John Mullen
Guidewire SoftwareAbout John Mullen
John Mullen, age 52, is President of Guidewire Software (GWRE) since February 2022, previously serving as Chief Revenue Officer through September 2024, leading Global Sales, Delivery Services, and Customer Success. He spent 2003–2022 at Capgemini (CEO North America BU; Global Insurance BU leader) and began his career at Accenture (1995–2003); he holds a B.A. (University of Dayton) and an M.A. (University of Tulsa) . Company performance context: FY2025 Annual Recurring Revenue (ARR) was $1,041M and GAAP net income was $69.8M; the pay-versus-performance TSR index shows $100 invested in July 2020 grew to $192.27 by FY2025 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Capgemini | CEO North America Business Unit; Global Insurance BU Leader; Corporate VP, Financial Services | 2003–2022 | Led $4B+ North America BU; scaled global insurance services; drove industry transformation programs |
| Accenture | Various consulting roles | 1995–2003 | Foundation in large-scale systems integration and client delivery |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | — | — | No external public company directorships disclosed for Mullen |
Fixed Compensation
Multi-year summary (NEO disclosure):
| Year | Base Salary ($) | Target Bonus (% of Base) | All Other Compensation ($) | Notes |
|---|---|---|---|---|
| 2025 | 612,500 | 100 | 6,858 (401k match + life) | Base raised +23% vs 2024 |
| 2024 | 500,000 | 100 | 5,881 | — |
| 2023 | 500,000 | 100 | 5,930 | — |
Cash bonus paid (actual):
| Year | Company Performance Factor (%) | Cash Bonus ($) |
|---|---|---|
| 2025 | 130 | 795,849 |
| 2024 | — | 610,000 |
| 2023 | — | 629,000 |
Performance Compensation
Annual bonus metrics (FY2025):
| Metric | Weight | Threshold → Target → