John Wall
CADENCE DESIGN SYSTEMSAbout John Wall
John M. Wall (age 54) is Senior Vice President and Chief Financial Officer of Cadence Design Systems, serving as CFO since October 2017. He holds an NCBS from the Institute of Technology, Tralee, and is a Fellow of the Association of Chartered Certified Accountants . During his tenure, Cadence’s revenue grew from $3.562B in 2022 to $4.641B in 2024 and the company reported a five-year TSR of 327% through 2024, reflecting strong execution and capital stewardship under his finance leadership . 2024 highlights attributed to finance included a $2.5B bond issuance at a 4.44% blended coupon, DSOs under 50 days, and CFO organization expense held at ~4% of revenue .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Cadence Design Systems | SVP & CFO; previously Corporate VP & Corporate Controller; other finance leadership roles since 1997 | 2017–present (CFO) | Led $2.5B bond issuance (4.44% blended), executed long-term operating model, DSOs <50 days, CFO org expense ~4% of revenue |
External Roles
- Not disclosed in company filings reviewed (no public board memberships listed for Wall) .
Fixed Compensation
| Year | Base salary ($) | Target bonus (% of base) | Actual bonus ($) |
|---|---|---|---|
| 2024 | 575,000 | 100% | 604,053 |
| 2023 | 575,000 | 100% | — |
Notes: Actual 2023 bonus not disclosed in the 2025 proxy excerpt reviewed; 2024 bonus paid under Cadence’s SEBP .
Performance Compensation
2024 SEBP design and company outcomes
- SEBP Company Performance Factor: Revenue (45%) + Non-GAAP operating margin (55%) per half-year; Individual Performance Factor (Executive Leadership 80% + Culture Modifier 20%) .
- CFO-specific performance commentary: executed operating model, refinanced 2024 notes, issued $2.5B bonds at 4.44% blended coupon, sustained DSOs <50 days, and managed CFO org expense to ~4% of revenue .
| Period | Revenue Target ($mm) | Revenue Actual ($mm) | Non-GAAP Op Margin Target (%) | Non-GAAP Op Margin Actual (%) | Company Performance Factor (%) |
|---|---|---|---|---|---|
| 1H 2024 | 2,102 | 2,056 (excl. BETA CAE/inventory reserve) | 39.7 | 39.5 (excl. items) | 87.0 |
| 2H 2024 | 2,560 | 2,571 | 45.3 | 45.4 | 101.68 |
2024 Equity grants (annual program)
| Grant date | Award type | Shares/Options | Exercise price ($) | Grant date fair value ($) |
|---|---|---|---|---|
| 3/15/2024 | Incentive Stock Award (time-based, with performance goal) | 11,206 | — | 3,344,319 |
| 3/15/2024 | Stock options (monthly vesting over 4 years) | 16,490 | 298.44 | 1,718,649 |
Program evolution: In 2025, Cadence introduced PSUs (50% of CEO annual grant; ~34% aggregate for other executives) with goals split between adjusted operating income growth and relative TSR, and shifted remaining annual equity to time-based RSUs (reducing options usage) .
Equity Ownership & Alignment
| Category | Detail |
|---|---|
| Total beneficial ownership | 54,331 shares (<1% of outstanding) as of record date Mar 10, 2025 |
| Options exercisable (within 60 days of record date) | 24,971 shares |
| Unvested RSAs (by grant cohort, as of 12/31/2024) | 2,770 (2022), 7,515 (2023), 11,206 (2024) shares |
| Unearned performance shares | 122,763 (2022 LTP Award unearned units) |
| Insider activity (2024) | Exercised 46,000 options (value realized $6,587,096); 64,639 shares vested from stock awards (value $19,346,985) |
| Ownership guidelines | Executives must hold ≥1x base salary; all NEOs compliant as of 12/31/2024 |
| Hedging/pledging | Prohibited for executives and directors (no pledging, no hedging/derivatives) |
Vesting cadence/selling pressure signal:
- 2024 ISA vests 1/3 at ~12 months from grant (≈3/15/2025) and remaining in four semi-annual installments (through 2027) .
- 2024 options vest monthly over 48 months from 3/15/2024 (steady monthly vesting through 2028) .
