Jian Xie
Fulgent GeneticsAbout Jian Xie
Jian (James) Xie, 58, is President and Chief Operating Officer of Fulgent Genetics (FLGT); he has served as COO since April 2018 and as President since May 2022, after leading Bioinformatics since the company’s inception. He is a co-founder of FLGT and previously served as Senior Vice President at Cogent (1996–2011). He holds a B.A. in Engineering (Chongqing University) and dual M.S. degrees in Industrial Engineering and Computer Science (University of New South Wales) . Company performance metrics tied to incentive pay show Core Revenue +7% YoY in 2024, a Core Revenue CAGR of 24% from 2022–2024, Core EBITDA at 124% of plan for 2024, and year-end 2024 liquidity of $828.6M cash and investments . 2024 company revenues were $283.5M versus $289.2M in 2023; Core Revenue was $281.2M in 2024 versus $262.1M in 2023 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Fulgent Genetics | Vice President, Bioinformatics | Inception–2018 | Built bioinformatics capabilities foundational to assay development and lab operations |
| Fulgent Genetics | Chief Operating Officer | Apr 2018–Present | Oversees global operations, product vision and engineering, driving efficiency and growth |
| Fulgent Genetics | President | May 2022–Present | Broadened leadership remit across operations and product execution |
| Cogent, Inc. | Senior Vice President | 1996–2011 | Senior leadership at public biometrics firm acquired by 3M |
External Roles
- None disclosed for Mr. Xie in the 2025 proxy; biography lists no public company board or external executive roles .
Fixed Compensation
| Year | Base Salary ($) | Target Bonus % of Salary | Actual Annual Incentive ($) |
|---|---|---|---|
| 2022 | 611,875 | 30% for NEOs | 131,651 |
| 2023 | 615,000 | 30% for NEOs | 241,541 |
| 2024 | 615,000 | 30% for NEOs | 208,116 (112.8% corporate funding; equals 33.8% of salary) |
Notes:
- 2024 target bonus levels were 30% of salary for all non-CEO NEOs; plan funded at 112.8% based on Core Revenue and Core EBITDA vs plan .
Performance Compensation
Annual Cash Incentive Plan – FY2024 Results
| Metric | Weight | Threshold | Target | Maximum | Actual | Achievement | Payout Contribution |
|---|---|---|---|---|---|---|---|
| Core Revenue ($M) | 50% | 210.0 | 280.0 | 350.0 | 281.2 | 100.4% | 50.8% |
| Core EBITDA ($M) | 50% | (25.0) | (25.0) | (18.8) | (19.0) | 124.0% | 62.0% |
| Total | 112.8% of target |
- Plan mechanics: thresholds, target and maximum; revenue over/under target scaled at 4x/2x; EBITDA at 1x; total capped at 162.5% .
Equity Awards – Grant Detail (2024 cycle)
| Grant Date | Instrument | Shares | Grant Date Fair Value ($) | Vesting/Performance |
|---|---|---|---|---|
| 2/26/2024 | Time-based RSUs | 25,350 | 615,000 | 3-year schedule: 1/3 at 12 months post grant; then 1/12 quarterly over 24 months, continued service required |
| 2/26/2024 | Performance-based RSUs (PSUs) | 38,026 target | 922,500 probable at grant; max ≈ $1.5M | Earned annually over 2024–2026 on Core Revenue and Core EBITDA (equal weights); payout range 75%–162.5% of target; continued service required |
PSU Earn-out for 2024 performance:
- Mr. Xie earned 14,297 PSUs under the 2024 plan at 112.8% of target; he also earned 5,480 (2023 plan) and 3,384 (2022 plan) PSUs for 2024 performance tranches .
Equity program structure:
- No stock options granted to NEOs in 2022–2024; equity delivered via time- and performance-based RSUs .
