Robin Raju
Equitable HoldingsAbout Robin Raju
Robin M. Raju is Chief Financial Officer of Equitable Holdings (EQH) and a member of the Management Committee, responsible for Treasury, Investment Management (General and Separate Accounts), Investor Relations, Corporate Development/M&A, Actuarial, Accounting/Controlling, Tax, FP&A, Expense Management and Distribution Finance; he became CFO in April 2021 and joined EQH in 2004 (age 43) . Under his finance leadership, EQH delivered 2024 Non-GAAP Operating Earnings of $2.0B (up 19% YoY), cash flow of $1.5B, and AUM/A of $1,019B (up 10% YoY) . Pay-versus-performance disclosures show the value of a $100 EQH investment rose to $213 by year-end 2024 and EQH’s relative 3-year TSR rank was 67.1%, evidencing strong shareholder returns during his tenure period .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Equitable Holdings | Head of Individual Retirement | Not disclosed | Led strategy across distribution, product, inforce, M&A, capital, hedging and strategic relationships . |
| Equitable Holdings | Treasurer | Not disclosed | Key role in capital management and led preparation for EQH’s 2018 IPO . |
| Equitable Holdings | Business CFO (Life, Retirement, Wealth Management) | Not disclosed | Managed capital and financials underpinning segments . |
| AXA S.A. (Paris) | AXA Global Life & Savings | 3 years | Global life and savings experience supporting later finance leadership . |
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | 836,210 | 847,718 | 847,718 |
| All Other Compensation ($) | 348,822 | 29,700 | 31,050 |
| 401(k)/Profit Sharing Contribution ($) | — | — | 31,050 |
| Annual Rate of Base Salary (2024) ($) | — | — | 850,000 |
Notes:
- EQH provides de minimis perquisites for program participants; most of Raju’s “All Other Compensation” reflects retirement plan contributions .
Performance Compensation
Short-Term Incentive Compensation (STIC) – 2024 Design and Outcomes
- Target and payout: STIC Target $1,300,000; actual 2024 STIC Award $2,215,200 (170% of target), comprising Final Funding Percentage of 142% and Individual Assessment Percentage of 120% .
- Corporate metrics and weightings (unchanged since 2018): Non-GAAP Operating Earnings (25%), Value of New Business (VNB) (25%), Cash Flow (25%), Strategic Initiatives (25%) .
| Metric | Threshold ($m) | Target ($m) | Max ($m) | Weight | Actual | Contribution to Initial Funding |
|---|---|---|---|---|---|---|
| Non-GAAP Operating Earnings | 1,463 | 1,950 | 2,438 | 25% | 2,007 | 28% |
| VNB (adjusted) | 438 | 584 | 730 | 25% | 757 | 50% |
| Cash Flow | 900 | 1,200 | 1,500 | 25% | 1,500 (with $200m special dividend partially excluded) | 50% (then -18 points adjustment to reach 142% final) |
| Strategic Initiatives | N/A | Goals exceeded | N/A | 25% | 130% qualitative | 32% |
| Totals | Initial Funding 160%; Final Funding 142% |
Raju’s 2024 performance highlights used in his assessment included $1.5B cash flow, payout ratio of 66%, RBC ≈425%, hedging effectiveness >95%, capital optimization and expense save milestones .
Long-Term Incentive (LTI) – 2024 Equity Program
- Vehicle mix: RSUs 40%; Performance Shares 60% (30% Relative TSR, 30% Non-GAAP EPS) .
- Grant date: February 14, 2024; RSUs vest one-third each on Feb 28, 2025/2026/2027; Performance Shares cliff vest Feb 28, 2027 with performance periods 2024–2026 .
| Award Type | Grant Date | Target Shares | Grant Date Fair Value ($) | Vesting | Performance Curve |
|---|---|---|---|---|---|
| RSUs | 02/14/2024 | 31,371 | 1,060,026 | 1/3 on 2/28/25, 2/28/26, 2/28/27 | N/A |
| TSR Performance Shares | 02/14/2024 | 21,032 | 795,010 | Cliff on 2/28/2027 | 0% (<30th pct), 25% (30th), 100% (50th), 200% (≥87.5th); capped at 100% if absolute TSR negative |
| Non-GAAP EPS Performance Shares | 02/14/2024 | 23,528 | 795,011 | Cliff on 2/28/2027 | 0% (below threshold), 25% (threshold), 100% (target), 200% (max), averaged across 2024–2026 |
2022 TSR Performance Share payouts settled in Feb 2025 at a 145.6% performance factor, reflecting strong relative TSR over the 3-year period ended Dec 31, 2024 .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 295,774 EQH shares (includes 25,888 options exercisable within 60 days and 121,238 unvested performance shares) . |
| Ownership % of EQH | Less than 1% of outstanding shares (306,828,703 as of Mar 24, 2025) . |
| Outstanding RSUs (unvested) | 7,091 (2022 tranche), 21,871 (2023), 32,122 (2024) . |
| Outstanding Performance Shares (unearned) | 82,578 (2023 TSR), 43,071 (2024 TSR), 48,183 (2024 Non-GAAP EPS) . |
| Option holdings | 8,726 @ $18.74 exp 02/14/2029; 17,162 @ $23.18 exp 02/26/2030 . |
| 2024 option exercises | 0; shares vested 32,331 ($1,106,822 value realized) . |
| Ownership guidelines | Management Committee members: 3x base salary; must retain 75% of net shares until guideline met . |
| Hedging/pledging | Prohibited for employees and directors . |
| 10b5-1 plans | Permitted under policy if established per SEC Rule 10b5-1 . |
Employment Terms
| Topic | Key Provisions |
