Nick Lane
Equitable HoldingsAbout Nick Lane
Nick Lane, age 52, is Head of Retirement, Wealth Management & Protection Solutions at Equitable Holdings (EQH) and President of Equitable; he sits on EQH’s Management Committee and serves on the AllianceBernstein Corporation board. He joined Equitable (then AXA) in 2005 and previously served as CEO of AXA Japan, Senior Executive Director at Equitable, and Head of AXA Global Strategy; earlier roles include consultant at McKinsey & Company and Captain in the U.S. Marine Corps . Under EQH’s 2024 performance, Non-GAAP Operating Earnings were $2.0B (+19% YoY), cash generation was $1.5B, and VNB was a record $781M; EQH returned ~$1.3B to shareholders within its 60–70% payout target .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Equitable Holdings / Equitable | Head of Retirement, Wealth Mgmt & Protection Solutions; President of Equitable; Management Committee member | 2005–present | Leads core retirement/protection businesses and distribution; commercial innovation and capital optimization initiatives |
| AXA Japan | President & CEO | — | International leadership; operational and strategic oversight in major AXA market |
| AXA (Global) | Head of AXA Global Strategy | — | Oversaw five-year strategic plan across ~60 countries |
| Equitable (prior roles) | Senior Executive Director (commercial divisions) | — | Broad commercial P&L responsibilities |
| McKinsey & Company | Consultant | — | Strategy and operations experience |
| U.S. Marine Corps | Captain | — | Leadership and organizational discipline |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| AllianceBernstein Corporation | Director | — | Enhances connectivity with EQH’s Asset Management segment |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base salary (paid) | $897,583 | $897,583 | $897,583 |
| Annual rate of base salary | — | — | $900,000 (annual rate) |
Performance Compensation
- Short-term incentive design (STIC): 1-year cash bonus with equal weights on Non-GAAP Operating Earnings (25%), VNB (25%), Cash Flow (25%), Strategic Initiatives (25%) . 2024 initial funding was 160%, adjusted to 142% final funding after normalizing a regulator-approved extraordinary dividend .
- Long-term incentive (LTI) mix (2024): 40% RSUs (time-vest), 60% Performance Shares split 30% Relative TSR and 30% Non-GAAP EPS growth; PS cliff-vest after 3 years (Feb 28, 2027). RSUs vest ratably over three years (Feb 28, 2025/2026/2027) .
- 2024 STIC target for Lane was raised to $1.4M; actual award was $2,186,800 (156% of target), reflecting Final Funding 142% and Individual Assessment 110% amid strong segment results (e.g., $7.1B Retirement net flows; $570M VNB) .
2024 STIC performance scoreboard (Company-level)
| Objective | Weight | Threshold ($m) | Target ($m) | Max ($m) | Actual ($m) | Contribution to Initial Funding |
|---|---|---|---|---|---|---|
| Non-GAAP Operating Earnings | 25% | 1,463 | 1,950 | 2,438 | 2,007 | 28% |
| Value of New Business (VNB) | 25% | 438 | 584 | 730 | 757 (adj. to 757) | 50% |
| Cash Flow | 25% | 900 | 1,200 | 1,500 | 1,500 (partially normalized) | 50% initial; reduced in Final Funding |
| Strategic Initiatives | 25% | N/A | “Goals exceeded” | N/A | 130% qualitative | 32% |
Lane – multi-year compensation (reported)
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Stock awards (grant-date fair value) | $2,500,048 | $2,600,037 | $2,700,060 |
| Non-equity incentive (STIC paid) | $1,100,000 | $1,595,625 | $2,186,800 |
| All other compensation | $421,775 | $50,657 | $57,867 |
2024 Equity grant details (Lane)
| Vehicle | Grant date | Target shares/units | Vesting | Notes |
|---|---|---|---|---|
| RSUs | Feb 14, 2024 | 31,963 | 1/3 on Feb 28 of 2025/2026/2027 | 40% of 2024 equity value ($2.7M total) |
| PSUs – TSR | Feb 14, 2024 | 5,357 target (21,429 max shown) | Cliff on Feb 28, 2027 | Payout 0–200% vs TSR peer set (Corebridge added in 2024) |
| PSUs – Non-GAAP EPS | Feb 14, 2024 | 5,993 target (23,972 max shown) | Cliff on Feb 28, 2027 | Annual EPS targets; 0–200% each year, averaged |
