Christopher Tatnall
AXCELIS TECHNOLOGIESAbout Christopher Tatnall
Christopher J. Tatnall, Ph.D., 52, is Executive Vice President, Global Customer Operations at Axcelis, responsible for worldwide system sales and sales operations, global service/support/training, and Axcelis Customer Solutions; he joined Axcelis in March 2022 and was promoted to EVP on September 1, 2023 . Axcelis delivered 2024 revenue of $1.0179B with gross margin of 45.0%, driving a 68.2% AMI payout; PRSUs tied to 2024 operational goals were earned at 150% with 50% vesting in Feb-2025 and 50% in Feb-2026 . The company framed 2024 as its second-best year with revenue ~$1.02B and EPS $6.15 despite a 10% YoY revenue decline, while maintaining higher gross margins and strong free cash flow .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Axcelis Technologies | EVP, Global Customer Operations | Sep 2023–present | Leads global sales, service, and customer solutions, aligning go-to-market and install base support . |
| Axcelis Technologies | SVP, Sales | Mar 2022–Aug 2023 | Drove sales execution prior to promotion to EVP . |
| MKS Instruments (Plasma & Reactive Gas Div.) | VP & General Manager | May 2018–Mar 2022 | Led >200-person cross-functional team across multiple product lines serving semi and industrial markets . |
| Brooks Automation | Senior Director, Customer Operations | Prior to 2018 | Led customer operations in semiconductor domain . |
| Alcatel Vacuum Technology | Semiconductor Sales Manager | Prior to 2018 | Managed semiconductor sales responsibilities . |
| Edwards Vacuum | Development Engineer | Prior to 2018 | Engineering roles in vacuum technology . |
Fixed Compensation
| Metric (USD) | 2023 | 2024 |
|---|---|---|
| Base Salary | $310,808 | $325,000 |
| Target Bonus % of Salary | — | 60% (NEO target for 2024) |
| Actual Non-Equity Incentive (AMI) | $209,888 | $132,990 |
| Stock Awards (Grant Date FV) | $367,365 | $643,532 |
Notes:
- 2025 base salary in effect as of Feb 15, 2025: $325,000 .
Performance Compensation
2024 Annual Cash Incentive (AMI) – Metrics, Targets, Results
| Metric | 25% Threshold | 100% Target | 200% Max | Weight | 2024 Actual | Score | Weighted Score |
|---|---|---|---|---|---|---|---|
| Revenue (USD mm) | $881.186 | $1,101.482 | $1,266.704 | 50% | $1,017.9 | 71.5% | 35.8% |
| Operating Profit pre-AMI (USD mm) | $174.256 | $279.105 | $359.156 | 25% | $223.4 | 60.2% | 15.0% |
| Gross Margin (pre-AMI) | 43.9% | 45.7% | 46.7% | 25% | 45.0% | 69.7% | 17.4% |
| Total | — | — | — | 100% | — | — | 68.2% |
- AMI targets for 2024 maintained focus on revenue growth, operating profit and gross margin; payouts interpolated with a 200% cap . Final funding score was 68.2% with payouts made in Q1’25 .
2024 Equity Awards – Structure, Goals, and Outcomes
- Design: 50% service-vesting RSUs (4-year ratable) and 50% performance RSUs (PRSUs) with 10 operational goals (2 goals at 25% weight each; 8 goals at 12.5% each), max 150% of target; PRSUs earned based on 2024 goals then require 2-year service vesting overlay .
- Achievement: Compensation Committee determined 10/10 goals met; 150% of 2024 PRSUs earned; 50% vested Feb 28, 2025 and 50% vest Feb 28, 2026 (contingent on continued employment) .
| Grant (Tatnall) | Grant Date | Type | Target Shares | Max Shares | Achievement | Vesting | Grant Date FV |
|---|---|---|---|---|---|---|---|
| Annual PRSU | May 15, 2024 | PRSU | 2,849 | 4,274 | 150% earned (10/10 goals) | 50% on Feb 28, 2025; 50% on Feb 28, 2026 | $321,766 |
| Annual RSU | May 15, 2024 | Service RSU | 2,849 | — | Service-based | 25% per year on each anniversary through May 2028 | $321,766 |
- 2024 PRSU goals covered quality, customer uptime, high energy/high current penetration, logic customer POs, SiC evaluation close/performance, tech feasibility milestones, product upgrades, and Japan new customer/application; specifics withheld for confidentiality .
Equity Ownership & Alignment
| As of | Shares Owned | Shares Subject to Exercisable Rights by 5/16/2025 | Total Beneficial | % of Class | Pledged/Hedged |
|---|---|---|---|---|---|
| Mar 17, 2025 | 2,938 | 2,937 | 5,875 | <1% | None; company prohibits pledging/hedging and confirms no shares/rights are pledged |
| Outstanding at FY2024 Year-End | Unvested RSUs (#) | Market Value of Unvested RSUs ($) | Unearned PRSUs at Target (#) | Market Value of Target PRSUs ($) | Valuation Price |
|---|---|---|---|---|---|
| Dec 31, 2024 | 8,493 | $593,406 | 2,849 | $199,060 | $69.87 (12/31/2024 close) |
Additional alignment mechanics:
- Executive stock ownership guidelines: other executive officers must hold the lesser of 16,250 shares or shares equal in value to 150% of base salary; 5 years to comply; encouraged to retain 50% of net shares until met .
