Key Insights

• Crown Crafts to hold its Annual General Meeting on 13th of August
• CEO Olivia Elliott's total compensation includes salary of US$400.0k
• The total compensation is 58% less than the average for the industry
• Over the past three years, Crown Crafts' EPS fell by 7.5% and over the past three years, the total loss to shareholders 17%

Shareholders may be wondering what CEO Olivia Elliott plans to do to improve the less than great performance at Crown Crafts, Inc. (NASDAQ:CRWS) recently. At the next AGM coming up on 13th of August, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Comparing Crown Crafts, Inc.'s CEO Compensation With The Industry

According to our data, Crown Crafts, Inc. has a market capitalization of US$49m, and paid its CEO total annual compensation worth US$431k over the year to March 2024. That's a notable decrease of 25% on last year. Notably, the salary which is US$400.0k, represents most of the total compensation being paid.

For comparison, other companies in the American Luxury industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.0m. In other words, Crown Crafts pays its CEO lower than the industry median. Furthermore, Olivia Elliott directly owns US$858k worth of shares in the company.

On an industry level, roughly 21% of total compensation represents salary and 79% is other remuneration. Crown Crafts is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Crown Crafts, Inc.'s Growth Numbers

Crown Crafts, Inc. has reduced its earnings per share by 7.5% a year over the last three years. Its revenue is up 17% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Crown Crafts, Inc. Been A Good Investment?

Given the total shareholder loss of 17% over three years, many shareholders in Crown Crafts, Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning. The fact that earnings growth has gone backwards could be a factor for the downward trend in the share price. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board 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. We identified 3 warning signs for Crown Crafts (1 is a bit concerning!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com