Richard Crowe
Booz Allen Hamilton HoldingAbout Richard Crowe
Richard Crowe, age 57, is Executive Vice President and President of Booz Allen’s Civilian Services sector. He joined Booz Allen in 2004 and has held leadership roles including Chief Growth Officer (2021–2022) and head of the Health business (2018–2021). Executive tenure is 11 years with total tenure of 20 years at the company, and he previously served as Chief Technical Officer at PlasmaSol Corp. Company performance during FY2025 included revenue up 12.4% to $12.0 billion, net income up 54.3% to $935.0 million, and Adjusted EBITDA up 11.9% to $1,315.0 million; FY2023–2025 PSUs paid out at 115% of target based on cumulative Adjusted EBITDA and Revenue, plus platform growth goals .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Booz Allen Hamilton | President, Civil Sector | Jun 2022–present | Leads Civilian Services; aligns growth and delivery across federal civilian mission areas . |
| Booz Allen Hamilton | Chief Growth Officer | Apr 2021–May 2022 | Built best-in-class business development aligned to strategy and growth . |
| Booz Allen Hamilton | Lead, Health Business | 2018–2021 | Led health business; contributed to top performance within Booz Allen . |
| Booz Allen Hamilton | Executive Vice President | Various since promotion | Senior leadership and sector P&L responsibility . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| PlasmaSol Corp | Chief Technical Officer | Pre-2004 | Technology leadership prior to joining Booz Allen . |
Fixed Compensation
| Component | FY2025 | Notes |
|---|---|---|
| Base Salary | $650,000 | Approved by Compensation, Culture & People Committee. |
| Target Annual Cash Incentive (fixed $) | $650,000 | Company uses fixed-dollar targets (not % of salary). |
| Actual Annual Cash Incentive Paid | $559,000 (86% of target) | Payout reflected committee discretion and metrics. |
| All Other Compensation | $156,892 | Includes retirement contributions, medical, life insurance, perqs. |
Breakdown of All Other Compensation (FY2025):
- Financial counseling: $6,599; 401(k) qualified company contributions: $20,700; non-qualified retirement contributions: $30,500; executive medical/retiree plan contributions: $65,276; life insurance: $6,426; other perquisites (incl. parking and anniversary gift): $27,391 .
Performance Compensation
Annual Bonus Plan – FY2025
| Metric | Weight | Target | Actual | Payout Mechanism | Result |
|---|---|---|---|---|---|
| Adjusted EBITDA | 95% | $1,246–$1,281 million | $1,315 million (reduced to $1,285 million for bonus purposes) | Pool adjusted vs target range; committee discretion | Above top-end; payout moderated by other internal metrics . |
| Employee Experience Survey (all employees) | 5% | Target favorability 84.5–85.5% | 85.7% | 0–150% scale | 104% payout factor . |
Committee approved ~86% payout for executives based on combined results (Crowe paid $559,000) .
Long-Term Equity – FY2025 Annual Grants
| Award Type | Grant Date | Target Units | Threshold | Max Units | Grant Date Fair Value | Vesting / Performance |
|---|---|---|---|---|---|---|
| Performance-Based RSUs | May 23, 2024 | 5,120 | 2,560 | 12,288 | $847,770 | 3-year; 75% cumulative Adjusted EBITDA, 25% cumulative Revenue; TSR multiplier 80–120% vs S&P Software & Services Select Industry Index; max earnout 240% . |
| Time-Based RSUs | May 23, 2024 | 3,413 | — | — | $520,005 | 3 equal annual installments over 3 years, service-based . |
One-Time Retention Grants (approved May 21, 2024)
| Award Type | Grant Date | Target Units | Grant Date Fair Value | Terms |
|---|---|---|---|---|
| Performance-Based RSUs | May 23, 2024 | 9,846 target units shown as two entries totaling performance plus time-based awards; Crowe performance RSUs target: 9,846? See table entries below | $1,630,301 | Same metrics as FY2025 annual PSUs; 3-year performance . |
| Time-Based RSUs | May 23, 2024 | 9,846 | $1,500,137 | 3-year, service-based vesting . |
Note: The Grants of Plan-Based Awards table shows Crowe’s retention PSUs at 9,846 target units and retention time-based RSUs at 9,846 units; values per FASB ASC 718 .
