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Nikesh Arora’s Journey to Billionaire Status: From Google to Palo Alto Networks!

Nikesh Arora became billionaire
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The Indian-American business executive Nikesh Arora, the CEO of cybersecurity firm Palo Alto Networks, has reached a net worth of $1.5 billion, according to the Bloomberg Billionaires Index. This impressive fortune is attributed to substantial pay awards earned throughout his career, marking him as a notable non-founder billionaire in the tech CEO landscape.

Arora’s ascent to billionaire status began during his tenure at Google, where he secured a compensation package of approximately $51 million in 2012, subsequently becoming the firm’s highest-paid executive. His trajectory continued with stock awards totaling at least $200 million by the time he left Google. In 2014, Arora was recruited by SoftBank‘s Masayoshi Son, positioning him as the likely successor to the legendary investor.

This move was accompanied by a groundbreaking first-year compensation package of $135 million, setting Japanese records and establishing him as the world’s best-paid executive at that time. However, it is Arora’s role as the CEO of Palo Alto Networks that has truly propelled him into the billionaire class. Upon joining the cybersecurity firm in 2018, Arora received a substantial $125 million stock and options compensation package.

The company’s share price has surged more than fourfold since then, and Arora’s stake, now valued at $830 million, contributes significantly to his overall net worth. The majority of Arora’s stake in Palo Alto Networks is linked to over 3.4 million options awarded upon joining the company. Meeting share-price targets, including a remarkable 300% gain, led to the realization of these options.

Last year, Arora capitalized on his success by selling nearly $300 million worth of stock. Palo Alto Networks is the ninth-best performer on the S&P 500 Index, with a 111% rise in share value. Looking ahead, Arora is poised to augment his fortune at Palo Alto Networks further. His 2023 compensation includes a maximum of 750,000 stock awards contingent on specific performance conditions, currently estimated to be worth over $220 million.

The company justifies this award in its proxy statement, citing Arora’s strong performance over the past five years, during which he was able to vest “$102 million of value each year.”

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