Xero is bumping CEO Sukhinder Singh Cassidy’s remuneration to US$18.5 million ($25.8 million), a jump of 22 per cent, arguing this places her in the median of US tech CEOs.
Key Takeaways
- Xero’s board has awarded CEO Sukhinder Singh Cassidy a new target pay package of US$18.5 million ($25 million), around a 22 per cent bump from the last plan devised in late 2024.
- Over US$17 million of Singh Cassidy’s target remuneration comes from long-term equity and incentive awards, which require the CEO to stay at Xero for three years and hit key revenue, free cash flow and shareholder returns metrics.
- The pay comes with a condition that Singh Cassidy build and maintain a shareholding equal to 500 per cent of her base salary.
- Singh Cassidy came under fire in July for selling her remaining $2.2 million worth of shares, a move Xero said was necessary for the CEO to meet her tax obligations.
- Xero’s board determined the pay rise appropriate because it takes Singh Cassidy’s package to median of chief executive pay among a group of US-based tech peers.
- Xero’s stock price has been battered over the past year. Though it is up 38 per cent in the past month, it has still been cut in half over the past year – having fallen from $165 to $85.
Key Background
Sukhinder Singh Cassidy became Xero’s CEO in February 2023. Revenue under her tenure has grown from NZ$1.4 billion to NZ$2.75 billion. She has also brought the company into steady profitability, with net profit hit NZ$167.4 million for the 12 months to March 31, 2026.
The pay rise comes at an awkward time, however, with the accounting company’s stock hit hard by investor doubts that its business can thrive in the AI era. Xero’s market cap currently sits at $14.7 billion, a precipitous fall from its peak of $30 billion in June of 2025.
Singh Cassidy’s base salary was bumped $100,000, to US$640,000 ($890,000).
Singh Cassidy was criticised in July for selling $2.2-million worth of Xero shares, leaving her with no remaining holdings. Xero said at the time the sale was required for Singh Cassidy to meet her tax obligations. Under the new rules the CEO is required to build and hold 500 per cent of her base salary
The peer group of companies against which Xero’s board compared CEO compensation include Atlassian, Docusign and Zoom. The board says that over half the pay package will unlock in three years. It expects Singh Cassidy’s realisable pay to be US$4.4 million for FY27.
In 2024, when remuneration was last reviewed, the board granted Singh Cassidy a one-time 575,000-option grant, valued at US$26.49 million at the time. The options carried a strike price of $171. Since the company’s stock has plummeted far below that, those options are currently worthless. Though Singh Cassidy will retain those options, the board on Monday said it would not be granted new options with a lower strike price.
Crucial Quote
“Since starting as CEO in February 2023, Singh Cassidy has driven high growth, improved profitability, accelerated product delivery and executed strongly against Xero’s FY25-27 strategy.”
“The changes to the package are to provide alignment with relevant benchmarks. As part of the process, we consulted with a number of major shareholders, many of whom acknowledged the need to adjust her compensation package to align with relevant benchmarks given performance.”
Big Number
$25.8 million. That’s what Singh Cassidy’s remuneration will reach by 2030 if key performance metrics are hit. Should Singh Cassidy realise that windfall, she would be the sixth highest paid ASX CEO based on 2025’s numbers.
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