Crystal International Group Limited's (HKG:2232) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Crystal International Group will host its Annual General Meeting on 30th of May
• Salary of US$846.0k is part of CEO Andrew Lo's total remuneration
• The total compensation is 182% higher than the average for the industry
• Over the past three years, Crystal International Group's EPS grew by 7.1% and over the past three years, the total shareholder return was 90%

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Performance at Crystal International Group Limited (HKG:2232) has been reasonably good and CEO Andrew Lo has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of May. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Crystal International Group

How Does Total Compensation For Andrew Lo Compare With Other Companies In The Industry?

According to our data, Crystal International Group Limited has a market capitalization of HK$14b, and paid its CEO total annual compensation worth US$2.1m over the year to December 2024. That's a notable increase of 20% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$846k.

In comparison with other companies in the Hong Kong Luxury industry with market capitalizations ranging from HK$7.8b to HK$25b, the reported median CEO total compensation was US$739k. Hence, we can conclude that Andrew Lo is remunerated higher than the industry median. What's more, Andrew Lo holds HK$325m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. Crystal International Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Crystal International Group Limited's Growth Numbers

Crystal International Group Limited's earnings per share (EPS) grew 7.1% per year over the last three years. In the last year, its revenue is up 13%.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. 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 Crystal International Group Limited Been A Good Investment?

We think that the total shareholder return of 90%, over three years, would leave most Crystal International Group Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Crystal International Group we think you should know about.

Important note: Crystal International Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.