It Looks Like Crazy Sports Group Limited's (HKG:82) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Crazy Sports Group will host its Annual General Meeting on 8th of May
• CEO Xitao Peng's total compensation includes salary of HK$1.33m
• The overall pay is comparable to the industry average
• Crazy Sports Group's EPS declined by 115% over the past three years while total shareholder loss over the past three years was 75%

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Shareholders will probably not be too impressed with the underwhelming results at Crazy Sports Group Limited (HKG:82) recently. At the upcoming AGM on 8th of May, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Crazy Sports Group

Comparing Crazy Sports Group Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Crazy Sports Group Limited has a market capitalization of HK$362m, and reported total annual CEO compensation of HK$1.6m for the year to December 2024. That is, the compensation was roughly the same as last year. Notably, the salary which is HK$1.33m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Interactive Media and Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.3m. This suggests that Crazy Sports Group remunerates its CEO largely in line with the industry average. Moreover, Xitao Peng also holds HK$4.5m worth of Crazy Sports Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 39% of total compensation represents salary and 61% is other remuneration. It's interesting to note that Crazy Sports Group pays out a greater portion of remuneration through salary, compared to the industry. 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 Crazy Sports Group Limited's Growth Numbers

Over the last three years, Crazy Sports Group Limited has shrunk its earnings per share by 115% per year. In the last year, its revenue is down 16%.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Crazy Sports Group Limited Been A Good Investment?

Few Crazy Sports Group Limited shareholders would feel satisfied with the return of -75% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Crazy Sports Group (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

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.

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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.