FuelCell Energy (NASDAQ:FCEL) Inc., a manufacturer of clean energy solutions with a market capitalization of $261 million, has disclosed recent executive compensation details and the appointment of a new executive officer, according to a filing with the U.S. Securities and Exchange Commission. According to InvestingPro analysis, the company appears undervalued despite facing operational challenges, with the stock showing significant momentum, gaining over 26% in the past week.
On December 30, 2024, the company’s Compensation and Leadership Development Committee approved the Long Term Incentive Plan (LTI Plan) awards for the fiscal year 2025. The LTI Plan, part of the 2018 Omnibus Incentive Plan, includes named executive officers (NEOs). The grants consist of relative total shareholder return (TSR) performance shares (50% of the target value) and time-vesting restricted stock units (50% of the target value). The TSR performance shares are based on the company's performance relative to the Russell 2000 Index over a three-year period, with specific vesting conditions.
The target award values for the NEOs are as follows: President and CEO Jason Few is set to receive $1,158,300, CFO and Treasurer Michael S. Bishop $450,000, General Counsel Joshua Dolger $247,500, EVP of Strategic Partnerships Michael J. Lisowski $220,000, and Chief Commercial Officer Mark Feasel also $220,000. These compensation decisions come as the company generates annual revenue of $112 million while trading at a modest 0.4x price-to-book ratio, according to InvestingPro data.
In addition, the company announced the appointment of Shankar Achanta as Executive Vice President, Chief Product and Technology Officer, effective January 1, 2025. Achanta, who previously served as the Senior Vice President, Chief Engineer since April 2024, will have an annual base salary of $400,000 and a target annual bonus of 60% of his base salary. His compensation package includes participation in the long-term incentive program with terms to be determined by the Board or a committee thereof.
The employment agreement with Achanta includes provisions for severance payments under certain conditions, such as termination without cause or resignation for good reason, and additional benefits in the event of a change in control of the company.
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