Genie Energy Ltd.'s (NYSE:GNE) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Genie Energy will host its Annual General Meeting on 8th of May
• Salary of US$432.8k is part of CEO Michael Stein's total remuneration
• The overall pay is 2,884% above the industry average
• Genie Energy's EPS grew by 3.8% over the past three years while total shareholder return over the past three years was 191%

Under the guidance of CEO Michael Stein, Genie Energy Ltd. (NYSE:GNE) has performed reasonably well recently. As shareholders go into the upcoming AGM on 8th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Genie Energy

Comparing Genie Energy Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that Genie Energy Ltd. has a market capitalization of US$419m, and reported total annual CEO compensation of US$3.2m for the year to December 2023. Notably, that's an increase of 33% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$433k.

In comparison with other companies in the American Electric Utilities industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$107k. Hence, we can conclude that Michael Stein is remunerated higher than the industry median. Moreover, Michael Stein also holds US$5.7m worth of Genie Energy stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$433k	US$450k	14%
Other	US$2.8m	US$2.0m	86%
Total Compensation	US$3.2m	US$2.4m	100%

Talking in terms of the industry, salary represented approximately 11% of total compensation out of all the companies we analyzed, while other remuneration made up 89% of the pie. Genie Energy pays out 14% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Genie Energy Ltd.'s Growth Numbers

Genie Energy Ltd.'s earnings per share (EPS) grew 3.8% per year over the last three years. In the last year, its revenue is up 36%.

It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. 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 Genie Energy Ltd. Been A Good Investment?

We think that the total shareholder return of 191%, over three years, would leave most Genie Energy Ltd. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Genie Energy that you should be aware of before investing.

Important note: Genie 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.