Increases to CEO Compensation Might Be Put On Hold For Now at Extreme Networks, Inc. (NASDAQ:EXTR)

Key Insights

• Extreme Networks' Annual General Meeting to take place on 12th of November
• Salary of US$840.0k is part of CEO Ed Meyercord's total remuneration
• The overall pay is 293% above the industry average
• Extreme Networks' total shareholder return over the past three years was 1.2% while its EPS was down 42% over the past three years

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The anaemic share price growth at Extreme Networks, Inc. (NASDAQ:EXTR) over the past few years has probably not impressed shareholders and may be due to earnings not growing over that period. Some of these issues will occupy shareholders' minds as the AGM rolls around on 12th of November. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

Check out our latest analysis for Extreme Networks

Comparing Extreme Networks, Inc.'s CEO Compensation With The Industry

Our data indicates that Extreme Networks, Inc. has a market capitalization of US$2.4b, and total annual CEO compensation was reported as US$13m for the year to June 2025. That's a notable decrease of 13% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$840k.

For comparison, other companies in the American Communications industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$3.3m. Hence, we can conclude that Ed Meyercord is remunerated higher than the industry median. Moreover, Ed Meyercord also holds US$33m worth of Extreme Networks stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2025	2024	Proportion (2025)
Salary	US$840k	US$840k	6%
Other	US$12m	US$14m	94%
Total Compensation	US$13m	US$15m	100%

On an industry level, around 18% of total compensation represents salary and 82% is other remuneration. Extreme Networks sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Extreme Networks, Inc.'s Growth

Over the last three years, Extreme Networks, Inc. has shrunk its earnings per share by 42% per year. In the last year, its revenue is up 14%.

The decline in EPS is a bit concerning. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Extreme Networks, Inc. Been A Good Investment?

Extreme Networks, Inc. has not done too badly by shareholders, with a total return of 1.2%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

While it's true that the share price growth hasn't been bad, it's hard to overlook the lack of earnings growth and this makes us question whether there will be any strong catalyst for the stock to improve. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Extreme Networks that investors should think about before committing capital to this stock.

Important note: Extreme Networks 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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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.