SoftBank veteran Nikesh Arora now a billionaire CEO of Palo Alto Networks, has net worth of $1.5 billion

Arora's net worth stands at $1.5 billion, the Bloomberg Billionaires Index says. This fortune is a result of the pay awards he received earlier in career.

Published on: Jan 3, 2024, 20:32:08 IST

By HT News Desk

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Nikesh Arora has a track record of securing substantial compensation packages throughout his career. As the current CEO of Palo Alto Networks Inc, a cybersecurity firm, his role has catapulted him into the billionaire ranks.

Arora's overall net worth now stands at $1.5 billion, according to the Bloomberg Billionaires Index. This remarkable achievement distinguishes him as a rare example of a non-founder tech CEO who has achieved billionaire status.

Arora was granted a significant compensation package, including $125 million in stock and options upon joining Palo Alto Networks in 2018.

In 2023, Arora leveraged his position and exercised some of his stock options, selling almost $300 million worth of shares. Despite this substantial divestment, Arora remains well-positioned to continue accumulating wealth at Palo Alto Networks.

Arora's 2023 compensation package comprises a potential maximum of 750,000 stock awards, subject to specific performance criteria. Currently valued at over $220 million, the company justifies this substantial award by citing Arora's impressive performance in his initial five years, averaging "$102 million of value each year."

Acknowledging Arora's substantial vested ownership and the anticipated vesting of additional amounts in the coming years, the company's Board of Directors deemed it necessary to grant a meaningful equity award. This decision aims to ensure that the award remains a significant incentive for Arora, recognising his pivotal role in the company's success.

In 2014, Nikesh Arora was recruited by Masayoshi Son of SoftBank Group Corp., with the expectation that he could be Son's successor. In his first year at SoftBank, Arora received an extraordinary compensation package of $135 million, setting a record in Japan and making him the world's highest-paid executive at that time.

Notably, during his tenure at Google, Arora earned the title of the company's highest-paid executive in 2012, with a compensation package valued at around $51 million. His time at Google also saw him accumulate stock awards totalling at least $200 million by the time he left.

(With inputs from Bloomberg)

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