- 2022 LTP has measurement dates in 2025 and 2026 (33%/67% vesting caps) and final in 2027, subject to absolute price hurdles and relative TSR ≥35th percentile; 33% vested as of March 15, 2025 per company disclosure (applies across NEOs) .
Employment Terms
| Topic | Terms for John Wall |
|---|---|
| Plan | Executive Severance Plan participant (non-CEO) |
| Severance multiple (cash) | Company-wide: highest cash severance entitlement is <1.6x base + target bonus in a change-in-control termination; no tax gross-ups |
| Non-CIC termination (without cause) benefits | Transition salary ($24,000), Lump Sum 1 ($575,000), Lump Sum 2 ($575,000), COBRA ($30,578), partial equity acceleration (12 months), prorated eligibility for 2022 LTP per award terms; Pre-tax total estimated $19,692,702 (as of 12/31/2024) |
| CIC double-trigger (within 3 months before/13 months after CIC) | Transition salary ($24,000), Lump Sum 1 ($862,500), Lump Sum 2 ($862,500), COBRA ($30,578), full equity acceleration (unless award terms specify otherwise); Pre-tax total estimated $23,079,545 (as of 12/31/2024) |
| Post-termination covenants | During transition: non-compete, non-solicit, cooperation; benefits contingent on release and compliance |
| Clawback | Dodd-Frank/Nasdaq-compliant compensation recovery policy for erroneously awarded incentive comp |
2022 LTP award treatment: If not in CIC, involuntary termination after 24 months from grant retains prorated eligibility to earn shares at future measurement dates; death/disability eligible for next measurement date; forfeiture upon cause/voluntary resignation .
Performance & Track Record (finance lens)
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Total revenue ($mm) | 3,562 | 4,090 | 4,641 |
| Remaining performance obligations (year-end, $bn) | — | — | 6.8 |
| Five-year TSR through period | — | 526% (thru 2023) | 327% (thru 2024) |
Finance execution notes:
- 2024: Repaid 2024 notes, issued $2.5B bonds at 4.44% blended coupon; DSOs <50 days; CFO org expense ~4% of revenue .
Compensation Structure Analysis
- Cash vs. equity mix: For NEOs (incl. CFO), compensation skewed toward at-risk equity; options and RSAs dominated 2024 grants; 2025 shifts further to performance-based PSUs, enhancing pay-for-performance linkage .
- Annual bonus rigor: Two-half structure with explicit revenue and non-GAAP operating margin targets; 1H shortfall on both metrics (87% factor) balanced by 2H slight beat (101.68%), with individual factor overlay .
- LTP design: Multi-year absolute stock price hurdles with relative TSR gate and interim vesting caps align value with sustained shareholder returns; proration/acceleration terms balance retention and change-in-control protection .
- Governance: No hedging/pledging, robust clawback, no excise tax gross-ups, no option repricing without shareholder approval (per Omnibus Plan framework) .
Risk Indicators & Red Flags
- Insider liquidity events tied to vesting/exercise: In 2024, Wall exercised 46,000 options and realized value on 64,639 vested shares—these appear programmatic and linked to vesting rather than discretionary sales spikes .
- Pledging/hedging: Prohibited (mitigates alignment concerns) .
- Severance economics: Cash components are moderate (<1.6x base+bonus in CIC) with double-trigger equity vesting (market standard) .
- Clawback in place; say-on-pay support high (≈90% in 2024), reducing compensation-related governance risk .
Investment Implications
- Alignment: High—large unvested equity (RSAs and 2022 LTP) and monthly option vesting create strong retention and performance incentives through 2027; 2025 introduction of PSUs further tightens linkage to operating income growth and relative TSR .
- Near-term selling pressure: Expect periodic selling around RSU vest dates (semi-annual) and continuous, smaller option vesting; 2025 ISA tranche for 2024 grant vested ~March 2025 with continued semi-annual vesting thereafter .
- Execution credibility: Finance achievements (low DSOs, disciplined opex in CFO org, well-priced bond issuance) support confidence in capital allocation and working capital efficiency .
- Downside protection: Balanced severance; no pledging/hedging; robust clawback; strong historical say-on-pay results—all supportive of governance quality .
If you want, I can add a calendar of expected vesting/sale windows for the next 12–24 months from Wall’s 2024–2025 grants to monitor potential supply.