Key Insights

• Crazy Sports Group's Annual General Meeting to take place on 13th of May
• CEO Xitao Peng's total compensation includes salary of HK$1.36m
• Total compensation is 46% below industry average
• Crazy Sports Group's EPS declined by 69% over the past three years while total shareholder loss over the past three years was 85%

The disappointing performance at Crazy Sports Group Limited (HKG:82) will make some shareholders rather disheartened. The next AGM coming up on 13th of May will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. The data we gathered below shows that CEO compensation looks acceptable for now.

How Does Total Compensation For Xitao Peng Compare With Other Companies In The Industry?

Our data indicates that Crazy Sports Group Limited has a market capitalization of HK$457m, and total annual CEO compensation was reported as HK$1.7m for the year to December 2023. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at HK$1.36m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Hong Kong Interactive Media and Services industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$3.1m. This suggests that Xitao Peng is paid below the industry median. Furthermore, Xitao Peng directly owns HK$5.6m worth of shares in the company, implying that they are deeply invested in the company's success.

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 total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

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 69% per year. It saw its revenue drop 30% over the last year.

Overall this is not a very positive result for shareholders. 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. 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?

With a total shareholder return of -85% over three years, Crazy Sports Group Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Crazy Sports Group that investors should be aware of in a dynamic business environment.

Important note: Crazy Sports Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.