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Contact
Melissa BurekFounding Partner [email protected] 212-921-9354 Joanna Czyzewski
Principal [email protected] 646-486-9746 Thomas Brown
Associate [email protected] 646-568-1159 Gray Broaddus
Senior Analyst [email protected] 646-532-5931
Compensation Advisory Partners (CAP) analyzed financial performance across a sample of 49 technology companies over the 2025 performance year. Companies were grouped by revenue size, over $5 billion, $2 billion to $5 billion, and $500 million to $2 billion, to highlight differences in performance outcomes and market dynamics. Key observations include:
- Financial performance improved in 2025, with strong revenue growth and profitability across all company sizes, and more consistent results across all measures at larger companies
- Despite strong financial results, 1-year TSR was weak. This demonstrates a disconnect, largely as a result of external market factors (smaller companies were impacted the most)
- Long-term incentive plans that incorporate TSR will be impacted by shareholder returns in 2026, though outcomes will vary depending on relative performance, measurement periods, and plan design features
- Ongoing macroeconomic uncertainty and AI-driven market dynamics are expected to continue driving variability in stock prices and equity outcomes
The PDF provides a one-pager with additional information on CAP’s Technology company sample.
The metrics CAP is tracking include Revenue Growth; EBITDA Growth; Operating Income Growth; Cash Flow Growth, and Total Shareholder Return (TSR).