Jake Leach
DEXCOMAbout Jake Leach
Executive Vice President and Chief Operating Officer at Dexcom (since August 2022); age 47 as of March 13, 2025; BS in Electrical Engineering with a minor in Biomedical Engineering from UCLA. Career spans R&D through CTO to COO, with deep glucose sensing expertise from prior roles at MiniMed/Medtronic Diabetes focusing on sensor systems . Company performance during his senior leadership tenure shows strong multi‑year revenue growth with 2024 revenue of $4,034.6M and net income of $576.2M; TSR (value of $100) was 142.21 in 2024 vs 226.92 in 2023 as sector multiples compressed .
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue ($MM) | 2,964.9 | 3,608.6 | 4,034.6 |
| Net Income ($MM) | 341.2 | 541.5 | 576.2 |
| TSR – $100 basis | 207.08 | 226.92 | 142.21 |
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Dexcom | EVP, Chief Operating Officer | Aug 2022–present | Operational leadership of CGM scaling and execution |
| Dexcom | EVP, Chief Technology Officer | Oct 2018–Aug 2022 | Technology roadmap and product development leadership |
| Dexcom | SVP, Research & Development | Jan 2015–Oct 2018 | Led R&D for CGM systems |
| Dexcom | VP, Research & Development | Jan 2011–Jan 2015 | R&D leadership |
| Dexcom | Senior Director, R&D | Feb 2010–Jan 2011 | R&D leadership |
| Dexcom | Director, R&D | Sep 2008–Feb 2010 | R&D leadership |
| Dexcom | Manager, Hardware Engineering | Jan 2007–Feb 2010 | Hardware engineering for CGM |
| Dexcom | Senior Electrical Engineer | Mar 2004–Jan 2007 | Electrical engineering, CGM hardware |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| MiniMed / Medtronic Diabetes | R&D roles (glucose sensing systems) | 1996–2004 | Focused on development of glucose sensing systems (CGM) |
Fixed Compensation
| Year | Base Salary ($) | Target Bonus % | Annual Cash Bonus Paid ($) |
|---|---|---|---|
| 2022 | 534,743 | 75% | 437,153 |
| 2023 | 625,053 | 75% | 656,305 |
| 2024 | 682,498 | 75% | 0 (no NEIP payout shown) |
- 2024 salary increases for Non‑CEO NEOs (incl. Leach) were 10–15%; Leach’s salary set at $693,347 for 2024 in the salary change table (vs. $630,316 in 2023), reflecting a 10% increase; Summary Compensation Table shows salary earned of $682,498 for 2024 due to proration/timing .
Performance Compensation
2024 Bonus Plan (Cash)
- Formula: Base Salary × Target Bonus % × Financial Performance Multiplier × Individual Performance Multiplier (cap 200%) .
- Metrics and outcomes for 2024:
- Adjusted Revenue: threshold $4.15B; achievement $4.03B (below threshold, 0% for this component) .
- Non‑GAAP Operating Margin: threshold 18.0%; achievement 18.8% (≥ threshold) .
- CEO-only Strategic Initiatives (not applicable to Leach) .
- Result: Leach received no 2024 cash bonus (NEIP line shows “—”) .
2024 Equity Awards (RSUs and PSUs)
| Grant | Grant Date | Target Shares (#) | Max Shares (#) | Grant Date Fair Value ($) | Vesting |
|---|---|---|---|---|---|
| 2024 RSUs | 3/8/2024 | 26,053 | — | 3,523,668 | Three equal annual installments from grant date (time‑based) |
| 2024 PSUs | 3/8/2024 | 11,166 | 22,332 | 1,705,495 | Earnout depends on 2024 Adjusted Revenue × 3‑yr Relative TSR (2024–2026) |
- PSU structure: For Non‑CEO NEOs, 30% of annual equity at target in PSUs and 70% in RSUs; Combined PSU Multiplier = Corporate Performance Multiplier (0–160%) × Relative TSR Multiplier (0–125%), capped at 200% of target .
- 2024 PSU “Corporate” leg not achieved: 2024 Adjusted Revenue below $4.15B threshold; PSU section labeled “Not Achieved” .
Outstanding and Earned Equity (as of 12/31/2024)
| Award | Grant Date | Unvested RSUs (#) | Market Value ($) | Unearned PSUs (#) | PSU Payout Value ($) |
|---|---|---|---|---|---|
| RSU | 3/8/2022 | 8,988 | 698,997 | — | — |
| PSU (2022) – earned/certified 1/28/2025 | 3/8/2022 | — | — | 7,107 (earned; certified 1/28/2025) | 552,711 |
| RSU | 3/8/2023 | 16,931 | 1,316,724 | — | — |
| PSU (2023) | 3/8/2023 | — | — | 12,700 | 987,679 |
| RSU | 3/8/2024 | 26,053 | 2,026,142 | — | — |
| PSU (2024) | 3/8/2024 | — | — | 22,332 | 1,736,760 |
- Totals: Unvested RSUs 59,079; Unearned PSUs 35,032 (values calculated at $77.77 close on 12/31/2024) .
