Stephen Trundle
Alarm.com HoldingsAbout Stephen Trundle
Stephen Trundle, age 56, is Chief Executive Officer of Alarm.com (since January 2023) and has served on the Board since October 2003; he previously served as President and CEO from May 2003. He holds dual A.B. degrees in Engineering and Government from Dartmouth College and previously held senior technology roles at MicroStrategy (VP of Technology; Chief Technology Officer) . Under his leadership, Alarm.com reported 2024 SaaS and license revenue of $631.2M (+10.9% y/y), total revenue of $939.8M (+6.6%), and net income attributable to common stockholders of $124.1M (+51.3%); adjusted EBITDA rose to $176.2M from $154.0M . The company’s Pay vs. Performance disclosure shows the Company’s TSR index value (initial $100 at 12/31/2019) at $141.49 for 2024 versus $215.22 for the Nasdaq Composite peer group .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Alarm.com | President & Chief Executive Officer | 2003–2022/early 2023 | Led Alarm.com’s platform scale; in 2024, platforms processed 345B data points from 160M devices (company overview) . |
| Alarm.com | Chief Executive Officer | Jan 2023–present | Continued growth with higher SaaS and license revenue and adjusted EBITDA in 2024 . |
| MicroStrategy | VP of Technology; Chief Technology Officer (and other roles) | — | Senior technology leadership prior to joining Alarm.com . |
External Roles
| Category | Details |
|---|---|
| Current public company boards | None disclosed in the director biography for Mr. Trundle . |
| Committee roles at other companies | Not disclosed . |
| Prior public/private boards and non-profits | Not disclosed for Mr. Trundle . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base salary ($) | 210,000 | 210,000 | 238,334 (salary paid in 2024; 2024 base set to $295,000 effective 9/1/24) |
| Target annual bonus ($) | — | — | 250,000 (max 150% of target) |
| Actual bonus paid ($) | 222,000 | 270,999 | 227,937 |
| All other comp ($) | — | — | — |
Notes:
- 2024 base salaries were increased effective September 1, 2024; CEO base set to $295,000 (40.5% increase vs prior), but SCT shows amounts actually paid during 2024 pre/post adjustment .
- Annual bonus program is capped at 150% of target; CEO’s target compensation is “well below 25th percentile” at his request (using 2023 market data) .
Performance Compensation
Annual Incentive (2024)
| Component | Metric(s) | Weighting | Target | Actual Payout | Design/vesting details |
|---|---|---|---|---|---|
| Performance-based cash bonus | SaaS & license revenue; Adjusted EBITDA | Not disclosed | $250,000 | $227,937 | Corporate objectives set annually; payouts capped at 150% of target . |
2024 Equity Grants (CEO)
| Grant type | Grant date | Shares/Options | Exercise price | Grant date fair value ($) | Vesting |
|---|---|---|---|---|---|
| RSUs | 5/22/2024 | 25,000 | — | 1,675,500 | 20% annually over 5 years, first vest 5/22/2025 . |
| Stock options | 5/22/2024 | 30,000 | 67.02 | 887,244 | 1/60th monthly beginning 6/1/2024 (5-year monthly vest) . |
Program structure:
- Leadership emphasizes long-term equity; ALRM’s vesting spans five years (longer than peers) to drive retention; CEO equity mix targeted ~35% options / 65% RSUs in 2024 .
- No excise tax gross-ups; clawback policy compliant with Dodd-Frank/Nasdaq; hedging and pledging of company stock prohibited .
Equity Ownership & Alignment
Beneficial Ownership (as of 3/31/2025)
| Holder | Beneficial shares | % o/s | Composition details |
|---|---|---|---|
| Stephen Trundle | 1,937,574 | 3.9% | 202,682 direct; 176,000 options exercisable within 60 days; 259,687 in 2015 Gift Trust (family beneficiaries); 1,289,343 via Backbone Partners, LLC; 9,862 via Footings Advancement Trust; excludes 50,000 unvested RSUs . |
- Hedging/pledging: Company prohibits hedging and pledging, and forbids holding in margin accounts for directors/executives .
