Xiaoming Hu became the CEO of Kandi Technologies Group, Inc. (NASDAQ:KNDI) in 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Xiaoming Hu's Compensation Compare With Similar Sized Companies?
According to our data, Kandi Technologies Group, Inc. has a market capitalization of US$262m, and pays its CEO total annual compensation worth US$826k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$27k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.2m.
A first glance this seems like a real positive for shareholders, since Xiaoming Hu is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Kandi Technologies Group has changed over time.
Is Kandi Technologies Group, Inc. Growing?
Over the last three years Kandi Technologies Group, Inc. has grown its earnings per share (EPS) by an average of 3.2% per year (using a line of best fit). Its revenue is up 36% over last year.
It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Kandi Technologies Group, Inc. Been A Good Investment?
Given the total loss of 22% over three years, many shareholders in Kandi Technologies Group, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
It appears that Kandi Technologies Group, Inc. remunerates its CEO below most similar sized companies.
It's well worth noting that while Xiaoming Hu is paid less than most company leaders (at similar sized companies), performance has been somewhat uninspiring, and total returns have been lacking. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. Whatever your view on compensation, you might want to check if insiders are buying or selling Kandi Technologies Group shares (free trial).
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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.