NASDAQ:KNDI) since 2007. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.” data-reactid=”28″>This article will reflect on the compensation paid to Xiaoming Hu who has served as CEO of Kandi Technologies Group, Inc. (NASDAQ:KNDI) since 2007. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Kandi Technologies Group ” data-reactid=”29″> View our latest analysis for Kandi Technologies Group
How Does Total Compensation For Xiaoming Hu Compare With Other Companies In The Industry?
According to our data, Kandi Technologies Group, Inc. has a market capitalization of US$325m, and paid its CEO total annual compensation worth US$316k over the year to December 2019. That’s a notable decrease of 62% on last year. While this analysis focuses on total compensation, it’s worth acknowledging that the salary portion is lower, valued at US$52k.
On comparing similar companies from the same industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$2.2m. That is to say, Xiaoming Hu is paid under the industry median. What’s more, Xiaoming Hu holds US$85m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$52k | US$27k | 16% |
| Other | US$264k | US$799k | 84% |
| Total Compensation | US$316k | US$826k | 100% |
On an industry level, around 24% of total compensation represents salary and 76% is other remuneration. Kandi Technologies Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Kandi Technologies Group, Inc.’s Growth
Kandi Technologies Group, Inc. has seen its earnings per share (EPS) increase by 74% a year over the past three years. Its revenue is down 8.1% over the previous year.
this detailed historical graph of earnings, revenue and cash flow.” data-reactid=”54″>Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. 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 Kandi Technologies Group, Inc. Been A Good Investment?
With a total shareholder return of 28% over three years, Kandi Technologies Group, Inc. shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
To Conclude…
As previously discussed, Xiaoming is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But over the last three years, EPS growth has been growing rapidly, which is a great sign for the company. However, shareholder returns have failed to show the same level of growth. Shareholder returns could be better but we’re pleased with the positive EPS growth. As a result of these considerations, CEO compensation seems quite appropriate.
3 warning signs for Kandi Technologies Group that investors should look into moving forward.” data-reactid=”59″>CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 3 warning signs for Kandi Technologies Group that investors should look into moving forward.
this list of interesting companies with high ROE and low debt. ” data-reactid=”60″>Important note: Kandi Technologies 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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”65″>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. 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.
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