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It Looks Like Shareholders Would Probably Approve Commvault Systems, Inc.'s (NASDAQ:CVLT) CEO Compensation Package
Key Insights
- Commvault Systems will host its Annual General Meeting on 8th of August
- CEO Sanjay Mirchandani's total compensation includes salary of US$645.0k
- The total compensation is similar to the average for the industry
- Over the past three years, Commvault Systems' EPS grew by 71% and over the past three years, the total shareholder return was 100%
The performance at Commvault Systems, Inc. (NASDAQ:CVLT) has been quite strong recently and CEO Sanjay Mirchandani has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 8th of August. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
View our latest analysis for Commvault Systems
How Does Total Compensation For Sanjay Mirchandani Compare With Other Companies In The Industry?
According to our data, Commvault Systems, Inc. has a market capitalization of US$6.7b, and paid its CEO total annual compensation worth US$12m over the year to March 2024. We note that's an increase of 12% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$645k.
For comparison, other companies in the American Software industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$9.9m. So it looks like Commvault Systems compensates Sanjay Mirchandani in line with the median for the industry. Furthermore, Sanjay Mirchandani directly owns US$34m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$645k | US$645k | 5% |
| Other | US$11m | US$10m | 95% |
| Total Compensation | US$12m | US$11m | 100% |
On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. In Commvault Systems' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Commvault Systems, Inc.'s Growth
Over the past three years, Commvault Systems, Inc. has seen its earnings per share (EPS) grow by 71% per year. In the last year, its revenue is up 10%.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Commvault Systems, Inc. Been A Good Investment?
Boasting a total shareholder return of 100% over three years, Commvault Systems, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same 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. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Commvault Systems (1 is a bit concerning!) that you should be aware of before investing here.
Important note: Commvault 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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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
About NasdaqGS:CVLT
Commvault Systems
Provides a cyber resilience platform for protecting and recovering data and cloud-native applications in the Americas and internationally.
High growth potential with excellent balance sheet.
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