Kevin McDonnell
AeroVironmentAbout Kevin McDonnell
Kevin McDonnell, 63, is Executive Vice President and Chief Financial Officer of AeroVironment (AVAV). He has served as CFO since February 10, 2020 (elevated to EVP/CFO on May 1, 2025), previously holding senior finance and CFO roles across industrials, consumer, and tech companies; he holds a B.A. in Business Administration (Loyola Marymount University) and a J.D. (Loyola Law School) . Under his finance stewardship, AV delivered FY2025 revenue of $820.6M (+14.5% YoY), bookings of $1,165.0M (+72.0% YoY), and adjusted EBITDA of $146.4M (+14.6% YoY), supporting AV’s pay-for-performance framework and multi‑year PRSU vesting outcomes .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| AeroVironment | SVP & CFO; EVP & CFO | Feb 2020–Apr 2025; May 2025–present | Led finance during record bookings/revenue and BlueHalo acquisition integration |
| JAMS, Inc. | SVP & CFO | Sep 2014–Feb 2020 | Financial leadership at a leading ADR services provider |
| DoubleBeam, Inc. | Co‑founder | 2011–2014 | Built mobile retail solutions; entrepreneurial ops/finance leadership |
| Orange County Container Group | CFO & Admin Officer | 2008–2011 | Managed finance at manufacturing/packaging company |
| Leiner Health Products | EVP, Finance & Admin; CFO | 2006–2008 | Consumer health products finance leadership |
| Memorex Corporation | SVP, Finance & Admin; CFO | 2004–2006 | Consumer electronics finance leadership |
| Digital Insight; Printrak; Teradata; Mattel | Finance roles | N/A | Progressive finance leadership across tech and consumer sectors |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| AV’s wholly‑owned U.S. subsidiaries | Director | Current | Governance oversight across AV’s subsidiary structure |
Fixed Compensation
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Base Salary ($) | 450,008 | 493,288 | 495,019 |
| Target Annual Bonus ($) | 410,960 | 404,553 | 346,513 |
| Target Bonus % of Salary | Not disclosed | Not disclosed | Not disclosed |
Notes:
- FY2025 base salary was flat versus FY2024; Compensation Committee targets medians vs peers and reviews annually .
Performance Compensation
Annual Cash Bonus (Company Plan – CFO participant)
| Component | FY 2025 Target | FY 2025 Actual Payout | Key Drivers | Vesting/Timing |
|---|---|---|---|---|
| Annual performance bonus ($) | 346,513 | 397,452 (114.7% of target) | Company bookings 135.2%, revenue 102.5%, adj. EBITDA 101.6% vs targets; partial credit on strategic objectives | Paid after fiscal year-end, per CD&A, based on committee certification |
| Discretionary bonus ($) | N/A | 34,651 | Committee recognition of outstanding company/individual performance | Paid after fiscal year-end |
Company performance metrics used for FY2025 bonuses:
- Revenue: $820.6M vs $716.7M in FY2024 (+14.5%)
- Bookings: $1,165.0M vs $677.5M in FY2024 (+72.0%)
- Adjusted EBITDA: $146.4M vs $127.8M in FY2024 (+14.6%)
Long‑Term Incentives (LTI)
| Award Type | Grant Date | Shares/Units | Performance Metrics | Weighting | Vesting |
|---|---|---|---|---|---|
| RSAs (time‑based) | 7/1/2024 | 2,465 | N/A | N/A | Three equal installments on 7/11/2025, 7/11/2026, 7/11/2027 |
| PRSUs (FY2025–FY2027) – Target | 7/1/2024 | 4,578 | Cumulative revenue and adjusted EBITDA over FY25–FY27 | 60% revenue / 40% EBITDA | Settles after 3‑yr period upon certification |
| PRSUs (FY2025–FY2027) – Max | 7/1/2024 | 11,445 | Same as above | Same | Same |
| LTI mix | N/A | N/A | N/A | ~65% performance‑based PRSUs | Policy for NEO awards |
Recent PRSU Payouts (FY2023–FY2025 cycle):
| Metric | Minimum ($M) | Target ($M) | Actual ($M) | Payout % | Weight |
|---|---|---|---|---|---|
