Shareholders May Be A Bit More Conservative With Gencell Ltd's (TLV:GNCL) CEO Compensation For Now

Key Insights

• Gencell to hold its Annual General Meeting on 5th of October
• Total pay for CEO Rami Reshef includes US$332.9k salary
• The total compensation is similar to the average for the industry
• Over the past three years, Gencell's EPS grew by 19% and over the past three years, the total loss to shareholders 91%

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In the past three years, the share price of Gencell Ltd (TLV:GNCL) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 5th of October. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Gencell

Comparing Gencell Ltd's CEO Compensation With The Industry

Our data indicates that Gencell Ltd has a market capitalization of ₪30m, and total annual CEO compensation was reported as US$393k for the year to December 2024. We note that's a decrease of 36% compared to last year. Notably, the salary which is US$332.9k, represents most of the total compensation being paid.

For comparison, other companies in the Israel Electrical industry with market capitalizations below ₪671m, reported a median total CEO compensation of US$399k. From this we gather that Rami Reshef is paid around the median for CEOs in the industry. Furthermore, Rami Reshef directly owns ₪1.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 78% of total compensation out of all the companies we analyzed, while other remuneration made up 22% of the pie. Our data reveals that Gencell allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Gencell Ltd's Growth

Over the past three years, Gencell Ltd has seen its earnings per share (EPS) grow by 19% per year. Its revenue is up 114% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Gencell Ltd Been A Good Investment?

The return of -91% over three years would not have pleased Gencell Ltd shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. 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. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 3 which are a bit unpleasant) in Gencell we think you should know about.

Important note: Gencell 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.

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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.