Adobe (ADBE) Tightens Executive Pay as Analysts Cut Rating

Adobe Inc. (NASDAQ:ADBE) is one of the champion inexpensive stocks to bargain for 2026. On January 27, Adobe Inc.’s (NASDAQ:ADBE) board-level Executive Compensation Committee approved 3 linked initiatives governing however elder leaders volition beryllium paid implicit the coming years. One was a three-year Performance Share Program rewarding banal show and income growth, and the different was an yearly currency bonus program tied to gross and nett targets. The past inaugural was a caller argumentation capping severance payments, and each are effectual for fiscal twelvemonth 2026.

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The 2026 Performance Share Program establishes a three-year measurement rhythm moving done 2028. It determines equity payouts based arsenic connected 2 metrics: however Adobe’s shareholder returns stack up against the NASDAQ-100 index, and whether the institution hits predetermined annualized recurring gross (ARR) maturation targets labeled arsenic “Net New Sales.”

For yearly currency incentives, the 2026 Executive Annual Incentive Plan requires the institution to scope astatine slightest 95 percent of its stated gross and earnings-per-share targets earlier immoderate bonuses are activated. The ceiling is acceptable astatine 155% of an executive’s people grant amount. And the caller severance argumentation restricts currency termination payments to 2.99 times an executive’s basal wage positive people yearly bonus for immoderate caller employment agreements oregon amendments entered into aft January 26, 2026. This is unless shareholders specifically ratify much generous terms.

In a antithetic update, connected January 12, Goldman Sachs downgraded Adobe’s banal standing from Buy to Sell and acceptable a terms people of $290.00. This marks the bank’s archetypal sum of the institution nether its caller stance. The caller Sell standing and people were based successful portion connected Goldman’s valuation methodology, which applies a 15× price-to-earnings aggregate to Adobe’s guardant net estimates.

Adobe Inc. (NASDAQ:ADBE) develops bundle products and services for integer media creation, marketing, and papers management. Its portfolio includes Photoshop, Illustrator, Premiere Pro, Acrobat, and the Adobe Experience Cloud.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.