2022 PSU outcome: TSR performance factor 145.6% for the 3-year period ended Dec 31, 2024 (paid Feb 2025) .
Equity Ownership & Alignment
- Beneficial ownership: 334,331 EQH shares (<1% of outstanding) as of Mar 24, 2025; includes 64,417 shares acquirable within 60 days via options and 122,917 unvested performance shares .
- Outstanding awards and options (12/31/2024):
- Unvested stock (RSUs): 129,326 shares; value $6,100,304 .
- Unearned PSUs outstanding: 177,174; value $8,357,298 (at stated valuation) .
- Stock options: 114,417 (exercisable) and 79,417 (unexercisable) at $23.18 strike, expiring 02/26/2030 .
- 2024 equity activity: Exercised 114,729 options (value realized $1,418,165) and had 53,336 shares vest (value realized $1,826,160) .
- Ownership guidelines: Management Committee members must hold ≥3x base salary; must retain 75% of net shares until compliant . Hedging and pledging of Company securities are prohibited; 10b5-1 plans permitted under policy .
Employment Terms
- Severance: Covered by Equitable’s Severance Plan (cap lesser of 52 weeks base salary or $300k) and Supplemental Severance Plan for executives; supplemental requires 12-month non-compete and non-solicit to receive benefits .
- Change in control: If job elimination or “good reason” resignation within 12 months post-CIC, eligible for 2x (base salary + short-term incentive) under the Supplemental Severance Plan; equity awards not assumed in a CIC vest on same per-share terms as shareholders .
- Equity post-termination protections: “Rule of 65” (age + service ≥65, age ≥55, ≥5 years of service) allows continued vesting (subject to performance). Breach of non-compete/non-solicit triggers forfeiture and clawback of gains (including 12-month lookback on vested awards) .
- Clawback: SEC/NYSE-compliant broad clawback policy for accounting restatements, misconduct, and reputational harm .
- Retirement/benefits: Participates in tax-qualified 401(k) (match 5%); EQH reopened the cash balance Retirement Plan effective Jan 1, 2025 (4% pay credit). Lane participates in the Retirement Plan and is grandfathered in the Executive Survivor Benefits Plan .
- Deferred compensation: 2024 Post‑2004 plan earnings $267,682; 2024 withdrawals $(310,151); year-end balance $1,819,742. Lane Letter Agreement account balance $119,701 with $15,434 2024 earnings (from prior AXA Japan assignment) .
- Perquisites: Minimal; 2024 “All other compensation” includes $31,050 company retirement contributions and $26,817 of business spousal travel (no excise tax gross-ups; hedging/pledging prohibited) .
Compensation Structure Analysis
- Mix and leverage: Lane’s pay skews variable and equity-heavy (2024: stock awards $2.7M; STIC $2.19M vs ~$0.90M salary), consistent with pay-for-performance design that garnered 96.1% Say‑on‑Pay support in 2024 .
- Metric rigor and linkage: Annual bonus equally weights Non‑GAAP Operating Earnings, VNB, Cash Flow, and Strategic Initiatives; 2024 final funding normalized for a special dividend, showing governance discipline . LTI directly ties to shareholder outcomes via relative TSR and Non‑GAAP EPS growth, aligning with communicated EPS CAGR target (12–15% to 2027) .
- Peer benchmarking: EQH targets median total compensation vs a life/financials peer set; for Lane’s role, an expanded life insurer peer set was used for competitive positioning . 2024 equity target for Lane was increased to market-competitive $2.7M .
- Red flags mitigated: No hedging/pledging; no excise tax gross-ups; no single-trigger CIC vesting; minimum 1-year vesting for annual awards; robust clawback .
