Bhusri’s return to the top job at the human resources software company reflects the belief that only a founder with billions on the line and a personal legacy at stake has the unique vision and authority to steer the ship through difficult waters. And with majority voting control plus operational authority as CEO, Bhusri will have more power to make any difficult changes he sees necessary. A close look at Bhusri’s compensation package however suggests that it’s also an acknowledgement of just how bleak the investor prognosis is for software-as-a-service (SaaS) companies.
With Wall Street bearish on SaaS companies, Workday is effectively recognizing the deep skepticism that even its founder-savior will face in successfully making the transition into the AI age.
As the software company turns the page, it has 20 years of decision making data and process history that give the opportunity to offer enterprise grade intelligence to large customers, Bhusri wrote in his post.
Workday’s success is highly dependent on Bhusri. The company operates with a dual-class share structure, which means shares sold on the open market, Class A shares, carry a single vote apiece, while Class B shares are worth 10 votes each. Between cofounder Dave Duffield and Bhusri and their affiliates and a voting rights agreement that dates back to Workday’s 2012 IPO, the two cofounders control 68% of the voting power through their Class B share ownership.
While revenue is growing—Workday posted $8.4 billion in total revenue for fiscal 2025, up 16% over the year prior—that growth has slowed. Subscription revenue growth, for example,slowed from 19% in fiscal 2024 to 17% in fiscal 2025, per the company’s annual report, with the most recent quarter showing 15%. Plus, the unknown impact AI will have on SaaS companies is a brutal hangover on the sector, and the impact on Workday is significantly visible. The day of Bhusri’s return, the stock dropped more than 6%, underscoring investors’ anxiety about the company and its challenges adapting to the AI age.
Workday has been mum on the specific targets Bhusri will have to hit to see his $138.8 million package pay out, but the disclosed terms state the $75 million award will be divided up into tranches that will require Bhusri to hit stock price targets—and stay at Workday. Bringing the price back up to its peak will mean more than doubling the stock price in the next five years. Bhusri’s $60 million restricted stock award will vest over four years so long as Bhusri stays with the company. He’ll also collect a $1.25 million yearly salary and a yearly cash bonus of up to $2.5 million. He won’t be eligible for any more grants until 2027.
“The opportunity ahead of us is always greater than what’s behind,” wrote Eschenbach. “We are at a massive inflection point with AI, and there is nobody better than Aneel to lead Workday through this moment and drive the vision forward.”
Bhusri and Duffield’s agreement also means that if one of the co–founders is incapacitated or dies, the other gets control of both stakes. The dual-class structure is set to expire in October 2032—a year after Bhusri’s performance window closes in early 2031. That gives Bhusri a solid chunk of time to see if a co-founder in the CEO seat can make an impact on the stock price in the midst of an AI tidal wave.
