Key Insights

• Verint Systems will host its Annual General Meeting on 10th of July
• Total pay for CEO Dan Bodner includes US$790.0k salary
• The total compensation is 57% higher than the average for the industry
• Over the past three years, Verint Systems' EPS grew by 108% and over the past three years, the total loss to shareholders 28%

In the past three years, the share price of Verint Systems Inc. (NASDAQ:VRNT) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 10th of July. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

How Does Total Compensation For Dan Bodner Compare With Other Companies In The Industry?

According to our data, Verint Systems Inc. has a market capitalization of US$2.0b, and paid its CEO total annual compensation worth US$9.0m over the year to January 2024. We note that's a decrease of 26% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$790k.

On comparing similar companies from the American Software industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$5.7m. Accordingly, our analysis reveals that Verint Systems Inc. pays Dan Bodner north of the industry median. What's more, Dan Bodner holds US$13m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. In Verint Systems' case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

Verint Systems Inc.'s Growth

Verint Systems Inc.'s earnings per share (EPS) grew 108% per year over the last three years. In the last year, its revenue is up 1.6%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Verint Systems Inc. Been A Good Investment?

Since shareholders would have lost about 28% over three years, some Verint Systems Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Verint Systems that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com