Here's Why Shareholders May Want To Be Cautious With Increasing Citrix Systems, Inc.'s (NASDAQ:CTXS) CEO Pay Packet

CEO David Henshall has done a decent job of delivering relatively good performance at Citrix Systems, Inc. (NASDAQ:CTXS) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 04 June 2021. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Citrix Systems

How Does Total Compensation For David Henshall Compare With Other Companies In The Industry?

Our data indicates that Citrix Systems, Inc. has a market capitalization of US$14b, and total annual CEO compensation was reported as US$23m for the year to December 2020. We note that's an increase of 56% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$9.7m. Accordingly, our analysis reveals that Citrix Systems, Inc. pays David Henshall north of the industry median. Furthermore, David Henshall directly owns US$42m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$1.0m	US$1.0m	4%
Other	US$22m	US$14m	96%
Total Compensation	US$23m	US$15m	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. Citrix Systems has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Citrix Systems, Inc.'s Growth Numbers

Over the past three years, Citrix Systems, Inc. has seen its earnings per share (EPS) grow by 73% per year. In the last year, its revenue changed by just 0.03%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Citrix Systems, Inc. Been A Good Investment?

With a total shareholder return of 11% over three years, Citrix Systems, Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Citrix Systems primarily uses non-salary benefits to reward its CEO. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Citrix Systems that you should be aware of before investing.

Important note: Citrix Systems 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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