Key insights

  • Verint Systems to hold its annual general meeting on July 10
  • Salary of US$790.0k is part of CEO Dan Bodner’s total compensation
  • Total compensation is 57% higher than the industry average
  • Verint Systems’ earnings per share grew 108% over the past three years, while total shareholder loss was 28% over the past three years

Over the past three years, the stock price of Verint Systems Inc. (NASDAQ:VRNT) has struggled to grow and now shareholders are left with a loss. What is worrying is that despite positive EPS growth, the share price has not followed the trend in fundamentals. These are some of the concerns that shareholders may want to raise at the next AGM on July 10. Voting on resolutions such as executive compensation and other matters could also be a way to influence management. We believe that shareholders are reluctant to increase CEO compensation at this time, according to our analysis below.

View our latest analysis for Verint Systems

How does Dan Bodner’s total compensation compare to other companies in the industry?

Our data indicates that Verint Systems Inc. has a market cap of US$2.0 billion and total annual CEO compensation was US$9.0 million for the year to January 2024. That’s a notable decrease of 26% from last year. We think total compensation is more important, but our data shows that CEO salary is lower, at US$790,000.

Compared to other companies in the US software industry with market capitalizations ranging from US$1.0 billion to US$3.2 billion, the reported median total CEO compensation was US$5.7 million. Therefore, we can conclude that Dan Bodner is compensated higher than the industry median. Furthermore, Dan Bodner also owns US$13 million worth of Verint Systems shares directly under their own name, which shows us that they have a significant personal stake in the company.

Element 2024 2023 Ratio (2024)
Salary US$790k US$784k 9%
Other US$8.3 million 11 million dollars 91%
Total compensation US$9.0 million 12 million dollars 100%

In terms of industry, salary represented about 15% of total compensation across all companies we analyzed, with other compensation accounting for 85% of the pie. Verint Systems pays a modest share of compensation through salary, compared to the broader industry. It’s important to note that a bias toward non-salary compensation suggests that total compensation is tied to company performance.

NasdaqGS:VRNT CEO Compensation July 3, 2024

A look at Verint Systems Inc.’s growth figures

Over the past three years, Verint Systems Inc. has grown its earnings per share (EPS) by 108% per year. It achieved revenue growth of 1.6% over the past year.

Shareholders would be happy to hear that the company has improved over the past few years. It’s also good to see modest revenue growth, which suggests the underlying business is healthy. Historical performance can sometimes be a good indicator of what’s to come, but if you want a glimpse into the company’s future, you might be interested in this free visualization of analyst forecasts.

Was Verint Systems Inc. a good investment?

Given that shareholders would have lost about 28% in three years, some Verint Systems Inc. investors would undoubtedly feel negative emotions. Shareholders would likely want the company to be less generous with CEO compensation.

In summary…

The fact that shareholders have been sitting on a loss on the value of their shares for the past few years is certainly worrying. The stock’s movement is not in line with the company’s earnings growth, which ideally should be moving in the same direction. Shareholders would like to know what is holding the stock back when earnings have been growing. At the upcoming AGM, shareholders will have the opportunity to discuss any issues with the board, including those relating to CEO compensation, and assess whether the board’s plan is likely to improve performance going forward.

While it’s important to pay attention to CEO compensation, investors should also consider other elements of the company. That’s why we did some research and identified 1 warning sign for Verint Systems what investors should consider before investing capital in this stock.

You could argue that the quality of the company is much more important than the CEO’s compensation levels. So consider this free list of interesting companies with HIGH return on equity and low debt.

Valuation is complex, but we make it simple.

Find out whether Verint Systems may be over or undervalued by exploring our comprehensive analysis, which includes: fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the free analysis

Do you have feedback on this article? Are you concerned about the content? Contact Us directly with us. You can also email editorial-team (at) simplywallst.com.

This article from Simply Wall St is general in nature. We comment solely on historical data and analyst forecasts, using an objective methodology. Our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or financial situation. We aim to provide you with a long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in the shares mentioned.

Valuation is complex, but we make it simple.

Find out whether Verint Systems may be over or undervalued by exploring our comprehensive analysis, which includes: fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the free analysis

Do you have feedback on this article? Are you concerned about the content? Please contact us directly. You can also send an email to [email protected]