Michael Betz
Adtalem Global EducationAbout Michael Betz
Michael Betz, age 52, serves as Chief Digital Officer and President of Walden University at Adtalem Global Education. He joined Adtalem in May 2022 as President of Walden University and assumed additional responsibilities as Chief Digital Officer in January 2025, after a prior tenure as a partner at McKinsey & Company leading higher education and growth transformation practices . FY25 performance highlights linked to Betz’s remit include Walden’s second consecutive year of double-digit revenue growth, 15% enrollment growth, improved student persistence and graduation rates, and notable digital transformation initiatives; at the corporate level, Adtalem delivered 12.9% revenue growth to $1,788 million and a 33.1% increase in adjusted EPS to $6.67 in FY25 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Adtalem Global Education (Walden University) | President | May 2022–present | Delivered consecutive years of double-digit revenue growth; 15% enrollment growth; improved NPS (42→48); launched >7 program innovations; expanded margins . |
| Adtalem Global Education | Chief Digital Officer | Jan 2025–present | Advanced enterprise digital transformation; platform upgrades for multiple units; recruited VP talent in software/data/AI; established AI governance and scaled shared capabilities . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| McKinsey & Company | Partner; leader in higher education and growth transformation | 2017–2022 | Led growth and transformation engagements in higher education, relevant to Walden’s performance agenda . |
Fixed Compensation
- Base salary increased 18% from $550,800 (FY24) to $650,000 (Feb 2025) to reflect expanded responsibilities as Chief Digital Officer .
- MIP target award increased from 75% of base salary (FY24) to 80% (FY25) reflecting dual-role scope; FY25 target $520,000, FY24 target $413,100 .
| Component | FY2024 | FY2025 |
|---|---|---|
| Base Salary ($) | $549,139 | $648,092 (paid); base set to $650,000 in Feb 2025 |
| Target Bonus % of Salary | 75% | 80% |
| Target MIP ($) | $413,100 | $520,000 |
| Actual MIP Paid ($) | $991,440 | $896,610 |
| Sign-on/One-time Bonus ($) | — | $250,000 (sign-on for CDO role in FY25) |
| All Other Compensation ($) | $34,456 | $111,049 |
| Total Compensation ($) | $2,685,393 | $2,594,901 |
Nonqualified Deferred Compensation (FY25): Betz deferred $215,483; company contributed $71,834; aggregate earnings $29,036; aggregate balance $333,757 .
Performance Compensation
Annual MIP structure and results:
- FY25 MIP metrics: Walden revenue (60%) and Walden adjusted operating income (40%); individual performance modifier range 0–125% (Betz modifier 125%) .
- FY25 Walden performance vs plan: Revenue 107.5% → payout 137.3%; Adjusted operating income 115.5% → payout 138.9% .
| Metric | Weighting | Target Definition | Actual vs Plan | Payout % | Earned ($) | Vesting/Payment |
|---|---|---|---|---|---|---|
| Walden Revenue (FY25) | 60% | Annual plan set at FY start | 107.5% | 137.3% | Part of $896,610 total | Cash, FY-end cycle |
| Walden Adjusted Operating Income (FY25) | 40% | Annual plan set at FY start | 115.5% | 138.9% | Part of $896,610 total | Cash, FY-end cycle |
| Individual Performance Modifier (FY25) | Up to 125% | Committee assessment | Betz: 125% | Applied to financial result | N/A | N/A |
Long-term equity (policy and grants):
- Mix: 60% PSUs, 40% RSUs annually; PSUs split 50% 3-year revenue growth and 50% 3-year EBITDA margin; payout curve 0–200% with straight-line interpolation .
- FY25 grants (11/13/2024): RSUs 3,070 units ($275,840); PSUs 4,600 target units ($413,310) .
- PSU payout from November 2022 awards (vested Aug 2025): Revenue growth 200.0% based on 3-year avg 7.16%; EBITDA margin 86.0% based on 3-year avg 24.4%; combined weighted payout 143% .
| Equity Award | Grant Date | Metric | Target/Payout Scale | Period | Actual | Payout |
|---|---|---|---|---|---|---|
| Annual PSUs (target 4,600) | 11/13/2024 | 50% Rev Growth; 50% EBITDA Margin | 0–200% | FY25–FY27 | N/A | N/A |
| Annual RSUs (3,070) | 11/13/2024 | Time-based vest | N/A | 3-year pro-rata | N/A | N/A |
| PSU Payout (Nov 2022 cohort) | 11/2022 → 8/2025 | Rev Growth (3-yr avg) | 50/100/200% | FY23–FY25 | 7.16% avg | 200.0% |
| PSU Payout (Nov 2022 cohort) | 11/2022 → 8/2025 | EBITDA Margin (3-yr avg) | 50/100/200% | FY23–FY25 | 24.4% avg | 86.0% |
| Combined Weighted PSU Payout | 11/2022 cohort | 50/50 weighting | — | — | — | 143% |
2025 Options Exercises and Stock Vested: Shares acquired on vesting 3,906; value realized $294,317; no options exercises .