Recently Completed PSU Cycle (FY2023–FY2025)
| Metric (Weight) | Actual vs Target | Payout Factor |
|---|---|---|
| 3-year cumulative Adjusted EBITDA (70%) | $3,505 billion; met target band | 100% . |
| 3-year cumulative Revenue (20%) | $31.669 billion; above maximum | 200% . |
| Platform Revenue Growth (5%) | 15.6% | 100% . |
| Total Financial/Strategic Payout | — | 115% of target . |
Equity Ownership & Alignment
| Measure | Amount / Policy | Notes |
|---|---|---|
| Beneficial Ownership | 49,304 shares; includes 26,181 options exercisable within 60 days; <1% of shares outstanding (124,187,634) | SEC beneficial ownership basis. |
| Options – Exercisable | 20,391 (2019 grant) + other legacy options; schedule shows 5,790 exercisable (2022 grant); total rights reflected in beneficial ownership . | |
| Options – Unexercisable | 8,688 (2022 grant, $86.86 strike, exp. 5/27/2032) . | |
| RSUs – Unvested (time-based) | 2,276 units (FY2024 grant); 6,564 units (FY2025 grant) . | |
| RSUs – Performance (outstanding at max potential) | FY2024: 16,798 units; FY2025: 12,288 units . | |
| Time-based RSU Vesting Schedule | Mar 31, 2026: 6,016; Mar 31, 2027: 4,420 . | |
| Ownership Guidelines | 4x base salary; executives have met requirements . | |
| Hedging/Pledging | Prohibited; no margin accounts or pledging allowed . | |
| Recent Exercises/Vesting | FY2025: no option exercises; 8,367 shares vested from RSUs valued at $919,566 . |
Policy-level alignment signals:
- Robust clawback policy per SEC Rule 10D-1; extends to incentive comp for restatements and misconduct-related recoupment .
- No option repricing; no hedging/pledging; no tax gross-ups on golden parachutes; no single-trigger CIC vesting .
Employment Terms
| Term | Provision | Notes |
|---|---|---|
| Transition Pay (Severance framework) | 3 months base pay + 1 month per year of executive service (max 9 months) + up to 3 months COBRA reimbursement; subject to release . | Company-wide policy. |
| Change-in-Control (Equity awards) | Double-trigger: assumed awards continue; accelerate upon involuntary termination without cause/for good reason within 2 years post-CIC; if not assumed, time-based fully vest and PSUs vest partially based on performance to date . | 2023 Equity Incentive Plan governs; consistent with FY2024 descriptions . |
| Retirement Benefits | Officers’ Retirement Plan: $20,000 per year of executive service; Crowe credited 11.0 years; present value $220,000; company-paid retiree medical/dental . | |
| Deferred Compensation | Aggregate balance $868,525; FY2025 earnings $41,441 (Crowe was only NEO participant) . | |
| Clawbacks | Mandatory recovery policy and plan-level forfeiture/disgorgement for restatements and misconduct . |
Compensation Structure Details
FY2025 Annual Equity Mix (Company policy)
- Approximately 60% performance-based RSUs, ~40% time-based RSUs for non-CEO NEOs .
- PSU metrics: 75% cumulative Adjusted EBITDA, 25% cumulative Revenue; TSR multiplier 80–120% to adjust earned units; max 240% .
FY2025 Company Performance Context
- Revenue: $12.0B (+12.4%); Net income: $935.0M (+54.3%); Adjusted EBITDA: $1,315.0M (+11.9%) .
- Shareholder returns: $268.3M dividends; $763.6M buybacks; increased repurchase authorization to $3.585B total capacity (unused $744.7M at FY-end) .
Compensation Peer Group & Say-on-Pay
- Peer group used for benchmarking: Akamai, CACI, CGI, Cognizant, Conduent, DXC, EPAM, Fiserv, FTI Consulting, Jacobs, KBR, L3Harris, Leidos, Maximus, Parsons, SAIC .
