FuelCell Energy, Inc.'s (NASDAQ:FCEL) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• FuelCell Energy will host its Annual General Meeting on 3rd of April
• Salary of US$579.3k is part of CEO Jason Few's total remuneration
• The total compensation is 443% higher than the average for the industry
• FuelCell Energy's EPS grew by 9.8% over the past three years while total shareholder loss over the past three years was 97%

Shareholders of FuelCell Energy, Inc. (NASDAQ:FCEL) 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 3rd of April. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for FuelCell Energy

Comparing FuelCell Energy, Inc.'s CEO Compensation With The Industry

Our data indicates that FuelCell Energy, Inc. has a market capitalization of US$102m, and total annual CEO compensation was reported as US$4.2m for the year to October 2024. Notably, that's a decrease of 13% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$579k.

In comparison with other companies in the American Electrical industry with market capitalizations under US$200m, the reported median total CEO compensation was US$768k. Hence, we can conclude that Jason Few is remunerated higher than the industry median. Moreover, Jason Few also holds US$177k worth of FuelCell Energy stock directly under their own name.

Talking in terms of the industry, salary represented approximately 22% of total compensation out of all the companies we analyzed, while other remuneration made up 78% of the pie. FuelCell Energy pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

FuelCell Energy, Inc.'s Growth

FuelCell Energy, Inc. has seen its earnings per share (EPS) increase by 9.8% a year over the past three years. Its revenue is up 11% over the last year.

We would argue that the modest growth in revenue is a notable positive. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. 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 FuelCell Energy, Inc. Been A Good Investment?

Few FuelCell Energy, Inc. shareholders would feel satisfied with the return of -97% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is a bit concerning) in FuelCell Energy we think you should know about.

Important note: FuelCell Energy 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.