John F. Morici
ALIGN TECHNOLOGYAbout John F. Morici
John F. Morici is Chief Financial Officer and Executive Vice President, Global Finance at Align Technology (ALGN). He joined Align as CFO in 2016, was CFO & SVP Global Finance from 2018–2022, and has been CFO & EVP Global Finance since 2022; he is 58 years old as of February 28, 2025 . Company performance during the latest year includes total revenues of $4.0B (+3.5% YoY), operating margin of 15.2% (21.8% non-GAAP), and continued investment and buybacks; 3-year MSU performance for 2022-granted awards vested at 72.4% of target due to relative TSR at the 36th percentile (Align 3-year TSR -57.95%) versus Nasdaq Composite peers .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Align Technology | CFO & EVP Global Finance | 2022–Present | Senior finance leadership through product launches (iTero Lumina), 3D printing scale-up, and capital allocation . |
| Align Technology | CFO & SVP Global Finance | 2018–2022 | Led global finance through macro volatility and digital platform expansion . |
| Align Technology | Chief Financial Officer | 2016–2018 | Established post-2016 executive employment/CoC terms adopted for executives . |
| NBC Universal North America Home Entertainment | EVP & Managing Director | 2014–2016 | P&L leadership at large consumer media business . |
| NBC Universal North America Home Entertainment | CFO/COO | 2011–2014 | Finance and operations leadership . |
| NBC Universal North America Home Entertainment | SVP & CFO | 2007–2011 | Senior finance leadership . |
External Roles
| Organization | Role | Years |
|---|---|---|
| None disclosed | — | — |
Fixed Compensation
Multi-year compensation (as reported in the Summary Compensation Table):
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary ($) | 597,308 | 618,461 | 675,385 |
| Stock Awards ($) (Grant-date fair value) | 3,626,393 | 4,581,010 | 5,249,435 |
| Non-Equity Incentive ($) | — | 286,000 | 500,000 |
| All Other Compensation ($) | 15,183 | 77,410 | 11,567 |
| Total ($) | 4,238,884 | 5,562,881 | 6,436,387 |
| Official 2024 base salary rate ($) | — | — | 680,000 (effective Jan 2024) |
Notes:
- NEO pay mix remains heavily at-risk (approx. 82% for non-CEO NEOs) .
- 2024 base salary increased to $680,000 (+9.7% YoY) .
Performance Compensation
Annual cash incentive (Bonus Plan) design and 2024 attainment:
| Measure | Weight | 2024 Target | 2024 Achievement | Company Multiplier |
|---|---|---|---|---|
| Net Revenues | 60% | $4,040–$4,140M | $3,999M | 96.6% |
| Operating Income (Adjusted) | 40% | $665–$709M | $681M (adjusted) | 100% |
| Aggregate | — | — | — | 98.0% |
Individual payout for Morici:
| Item | Value |
|---|---|
| Target bonus % of base | 75% |
| Target ($) | $510,000 |
| Company multiplier | 98% |
| Individual factor | 100% |
| Actual 2024 payout | $500,000 |
Long-term equity awards (granted Feb 20, 2024; approved Jan 23, 2024):
| Award Type | Target Shares | Grant-Date Fair Value ($) | Vesting Terms |
|---|---|---|---|
| RSUs | 3,348 | $1,049,698 | 25% annually over 4 years |
| MSUs (relative TSR vs Nasdaq Composite) | 6,798 | $4,199,736 | Earned 0–250% of target at 3 years; capped at 100% if TSR < 0% |
| MSU maximum value (at 250% earn) | — | $10,499,341 | — |
Recent vesting outcomes and realized value:
| Item | FY 2024 |
|---|---|
| Shares vested (RSUs/MSUs), Morici | 4,787 |
| Value realized on vesting | $1,500,868 |
| 2022-granted MSUs vested Feb 20, 2025 | 2,254 shares |
| 2022 MSU cohort vesting % | 72.4% of target (TSR 36th percentile; Align 3-year TSR -57.95%) |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (Mar 24, 2025) | 16,023 shares; <1% of outstanding |
| RSUs/MSUs vesting by May 23, 2025 | Not listed for Morici in table (directors shown separately) |
| Stock ownership guidelines | 3× annual base salary for executive management; 5-year compliance window |
| Compliance status | As of Dec 31, 2024, all such individuals were in compliance |
| Hedging/pledging | Prohibited for employees and directors |
| Burn rate discipline | 2024 gross burn rate ~1.0%; pledge not to reprice options (none outstanding) |
Outstanding equity at FY2024 year-end (market value at $208.51/share):
| Grant Year | Unvested RSUs (#) | Market Value ($) | Unearned MSUs (#) | Market/Payout Value ($) |
|---|---|---|---|---|
| 2022 | 341 | $71,102 | 3,114 | $649,300 |
| 2023 | 778 | $162,221 | 5,832 | $1,216,030 |
| 2024 | 2,154 | $449,131 | 6,798 | $1,417,451 |
| 2025 (RSUs vesting schedule) | 3,348 | $698,091 | — | — |
Employment Terms
Employment agreement (Nov 7, 2016) establishes severance and change-of-control (CoC) terms:
| Scenario | Severance Cash | Equity Acceleration | Health Benefits (COBRA) | Total (est., at 12/31/2024, $208.51/sh; MSUs at max) |
|---|---|---|---|---|
| Involuntary/Good Reason, unrelated to CoC | $680,000 | — | $30,994 | $710,994 |
| Involuntary/Good Reason, within 18 months post-CoC (double trigger) | $1,700,000 (base + prorated current-year target + greater of target/prior actual bonus) | Immediate vest RSUs $1,380,545; MSUs $8,206,954 | $30,994 | $11,318,493 |
Additional terms:
- Double trigger required for cash severance and equity acceleration; no single-trigger benefits .
