Key Insights
- Cognyte Software is set to convene its Annual General Meeting on September 4th.
- CEO Elad Sharon’s total remuneration encompasses a salary of US$416,000.
- Overall compensation aligns closely with industry norms.
- Cognyte Software experienced a remarkable 67% growth in EPS over the last three years, with a comparable 67% total shareholder return during the same period.
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It is imperative to acknowledge the significant influence of CEO Elad Sharon in propelling the noteworthy performance of Cognyte Software Ltd. (NASDAQ: CGNT). Such commendable results are undoubtedly on the minds of shareholders as the AGM approaches on September 4th.
Discussions are likely to center around the future strategic direction of the company as shareholders deliberate on pivotal resolutions, including executive compensation, among others. Observations suggest that Sharon has performed exceptionally well, warranting a closer examination of his remuneration package.
Explore our latest analysis of Cognyte Software.
Assessing Cognyte Software Ltd.’s CEO Compensation Within the Industry Context
As of now, Cognyte Software Ltd. boasts a market capitalization of US$630 million, with reported annual CEO compensation totaling US$5.0 million for the fiscal year ending January 2025. This marks a remarkable 98% increase from the previous year.
Although total compensation figures prominently in this evaluation, it’s noteworthy that the salary component is comparatively modest, coming in at US$416,000.
In comparison, companies within the American Software sector, having market capitalizations between US$400 million and US$1.6 billion, report a median total CEO compensation of US$4.8 million.
This indicates that Elad Sharon’s compensation is approximately at the industry median. Furthermore, Sharon holds US$9.4 million in shares of the company, which signals his significant investment in its performance.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | US$416k | US$371k | 8% |
| Other | US$4.6m | US$2.2m | 92% |
| Total Compensation | US$5.0m | US$2.5m | 100% |
Sector-wide, nearly 11% of total compensation is allocated to salary, whereas the remaining 89% comprises alternate forms of remuneration. In contrast, Cognyte Software allocates a lesser proportion to salary compared to the broader industry context. A predominance of non-salary compensation could imply that the executive’s salary is directly linked to the company’s performance metrics.
An Examination of Cognyte Software Ltd.’s Growth Metrics
Over a span of three years, Cognyte Software Ltd. has achieved an admirable 67% annual growth in earnings per share (EPS), while its revenues have increased by 13% over the preceding year.
Shareholders will be heartened to note the company’s significant improvements in recent years. This notable revenue expansion within a single fiscal period suggests a robust and flourishing enterprise. For a more nuanced understanding, it may be beneficial to review this free visual representation of analyst projections for the future.
Evaluating Cognyte Software Ltd. as an Investment
Most shareholders are likely to regard Cognyte Software Ltd. favorably, particularly given its 67% total return over the past three years. This stellar performance may lead some investors to overlook the appropriateness of the CEO’s salary, especially when considering the company’s size.
In Summary…
In the forthcoming AGM, shareholders might adopt a more lenient stance on CEO remuneration in light of the company’s recent favorable outcomes. However, some may prioritize critical issues such as the management’s strategy for navigating toward sustainable profitability going forward.
While the scrutiny of CEO compensation remains essential, investors should also weigh other facets of the business. Notably, we have identified one warning sign for Cognyte Software that investors ought to keep in mind in a volatile business climate.
Important note: Cognyte Software presents an intriguing investment opportunity, but we recognize that some investors may seek a more balanced financial position accompanied by high returns. You may discover alternatives within this list of promising companies boasting elevated ROE and minimal debt.
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