- Executive stock ownership guidelines: Not disclosed (only non-employee director guidelines provided) .
Outstanding and Unvested Equity (CEO) at 12/31/2024
| Award | Grant date | Status at 12/31/24 | Terms (selected) |
|---|---|---|---|
| RSU | 5/22/2024 | 25,000 unvested; MV $1,520,000 | Vests 20% annually from 5/22/2025 . |
| Options | 5/22/2024 | 3,500 exercisable / 26,500 unexercisable @ $67.02; exp. 5/21/2034 | 60 monthly vest from 6/1/2024 . |
| RSU | 5/22/2023 | 20,000 unvested; MV $1,216,000 | 20% annually from 5/22/2024 . |
| Options | 5/22/2023 | 9,500 exercisable / 20,500 unexercisable @ $51.50; exp. 5/21/2033 | 60 monthly vest from 6/1/2023 . |
| RSU | 5/15/2022 | 15,000 unvested; MV $912,000 | 20% annually from 5/15/2023 . |
| Options | 5/15/2022 | 15,500 exercisable / 14,500 unexercisable @ $59.10; exp. 5/14/2032 | 5-year cliff vest on 5/15/2026; pro-rata CIC acceleration if earlier . |
| RSU | 5/15/2021 | 10,000 unvested; MV $608,000 | 20% annually from 5/15/2022 . |
| Options | 5/15/2021 | 30,000 unexercisable @ $82.51; exp. 5/14/2031 | 5-year cliff vest on 5/15/2026; pro-rata CIC acceleration if earlier . |
| RSU | 4/1/2020 | 5,000 unvested; MV $304,000 | 20% annually from 4/1/2021 . |
| Options | 4/1/2019 | 30,000 exercisable @ $65.03; exp. 3/31/2029 | Historical grant . |
Note: Market values use $60.80 close on 12/31/2024 as disclosed in the proxy .
2024 Realizations (potential selling pressure indicators)
| Category (2024) | Shares | Value realized ($) |
|---|---|---|
| Options exercised | 47,500 | 2,207,926 (intrinsic value at exercise dates) |
| RSUs vested | 25,000 | 1,747,200 (close price on vest dates) |
Employment Terms
- Employment status: At-will; terms set by offer letter(s) .
- Severance: None for CEO upon termination; company-wide programs only; no cash severance .
- Change-in-control (CIC): For CEO’s 2020 and 2021 option grants with 5-year cliff vesting, pro-rata vesting upon CIC prior to the 5-year date; estimated value of CIC pro-rata acceleration as of 12/31/2024 was $640,080 (no cash or benefits) .
- Clawback: SEC- and Nasdaq-compliant clawback policy (Dec 1, 2023) covering erroneously awarded incentive compensation upon a required restatement .
- Hedging/Pledging: Prohibited for directors/executives; no margin accounts .
- Perquisites/tax gross-ups: No excise tax gross-ups; limited perquisites; health/welfare benefits generally same as employees .
- ESPP/401(k): Executives eligible for broad-based ESPP and 401(k) (with matching), consistent with employee programs .
Board Governance
- Board service: Director since October 2003; currently serves as CEO and director .
- Chair/independence: The Board has an independent Chair (Timothy McAdam); CEO is not Chair, helping mitigate dual-role concentration. Committees (Audit, Compensation, Nominating & Corporate Governance) are fully independent; Mr. Trundle is not listed as a committee member .
- Director compensation: As an employee director, Mr. Trundle receives no additional pay for board service .
- Committee operations: Compensation Committee meets regularly, uses independent consultant; CEO excluded from deliberations on his pay .