- Non-solicitation of employees for 1 year and confidentiality; general release required prior to payments .
- Company has a clawback policy for executive compensation per SEC/Nasdaq rules .
Compensation Structure Analysis
- Mix and risk: Non-CEO NEO target pay ~82% at risk; MSUs emphasized (non-CEO NEOs 67% MSU / 33% RSU in 2024) aligning long-term outcomes with TSR versus Nasdaq Composite .
- Annual incentive rigor: 2024 Bonus Plan funded on Net Revenues (60%) and Operating Income (40%) against ranges; payout at 98% of target signals rigorous targets not fully met on revenue while operating income met at target after non-GAAP adjustments .
- Year-over-year changes: Morici’s base salary increased 9.7% to $680,000 for 2024; stock award grant values rose to support equity-heavy mix .
- Long-term performance signal: 2022 MSUs vesting at 72.4% reflects underperformance versus peers (TSR -57.95% over 3 years; 36th percentile), reducing realized equity value and creating stronger retention incentives via unvested equity .
Related Party Transactions
- Morici’s son-in-law is employed as a Territory Manager in NA Sales; 2024 compensation exceeded $120,000 (salary, commission, RSUs) with standard benefits, disclosed under related party transactions .
Performance & Track Record
Company performance context (selected metrics):
| Year | Net Revenues ($M) | Net Income ($M) | Align TSR ($, $100 start) | Peer Group TSR ($) |
|---|---|---|---|---|
| 2020 | 2,472 | 1,776 | 192 | 117 |
| 2021 | 3,953 | 772 | 236 | 139 |
| 2022 | 3,735 | 362 | 76 | 107 |
| 2023 | 3,862 | 445 | 98 | 115 |
| 2024 | 3,999 | 421 | 75 | 125 |
Selected operational commentary from Morici (CFO):
- Emphasized DSO momentum and digital workflows (scanning, financing) driving conversion; geographic mix effects on ASP with China lowering blended ASP despite like-for-like increases in Europe/U.S. .
- Noted that in the U.S., Invisalign pricing is generally comparable to wires/brackets for many orthodontists, focusing on doctor activity to drive conversion; messaging targets faster treatment, fewer visits, better comfort to counter reversion tendencies in passive practices .
- Outlined go-to-market activity and product launches (palatal expander, mandibular advancement) supporting teen growth and broader portfolio; acknowledged macro stability as a key factor for forecast visibility .
Say-on-Pay & Governance
- 2024 say-on-pay support ~84%; committee retains independent consultant, and governance prohibits hedging/pledging, with robust ownership guidelines .
- Compensation & Human Capital Committee composition disclosed; oversight includes human capital management .
Investment Implications
- Alignment and incentives: Morici’s compensation is tied to revenue growth, operating income, and 3-year relative TSR, with a heavy MSU component. Recent below-target MSU vesting (72.4%) reduces realized equity value, increasing retention via remaining unvested awards and alignment with long-run TSR improvements .
- Vesting/selling pressure: RSU/MSU vesting schedules create predictable liquidity events (e.g., 4,787 shares vested in 2024; 2,254 MSUs from 2022 cohort vested in 2025), but hedging/pledging are prohibited and ownership requirements are met, mitigating misalignment risk .
- Retention and CoC terms: Double-trigger CoC protections with full equity acceleration and cash severance could be material ($11.3M estimated), but non-solicit and clawback provisions provide guardrails; base-only severance outside CoC is modest ($680K), lowering involuntary departure cash risk in normal course .
- Execution focus areas: CFO commentary highlights DSO/channel strategy, ASP mix management, and teen/portfolio innovations as levers; monitoring geographic mix and U.S. retail channel remains key for margin and ASP trajectory .