Increases to CEO Compensation Might Be Put On Hold For Now at Crystal International Group Limited (HKG:2232)

Key Insights

• Crystal International Group's Annual General Meeting to take place on 3rd of June
• Salary of US$819.0k is part of CEO Andrew Lo's total remuneration
• The overall pay is 400% above the industry average
• Over the past three years, Crystal International Group's EPS grew by 15% and over the past three years, the total shareholder return was 42%

CEO Andrew Lo has done a decent job of delivering relatively good performance at Crystal International Group Limited (HKG:2232) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 3rd of June. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Crystal International Group

Comparing Crystal International Group Limited's CEO Compensation With The Industry

According to our data, Crystal International Group Limited has a market capitalization of HK$12b, and paid its CEO total annual compensation worth US$1.7m over the year to December 2023. That's a notable decrease of 11% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$819k.

On examining similar-sized companies in the Hong Kong Luxury industry with market capitalizations between HK$7.8b and HK$25b, we discovered that the median CEO total compensation of that group was US$347k. Accordingly, our analysis reveals that Crystal International Group Limited pays Andrew Lo north of the industry median. Moreover, Andrew Lo also holds HK$296m worth of Crystal International Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$819k	US$797k	47%
Other	US$915k	US$1.2m	53%
Total Compensation	US$1.7m	US$2.0m	100%

On an industry level, around 94% of total compensation represents salary and 6% 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 15% per year over the last three years. It saw its revenue drop 13% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Crystal International Group Limited Been A Good Investment?

Boasting a total shareholder return of 42% over three years, Crystal International Group Limited has done well by shareholders. 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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Crystal International Group that you should be aware of before investing.

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.