Nikesh Arora, CEO of cybersecurity firm Palo Alto Networks Inc. PANW and a former executive at Google and SoftBank, has joined the billionaire club.
What Happened: Arora received a hefty $125 million in stocks and options when he became part of the cybersecurity firm in 2018, Bloomberg reported on Thursday. Since his appointment, Palo Alto Networks’ shares have seen a four-fold increase, largely due to a surge in the cybersecurity software market triggered by multiple high-profile hacking incidents. The rise in share price has resulted in Arora’s stake in the company being valued at an impressive $830 million.
With the inclusion of his substantial earnings from his days at Google and SoftBank, Arora’s net worth now stands at an estimated $1.5 billion, as per the Bloomberg Billionaires Index. This accomplishment positions him as a rare non-founder billionaire tech CEO.
Arora’s wealth is poised for further growth, courtesy of his performance-based compensation package at Palo Alto Networks. His 2023 package comprises a maximum of 750,000 stock awards that vest upon meeting certain performance conditions, potentially adding over $220 million to his wealth.
Why It Matters: Palo Alto Networks has been performing commendably in recent times. The company reported quarterly earnings of $1.38 per share, surpassing the analyst consensus estimate of $1.16, marking a 66.27% increase from last year. Additionally, revenues of $1.88 billion beat the estimated $1.84 billion, marking a 20.15% increase from the previous year’s sales. This financial success, coupled with the company’s strong leadership under Arora, has led to a significant appreciation in the company’s stock value, contributing to Arora’s escalating net worth.
Image by Michael Vi via Shutterstock
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