Performance Compensation (detail)
| Metric | Weight | Target | Actual/Assessment | Payout factor | Vesting |
|---|---|---|---|---|---|
| STIC – Non‑GAAP Op Earnings | 25% | $1,950m | $2,007m | 28% toward Initial Funding | Annual cash (2024 paid $2.19m) |
| STIC – VNB | 25% | $584m | $757m (adj.) | 50% toward Initial Funding | Annual cash |
| STIC – Cash Flow | 25% | $1,200m | $1,500m (partially normalized) | 50% initial; adjusted in Final Funding | Annual cash |
| STIC – Strategic Initiatives | 25% | Qualitative | 130% assessment | 32% toward Initial Funding | Annual cash |
| LTI – Relative TSR PSUs | 30% of 2024 PSUs | 50th pctile = 100% | 0–200% vs peer group; cliff vest 2/28/2027 | 0–200% | Equity (3-year) |
| LTI – Non‑GAAP EPS PSUs | 30% of 2024 PSUs | Annual EPS thresholds | 0–200% per year; average; cliff vest 2/28/2027 | 0–200% | Equity (3-year) |
| LTI – RSUs | 40% of 2024 grant | Time-based | Time-vest | N/A | 1/3 on 2/28/25, 2/28/26, 2/28/27 |
Vesting Schedules and Upcoming Events (Lane)
- RSUs outstanding and scheduled vesting:
- 2022 RSUs: 10,428 units; final tranche vested 2/28/2025 .
- 2023 RSUs: 22,300 units; tranches vest 2/28/2025 and 2/28/2026 .
- 2024 RSUs: 32,728 units; vest 2/28/2025, 2/28/2026, 2/28/2027 .
- PSUs:
- 2023 TSR PSUs: 84,198 (reported at max) vest 2/28/2026 (performance-based) .
- 2024 PSUs: TSR 43,884 and Non‑GAAP EPS 49,092 (both reported at max) vest 2/28/2027 (performance-based) .
- Options:
- 114,417 options exercisable and 79,417 unexercisable at $23.18 strike, expiring 02/26/2030 .
Say‑on‑Pay & Shareholder Feedback
- Say‑on‑Pay support: 96.1% approval in 2024 .
- Governance practices include ownership guidelines, clawback, prohibition on hedging/pledging, no single-trigger CIC, independent consultant, and balanced metrics .
Risk Indicators & Red Flags
- Hedging/pledging prohibited (reduces misalignment risk); 10b5‑1 trading plan policy in place .
- No excise tax gross-ups; no single-trigger CIC vesting .
- Strong clawback covering restatements and misconduct/reputational harm .
- 2024 option exercises (114,729) and recurring RSU/PSU vesting create periodic liquidity windows; however, policy controls (ownership guidelines, retention requirements) mitigate near-term indiscriminate selling risk .
Compensation Peer Group (program benchmarking)
- 2024 peer group includes Ameriprise, Brighthouse, Corebridge, Jackson Financial, Lincoln National, Manulife, Principal, Prudential, Sun Life, Unum, Voya; Allstate removed in 2023 review .
- Target pay philosophy: total direct compensation set near market median, with discretion for experience and internal equity; Lane’s role benchmarked vs an expanded life insurers set .
Investment Implications
- Alignment: Lane’s pay is highly performance-based with direct linkage to Non‑GAAP EPS growth and relative TSR, anchoring incentives to shareholder value drivers through 2027 targets; this supports continued focus on profitable growth, cash generation, and VNB discipline .
- Near-term supply/demand from equity flows: Scheduled RSU tranches in 2025–2027 and PSU cliffs in 2026–2027 represent manageable potential selling pressure; ownership guidelines and hedging/pledging bans temper adverse flow-through to the float .
- Retention and execution: Competitive fixed pay, sizable at-risk equity, 12-month non-compete/non-solicit, and Rule‑of‑65 provisions balance retention with orderly transition flexibility; Lane’s 2024 execution across Retirement and Wealth (e.g., $7.1B Retirement net flows; $4.0B Wealth advisory net flows) underscores operating momentum into upcoming LTI measurement periods .