OKTA INC CLASS A (OKTA)
Sector: Information Technology
2026 Annual Meeting Analysis
OKTA INC CLASS A · Meeting: June 18, 2026
Directors FOR
2
Directors AGAINST
0
Say on Pay
FOR
Auditor
FOR
Director Elections
Election of Class III Directors
Bates joined the board in 2024 (within the 24-month exemption window), so the TSR underperformance trigger does not apply; he brings relevant technology and enterprise leadership experience as a sitting CEO of Genesys Cloud Services, and no overboarding, attendance, or independence concerns are present.
Schellhase joined the board in August 2025 (well within the 24-month new-director exemption), so the TSR trigger does not apply; he serves as Lead Independent Director with deep corporate governance credentials from general counsel roles at Slack and Salesforce, and no other policy flags are triggered.
Both Class III nominees — Anthony Bates and David Schellhase — joined the board within the past 24 months and are therefore exempt from the TSR underperformance trigger under policy. Okta's 3-year price return is +15.3% (low-positive tier), and the gap versus the company-disclosed peer group median is -17.8 percentage points, which falls short of the 35-percentage-point threshold required to trigger a No vote even for longer-tenured directors. No overboarding, attendance, independence, or qualification concerns are identified for either nominee.
Say on Pay
✓ FORCEO
Todd McKinnon
Total Comp
$23,319,458
Prior Support
94.6%%
CEO Todd McKinnon's total compensation of $23,319,458 (fiscal 2025, as pre-extracted) is within a reasonable range for a CEO of a $14 billion enterprise software company, and the program structure is sound: roughly 60% of his equity is in performance stock awards tied to relative total shareholder return versus the Nasdaq Composite Index over one-, two-, and three-year periods, satisfying the policy requirement that the majority of pay be variable and performance-linked. The prior Say on Pay vote received 94.6% support, far above the 70% threshold that would require a negative response, and the company has responded constructively to shareholder feedback by increasing the performance-based portion of executive equity. The pay-for-performance alignment check does not trigger a No vote because Okta's variable pay is tied to meaningful, measurable metrics (revenue, non-GAAP operating income, and relative TSR), and the company delivered solid fiscal 2026 results including 12% revenue growth and positive GAAP operating income for the first time.
Auditor Ratification
✓ FORAuditor
Ernst & Young LLP
Tenure
13 yrs
Audit Fees
$5,310,000
Non-Audit Fees
$2,200,000
Ernst & Young has served as Okta's auditor since 2013 (approximately 13 years), well below the 25-year tenure threshold that would trigger a concern. Non-audit fees (audit-related fees of $1,582,000 plus tax fees of $611,000 plus other fees of $7,000 = $2,200,000) represent about 41% of audit fees ($5,310,000), comfortably below the 50% independence-concern threshold. EY is a Big 4 firm appropriate for a $14 billion market-cap company, and no material restatements are disclosed.
Overall Assessment
The 2026 Okta annual meeting ballot contains four proposals: election of two new Class III directors (both within the 24-month new-director exemption from the TSR trigger and otherwise unencumbered), ratification of Ernst & Young as auditor (clean on fees and tenure), an advisory Say on Pay vote (strong prior support, meaningful performance-based pay structure, and solid fiscal 2026 results support a FOR), and an amendment to the 2017 Equity Incentive Plan (governance-positive changes but outside current policy scope for a formal determination). No stockholder proposals appear on the ballot.
Compensation Peer Group
17 companies disclosed in 2026 proxy filing