Q2 Holdings, Inc.'s (NYSE:QTWO) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Q2 Holdings' Annual General Meeting to take place on 3rd of June
• Total pay for CEO Matt Flake includes US$520.0k salary
• The overall pay is comparable to the industry average
• Over the past three years, Q2 Holdings' EPS grew by 36% and over the past three years, the total shareholder return was 64%

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It would be hard to discount the role that CEO Matt Flake has played in delivering the impressive results at Q2 Holdings, Inc. (NYSE:QTWO) recently. Coming up to the next AGM on 3rd of June, shareholders would be keeping this in mind. 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 Q2 Holdings

Comparing Q2 Holdings, Inc.'s CEO Compensation With The Industry

Our data indicates that Q2 Holdings, Inc. has a market capitalization of US$5.4b, and total annual CEO compensation was reported as US$12m for the year to December 2024. That's just a smallish increase of 6.6% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$520k.

On examining similar-sized companies in the American Software industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$12m. This suggests that Q2 Holdings remunerates its CEO largely in line with the industry average. Moreover, Matt Flake also holds US$42m worth of Q2 Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 10% of total compensation represents salary and 90% is other remuneration. Q2 Holdings 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. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Q2 Holdings, Inc.'s Growth Numbers

Over the past three years, Q2 Holdings, Inc. has seen its earnings per share (EPS) grow by 36% per year. It achieved revenue growth of 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Q2 Holdings, Inc. Been A Good Investment?

We think that the total shareholder return of 64%, over three years, would leave most Q2 Holdings, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Q2 Holdings prefers rewarding its CEO through non-salary benefits. Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. 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.

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. We did our research and spotted 1 warning sign for Q2 Holdings that investors should look into moving forward.

Switching gears from Q2 Holdings, 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.