Shareholders May Not Be So Generous With Crosstec Group Holdings Limited's (HKG:3893) CEO Compensation And Here's Why

Performance at Crosstec Group Holdings Limited (HKG:3893) has been reasonably good and CEO Sandi Lee has done a decent job of steering the company in the right direction. 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 03 December 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Crosstec Group Holdings

How Does Total Compensation For Sandi Lee Compare With Other Companies In The Industry?

Our data indicates that Crosstec Group Holdings Limited has a market capitalization of HK$641m, and total annual CEO compensation was reported as HK$3.4m for the year to June 2021. That's a notable decrease of 12% on last year. In particular, the salary of HK$3.34m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.3m. Accordingly, our analysis reveals that Crosstec Group Holdings Limited pays Sandi Lee north of the industry median.

Component	2021	2020	Proportion (2021)
Salary	HK$3.3m	HK$3.7m	99%
Other	HK$26k	HK$101k	1%
Total Compensation	HK$3.4m	HK$3.8m	100%

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. Crosstec Group Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Crosstec Group Holdings Limited's Growth Numbers

Crosstec Group Holdings Limited saw earnings per share stay pretty flat over the last three years. Its revenue is up 61% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Crosstec Group Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 227% over three years, Crosstec Group Holdings Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Crosstec Group Holdings pays its CEO a majority of compensation through a salary. 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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is 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. In our study, we found 4 warning signs for Crosstec Group Holdings you should be aware of, and 2 of them don't sit too well with us.

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.

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.

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