NetApp, Inc.'s (NASDAQ:NTAP) CEO Looks Like They Deserve Their Pay Packet

Key Insights

• NetApp to hold its Annual General Meeting on 11th of September
• CEO George Kurian's total compensation includes salary of US$1.00m
• Total compensation is similar to the industry average
• NetApp's EPS grew by 11% over the past three years while total shareholder return over the past three years was 43%

We have been pretty impressed with the performance at NetApp, Inc. (NASDAQ:NTAP) recently and CEO George Kurian deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 11th of September. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and 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.

View our latest analysis for NetApp

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

According to our data, NetApp, Inc. has a market capitalization of US$25b, and paid its CEO total annual compensation worth US$18m over the year to April 2024. We note that's an increase of 56% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

For comparison, other companies in the American Tech industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$19m. So it looks like NetApp compensates George Kurian in line with the median for the industry. Moreover, George Kurian also holds US$37m worth of NetApp stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	US$1.0m	US$1.0m	6%
Other	US$17m	US$10m	94%
Total Compensation	US$18m	US$11m	100%

Talking in terms of the industry, salary represented approximately 31% of total compensation out of all the companies we analyzed, while other remuneration made up 69% of the pie. It's interesting to note that NetApp allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at NetApp, Inc.'s Growth Numbers

NetApp, Inc. has seen its earnings per share (EPS) increase by 11% a year over the past three years. It achieved revenue growth of 2.8% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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?

We think that the total shareholder return of 43%, over three years, would leave most NetApp, 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for NetApp that investors should look into moving forward.

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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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.