|---|---|
| Employment agreement | None (CEO only has an employment agreement); Raju’s compensation and protections via plan documents . |
| Severance (no CIC) | 78 weeks base salary; plus 1.5x the greatest of most recent, 3-year average, or Target STIC; plus lump sum = STIC Target + $40,000; subject to 12-month non-compete/non-solicit and release . |
| Change-in-control (CIC) | If job elimination or “good reason” within 12 months of CIC: 104 weeks base; plus 2x the greatest of STIC measures; same lump sum and covenants . |
| Hypothetical payments (as of 12/31/2024) | Involuntary termination (no CIC): Temporary Income $3,469,377; Lump Sum $1,340,000; EQH Equity Awards $3,623,035 . CIC without termination: EQH Equity Awards $7,067,190 . Death/Disability: EQH Equity Awards $8,388,175 . |
| Equity treatment | Double-trigger approach for assumed/substituted awards post-CIC; unassumed RSUs cash-out/vest; PS prorated at target/actual then time-vest . |
| Clawback | SEC/NYSE-compliant policy for restatements and misconduct, including reputational harm; equity award post-termination clawback for non-solicit breaches within 12 months . |
Multi-Year Compensation Summary (NEO)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary ($) | 836,210 | 847,718 | 847,718 |
| Stock Awards ($) | 1,700,021 | 2,550,036 | 2,650,047 |
| Non-Equity Incentive ($) | 880,000 | 1,465,200 | 2,215,200 |
| Change in Pension Value ($) | 0 | 6,201 | 0 |
| All Other Compensation ($) | 348,822 | 29,700 | 31,050 |
| Total ($) | 3,765,053 | 4,898,854 | 5,744,015 |
Retirement, Deferred Comp, and Perquisites
- Pension benefits: Present value of Retirement Plan benefit $60,716 (no Excess Plan or ESB participation) .
- Non-qualified deferred compensation: 2024 executive contributions $130,298; earnings $147,201; aggregate balance $1,085,523 .
- Perquisites: EQH executives receive de minimis perquisites; Raju’s 2024 “All Other Compensation” largely reflects retirement plan contributions of $31,050 .
Performance & Track Record
- 2024 outcomes under CFO oversight: Non-GAAP Operating Earnings $2.0B; cash flow $1.5B; payout ratio 66%; combined NAIC RBC ≈425%; hedging effectiveness >95%; progress on capital optimization (Bermuda reinsurer, Ruby Re investment, trust refinance) and expense saves ($100M run-rate) .
- Enterprise growth: Record VNB ≈$775–781M (adjusted in STIC framework to $757M); Retirement net inflows $7.1B; Wealth Management advisory net inflows $4.0B; AB active net inflows $4.3B; AUM/A $1,019B (+10% YoY) .
- Shareholder returns: Pay-versus-performance indicates $100 EQH investment reached $213 by FY2024; 3-year relative TSR rank 67.1% .
Compensation Structure Analysis
- Pay-for-performance design: STIC balanced 25% each across earnings, VNB, cash flow, strategic initiatives; LTI increased focus on growth via addition of Non-GAAP EPS metric with 30% weighting alongside TSR at 30% (RSUs 40%) .
- Market alignment: Target pay philosophy around median; CFO benchmarking used broader market reference set given talent market beyond life insurers .
- Governance safeguards: Clawback; prohibition on hedging/pledging; minimum vesting periods; no option repricing; double-trigger CIC vesting; high say-on-pay support 96.1% in 2024 .
Equity Supply and Vesting Timeline
- Near-term supply: RSU tranches vest on Feb 28, 2025/2026/2027 (31,371 granted in 2024) .
- Medium-term: Performance Shares (TSR & Non-GAAP EPS) cliff vest Feb 28, 2027 for 2024 awards; 2023 PS vest Feb 28, 2026 .
- 2024 realized: No option exercises; 32,331 shares vested ($1.106M value) .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited—alignment preserved .
- Discretion in metrics: 2024 cash flow metric adjusted to exclude $200M of extraordinary dividend in final funding—transparent committee discretion reduced payout from initial 160% to 142% .
- Dilution backdrop: Board proposes increasing A&R Omnibus share reserve by 14.5M; brings potential overhang to ~10.51% on a basic diluted basis if approved .
Investment Implications
- Alignment and retention: Balanced STIC/LTI metrics, strong clawback/ownership requirements, and hedging/pledging prohibitions support pay-for-performance and mitigate misalignment risk; vesting schedule implies periodic supply around Feb 28 each year through 2027, but 2024 shows no option-driven selling by Raju .
- Execution credibility: 2024 outcomes on earnings, cash generation, capital strength (RBC ≈425%) and efficiency initiatives bolster confidence in finance discipline; capital optimization structures (Bermuda reinsurer, Ruby Re) may enhance cash flow stability over time .
- Change-in-control economics: For Raju, two-times salary+bonus under CIC with double-trigger vesting on equity could be material in a strategic event; investors should factor potential severance costs and equity acceleration into M&A scenarios .
- Dilution sensitivity: Proposed equity plan share increase would raise potential overhang; monitor grant practices and burn rate (0.63% in 2024) to assess dilution versus talent retention objectives .