- Change-in-control (2016 Plan): unless awards are assumed or replaced, options/SARs vest; other awards release restrictions and performance goals are deemed achieved at target upon a change in control .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (3/20/2025) | 255,304 shares (<1% of outstanding) |
| Composition | 247,222 shares held of record; 8,082 RSUs vesting/settling within 60 days after 3/20/2025 |
| Unvested RSUs (12/31/2024) | 92,913 units; market value $1,716,097 at $18.47 share price |
| Options | None outstanding (option columns blank) |
| Pledging/Hedging | Company permits pledging/hedging with pre-approval; pledges disclosed for CEO and Dr. Gao. Xie’s ownership footnote contains no pledge disclosure |
| Ownership policy | Expectation to retain meaningful ownership; net shares from equity awards must be held for at least one year post-vesting |
| Near-term vesting (liquidity cadence) | 8,082 RSUs vest within 60 days of 3/20/2025; time-based RSUs vest quarterly thereafter under the 3-year schedule |
Employment Terms
| Term | Provision |
|---|---|
| Employment status | At-will; may be terminated at any time |
| Severance (Change-in-Control) | One year of base salary if employment terminates for any reason within 1 year after a change in control, subject to release; for Mr. Xie, $615,000 if termination had occurred on 12/31/2024 following a change in control; $0 absent change in control |
| Equity on Change-in-Control | 2016 Plan provides single-trigger vesting/acceleration unless awards are assumed/replaced; performance-based awards deemed achieved at target |
| Clawback | Adopted March 2022 for misconduct; amended October 2023 to comply with mandatory recoupment on restatements (3-year lookback) |
| Hedging/Pledging | Allowed with compliance officer consent; 10b5-1 plans require consent; executive trades require preclearance |
| Tax matters | No personal income tax gross-ups; severance subject to 409A; if amounts are “parachute payments” under 280G/4999, timing aligns with 409A (no cutback/gross-up disclosed) |
| Perquisites/Retirement | 401(k) employer contributions; no supplemental retirement benefits (SERP) |
Compensation Structure Analysis
- Mix and alignment: Target salary positioned near market median; significant at-risk pay via annual bonus and PSUs tied to Core Revenue and Core EBITDA; 2024 corporate funding at 112.8% indicates above-plan performance against internal targets .
- Shift to RSUs: NEO equity grants in 2022–2024 were exclusively RSUs (time- and performance-based), with no stock options, reducing leverage to upside/downside vs options and increasing retention mechanics via time-vesting .
- Holding/retention: One-year post-vest holding on net shares supports longer-term alignment; quarterly vesting cadence creates periodic share delivery that can coincide with routine withholding transactions .
- Say-on-pay: Stockholders have approved the program annually; committee considers results in pay design .
Company Performance Context (select metrics tied to incentives)
| Fiscal Year | Total Revenue ($M) | Core Revenue ($M) | Core EBITDA ($M) |
|---|---|---|---|
| 2022 | 619.0 | 181.5 | (8.5) |
| 2023 | 289.2 | 262.1 | (9.2) |
| 2024 | 283.5 | 281.2 | (19.0) |
Additional 2024 highlights:
- Core Revenue +7% YoY; Core Revenue CAGR +24% (2022–2024) .
- Cash, cash equivalents, restricted cash, and marketable securities at 12/31/2024: $828.6M .
- 2024 plan results used for incentives: Core Revenue 100.4% of target; Core EBITDA 124.0% of target .
Governance, Benchmarking, and Shareholder Feedback
- Compensation committee members: Linda Marsh (Chair), Regina Groves, Michael Nohaile, Ph.D.; independent; advised by USI Insurance Services as independent consultant .
- Peer group for pay benchmarking includes 23andMe, CareDx, Guardant Health, Myriad Genetics, NeoGenomics, Veracyte, among others (11 peers) .
- Stockholder engagement in 4Q24 covered holders representing 37% of total shares and 51% of top-15 investors; ongoing annual outreach planned .
- Hedging/pledging policy permits transactions with consent; notable pledging includes CEO and CSO; no foreclosure to date under approved arrangements .
Investment Implications
- Pay-for-performance linkage: Mr. Xie’s cash and equity incentives are driven by Core Revenue and Core EBITDA, with 2024 payouts above target reflecting operational execution against internal plans; continued use of PSUs extends alignment over a three-year horizon .
- Vesting-driven supply: As of 12/31/2024, 92,913 unvested RSUs and 8,082 RSUs vesting within 60 days of 3/20/2025 indicate predictable quarterly share releases, a potential micro overhang around vesting dates depending on tax withholding and liquidity needs .
- Change-in-control economics: One year salary severance upon any termination within one year post-CoC plus plan-level single-trigger equity acceleration (absent assumption) creates meaningful CoC protection and could incentivize transaction support; there is no disclosed tax gross-up .
- Alignment and risk: Absence of options (2012–2024 NEO grants are RSUs) reduces leverage risk; mandatory post-vest holding and clawback policy bolster governance. Company’s permissive hedging/pledging (with consent) warrants ongoing monitoring, though no pledges are disclosed for Mr. Xie .