Is the remuneration really determined by the share price on a single day, February 28, 2029?
That’s quite a coin toss, considering, in addition to the above, that the company’s management has no say in whether it’s a bull or bear market, what the small-cap sentiment is, or what the next orange man happens to say on that particular day.
The problem could have largely been avoided by using a more commonly accepted relative total return as a metric instead of an absolute total return. In other words, measuring whether Inderes outperforms the market/peer group, not which way the entire market happens to be going.
It would be interesting to hear from the board why they opted for a model where the market determines the remuneration more than the company’s own performance?
The justification that there are no direct comparables for Inderes on the stock exchange is not sufficient. Since its listing, with the company’s relatively mediocre performance, the share price has followed Finland’s First North, i.e., the market (Inderes blue, FN red, OMXH25 gray).
