Louis T. Petrillo
ARCH CAPITAL GROUPAbout Louis T. Petrillo
Louis T. Petrillo is President and General Counsel of Arch Capital Services LLC (since April 2002). He previously served as SVP, General Counsel and Secretary of Arch Capital Group Ltd. (May 2000–April 2002) and as VP & Associate General Counsel of Arch’s reinsurance subsidiary (1996–May 2000). He holds a B.A. from Tufts University and a J.D. from Columbia University. Age: 59. Tenure at Arch since 1996 .
Company performance context: 2024 net income $4.3B; annualized net income ROE 22.8%; operating ROE 18.9%; combined ratio 82.5%; BVPS $53.11; 1-year TSR 30.8% (3-year 118.5%, 5-year 126.4%) .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Arch Capital Group reinsurance subsidiary | Vice President and Associate General Counsel | 1996–May 2000 | Senior legal leadership for reinsurance subsidiary |
| Arch Capital Group Ltd. | Senior Vice President, General Counsel and Secretary | May 2000–Apr 2002 | Group-level General Counsel/Secretary |
| Arch Capital Services LLC | President and General Counsel | Apr 2002–present | Leads services subsidiary legal function |
| Willkie Farr & Gallagher LLP | Attorney | Prior to 1996 | Large law firm experience |
External Roles
- No external public company directorships disclosed for Petrillo in the DEF 14A profile .
Fixed Compensation
- Not disclosed for Petrillo (not a Named Executive Officer in the proxy’s Summary Compensation Table) .
Performance Compensation
- Petrillo’s individual incentive targets/awards are not disclosed (NEO-only disclosure). Company-wide design for senior executives features 70% performance-based annual bonus (ROE-driven) and long-term incentives with 3-year performance shares (ATBVPS growth with TSR modifier), options, and time-vested RS; vesting generally over three years .
Equity Ownership & Alignment
- Current beneficial ownership and recent insider transactions (Form 4):
| Date (trade) | Action | Shares | Price ($) | Post-transaction holdings | Source |
|---|---|---|---|---|---|
| 2025-03-04 | Sell | 21,000 | 91.78 (WA) | 140,099 | SEC Form 4 (filed 2025-03-06) |
| 2025-05-09 | Sell | 16,650 | 94.53 (WA) | 140,099 | SEC Form 4 (filed 2025-05-12) |
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Policy guardrails and alignment mechanisms:
- No hedging permitted for officers (including derivatives, short sales) .
- Pledging limits: cannot exceed the lesser of 30% of the individual’s beneficial holdings or 0.5% of company shares outstanding; prior approval required; pledged shares don’t count toward ownership guidelines .
- Executive share ownership guidelines: CEO 6x base salary; Section 16 executives (non-CEO) 4x base salary; hold 50% of net shares from equity until compliant .
- Clawback policy on incentive compensation for executive officers in restatement scenarios (3-year look-back) .
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Ownership as % of shares outstanding (indicative): Petrillo ~140,099 shares vs. 375,716,024 shares outstanding as of Mar 12, 2025 ≈ 0.04% (using outstanding share count from proxy) and Form 4 holdings above .
Employment Terms
- Individual employment agreement, severance multiples, and change-in-control terms for Petrillo are not disclosed. Termination/severance tables and detailed employment arrangements in the proxy cover NEOs only .
Performance & Track Record
- Company-level performance context during Petrillo’s tenure:
| Metric | 2024 |
|---|---|
| Net income ($B) | 4.3 |
| Operating ROE (%) | 18.9 |
| Combined ratio (%) | 82.5 |
| Book value per share ($) | 53.11 |
- Total shareholder return (cumulative), oldest to newest:
| Period | 5-Year | 3-Year | 1-Year |
|---|---|---|---|
| TSR (%) | 126.4 | 118.5 | 30.8 |
Compensation & Governance Highlights (Company-wide)
- Annual bonus driven primarily by ROE with formulaic thresholds/targets; strategic goals weight 30% .
- Long-term incentives emphasize 3-year ATBVPS growth with TSR modifier; stock options (10-year max term) and time-vested RS used for alignment/retention .
- No tax gross-ups or excise tax gross-ups for executives; no option repricing/exchanges .
Investment Implications
- Near-term trading signal: Petrillo filed two 2025 Form 4 sales (21,000 shares on Mar 4; 16,650 shares on May 9) at ~$92–95, with post-trade beneficial ownership of ~140,099 shares—suggesting liquidity/diversification activity but continued sizable alignment via retained stake .
- Alignment/retention: Company policies prohibit hedging, tightly limit pledging, mandate significant ownership multiples for Section 16 executives, and apply a clawback—lowering misalignment and reputational risk; Petrillo-specific severance/CIC protections are undisclosed, making retention economics opaque to investors .
- Company execution backdrop remains strong (2024 ROE/combined ratio/BVPS/TSR performance), providing supportive context for executive incentive structures linked to ROE and book value growth .