Scott Erickson
About Scott Erickson
Scott Erickson, age 45, is Chief Revenue Officer (CRO) of Clearwater Analytics (CWAN), serving since April 2023 after leading regional and growth-focused commercial roles and previously serving as Chief Operating Officer (2017–2021). He joined Clearwater in 2005, holding leadership roles across operations, client services, product management, and sales. Erickson holds a bachelor’s degree from Whitman College and an MBA from Northwest Nazarene University . Company performance in 2024 included revenue growth of 23% to $451.8M, adjusted EBITDA up 38% to $145.7M (32% margin), net revenue retention of 116%, and a pay-versus-performance TSR value of 108.47 for the year .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Clearwater Analytics | Chief Revenue Officer | Apr 2023–present | Leads global revenue execution with focus on bookings and revenue conversion |
| Clearwater Analytics | President, Americas & Asia | Dec 2022–Apr 2023 | Expanded regional commercialization and bookings footprint |
| Clearwater Analytics | President, Americas & New Markets | Jun 2021–Dec 2022 | Drove North America bookings and new market entry |
| Clearwater Analytics | Chief Operating Officer | Jun 2017–Jun 2021 | Led operations; scaled delivery, client satisfaction, and platform reliability |
| Clearwater Analytics | Director roles: Operations; Client Services; Product Management; Sales | 2005–2017 | Built core functions and go-to-market capabilities |
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | 362,500 | 425,000 | 425,000 |
| Target Annual Incentive ($) | — | 290,000 | 325,000 |
| Annual Incentive Payout ($) | 309,074 | 240,700 | 308,750 |
| Discretionary Bonus ($) | — | — | 100,000 (special one-time in 2025 for 2024 achievements) |
| All Other Compensation ($) | 134,349 | 183,013 | 603,741 (incl. $100,000 New York cost of living subsidy) |
Performance Compensation
Annual Cash Incentive – Structure and 2024 Outcomes
| Component | Design | 2024 Scorecard Metrics for Erickson | Weighting | 2024 Target | 2024 Actual | Payout |
|---|---|---|---|---|---|---|
| Annual Cash Incentive | Company and role-specific scorecard; threshold at 75% of targets; no maximum cap | Bookings; Revenue from 2024 Bookings; Revenue from 2023 Booked Not Billed; Bookings from North America; Bookings from Growth Opportunities | Not disclosed | 325,000 | Company-level anchors exceeded: Revenue $432.7M target vs $451.8M actual; Adjusted EBITDA $135.4M target vs $145.7M actual; Non-GAAP Gross Profit $335.1M target vs $353.5M actual | 95% of target = $308,750 |
Long-Term Incentives – Grants and Vesting
| Award Type | Grant Date | Shares Granted | Grant Date Fair Value ($) | Vesting Schedule | Performance Metric |
|---|---|---|---|---|---|
| PSUs | Feb 28, 2024 | 50,000 | 972,000 | 33.33% each year over 3-year period; earned 0–110% of one-third annually; double-trigger acceleration on CiC with involuntary termination | Annual revenue growth rate |
| RSUs | Feb 28, 2024 | 50,000 | 972,000 | 25% per year over 4 years; 2024 RSUs vest in equal quarterly installments starting Mar 31, 2024; time-based; double-trigger acceleration on CiC with involuntary termination | |
| PSUs | Feb 20, 2023 | 250,000 | Included in 2023 stock awards $9,495,000 | Equal annual installments over 3 years from Jan 1, 2023; performance and service conditions | Annual revenue growth rate |
| RSUs | Feb 20, 2023 | 250,000 | Included in 2023 stock awards $9,495,000 | Equal annual installments on each of the first four anniversaries of Jan 1, 2023 | Time-based |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 830,477 Class A shares as of Apr 25, 2025; less than 1% of outstanding/voting power |
| Unvested RSUs (market value at $27.52) | 62,847 ($1,729,549); 187,500 ($5,160,000); 37,500 ($1,032,000) |
| Unvested PSUs (max payout value basis) | 91,666 ($2,522,657); 36,666 ($1,009,057) |
| Options Outstanding (selected) | 185,385 @ $4.00 exp. 11/2/2027; 69,338 @ $4.00 exp. 4/10/2028; 42,294 @ $4.40 exp. 1/1/2029; 87,226 ex. + 16,393 unex. @ $4.40 exp. 1/21/2030; 428,385 ex. + 9,115 unex. @ $12.40 exp. 3/8/2031 |
| Ownership Guidelines | 2x base salary within five years; RSUs count, PSUs do not; assessed annually |
| Hedging/Pledging | Prohibited without pre-approval; pledging prohibited |
| Section 16 Activity | Form 4 on Apr 4, 2024 for tax withholding upon RSU vesting |
Employment Terms
| Provision | Term |
|---|---|
| Employment | At-will; agreements set initial salary and target bonus |
| Severance (no CiC) | 6 months of base salary for Erickson ($212,500 as of 12/31/2024) |
| CiC – Equity Acceleration | RSUs/PSUs: double-trigger (CiC plus involuntary termination) immediate vest; options: accelerated vesting upon CiC or WCAS <5% post-IPO amendment |
| Potential Payments (as of 12/31/2024) | CiC with qualifying termination: equity acceleration value $11,970,088; CiC without termination: options acceleration $516,825; cash severance $212,500 |
| Restrictive Covenants | Non-compete during employment and 12 months post-termination; non-solicit during employment and 18 months post-termination; perpetual confidentiality; mutual non-disparagement |
| 280G/4999 Cutback | Parachute payments reduced to avoid excise tax as needed |
Compensation Committee and Governance
- Committee uses independent consultant (Aon), pay-for-performance, peer benchmarking, clawback policy compliant with NYSE Section 10D, and stock ownership guidelines .
- 2024 say-on-pay approval ~92%; committee reduced equity grant sizes and began transitioning to annual grant cadence, prioritizing stock-based comp reduction as % of revenue .
- 2024 compensation peer group includes 20 application software/fintech names (e.g., ALKT, CFLT, PCTY, APPF, DV, QTWO, ASAN, EVBG, SMAR, BL, FROG, SPT, BRZE, GWRE, VRNS, AI, NCNO, VERX, CCCS, PD) .
Investment Implications
- Pay-for-performance alignment: Erickson’s cash incentive payout was 95% of target on company overachievement of revenue, adjusted EBITDA, and non-GAAP gross profit targets, reinforcing KPI linkage to bookings and revenue conversion for CRO role .
- Retention and selling pressure: RSUs vest quarterly (starting Mar 31, 2024) and annually (2023 grants), which can create predictable vesting windows and associated tax-withholding sales; Section 16 shows RSU tax withholding Form 4 in Apr 2024 .
- Upside leverage and option profile: Legacy options with exercise prices of $4.00–$12.40 and long-dated expirations indicate material embedded value versus the $27.52 reference price used in the proxy’s calculations, supporting alignment but also potential exercise-driven supply near expirations .
- Change-in-control economics: RSUs/PSUs require double-trigger to accelerate, limiting unintended windfalls; option acceleration occurs on CiC or sponsor ownership threshold, with quantified equity acceleration scenarios, moderating takeover-related dilution risk while protecting executive incentives .
- Governance and risk controls: Anti-hedging/pledging, clawback, and ownership guidelines (2x salary) reduce misalignment; 92% say-on-pay approval and use of independent consultant support compensation quality; no related-party transactions disclosed involving Erickson .