India-Origin Nikesh Arora Among Top 5 Highest-Paid U.S. CEOs

By siliconindia   |   Monday, 01 July 2024, 17:40 IST
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India-Origin Nikesh Arora Among Top 5 Highest-Paid U.S. CEOs

Nikesh Arora, CEO of Palo Alto Networks (NASDAQ: PANW), is among the highest-paid U.S. CEOs, outshining Sundar Pichai and Satya Nadella.

According to the C-suite Comp report, Nikesh Arora, the CEO of Palo Alto Networks (NASDAQ: PANW), has emerged as one of the highest-paid CEOs in the United States. While the list of renowned Indian-origin executives in the U.S. often highlights Google's Sundar Pichai and Microsoft's Satya Nadella, neither secured a spot in this ranking. In contrast, Arora achieved a notable 4th position among the top 10 U.S. CEOs, with an annual disclosed compensation of $151.4 million. His consistent performance highlights his influential role and the impact of his leadership in the tech sector.

The comparison between these CEOs becomes even more interesting when looking at their companies' financial performance. In the first quarter of 2024, Hubspot (NYSE: HUBS)reported a total revenue of $617.4 million, while Palo Alto Networks generated $1.9 billion. Arora has secured a prominent position in the disclosed earnings ranking and the compensation paid ranking. For the previous year, he was placed 10th with a compensation of $266.4 million. Elon Musk, CEO of Tesla (NASDAQ: TSLA), topped this list with a staggering $1.4 billion in 2023, followed by Alexander Karp of Palantir Technologies (NYSE: PLTR).

The report also evaluated the total shareholder return (TSR) of these companies as a measure of performance against the CEOs' disclosed compensation over a year. Under Arora's leadership, Palo Alto Networks delivered the highest TSR in the past year. He is among the only four CEOs whose companies outperformed the S&P 500 market index by providing a higher-than-average TSR over one year, three years, and five years.

Analyzing compensation trends from 2019 to 2023, the report reveals that average compensation peaked in 2021, dipped in 2022, and rose again in 2023. Another ranking by the same data analytics firm highlights the stark disparity between executive compensation and median worker pay, with pay ratios reaching as high as 10,377.1 for Ryan S. Napierski, CEO of NUS, a retail health and personal care company.

Nikesh Arora's journey to becoming one of the highest-paid CEOs has been remarkable. He held significant positions at Google (NASDAQ: GOOG) and SoftBank (TYO: 9984) before becoming chairman and CEO of Palo Alto Networks, a leading cybersecurity company, in 2018. After graduating in Electrical Engineering from IIT BHU, Arora moved to the U.S. for his postgraduate studies, marking the beginning of an impressive career in the tech industry.

As he continues to lead Palo Alto Networks, his success story inspires aspiring executives and demonstrates that remarkable achievements are within reach with the right skills and determination.