Jeffrey A. Likosar
ADTAbout Jeffrey A. Likosar
Jeffrey A. Likosar, 54, is ADT’s President, Corporate Development and Transformation, and Chief Financial Officer. He has led ADT’s finance organization since April 2024 (after serving as CFO from 2017–2022 and on an interim basis since December 2023) and oversees strategic planning, M&A, and transformation execution; prior roles include CFO of Gardner Denver and senior finance positions at Dell Technologies and General Electric across Appliances, Plastics, and Aviation divisions . ADT’s 2024 results featured 5% revenue growth, record RMR of $359M, and Adjusted EBITDA from continuing operations of $2,578M; 2024 TSR (value of $100 from 12/31/2019) was $97 versus peer $154.8, and net income was $501M .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ADT | CFO; EVP, CFO & Treasurer; CFO & President, Corporate Development; President, Corporate Development & Transformation; CFO (again) | 2017–2022 (CFO variants); Aug 2022–present (President, Corp Dev & Transformation); Apr 2024 (CFO) | Leads finance, M&A, and transformation; returned as CFO to drive capital structure and operational execution |
| Gardner Denver | Chief Financial Officer | Prior to ADT (dates not disclosed) | Public-company CFO experience (industrial equipment), capital markets and operating rigor |
| Dell Technologies | Executive finance roles | Prior to ADT (dates not disclosed) | Large-scale tech finance operations and transformation support |
| General Electric | Executive finance and operational roles (Appliances, Plastics, Aviation) | Prior to ADT (dates not disclosed) | Multi-division finance and operations leadership in complex industrial settings |
External Roles
- Not disclosed for Likosar in the latest proxy .
Fixed Compensation
| Component | Detail | Amount |
|---|---|---|
| Base Salary (12/31/2024) | Annual base salary after 3.5% merit increase | $757,150 |
| Target Bonus % (2024) | AIP target as % of base | 100% |
| Actual Bonus Paid (2024) | Payout at 95% of target | $719,293 |
Performance Compensation
2024 Annual Incentive Plan (AIP)
| Metric | Weight | Target | Actual | Performance vs Target | Weighted Result |
|---|---|---|---|---|---|
| Adjusted EBITDA ($M) | 50% | $2,577 | $2,578 | 100.05% | 51% |
| Ending RMR ($M) | 50% | $361.5 | $359.5 | 99.45% | 44% |
| Total | 100% | — | — | — | 95% |
- Individual payout: 95% of target; Likosar bonus paid $719,293 .
Long-Term Incentives (2024 grant)
| Instrument | Grant Date | Number | Exercise/Grant Price | Vesting | Expiration | Grant-date Fair Value |
|---|---|---|---|---|---|---|
| Non-qualified stock options | 3/8/2024 | 714,285 | $6.51/sh | 1/3 per year, service-based | 3/8/2034 | $1,835,712 |
- 2024 and 2025 executive equity comprised solely of stock options (no RSUs), aligning value to stock price appreciation .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (Common + vested options) | 5,569,069 total; 2,536,446 Common; 3,032,623 vested options; <1% of shares outstanding |
| Indirect holdings | 1,464,837 Common held via JSKC LLC |
| TopCo Parent Class A-2 units | 88,795 units (3.8% of total A-2 units) |
| Outstanding equity awards (selected) | Top-Up Options: 1,192,233 exercisable, 397,410 unearned, $13.30 strike, exp. 1/18/2028 ; 2019 options 239,234, $5.48, exp. 3/14/2029 ; 2020 options 1,231,762, $5.27, exp. 3/9/2030 ; 2024 options 714,285 (unvested), $6.51, exp. 3/8/2034 |
| RSUs (unvested as of 12/31/2024) | 51,866 vested on 3/2/2025; 105,608 vest 3/1/2025 and 3/1/2026 (equal installments) |
| Stock ownership guidelines | CFO: 3× base salary; shares counting include actual and time-based RSUs; options and unearned performance shares excluded |
| Hedging/pledging | Hedging, short sales, and pledging prohibited (legacy pledges pre-July 2021 allowed to remain) |
| Insider trading controls | Trading only during open windows; 10b5-1 plans permitted with pre-approval and cooling-off; Section 16 officers require CLO pre-clearance |
Vesting/selling pressure watch:
- Near-term RSU vesting: 51,866 on 3/2/2025 and 105,608 across 2025–2026, creating potential liquidity events subject to company trading windows .
- Options vest annually (2024 grant) and legacy/2019/2020 options remain outstanding with expiries in 2028–2034 .
Employment Terms
| Topic | Key Terms |
|---|---|
| Employment agreement | Amended and restated 12/19/2017; auto-renewing 1-year terms; CFO target bonus 100% |
| Severance (without Cause / Good Reason / non-renewal) | 24 months base salary continuation; health/welfare benefits continuation during severance period; prorated AIP based on actual performance; 24-month non-compete and non-solicit |
| Change-in-control (CIC) equity | Double-trigger acceleration for RSUs/options upon termination without Cause or Good Reason within 24 months post-CIC (legacy awards excluded) |
| CIC severance economics (illustrative, as of 12/31/2024) | With qualified termination: Cash severance $1,514,300; prorated bonus $719,293; benefits continuation $32,515; RSU acceleration $1,088,145; total $3,354,253 |
| Good Reason (examples) | Material pay decrease; failure to pay; material diminution of duties; relocation >30 miles from Boca Raton; material Company breach; notice/cure required |
Compensation Structure Analysis
- Cash vs. equity mix: Significant at-risk pay; for non-CEO NEOs, average 48% of 2024 target was performance-based/at-risk; 2024 and 2025 LTI granted entirely as stock options (no RSUs), increasing sensitivity to share price performance .
