Balazs Fejes
EPAM SystemsAbout Balazs Fejes
Balazs Fejes, age 50, is EPAM’s President of Global Business and Chief Revenue Officer, co-leading global business operations and overseeing Banking & Financial Services strategy; he joined EPAM via the 2004 acquisition of Fathom Technology after prior senior technical roles at Microsoft Great Plains and Scala Business Solutions . In 2024 EPAM delivered revenues of approximately $4.7B (+0.8% YoY), GAAP operating margin of 11.5% and non-GAAP operating margin of 16.5%, with GAAP diluted EPS of $7.84 (+11.0%) and non-GAAP diluted EPS of $10.86 (+2.5%), anchoring executive pay-for-performance programs that tie incentives to revenue growth, adjusted EPS and relative TSR .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| EPAM Systems | President of Global Business & Chief Revenue Officer | 2021–present | Leads market activities globally; oversees Banking & Financial Services strategy |
| EPAM Systems | EVP, Co-Head of Global Business | 2015–Mar 2021 | Co-led global business operations during scaling across geographies |
| EPAM Systems | SVP, Global Head of Banking & Financial Services | 2012–2015 | Drove evolution of service lines across BFS portfolio |
| EPAM Systems | Chief Technology Officer | 2004–Aug 2012 | Ensured global development centers operated at leading efficiency and quality standards |
| Fathom Technology (acquired by EPAM) | Co-founder & CTO | pre‑2004 | Integrated into EPAM; strengthened engineering leadership and offshore capabilities |
| Microsoft Great Plains | Chief Software Architect/Line Manager | prior | Led architecture in business solutions segment |
| Scala Business Solutions | Chief Software Architect | prior | Senior product architecture responsibilities |
External Roles
No public company directorships or external board roles disclosed for Fejes in the proxy .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary (USD) | $512,201 | $587,197 | $681,536 |
| Target Annual Cash Incentive (USD) | — | — | $600,000 |
| Actual Annual Cash Incentive Paid (USD) | $500,000 | $282,000 | $432,000 |
| Notes | Salary paid in CHF; FX rates disclosed (FY22 $1.05/CHF, FY23 $1.11/CHF, FY24 $1.12/CHF) | Salary paid in CHF | Salary paid in CHF |
Performance Compensation
| Component | Metric | Weighting | Target | Actual/Payout | Vesting |
|---|---|---|---|---|---|
| Short-Term Cash Incentive (2024) | Corporate funding based on Revenue growth (YoY) and Adjusted Income from Operations | 50% revenue / 50% profitability | 6.6% revenue growth; 15% adjusted op margin | Funding 72% based on 0.8% revenue and 16.5% adjusted op margin; Fejes payout $432,000 | Cash paid post year-end |
| PSUs (2024–2026) | Adjusted Revenue Growth | 37.5% | 3.4–6.6% growth for 100% payout; 13.2% for 200% | 0% certified for FY2024 component | Earned over 3-year period; vest at conclusion (Dec 31, 2026) |
| PSUs (2024–2026) | Adjusted EPS | 37.5% | $10.12 for 100%; $11.35 for 200% | 144% certified for FY2024 component | Earned over 3-year period; vest at conclusion |
| PSUs (2024–2026) | Relative TSR vs S&P 500 IT | 25% | 55th percentile for 100%; 85th for 200% | TBD at end of period (3-year) | Vest at conclusion based on percentile rank |
| Equity Grants (2024) | Grant Date | Instrument | Quantity | Strike/Terms | Vesting |
|---|---|---|---|---|---|
| Annual Equity | Mar 15, 2024 | Stock Options | 9,063 | $298.89 | 25% annually on Mar 15, 2025–2028 |
| Annual Equity | Mar 15, 2024 | RSUs | 5,020 | — | 25% annually on Mar 15, 2025–2028 |
| Key Executive Performance Stock Program | Mar 15, 2024 | PSUs (Target) | 5,020 | Revenue/EPS annual targets; TSR 3-year | Earned based on 3-year performance; vest post-certification |
Equity Ownership & Alignment
| Ownership Metric | Data |
|---|---|
| Total beneficial ownership | 51,373 shares (<1% of outstanding) |
| Options exercisable within 60 days of Mar 14, 2025 | 39,801 shares |
