SAN JOSE, CA - Nutanix, Inc. (NASDAQ:NTNX), a leader in enterprise cloud computing, has announced the fiscal year 2025 compensation details for its top executives, following the company's annual review by the Compensation Committee of the Board of Directors.
The disclosed salaries, effective August 1, 2024, include a base salary of $800,000 for President and CEO Rajiv Ramaswami, $520,000 for CFO Rukmini Sivaraman, and $475,000 for both COO David Sangster and Chief Legal Officer Brian Martin. Notably, Sangster's salary will be prorated due to his planned retirement on October 31, 2024, and he will not receive a fiscal year 2025 annual incentive or equity award.
In terms of incentives, Ramaswami and Sivaraman have targets set at 100% of their annual base salary, while Martin's target is 75%. These incentives are part of the company's Executive Incentive Compensation Plan for the fiscal year.
Additionally, on September 10, 2024, the executives were granted annual equity awards under the company's 2016 Equity Incentive Plan. Ramaswami and Sivaraman each received an equal mix of time-based restricted stock units (RSUs) and performance-based restricted stock units (PRSUs), totaling 136,116 units each. Martin, who was granted 45,199 time-based RSUs upon his hiring on July 10, 2024, was awarded only PRSUs as part of his annual equity award, totaling 45,372 units.
The RSUs are set to vest quarterly over four years, with the first installment due on December 15, 2024. The PRSUs will vest based on the company's total shareholder return performance relative to the NASDAQ Composite Index, with potential vesting occurring over three performance periods ending in 2025, 2026, and 2027. The number of PRSUs that may vest can range from 0% to 200% of the target amount, depending on performance, with a maximum value cap applied.
In other recent news, Nutanix, Inc. has reported strong growth in its fiscal year-end results. Q4 revenue climbed to $548 million, marking an 11% year-over-year increase, while the full-year revenue saw a 15% rise to $2.15 billion. The company's Annual Recurring Revenue (ARR) and Annual Contract Value (ACV) billings also grew by 22% and 21% respectively.
Furthermore, Nutanix has secured several large deals, including a multimillion-dollar agreement with a Fortune 100 financial services firm. In light of these developments, RBC Capital and JPMorgan have raised their price targets for Nutanix to $75, maintaining an Outperform and Overweight rating respectively.
Looking ahead, Nutanix expects its fiscal year 2025 revenue to be between $2.435 billion and $2.465 billion, with non-GAAP operating margins of approximately 15.5% to 17%. Lastly, the company announced the upcoming retirement of its Chief Operating Officer, David Sangster, effective October 31, 2024.
InvestingPro Insights
As Nutanix, Inc. (NASDAQ:NTNX) solidifies its executive compensation plan, aligning with company performance and shareholder returns, it's important to consider the financial health and market performance of the company. According to real-time data from InvestingPro, Nutanix has a market capitalization of $14.97 billion and boasts an impressive gross profit margin of 84.92% over the last twelve months as of Q4 2024. This high margin underscores the company's ability to manage costs effectively and could be a positive indicator for future profitability.
InvestingPro Tips highlight that analysts have revised their earnings upwards for the upcoming period for Nutanix, suggesting a positive outlook on the company's financial performance. Moreover, the company is expected to grow its net income this year, which could be a reflection of operational efficiency and market expansion. For investors interested in the detailed analysis, there are over 10 additional InvestingPro Tips available, which can be found at https://www.investing.com/pro/NTNX.
With an eye on the future, Nutanix's recent growth in revenue by 15.35% over the last twelve months, combined with the anticipation of profitability, positions the company in a favorable light as it continues to innovate and expand in the enterprise cloud computing market.
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