Shareholders Will Probably Hold Off On Increasing Hall of Fame Resort & Entertainment Company's (NASDAQ:HOFV) CEO Compensation For The Time Being

Key Insights

• Hall of Fame Resort & Entertainment's Annual General Meeting to take place on 21st of November
• Salary of US$957.2k is part of CEO Mike Crawford's total remuneration
• Total compensation is 178% above industry average
• Over the past three years, Hall of Fame Resort & Entertainment's EPS grew by 41% and over the past three years, the total loss to shareholders 97%

Shareholders of Hall of Fame Resort & Entertainment Company (NASDAQ:HOFV) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 21st of November could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Hall of Fame Resort & Entertainment

Comparing Hall of Fame Resort & Entertainment Company's CEO Compensation With The Industry

Our data indicates that Hall of Fame Resort & Entertainment Company has a market capitalization of US$8.1m, and total annual CEO compensation was reported as US$2.5m for the year to December 2023. Notably, that's an increase of 34% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$957k.

On comparing similar-sized companies in the American Hospitality industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$918k. Accordingly, our analysis reveals that Hall of Fame Resort & Entertainment Company pays Mike Crawford north of the industry median. Moreover, Mike Crawford also holds US$108k worth of Hall of Fame Resort & Entertainment stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	US$957k	US$938k	38%
Other	US$1.6m	US$960k	62%
Total Compensation	US$2.5m	US$1.9m	100%

On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. Hall of Fame Resort & Entertainment pays out 38% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Hall of Fame Resort & Entertainment Company's Growth

Hall of Fame Resort & Entertainment Company's earnings per share (EPS) grew 41% per year over the last three years. It achieved revenue growth of 16% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Hall of Fame Resort & Entertainment Company Been A Good Investment?

The return of -97% over three years would not have pleased Hall of Fame Resort & Entertainment Company shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Hall of Fame Resort & Entertainment you should be aware of, and 2 of them are a bit concerning.

Switching gears from Hall of Fame Resort & Entertainment, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.