Xero's CEO gets pay

Xero's CEO gets pay-rise after review finds pay below other technology company leaders

Xero has increased the remuneration package of chief executive Sukhinder Singh Cassidy after a review found her pay was below that of leaders at comparable global technology companies.

The accounting software company said it had reset Cassidy's target remuneration from the 25th percentile to the 50th percentile of a peer group of US-listed technology firms, including Atlassian, Workday, Snowflake, HubSpot and Zoom.

Under the new arrangements, Cassidy's target total remuneration will rise from US$15.2 million (NZ$25.4 million) to US$18.5 million (NZ$30.9 million).

Her base salary will increase from US$540,000 (NZ$903,000) to US$640,000 (NZ$1 million), while the value of long-term incentives and equity awards rises from US$14.1 million (NZ$23 million) to US$17.2 million (NZ$29 million).

Xero chair David Thodey said the board had undertaken a thorough review of executive remuneration and consulted a number of major shareholders before making the changes.

He said Cassidy had driven strong growth, improved profitability and accelerated product development since becoming chief executive in 2023.

The company said the revised package reflected market rates for CEOs of comparable global software and technology businesses and noted Cassidy's previous remuneration sat around the lower quarter of the peer group.

Most of the package will remain in long-term, share-based incentives, which vest over time and depend partly on performance.

Xero said Cassidy's realisable pay for the 2027 financial year was currently projected at US$4.4 million (NZ$7.3 million), because much of the revised package would not vest immediately.

Xero said new awards for the 2027 financial year will be granted as restricted stock units, while existing option grants will remain unchanged and no further option grants will be made to Cassidy.

The announcement comes after Cassidy recently sold the remainder of her direct shareholding in Xero.

Regulatory disclosures at the time showed she sold her remaining 29,608 shares for about AUS$2.2 million (NZ$2.6 million), following an earlier sale worth more than AUS$4 million (NZ$4.8 million).

The company said at the time the transactions were undertaken to meet personal tax obligations.

Despite no longer directly owning Xero shares, Cassidy continues to hold more than 171,000 restricted stock units and one million unlisted options.

Xero has also introduced a minimum shareholding policy for senior executives, requiring the chief executive to build and maintain a shareholding equivalent to five times her annual base salary within three years.

The company said the remuneration changes would have no impact on its existing earnings guidance or medium-term financial targets.

The pay decision comes as Xero's share price has recovered some ground over the past month but remains about half its level a year ago, ahead of the company's annual meeting on August 27.