- No options outstanding for NEOs at 12/31/2024; equity is RSU/PRSU-based .
- RSUs granted to Tatnall from 2012 EIP inception through 2024: 15,723 .
Vesting and potential selling pressure:
- 2024 PRSUs earned at 150% (max 4,274 target shares for Tatnall) with half vested on Feb 28, 2025 and remainder scheduled for Feb 28, 2026, which can create periodic liquidity events subject to trading windows and insider trading policy .
- 2024 service RSUs vest 25% annually each May 15, 2025–2028, adding predictable vest-driven supply under normal trading practices .
Employment Terms
| Agreement | Trigger | Cash | Benefits / Equity | Total (as of 12/31/2024) |
|---|---|---|---|---|
| Executive Separation Pay Agreement | Termination without cause (≥1 year tenure) | 12 months base salary: $325,000 | COBRA premiums for 12 months: $37,689; transition assistance: $15,000 | $377,689 |
| Change of Control Agreement (double-trigger) | CoC + termination (without cause or for good reason) | Lump sum = 1.5x base + target bonus; estimated cash: $975,000 | Acceleration of equity; estimated value: $326,790 | $1,301,790 |
Governance protections:
- No excise tax gross-ups under CoC agreements; consistent with governance policy .
- 2023-updated Executive Compensation Clawback Policy: 3-year lookback for “Excess Compensation” on any accounting restatement; plus authority to claw back 12 months of incentive comp for policy or law violations .
- Insider trading/ownership policies ban hedging and pledging; standing/limit orders restricted; strong compliance posture .
Compensation Structure Analysis
- Mix shift toward equity: 2024 stock awards rose to $643,532 from $367,365 in 2023, while cash AMI fell to $132,990 from $209,888; base rose to $325,000 from $310,808, increasing at-risk equity tilt despite a below-target AMI year .
- Performance calibration: 2024 AMI paid at 68.2% reflecting under-target revenue, operating profit, and gross margin, while operational PRSUs paid at 150% on 10/10 goals—indicating strong execution on line-of-sight operating milestones despite macro softness in plan financials .
- Governance and pay discipline: Non-CEO NEOs, including Tatnall, had 60% target AMI; double-trigger CoC with 1.5x multiple and no gross-up, updated clawback, and prohibitions on hedging/pledging align with investor-friendly norms .
- Say-on-Pay support: 93.8% approval at 2024 annual meeting, signaling shareholder endorsement of the program design .
Performance & Track Record
- Company 2024 performance context: revenue $1.0179B, gross margin 45.0% (pre-AMI), AMI payout 68.2% .
- Investor framing: revenue ~$1.02B, EPS $6.15, higher margins vs. 2023 despite ~10% revenue decline; strong FCF and balance sheet .
- Execution on growth initiatives: 2024 PRSU operational goals (customer quality/uptime, SiC evaluation close/performance, high energy/high current penetration, logic POs, tech milestones, product upgrades, Japan expansion) achieved in full (150%), consistent with Tatnall’s commercial remit .
Say-on-Pay & Peer Benchmarking
- Say-on-Pay (2024 meeting): 93.8% votes cast in favor; structure unchanged from 2023 .
- 2025 compensation benchmarking used an updated peer group (added five, removed two) developed with Pearl Meyer .
Equity Plan Mechanics & Overhang (Context)
- 2012 EIP is primary vehicle; four-year service vesting typical; no repricing/cash buybacks of awards; plan-level burn rate and voting power dilution monitored .
- RSU-only usage for NEOs at YE2024; no outstanding options .
Investment Implications
- Alignment and incentives: High operational PRSU achievement (150%) alongside below-target AMI (68.2%) suggests strong execution on tactical and customer-facing milestones—core to Tatnall’s scope—while broader plan financials faced cyclical headwinds; this mix rewards near-term value-creation steps tied to market share and product penetration .
- Retention risk appears moderate: Multiple layers of unvested equity (service RSUs through 2028; PRSU tranche in 2026) plus 12-month severance and double-trigger CoC (1.5x) create meaningful stickiness without shareholder-unfriendly gross-ups .
- Trading signals: Predictable vest events (Feb 2026 PRSUs; May 2025–2028 service RSUs) can create episodic supply subject to 10b5-1/blackout constraints; pledging/hedging prohibitions and robust clawback reduce governance risk around disposals .
- Ownership “skin-in-the-game”: Beneficial ownership is modest (<1%) with sizable unvested RSUs/PRSUs; stock ownership guidelines (time to comply, 50% net share retention) aim to deepen alignment over tenure .