| 3‑yr Cumulative Revenue | 1,438.1 | 1,691.9 | 2,077.9 | 168.5% | 60% |
| 3‑yr Cumulative Adjusted EBITDA | 177.6 | 236.9 | 363.9 | 250.0% | 40% |
| Total PRSU Payout | — | — | — | 201.1% | — |
Stock award vesting in FY2025 (realized):
| Metric | Shares Vested | Value Realized ($) |
|---|---|---|
| Stock awards vested | 22,214 | 3,435,225 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 25,167 shares; includes 20,322 held by McDonnell Moore Living Trust (trustee) |
| Ownership as % of outstanding | <1% of 49,932,233 shares |
| Unvested RSAs (by grant) | 2,465 (7/1/24); 2,823 (6/30/23); 1,528 (7/1/22) |
| Unearned PRSUs (at max, by cycle) | 11,445 (FY25–27); 19,660 (FY24–26) |
| Options | None outstanding as of 4/30/2025 |
| Stock ownership guideline | 2x base salary for NEOs (CEO 4x) |
| Compliance status | 4.9x multiple of salary (exceeds 2x requirement) |
| Post‑vesting retention | Must hold 50% of net after‑tax vested shares until guideline met |
| Hedging/pledging | Prohibited for executives; trades must be pre‑cleared |
Employment Terms
- No employment agreements; no executive pensions; no single‑trigger CIC benefits; no excise tax gross‑ups; clawback policy aligned with Nasdaq rules and Dodd‑Frank .
- Executive Severance Plan (double‑trigger): if terminated without cause or for good reason within 3 months prior to or 18 months after a change‑in‑control, CFO receives 1.5x salary+target bonus, prorated bonus, acceleration of time‑based equity, 12 months benefits continuation, and outplacement; outside CIC window, 1.0x salary+target bonus plus prorated bonus and 12 months benefits continuation; death/disability terms mirror non‑CIC multiple .
Estimated severance economics (as of 4/30/2025):
| Scenario | Cash Severance ($) | Benefits Continuation ($) | Accelerated RSAs ($) | Accelerated PRSUs ($) | Total ($) |
|---|---|---|---|---|---|
| Non‑CIC termination | 1,188,045 | 51,047 | — | — | 1,239,092 |
| CIC termination (double‑trigger) | 1,608,811 | 51,047 | 1,032,760 | 1,888,212 | 4,577,830 |
Compensation Structure Analysis
| Year | Salary ($) | Bonus – Discretionary ($) | Stock Awards ($) | Non‑Equity Incentive ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|---|
| FY2023 | 450,008 | — | 1,353,765 | 410,960 | 12,520 | 2,227,253 |
| FY2024 | 493,288 | 34,651 | 1,872,000 | 404,553 | 33,592 | 2,838,084 |
| FY2025 | 495,019 | 34,651 | 1,576,623 | 397,452 | 30,222 | 2,533,968 |
Observations:
- Emphasis on performance‑based equity (PRSUs ~65% of LTI), with RSA time‑based retention, consistent with pay‑for‑performance .
- FY2025 equity grant value down vs FY2024, while annual bonus payout exceeded target on strong bookings/revenue/EBITDA execution .
Investment Implications
- Alignment: McDonnell exceeds stock ownership guidelines (4.9x vs 2x), is subject to robust clawback and anti‑hedging/pledging, and retains 50% of net vested shares until guideline met—favorable for shareholder alignment .
- Retention and CIC risk: Double‑trigger CIC protections plus sizable accelerated PRSU and RSA value ($2.92M combined at 4/30/2025) could increase retention post‑M&A but represent meaningful CIC economics if a transaction occurs .
- Selling pressure: FY2025 vesting of 22,214 shares with $3.44M value realization indicates periodic supply from vesting; anti‑pledging/hedging and pre‑clearance mitigate risk of opportunistic trades, but monitor Form 4s for actual dispositions .
- Execution record: Strong FY2025 financials and above‑target bonus outcomes support credibility of the finance function; multi‑year PRSU payouts at 201.1% evidence delivery on cumulative revenue/EBITDA targets, though future cycles hinge on integration of BlueHalo and continued bookings momentum .