pays out 80% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Talenom Oyj's Growth Numbers

Over the last three years, Talenom Oyj has shrunk its earnings per share by 19% per year. Its revenue is up 3.7% over the last year.

The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Talenom Oyj Been A Good Investment?

The return of -63% over three years would not have pleased Talenom Oyj shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Talenom Oyj (2 are significant!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.