Posted: 12/15/2024 03:46 pm
Applied Digital Corporation, trading under the symbol APLD, is a significant player in the computer programming and data processing services industry. The company has undergone a notable journey concerning executive compensation over the years, reflecting changes in leadership and corporate strategy.
In 2024, Wes Cummins serves as the Chief Executive Officer, President, Secretary, and Treasurer of Applied Digital Corporation, drawing a total compensation package of $1,237,002. This package includes a base salary of $600,000 and a matching $600,000 bonus, with additional compensation amounting to $37,002. Notably, there are no stock or option awards, making the compensation heavily reliant on fixed and bonus payments rather than long-term incentives[1](https://www.sec.gov/Archives/edgar/data/1144879/000149315224042122/0001493152-24-042122-index.htm).
Comparatively, in 2022, David Rench, the Chief Financial Officer, received a much larger total compensation of $1,774,694. The peculiarity here is his base salary of $254,707 and a significant portion of his compensation derived from an incentive plan, totaling $1,339,987, alongside a $180,000 bonus. This reflects a strategy focused on performance-linked incentives[2](https://www.sec.gov/Archives/edgar/data/1144879/000114487923000204/0001144879-23-000204-index.htm).
Reflecting on a longer historical perspective, in 2006, William B. Cotton, then CEO, received a modest total compensation of $185,800. This compensation included a $166,270 salary and a bonus of $5,000, supplemented by $15,800 in additional compensation. Of note was the absence of stock or option awards, a trend consistent with the strategy at the time[3](https://www.sec.gov/Archives/edgar/data/1144879/000114487908000026/0001144879-08-000026-index.htm). Similarly, in 2005, Samuel A. Kovnat, also a CEO of the company, had a total compensation of $192,605, with a base salary and a $281,240 option award being the most significant component of his package, marking a different compensation structure from the current approach[4](https://www.sec.gov/Archives/edgar/data/1144879/000114487907000026/0001144879-07-000026-index.htm).
Currently, Applied Digital is trading at $8.90 with a market capitalization of approximately $1.88 billion. Despite a recent decline of 1.49% in its trading price, reflecting a $0.135 drop, the company maintains strong market performance indicators including a year-high of $11.25[5]. As the company endured challenges with a negative earnings-per-share of -1.23 and a price/earnings ratio of -7.24, its executive compensation strategy remains pivotal in aligning leadership goals with shareholder interests.
1. [2024 Compensation Report](https://www.sec.gov/Archives/edgar/data/1144879/000149315224042122/0001493152-24-042122-index.htm)
2. [2022 Compensation Report](https://www.sec.gov/Archives/edgar/data/1144879/000114487923000204/0001144879-23-000204-index.htm)
3. [2006 Compensation Report](https://www.sec.gov/Archives/edgar/data/1144879/000114487908000026/0001144879-08-000026-index.htm)
4. [2005 Compensation Report](https://www.sec.gov/Archives/edgar/data/1144879/000114487907000026/0001144879-07-000026-index.htm)
5. Current market data snapshot for APLD.
