Increases to Palo Alto Networks, Inc.'s (NASDAQ:PANW) CEO Compensation Might Cool off for now

Key Insights

• Palo Alto Networks' Annual General Meeting to take place on 9th of December
• Total pay for CEO Nikesh Arora includes US$1.00m salary
• Total compensation is 416% above industry average
• Over the past three years, Palo Alto Networks' EPS grew by 41% and over the past three years, the total shareholder return was 125%

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CEO Nikesh Arora has done a decent job of delivering relatively good performance at Palo Alto Networks, Inc. (NASDAQ:PANW) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 9th of December. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Palo Alto Networks

How Does Total Compensation For Nikesh Arora Compare With Other Companies In The Industry?

Our data indicates that Palo Alto Networks, Inc. has a market capitalization of US$131b, and total annual CEO compensation was reported as US$100m for the year to July 2025. We note that's an increase of 72% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

In comparison with other companies in the American Software industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$19m. This suggests that Nikesh Arora is paid more than the median for the industry. What's more, Nikesh Arora holds US$194m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

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. Investors may find it interesting that Palo Alto Networks paid a marginal salary to Nikesh Arora, over the past year, focusing on non-salary compensation instead. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Palo Alto Networks, Inc.'s Growth Numbers

Palo Alto Networks, Inc.'s earnings per share (EPS) grew 41% per year over the last three years. In the last year, its revenue is up 15%.

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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Palo Alto Networks, Inc. Been A Good Investment?

Boasting a total shareholder return of 125% over three years, Palo Alto Networks, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Palo Alto Networks prefers rewarding its CEO through non-salary benefits. 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 1 warning sign for Palo Alto Networks that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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