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This article will reflect on the compensation paid to David Henshall who has served as CEO of Citrix Systems, Inc. (NASDAQ:CTXS) since 2017. This analysis will also assess whether Citrix Systems pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For David Henshall Compare With Other Companies In The Industry?
At the time of writing, our data shows that Citrix Systems, Inc. has a market capitalization of US$19b, and reported total annual CEO compensation of US$15m for the year to December 2019. Notably, that's a decrease of 25% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.
For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$10m. Accordingly, our analysis reveals that Citrix Systems, Inc. pays David Henshall north of the industry median. Furthermore, David Henshall directly owns US$53m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, around 13% of total compensation represents salary and 87% is other remuneration. Citrix Systems pays a modest slice of remuneration through salary, as compared to the broader 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 Citrix Systems, Inc.'s Growth Numbers
Citrix Systems, Inc. has seen its earnings per share (EPS) increase by 25% a year over the past three years. In the last year, its revenue is up 5.2%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Citrix Systems, Inc. Been A Good Investment?
Boasting a total shareholder return of 86% over three years, Citrix Systems, 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.
As we touched on above, Citrix Systems, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, earnings per share growth and shareholder returns are very impressive over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that David's performance creates value for the company.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Citrix Systems that investors should be aware of in a dynamic business environment.
Switching gears from Citrix Systems, 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.
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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