It's Unlikely That Cellectis S.A.'s (EPA:ALCLS) CEO Will See A Huge Pay Rise This Year

Key Insights

• Cellectis' Annual General Meeting to take place on 26th of June
• Total pay for CEO Andre Choulika includes US$937.5k salary
• The overall pay is 81% above the industry average
• Cellectis' EPS grew by 32% over the past three years while total shareholder loss over the past three years was 57%

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Shareholders of Cellectis S.A. (EPA:ALCLS) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 26th of June. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Cellectis

Comparing Cellectis S.A.'s CEO Compensation With The Industry

According to our data, Cellectis S.A. has a market capitalization of €89m, and paid its CEO total annual compensation worth US$938k over the year to December 2024. That's a modest increase of 7.0% on the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth US$938k.

For comparison, other companies in the French Biotechs industry with market capitalizations below €174m, reported a median total CEO compensation of US$517k. Hence, we can conclude that Andre Choulika is remunerated higher than the industry median. Furthermore, Andre Choulika directly owns €1.3m worth of shares in the company.

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. Speaking on a company level, Cellectis prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Cellectis S.A.'s Growth

Cellectis S.A. has seen its earnings per share (EPS) increase by 32% a year over the past three years. Its revenue is up 351% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Cellectis S.A. Been A Good Investment?

The return of -57% over three years would not have pleased Cellectis S.A. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Cellectis pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Cellectis (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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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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.