We Discuss Why Crazy Sports Group Limited's (HKG:82) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year

Key Insights

• Crazy Sports Group will host its Annual General Meeting on 13th of May
• Total pay for CEO Xitao Peng includes HK$1.36m salary
• The total compensation is 46% less than the average for the industry
• Over the past three years, Crazy Sports Group's EPS fell by 69% and over the past three years, the total loss to shareholders 85%

Performance at Crazy Sports Group Limited (HKG:82) has not been particularly rosy recently and shareholders will likely be holding CEO Xitao Peng and the board accountable for this. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 13th of May. From our analysis below, we think CEO compensation looks appropriate for now.

View 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$457m, and reported total annual CEO compensation of HK$1.7m for the year to December 2023. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at HK$1.36m constitutes the majority of total compensation received by the CEO.

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$3.1m. This suggests that Xitao Peng is paid below the industry median. Moreover, Xitao Peng also holds HK$5.6m 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.

Component	2023	2022	Proportion (2023)
Salary	HK$1.4m	HK$1.4m	81%
Other	HK$311k	HK$281k	19%
Total Compensation	HK$1.7m	HK$1.7m	100%

On an industry level, roughly 38% of total compensation represents salary and 62% is other remuneration. Crazy Sports Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Crazy Sports Group Limited's Growth

Over the last three years, Crazy Sports Group Limited has shrunk its earnings per share by 69% per year. It saw its revenue drop 30% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Crazy Sports Group Limited Been A Good Investment?

Few Crazy Sports Group Limited shareholders would feel satisfied with the return of -85% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Crazy Sports Group that investors should look into moving forward.

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.