Equity Ownership & Alignment
Policies:
- Ownership guideline: 3× base salary for executive officers other than CEO/CFO; 5-year phase-in; unvested RSUs count; unvested PSUs and options do not; all NEOs and directors not in phase-in are compliant .
- Hedging/pledging prohibited; no executive has requested approval to hold Adtalem securities in margin accounts or to pledge them .
Beneficial ownership (as of 9/30/2024):
| Measure | Shares/Status |
|---|---|
| Common Stock Beneficially Owned (excl. options/RSUs/PSUs) | 11,310 shares |
| Stock Options Exercisable + RSUs/PSUs vesting within 60 days | — |
| Total Common Stock Beneficially Owned | 17,311 shares; <1% of outstanding |
Outstanding equity (as of 6/30/2025):
| Category | Count | Market/Payout Value Basis |
|---|---|---|
| RSUs not vested | 9,071 | $1,154,103 (at $127.23) |
| PSUs unearned/not vested (target basis) | 25,910 | $3,296,529 (at $127.23; PSUs assumed at target) |
| Stock Options (exercisable/unexercisable) | None | — |
RSU vesting schedules (Betz):
| Grant Date | Year 1 | Year 2 | Year 3 | Year 4 | Total |
|---|---|---|---|---|---|
| 8/24/2022 | — | — | 1,814 | — | 1,814 |
| 8/23/2023 | — | 2,093 | 2,094 | — | 4,187 |
| 11/13/2024 | 1,023 | 1,023 | 1,024 | — | 3,070 |
PSU vesting schedules (Betz):
| Grant Date | Vesting Date | PSUs Vesting |
|---|---|---|
| 2/15/2023 | 8/24/2025 | 7,580 |
| 8/23/2023 | 8/23/2025 | 6,410 |
| 11/8/2023 | 8/23/2026 | 7,320 |
| 11/13/2024 | 11/13/2027 | 4,600 |
Employment Terms
Severance (no change-in-control):
- One times base salary plus target MIP, pro-rated MIP based on actual performance, 12 months continued health coverage, and senior executive outplacement for 6 months; illustrates for Betz: Salary $650,000; MIP target $520,000; pro-rated MIP $896,610; health $21,840; outplacement $10,000; total $2,098,450 (had the event occurred on 6/30/2025) .
Severance (following change-in-control within 12 months; double-trigger):
- One and one-half times base salary plus target MIP (Betz payable in 12 equal monthly payments), pro-rated MIP based on actual performance, 18 months health coverage, outplacement 9 months, and accelerated vesting of equity (values reflect target PSU payout) . For Betz, illustrated amounts: Salary $975,000; MIP target $780,000; pro-rated MIP $896,610; health $32,760; outplacement $15,000; value of accelerated vesting $4,450,632; total $7,150,002 .
Clawback:
- Incentive Compensation Recovery Policy adopted Nov 2023 (NYSE-compliant); no-fault recovery of erroneously awarded incentive-based compensation for any current/former executive officer over prior 3 years upon “Big R” or “Little r” restatements .
Prohibitions:
- Hedging and pledging prohibited; none requested by executives .
Investment Implications
- Pay-for-performance alignment is strong: FY25 MIP for Betz tied to Walden revenue and adjusted operating income with outsized payouts (172% of target, $896,610) driven by above-plan performance and a 125% individual modifier .
- Retention risk appears managed: Significant unvested RSUs (9,071 units) and PSUs (25,910 target units) with multi-year vesting through 2027, plus double-trigger CIC severance totaling $7.15M including accelerated vesting, support retention but could create equity selling pressure around 2025–2027 vesting dates .
- Ownership alignment: 3× salary ownership guideline, five-year phase-in, counting unvested RSUs and prohibiting hedging/pledging; Betz’s beneficial ownership is <1% of shares outstanding, consistent with NEO norms, while policy mechanisms encourage sustained equity holding .
- Execution track record: Walden achieved double-digit revenue growth, 15% enrollment growth, and improved NPS/persistence under Betz; corporate FY25 results were strong (revenue +12.9%, adjusted EPS +33.1%), and prior PSU cohort paid out at 143% weighted, evidencing durable outperformance against multi-year targets .