BJ Jenkins
Palo Alto NetworksAbout BJ Jenkins
William “BJ” Jenkins is President of Palo Alto Networks and has served in this role since August 2021, following nearly nine years as Barracuda Networks’ CEO and senior leadership roles at EMC . He is 59 years old (as of Oct. 15, 2025), holds an engineering degree from the University of Illinois and an MBA from Harvard Business School . Under his tenure, PANW delivered FY2025 revenue of $9.22B (+15% y/y), NGS ARR of $5.58B (+32% y/y), and RPO of $15.8B (+24% y/y); FY2024 revenue was $8.03B (+16% y/y), with five‑year TSR significantly outperforming both the S&P 500 and PANW’s compensation peer group .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Barracuda Networks | President & CEO | 2012–2021 | Led security and data storage solutions at scale; CEO experience prior to PANW |
| EMC (Backup Recovery Systems) | Division President; prior BU/sales/marketing roles | pre‑2012 | Drove BRS unit; deep go‑to‑market and product leadership |
| Palo Alto Networks | President | Aug 2021–present | Leads global go‑to‑market and platformization execution |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Generac Holdings | Director; Comp Committee member | 2017 | Added CEO/operator perspective to board oversight |
Fixed Compensation
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Base Salary ($) | $750,000 | $750,000 | $750,000 |
| Target Annual Cash Incentive ($) | $1,125,000 | $900,000 | $900,000 |
| Target Bonus % of Salary | 100% | 100% | 100% (Target $750,000; Max $1,237,500) |
Notes:
- No changes to target bonus % for FY2024–FY2025; PANW shows fixed 100% of base salary for NEOs and caps with max schedule .
- Jenkins received no sign‑on cash bonus; terms set in his 2021 offer letter .
Performance Compensation
| Metric | Weighting | Target Calibration | Actual/Payout (recent) | Vesting Mechanics |
|---|---|---|---|---|
| PSUs – NGS ARR | 50% (equally weighted with Non‑GAAP EPS) | Annual NGS ARR (threshold now 10% below target = no funding for cash plan; PSU max requires ≥$400M above target in FY2026) | FY2024 PSU tranche paid 0% due to strategy shift and unadjusted targets | 3‑year program; remaining periods aligned to NGS ARR and non‑GAAP EPS; PSU max reduced to 400% from 600% (fiscal 2025–2026 and remaining for 2023–2024 PSUs) |
| PSUs – Non‑GAAP EPS | 50% | Annual non‑GAAP EPS, equally weighted measure added for profitability focus | FY2024 PSU tranche 0% payout alongside ARR tranche | Same as above; modifier by relative TSR raised to 55th percentile for 1.0x in FY2026 design |
| Cash Incentive Plan | n/a | Clear threshold: >10% below any metric target → no funding/payout | Not disclosed by exec for FY2025; design change emphasizes pay‑for‑performance rigor | Annual cash payout based on two financial metrics plus ESG modifier; one‑year holding period for equity remains |
Equity Awards and Vesting Schedules
| Award Type | Grant Terms | Vesting Schedule | Value (Grant or Reported) |
|---|---|---|---|
| New‑hire RSUs (Aug 2021) | $10,000,000 RSUs | 40% on 1‑year anniversary; 30% in year 2 (equal quarterly); 20% in year 3 (equal quarterly); 10% in year 4 (equal quarterly) | $10,000,000 (grant‑date target) |
| New‑hire PSUs (Aug 2021) | $14,000,000 PSUs | 33% vests on first anniversary based on FY2022 performance; 33% second anniversary based on FY2022–FY2023; 34% third anniversary based on FY2022–FY2024 | |
| Ongoing PSUs (FY2024–FY2026 programs) | 100% of annual NEO equity is performance‑based; PSU max reduced to 400%; metrics updated to NGS ARR and annual non‑GAAP EPS; TSR modifier target raised to 55th percentile | Multi‑year performance cycles with relative TSR modifier | See Summary Compensation Table below for reported stock award values |
Multi‑Year Compensation (Selected)
| Component | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Salary ($) | $750,000 | $750,000 | $750,000 |
| Stock Awards ($) | $12,116,568 | $16,365,230 | $25,291,747 |
| Non‑Equity Incentive ($) | $1,125,000 | $900,000 | $900,000 |
| All Other ($) | $31,836 | $15,285 | $17,655 |
| Total ($) | $14,023,404 | $18,030,515 | $26,959,402 |
Compensation Mix and Policy Highlights:
- Approximately 93.5% of Jenkins’ total target annual compensation is performance‑based (FY2024), consistent with PANW’s at‑risk design .
