Here's Why VeriSign, Inc.'s (NASDAQ:VRSN) CEO Compensation Is The Least Of Shareholders' Concerns
Key Insights
- VeriSign's Annual General Meeting to take place on 22nd of May
- Total pay for CEO Jim Bidzos includes US$950.0k salary
- Total compensation is similar to the industry average
- VeriSign's total shareholder return over the past three years was 70% while its EPS grew by 5.8% over the past three years
Under the guidance of CEO Jim Bidzos, VeriSign, Inc. (NASDAQ:VRSN) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22nd of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for VeriSign
Comparing VeriSign, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that VeriSign, Inc. has a market capitalization of US$26b, and reported total annual CEO compensation of US$14m for the year to December 2024. That's a notable increase of 15% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$950k.
On comparing similar companies in the American IT industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$17m. This suggests that VeriSign remunerates its CEO largely in line with the industry average. What's more, Jim Bidzos holds US$140m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$950k | US$950k | 7% |
| Other | US$13m | US$11m | 93% |
| Total Compensation | US$14m | US$12m | 100% |
Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. In VeriSign's 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.
A Look at VeriSign, Inc.'s Growth Numbers
VeriSign, Inc. has seen its earnings per share (EPS) increase by 5.8% a year over the past three years. Its revenue is up 4.1% over the last year.
We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 VeriSign, Inc. Been A Good Investment?
Boasting a total shareholder return of 70% over three years, VeriSign, 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.
To Conclude...
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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for VeriSign you should be aware of, and 1 of them is a bit concerning.
Switching gears from VeriSign, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.