| Unvested RSUs (12/31/2024) | 11,472 units; market value $2,682,383 at $233.82 |
| PSUs outstanding (Target, 12/31/2024) | 5,020 units; market value $1,173,776 at $233.82 |
| Stock ownership guidelines | Executives: 2x annual salary; mandatory 50% net share retention until compliant |
| Guideline compliance | CEO and all other NEOs met/exceeded as of Dec 31, 2024 |
| Hedging/pledging | Prohibited; none pledged by employees/directors |
| Options Detail (Fejes, as of 12/31/2024) | Exercisable | Unexercisable | Strike | Expiration |
|---|---|---|---|---|
| 2009 grant | 9,093 | — | $169.13 | 3/29/2029 |
| 2010 grant | 9,726 | — | $175.22 | 3/27/2030 |
| 2011 grant | 5,040 | 1,680 | $387.74 | 3/26/2031 |
| 2012 grant | 4,822 | 4,822 | $266.75 | 3/25/2032 |
| 2013 grant | 2,382 | 7,143 | $299.00 | 3/31/2033 |
| 2024 grant | — | 9,063 | $298.89 | 3/15/2034 |
Additional ownership and activity:
- 2024 option exercises: none by Fejes; stock vested: 3,668 shares ($1,083,101 value) .
- Outstanding RSU market values computed using year-end price $233.82 per share (12/31/2024) .
Employment Terms
- Employment agreement: Fejes has an employment agreement with EPAM’s Swiss subsidiary as required by Swiss law; receives statutory Swiss benefit entitlements .
- Severance: EPAM has no formal severance plan for NEOs; no guaranteed bonuses or “golden parachutes”; equity accelerates only under specified conditions .
- Change-of-control: Double-trigger acceleration for unassumed awards; RSUs/Options accelerate if terminated without cause or for good reason within one year post-CoC; PSUs deemed earned at target in specified termination scenarios; other detailed termination treatments disclosed .
- Clawback: SEC/NYSE-compliant recoupment policy applies to incentive-based compensation (cash and equity) upon financial restatements within preceding three years .
- Hedging/derivatives/pledging: Prohibited by insider trading policy; none pledged by employees or directors .
Compensation Structure Analysis
- Equity mix shift: 2024 introduced PSUs via the Key Executive Performance Stock Program; beginning in 2025, stock options were eliminated, and NEO equity will be 50% PSUs and 50% RSUs, strengthening pay-for-performance alignment .
- Annual incentive calibration: 2024 corporate funding at 72% reflected 0.8% GAAP revenue growth and 16.5% adjusted operating margin, with Fejes receiving $432,000 vs. $600,000 target .
- PSU metric outcomes: FY2024 results certified at 0% for adjusted revenue growth and 144% for adjusted EPS; relative TSR remains a 3-year measure vs. S&P 500 IT Index .
- Governance practices: Double-trigger vesting; no option repricing; use of independent consultant (Pay Governance); annual say-on-pay (93.7% support in 2024) .
Investment Implications
- Pay-for-performance linkage: Fejes’ 2024 incentive outcomes (72% AIP funding; PSUs with 0% revenue and 144% EPS tranche certifications) indicate alignment with underlying operating results, with forward equity realizable value dependent on 2025–2026 top-line and TSR performance .
- Selling pressure/near-term supply: Scheduled 25% annual vesting of 2024 RSUs and options through 2028 (5,020 RSUs, 9,063 options), plus unvested legacy RSUs (11,472 units) and target PSUs (5,020), create predictable delivery/vesting events; however, 2024 showed no option exercises by Fejes, and insider hedging/pledging is prohibited, reducing forced-sell risks .
- Alignment and retention: Compliance with stock ownership guidelines (2x salary for executives), double-trigger CoC protections, and robust clawback policy support long-term alignment and retention while limiting shareholder-unfriendly features (no golden parachutes or tax gross-ups) .
- Execution risk: PSU outcomes hinge on adjusted revenue growth and EPS plus relative TSR vs. S&P 500 IT—given 2024 revenue softness (+0.8% YoY), future PSU earnouts are sensitive to reacceleration in organic constant currency growth and sustained profitability improvements .