- 100% of annual NEO equity in FY2024 was performance‑based PSUs (excluding Jenkins’ 2021 new‑hire RSUs) .
- Robust clawback policy (SEC/Nasdaq compliant) and additional recovery policy; one‑year post‑vesting holding period for all NEOs .
Equity Ownership & Alignment
- Stock ownership guidelines: Jenkins required to hold stock equal to 1x base salary; status “Met” (deadline August 2026) .
- Anti‑hedging and restrictive pledging: No hedging; pledging only permitted in limited circumstances with prior Governance & Sustainability Committee approval .
- 10b5‑1 plan: Jenkins adopted a Rule 10b5‑1 trading plan on March 26, 2024 to sell up to 8,054 shares, expiring June 30, 2025 .
- Director/NEO ownership disclosures are in “Security Ownership” sections of PANW proxies; Jenkins’ compliance reported against guidelines .
Employment Terms
- Offer letter (effective Aug. 9, 2021) set base salary at $750,000 and annual bonus target at 100% of base; included $10M RSUs and $14M PSUs with schedules noted above; employment is at‑will and includes confidentiality/IP assignment and duty of loyalty; no sign‑on cash bonus .
- Severance and Change‑in‑Control (current program): Under PANW’s 2025 proxy, Messrs. Golechha, Jenkins, and Klarich would each be entitled—upon an involuntary termination within 12 months following a change‑in‑control—to lump‑sum cash equal to 12 months of base salary and 100% of target annual incentive, subject to release and standard conditions .
- Clawback and compensation recovery: SEC/Nasdaq‑compliant recovery policy plus additional clawback policy .
Performance & Track Record (context)
| Metric | FY 2024 | FY 2025 |
|---|---|---|
| Total Revenue ($B) | $8.03 (+16% y/y) | $9.22 (+15% y/y) |
| NGS ARR ($B) | $4.22 (+43% y/y) | $5.58 (+32% y/y) |
| RPO ($B) | $12.7 (+20% y/y) | $15.8 (+24% y/y) |
| Non‑GAAP EPS ($) | $3.34 (+18% y/y) | $3.34 (reported FY2025 non‑GAAP EPS) |
Strategic execution:
- Platformization strategy accelerated; five‑year TSR far above S&P 500 and peer group .
- FY2024 PSU tranche paid 0% (targets not reset despite strategic shift), reinforcing pay‑for‑performance discipline .
Governance & Compensation Committee
- Compensation & People Committee: Chair Rt Hon Sir John Key; Members Aparna Bawa, John M. Donovan—fully independent per Nasdaq/SEC rules .
- Shareholder engagement: Say‑on‑pay support improved from 38% in 2023 to a majority in 2024; further program changes implemented for FY2025–FY2026 .
- Consultant: Meridian Compensation Partners supported framework for PSU sizing and performance calibration .
Compensation Structure Analysis
- Year‑over‑year shift toward equity: Reported stock award value rose from $12.1M (FY2023) to $16.4M (FY2024) to $25.3M (FY2025), increasing at‑risk pay leverage .
- Risk tightening: PSU max reduced to 400% from 600%; TSR modifier bar raised; cash plan thresholds codified (≤90% of target on any metric → no payout) .
