Key Insights

• Qualys will host its Annual General Meeting on 12th of June
• CEO Sumedh Thakar's total compensation includes salary of US$558.3k
• Total compensation is similar to the industry average
• Qualys' EPS grew by 33% over the past three years while total shareholder return over the past three years was 34%

The performance at Qualys, Inc. (NASDAQ:QLYS) has been quite strong recently and CEO Sumedh Thakar has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 12th of June. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

How Does Total Compensation For Sumedh Thakar Compare With Other Companies In The Industry?

At the time of writing, our data shows that Qualys, Inc. has a market capitalization of US$4.9b, and reported total annual CEO compensation of US$7.8m for the year to December 2023. We note that's a decrease of 32% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$558k.

On comparing similar companies from the American Software industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$11m. From this we gather that Sumedh Thakar is paid around the median for CEOs in the industry. What's more, Sumedh Thakar holds US$10m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. Qualys pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Qualys, Inc.'s Growth

Over the past three years, Qualys, Inc. has seen its earnings per share (EPS) grow by 33% per year. It achieved revenue growth of 12% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Qualys, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Qualys, Inc. for providing a total return of 34% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Qualys.

Switching gears from Qualys, 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.

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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.