Director Compensation (for context)
- Non-employee directors receive cash retainers and annual RSU grants (grant-date fair value $145,000) with one-year vesting; executive directors (e.g., CEO) receive no additional board compensation .
Compensation Committee, Peer Group, and Say‑on‑Pay
- Consultant: Compensia engaged as independent advisor; Compensation Committee determined no conflicts of interest .
- Peer group (2024 pay decisions): ACI Worldwide, Altair Engineering, Alteryx, Appian, Arlo, Box, DoubleVerify, Dynatrace, Envestnet, InterDigital, Manhattan Associates, New Relic, Paycom, Paylocity, Q2 Holdings, Qualys, Rapid7, Shutterstock, Sonos, SPS Commerce; ALRM revenue ~47th percentile, market cap ~40th percentile at approval .
- Target positioning: No targeted percentile overall; CEO target total comp “well below 25th percentile” (at his request) .
- Say-on-pay: 2024 vote approved NEO compensation with 90% support .
Pay versus Performance (select data)
| Year | CEO SCT Total ($) | CEO “Comp Actually Paid” ($) | Company TSR ($100 base) | Peer TSR ($100 base) | Net income ($000s) | SaaS & license revenue ($000s) |
|---|---|---|---|---|---|---|
| 2020 | 1,890,141 | 9,991,190 | 240.75 | 143.64 | 76,660 | 393,257 |
| 2021 | 3,613,596 | 1,586,343 | 197.37 | 174.36 | 51,175 | 460,372 |
| 2022 | 2,628,068 | (1,979,284) | 115.15 | 116.65 | 55,631 | 520,377 |
| 2023 | 2,437,575 | 4,607,821 | 150.38 | 167.30 | 80,340 | 569,200 |
| 2024 | 3,029,015 | 2,216,416 | 141.49 | 215.22 | 122,513 | 631,198 |
Company-selected measure: SaaS and License Revenue was identified as most important linking pay to performance for 2024 .
Compensation Structure Analysis (signals)
- High at-risk mix with 5-year equity vesting supports retention and longer-term alignment; CEO’s 2024 target total compensation below 25th percentile by request reinforces moderation .
- Annual bonus tied to SaaS & license revenue and adjusted EBITDA aligns incentives with recurring revenue growth and profitability; payout capped at 150% .
- Governance safeguards: Clawback, no hedging/pledging, no excise gross-ups; 2025 equity plan forbids repricing without shareholder approval .
- Severance risk limited: No CEO cash severance; CIC benefits limited to pro‑rata acceleration for specified option grants; estimated CIC value $640,080 as of 12/31/24 .
Risk Indicators & Red Flags (as disclosed)
- Hedging/pledging prohibited (mitigates misalignment risk) .
- No CEO severance/golden parachute cash; limited CIC equity acceleration (lower payout risk) .
- No option repricing without stockholder approval under the proposed 2025 plan .
- Related-party transactions governed by formal policy; no material transactions disclosed since 1/1/2024 beyond compensation programs .
Investment Implications
- Alignment: Significant beneficial ownership (3.9%) via direct, trusts, and an LLC, plus long vesting schedules, indicate material “skin in the game” while prohibitions on hedging/pledging reduce governance risk .
- Retention and supply: Five-year vesting for major grants and 2024 realizations (47.5k options exercised; 25k RSUs vested) suggest ongoing retention incentives and periodic liquidity events; monitor Form 4s for selling cadence near vest dates .
- Pay-for-performance: Cash bonus keyed to SaaS and license revenue and adjusted EBITDA, and heavy equity mix, supports recurring-revenue and profitability execution; say‑on‑pay support (90%) indicates investor acceptance of the structure .
- Downside protection limited: Minimal severance and narrow CIC terms for CEO constrain cash outlays in adverse scenarios, preserving shareholder value in transitions .
Sources: Alarm.com 2025 DEF 14A (filed April 23, 2025): executive/board biographies, compensation tables and policies, ownership, and pay-versus-performance disclosures .