- Alignment: Metrics tied to growth (NGS ARR) and profitability (non‑GAAP EPS), plus relative TSR modifier—consistent with shareholder outcomes .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited hedging and restrictive pledging with prior approval—mitigates misalignment risk .
- 10b5‑1 liquidity planning: Limited Jenkins plan (8,054 shares) suggests orderly diversification rather than heavy selling pressure .
- Say‑on‑pay: Prior low vote (38% in 2023) addressed with meaningful program changes; 2024 majority approval reduces governance risk .
Compensation Peer Group & Shareholder Feedback
- Five‑year TSR materially outperformed both S&P 500 and PANW’s peer group; program changes reflect robust engagement and responsiveness .
- Specific changes include lowering PSU max payout, adding profitability measure, raising TSR hurdle, and cash plan thresholds—reducing pay inflation risk while keeping competitiveness .
Expertise & Qualifications
- Technical and GTM leadership across cybersecurity (Barracuda), enterprise storage (EMC), and integrated platformization at PANW .
- Formal education in engineering and business supports cross‑functional execution (product, sales, operations) .
Investment Implications
- Strong alignment: High proportion of at‑risk pay, rigorous PSU design (ARR/EPS/TSR), clawbacks, and ownership guidelines indicate alignment with long‑term shareholder value .
- Retention risk manageable: New‑hire RSU/PSU schedules substantially completed; ongoing PSUs and ownership requirements sustain retention incentives .
- Performance signals: FY2024 0% PSU tranche payout underscores discipline; FY2025 top‑line and ARR growth supports future PSU attainment if profitability targets also met .
- Trading watch: 10b5‑1 plan (small size) suggests controlled liquidity, not elevated selling pressure; continue to monitor Form 4 activity and PSU vesting outcomes around FY2026 metrics .
Citations:
Background/tenure/education: **[1327567_0001193125-21-244832_d204334d8k.htm:1]** **[1327567_0001308179-25-000624_panw-20251107.htm:156]** **[1327567_0001308179-24-000770_panw4345341-def14a.htm:181]**
Performance outcomes & TSR: **[1327567_0001308179-25-000624_panw-20251107.htm:1]** **[1327567_0001308179-25-000624_panw-20251107.htm:12]** **[1327567_0001308179-24-000770_panw4345341-def14a.htm:1]** **[1327567_0001308179-24-000770_panw4345341-def14a.htm:12]** **[1327567_0001327567-25-000024_ex991q425earningsrelease.htm:7]**
Fixed comp & SCT values: **[1327567_0001308179-23-001049_panw4225281-def14a.htm:103]** **[1327567_0001308179-24-000770_panw4345341-def14a.htm:148]** **[1327567_0001308179-25-000624_panw-20251107.htm:135]** **[1327567_0001308179-25-000624_panw-20251107.htm:114]** **[1327567_0001308179-24-000770_panw4345341-def14a.htm:120]**
Vesting schedules: **[1327567_0001193125-21-244832_d204334dex101.htm:1]** **[1327567_0001193125-21-244832_d204334dex101.htm:2]** **[1327567_0001206774-22-002637_panw4099631-def14a.htm:90]**
Program changes & metrics: **[1327567_0001308179-25-000624_panw-20251107.htm:6]** **[1327567_0001308179-25-000624_panw-20251107.htm:16]** **[1327567_0001308179-24-000770_panw4345341-def14a.htm:15]**
Ownership guidelines & status: **[1327567_0001206774-22-002637_panw4099631-def14a.htm:93]**
Hedging/pledging & clawback: **[1327567_0001308179-24-000770_panw4345341-def14a.htm:15]** **[1327567_0001308179-24-000770_panw4345341-def14a.htm:16]**
10b5‑1 plan: **[1327567_0001327567-24-000017_panw-20240430.htm:95]**
Severance & COC: **[https://www.stocktitan.net/sec-filings/PANW/def-14a-palo-alto-networks-inc-definitive-proxy-statement-d20df9b2653a.html]**