It Looks Like Shareholders Would Probably Approve Cognyte Software Ltd.'s (NASDAQ:CGNT) CEO Compensation Package

Key Insights

• Cognyte Software will host its Annual General Meeting on 4th of September
• Total pay for CEO Elad Sharon includes US$416.0k salary
• The total compensation is similar to the average for the industry
• Cognyte Software's EPS grew by 67% over the past three years while total shareholder return over the past three years was 67%

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It would be hard to discount the role that CEO Elad Sharon has played in delivering the impressive results at Cognyte Software Ltd. (NASDAQ:CGNT) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 4th of September. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Cognyte Software

Comparing Cognyte Software Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that Cognyte Software Ltd. has a market capitalization of US$630m, and reported total annual CEO compensation of US$5.0m for the year to January 2025. Notably, that's an increase of 98% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$416k.

For comparison, other companies in the American Software industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$4.8m. From this we gather that Elad Sharon is paid around the median for CEOs in the industry. What's more, Elad Sharon holds US$9.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. Cognyte Software sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Cognyte Software Ltd.'s Growth Numbers

Over the past three years, Cognyte Software Ltd. has seen its earnings per share (EPS) grow by 67% per year. Its revenue is up 13% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Cognyte Software Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Cognyte Software Ltd. for providing a total return of 67% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Cognyte Software that investors should be aware of in a dynamic business environment.

Important note: Cognyte Software 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.