Is Kandi Technologies Group, Inc.’s (NASDAQ:KNDI) CEO Overpaid Relative To Its Peers?
In 2007 Xiaoming Hu was appointed CEO of Kandi Technologies Group, Inc. (NASDAQ:KNDI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Kandi Technologies Group
How Does Xiaoming Hu’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Kandi Technologies Group, Inc. has a market cap of US$375m, and is paying total annual CEO compensation of US$1.8m. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at US$27k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$1.5m.
That means Xiaoming Hu receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Kandi Technologies Group has changed over time.
Is Kandi Technologies Group, Inc. Growing?
Kandi Technologies Group, Inc. has reduced its earnings per share by an average of 47% a year, over the last three years (measured with a line of best fit). Its revenue is up 37% over last year.
The reduction in earnings per share, 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. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Kandi Technologies Group, Inc. Been A Good Investment?
Given the total loss of 21% 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.
In Summary…
Xiaoming Hu is paid around the same as most CEOs of similar size companies.
The per share growth could be better, in our view. And we think the shareholder returns – over three years – have been underwhelming. So it would take a bold person to suggest the pay is too modest. So you may want to check if insiders are buying Kandi Technologies Group shares with their own money (free access).
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 editorial-team@simplywallst.com. 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.