- Approach: competitive range targeting; not a specific percentile benchmark; committee exercises judgment .
- Say-on-Pay approval: ~97% support at 2024 meeting; annual vote frequency maintained .
Risk Indicators & Red Flags
- No hedging/pledging; no option repricing; no single-trigger CIC vesting; no tax gross-ups on golden parachutes .
- Government compensation caps: OMB benchmark cap of $671,000 applicable to some contracts; amounts above cap are unallowable under FAR .
- Related-party items: “Other” perquisites include small anniversary gift; no related party transactions disclosed for Crowe .
Expertise & Qualifications
- 30+ years in strategy development and technology delivery; sector leadership across health and civil missions; prior CTO experience .
Performance Compensation – Detailed Table (FY2025)
| Incentive Type | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| Annual Cash | Adjusted EBITDA | 95% | $1,246–$1,281M | $1,315M (adjusted to $1,285M) | Pool increased but moderated; total executive payout ~86% | Cash, post-fiscal year . |
| Annual Cash | Employee Experience Survey | 5% | 84.5–85.5% target favorability | 85.7% | 104% factor | Cash . |
| PSUs (Annual grant) | 3-yr cumulative Adjusted EBITDA | 75% | Set at start of period | Ongoing | 0–200% of target units pre-TSR | Earn at 3 years . |
| PSUs (Annual grant) | 3-yr cumulative Revenue | 25% | Set at start of period | Ongoing | 0–200% of target units pre-TSR | Earn at 3 years . |
| PSUs (Annual grant) | TSR multiplier vs S&P Software & Services Select Industry | 20% multiplier | 80–120% | Ongoing | Adjusts earned units | Applied at vest . |
| RSUs (Time-based) | Service | — | — | — | — | 3 equal annual tranches over 3 years . |
| PSUs (Retention grant) | Same as annual PSUs | — | — | — | — | 3-year performance . |
| RSUs (Retention grant) | Service | — | — | — | — | 3-year service vest . |
Multi-Year Award Inventory and Vesting
| Instrument | Key Terms | Next Vests / Maturities |
|---|---|---|
| Stock Options | $86.86 strike (5/27/2032 expiry) – unexercisable 8,688; plus legacy exercisable tranches (e.g., 20,391 at $62.12 from 2019) . | May 31, 2025: 2,895; May 31, 2026: 2,895; May 31, 2027: 2,898 . |
| Time-based RSUs | FY2024 and FY2025 grants outstanding (Crowe: 2,276 and 6,564 units) . | Mar 31, 2026: 6,016; Mar 31, 2027: 4,420 . |
| Performance RSUs | FY2024 outstanding at max: 16,798; FY2025 outstanding at max: 12,288 . | Earn at end of 3-year cycles per plan . |
Investment Implications
- Alignment: High equity mix (PSUs/RSUs) and rigorous ownership requirements (4x salary) with prohibitions on hedging/pledging and an SEC-compliant clawback policy support strong pay-for-performance and shareholder alignment .
- Retention: One-time retention grants ($3.13M grant-date value combined PSUs/RSUs) for FY2025 and multi-year vesting schedules reduce near-term departure risk; transition pay is modest relative to industry norms (months-based vs salary/bonus multiples) .
- Performance sensitivity: Annual bonus heavily tied to Adjusted EBITDA (95%) with an HCM metric (5%), while PSUs hinge on 3-year cumulative Adjusted EBITDA and Revenue plus TSR, indicating strong linkage to revenue scale and margin expansion; FY2023–2025 PSU payout at 115% suggests above-plan performance but not outsized windfalls .
- Trading signals: Crowe had no option exercises in FY2025 and realized ~$0.92M from RSU vesting; upcoming time-based RSU tranches and option vest dates could create episodic liquidity events, but anti-hedging/pledging and ownership compliance temper selling pressure concerns .
- CIC economics: Double-trigger acceleration protects value only upon qualifying termination post-CIC; absence of single-trigger and tax gross-ups is shareholder-friendly and lowers perception of golden parachute risk .