Equity Ownership & Alignment
- Beneficial ownership: 276,256 shares (<1% of 392,107,501 shares outstanding as of March 13, 2025) .
- Stock ownership guidelines: 3× salary for executive officers; all NEOs with 3+ years’ service (incl. Leach) were in compliance as of March 13, 2025 .
- Hedging/pledging: Company prohibits hedging and pledging of company stock by employees and directors; insider trading policy enforces blackout windows and derivatives prohibitions .
- Lifetime participation: Under the 2015 EIP through March 1, 2025, Leach has been granted awards covering 598,078 securities at target (time‑based and performance‑based RSUs) .
Employment Terms
Severance & Change‑in‑Control (CIC)
- Plan coverage: Amended and Restated Severance & CIC Plan (adopted May 18, 2023); applies to all executive officers .
- Outside CIC: 12 months base salary (lump sum), 1× prorated target bonus (lump sum), up to 12 months COBRA reimbursement (earlier termination if coverage obtained/COBRA ends) .
- During CIC Period (3 months before to 12 months after a CIC): 24 months base salary (lump sum), 2× annual target bonus (lump sum), up to 24 months COBRA reimbursement; 100% vesting acceleration of unvested equity (performance awards per award terms) .
- Qualifying Termination: Involuntary termination without cause (or resignation for good reason within 12 months post‑CIC) .
Illustrative payouts for Leach (assumed termination on 12/31/2024; stock $77.77)
| Scenario | Cash Severance ($) | Bonus Multiple ($) | PSU Acceleration ($) | RSU Acceleration ($) | Medical ($) | Total ($) |
|---|---|---|---|---|---|---|
| Qualifying Termination (No CIC) | 693,347 | 511,874 | — | — | 25,305 | 1,230,526 |
| Double‑Trigger (Qualifying Termination + CIC) | 1,386,694 | 1,023,747 | 1,194,936 | 4,041,862 | 50,611 | 7,697,850 |
Governance Protections
- Clawback policy (Aug 2023): mandatory recovery of incentive compensation after accounting restatement for up to 3 years, fault not required .
- No tax gross‑ups; no repricing of underwater options without shareholder approval .
Investment Implications
- Pay-for-performance linkage: 2024 cash bonus paid at $0 for Leach following below‑threshold Adjusted Revenue (but threshold met on Non‑GAAP Op Margin), demonstrating downside sensitivity of cash incentives when topline falls short .
- Equity tilt and vesting cadence: Other NEOs’ equity is 70% RSUs/30% PSUs; Leach has 59,079 unvested RSUs and 35,032 unearned PSUs outstanding with standard three‑year annual vesting from each March 8 grant, implying recurring March selling windows (primarily tax‑driven) but balanced by PSU performance risk and 2024 PSU non‑achievement .
- Alignment and risk controls: Meaningful personal ownership (276,256 shares), 3× salary ownership guideline compliance, and strict no‑hedging/pledging policies support alignment; clawback further mitigates risk .
- Retention economics: Outside CIC severance is modest (12 months salary + 1× prorated target bonus); CIC protection (2× bonus + 24 months salary + full acceleration) is competitive but double‑triggered, limiting windfalls absent termination, and may stabilize leadership through strategic events .
- Execution track record: Multi‑year revenue and net income expansion under Leach’s senior leadership roles offsets 2024 TSR compression, which may reflect valuation reset rather than operational deterioration given 2024 Non‑GAAP margin progress .
Overall: Incentives emphasize long‑term equity with measurable revenue and TSR hurdles, cash payouts flex down when topline underperforms, and governance features (no pledging/hedging, clawback, double‑trigger CIC) are shareholder‑friendly, reducing misalignment and signaling disciplined compensation design.
Citations: Executive officer roster and ages; Biography and roles; Compensation practices and “no pledging/hedging”; Base salary changes; – Bonus plan design and outcomes; Equity allocation and 2024 NEO grant sizing; PSU formula and periods; 2024 PSU “Not Achieved”; – Severance/CIC overview, clawback; Summary Compensation Table; 2024 plan‑based awards; Outstanding equity awards (Leach); – Severance plan terms; Potential payments upon termination/CIC; Pay‑versus‑performance table (Revenue, Net Income, TSR); Beneficial ownership table; Lifetime awards under 2015 EIP; Insider trading policy.