- Performance metrics: Short-term incentives tied 50/50 to Adjusted EBITDA and Ending RMR; 2024 payout at 95% reflects EBITDA slight beat and RMR slight shortfall .
- Clawback and risk controls: Dodd-Frank compliant clawback; anti-hedging/pledging; capped incentive payouts; independent Compensation Committee and consultant (Pearl Meyer) .
- Shareholder alignment: 2024 say-on-pay support ~99%, indicating strong investor endorsement of program design .
Performance & Track Record
| Measure | 2024 Outcome |
|---|---|
| Revenue growth | +5% YoY |
| RMR balance | $359M (record year-end) |
| Gross revenue attrition rate | 12.7% |
| Revenue payback | 2.2 years |
| Capital actions | Dividend increased 57%; $350M buyback authorization; $182M dividends paid; 31M shares repurchased for $241M in 2024 |
| Leverage actions | Debt reduced by $100M in 2024 (after $2.1B in 2023); revolver capacity +$225M; 25 bps reduction in First Lien Term Loan B spread |
| Pay vs performance (context) | Company TSR value $97 vs peer $154.8; Net income $501M; Adjusted EBITDA $2,578M (continuing ops) |
Governance, Related-Party & Pledging Notes
- Anti-pledging policy applies to executives (with legacy pledge exceptions grandfathered in July 2021) .
- Apollo-related overhang: Apollo funds pledged all their ADT shares under a non-recourse margin loan (LTV ~5.2% on 3/11/2025); certain executives and employees were entitled to an attributable share of proceeds and subject to potential recall until loan obligations satisfied .
- Related-party frameworks and approvals are overseen via written policy and Audit Committee review .
Investment Implications
- Pay-for-performance alignment is robust: 2024–2025 options-only LTI structure amplifies management’s exposure to share price, while AIP hinges on Adjusted EBITDA and RMR—metrics central to ADT’s subscription model; 2024 achieved a 95% bonus payout reflecting near-target operational delivery .
- Retention risk appears contained: Employment terms provide 24 months of salary continuation and benefits on a qualifying separation; double-trigger CIC acceleration applies to most equity, which can stabilize leadership continuity through strategic events .
- Selling pressure watch: Meaningful scheduled RSU vesting (through 2026) and annual option vesting create recurring windows for potential liquidity; trading remains constrained by pre-clearance and window policies .
- Ownership alignment: Beneficial ownership and sizable outstanding options/RSUs, plus a 3× salary ownership guideline for the CFO, support alignment; anti-hedging/pledging policy reduces misalignment risk, though Apollo’s pledged stake represents a broader technical overhang to monitor .
- Program acceptance: ~99% say-on-pay support in 2024 indicates strong institutional backing for incentive design, reducing near-term governance friction around executive pay .
Overall: Likosar’s incentives emphasize RMR/EBITDA execution and multi-year equity value creation via options, suggesting that sustained subscriber growth, retention, and disciplined capital allocation (deleveraging/buybacks) are the levers most directly tied to his realized compensation and thus to signals of management confidence .
Sources: ADT 2025 Definitive Proxy Statement (DEF 14A), filed April 7, 2025:
**[1703056_0000950170-25-051608_nyse-20250407.htm:25]** **[1703056_0000950170-25-051608_nyse-20250407.htm:30]** **[1703056_0000950170-25-051608_nyse-20250407.htm:31]** **[1703056_0000950170-25-051608_nyse-20250407.htm:32]** **[1703056_0000950170-25-051608_nyse-20250407.htm:33]** **[1703056_0000950170-25-051608_nyse-20250407.htm:34]** **[1703056_0000950170-25-051608_nyse-20250407.htm:35]** **[1703056_0000950170-25-051608_nyse-20250407.htm:36]** **[1703056_0000950170-25-051608_nyse-20250407.htm:37]** **[1703056_0000950170-25-051608_nyse-20250407.htm:38]** **[1703056_0000950170-25-051608_nyse-20250407.htm:39]** **[1703056_0000950170-25-051608_nyse-20250407.htm:40]** **[1703056_0000950170-25-051608_nyse-20250407.htm:42]** **[1703056_0000950170-25-051608_nyse-20250407.htm:43]** **[1703056_0000950170-25-051608_nyse-20250407.htm:49]** **[1703056_0000950170-25-051608_nyse-20250407.htm:53]** **[1703056_0000950170-25-051608_nyse-20250407.htm:55]** **[1703056_0000950170-25-051608_nyse-20250407.htm:57]** **[1703056_0000950170-25-051608_nyse-20250407.htm:60]** **[1703056_0000950170-25-051608_nyse-20250407.htm:63]** **[1703056_0000950170-25-051608_nyse-20250407.htm:64]** **[1703056_0000950170-25-051608_nyse-20250407.htm:65]** **[1703056_0000950170-25-051608_nyse-20250407.htm:66]** **[1703056_0000950170-25-051608_nyse-20250407.htm:67]** **[1703056_0000950170-25-051608_nyse-20250407.htm:70]** **[1703056_0000950170-25-051608_nyse-20250407.htm:73]** **[1703056_0000950170-25-051608_nyse-20250407.htm:94]** **[1703056_0000950170-25-051608_nyse-20250407.htm:95]**.