How Much Did NetApp's (NASDAQ:NTAP) CEO Pocket Last Year?

This article will reflect on the compensation paid to George Kurian who has served as CEO of NetApp, Inc. (NASDAQ:NTAP) since 2015. This analysis will also assess whether NetApp pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for NetApp

How Does Total Compensation For George Kurian Compare With Other Companies In The Industry?

Our data indicates that NetApp, Inc. has a market capitalization of US$16b, and total annual CEO compensation was reported as US$9.5m for the year to April 2020. We note that's a decrease of 28% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$950k.

On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$13m. So it looks like NetApp compensates George Kurian in line with the median for the industry. What's more, George Kurian holds US$20m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 20% of total compensation represents salary, while the remainder of 80% is other remuneration. NetApp sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at NetApp, Inc.'s Growth Numbers

NetApp, Inc. has seen its earnings per share (EPS) increase by 9.3% a year over the past three years. In the last year, its revenue is down 4.0%.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest EPSgrowth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has NetApp, Inc. Been A Good Investment?

With a total shareholder return of 31% over three years, NetApp, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As previously discussed, George is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, EPS and shareholder returns have been stable over the last three years, but have not grown substantially. We'd say that George is remunerated reasonably, but shareholders might be looking for better returns before they agree George deserves a raise.

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 3 warning signs for NetApp that you should be aware of before investing.

Switching gears from NetApp, 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. 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.
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