Nikesh Arora has a history of winning big paychecks. During his time at Google, he became the firm’s highest-paid executive, receiving a compensation package worth about $51 million in 2012, and went on to collect stock awards worth at least $200 million by the time he left.
In 2014, he was recruited by SoftBank Group Corp.’s Masayoshi Son and earned a $135 million first-year compensation package, breaking Japanese records and making him the world’s best-paid executive.
However, it is his most recent role as the CEO of cybersecurity firm Palo Alto Networks Inc. that has propelled the 55-year-old into the billionaire class.
Nikesh Arora’s Success at Palo Alto Networks
Palo Alto Networks awarded Nikesh Arora a $125 million stock and options compensation package when he joined the company in 2018. Due to a surge in cybersecurity software demand following several high-profile hacking incidents that disrupted casinos, ports, and even Treasury markets, the company’s share price has more than quadrupled since then, making Arora’s stake now worth $830 million.
Along with substantial pay awards from earlier in his career, Arora’s net worth now stands at $1.5 billion, according to the Bloomberg Billionaires Index. This makes him a rare non-founder billionaire tech CEO.
A spokesperson for Palo Alto Networks did not respond to requests for comment.
Stock Awards
In 2023, Nikesh Arora sold nearly $300 million worth of shares after exercising some of his options. He is poised to continue building his fortune at Palo Alto Networks, with a maximum of 750,000 stock awards in 2023 that would currently be worth over $220 million.
The company justified this award in its proxy statement, citing Arora’s strong performance over his first five years, during which he was able to vest “$102 million of value each year.”
Because of his significant vested ownership and the amount that Arora was projected to vest in over the next several years, the Board determined that a substantial equity award would be necessary to ensure that the award retains and engages Arora.
Conclusion
In conclusion, Nikesh Arora’s career has been marked by impressive compensation packages, stock awards, and successful business ventures. His latest role as CEO of Palo Alto Networks has seen him become a rare non-founder billionaire tech CEO, with a net worth of $1.5 billion. With the success of cybersecurity software and the significant stock awards he has received, Arora is poised to continue building his fortune. His story serves as an example of the potential for tremendous success in the tech industry.
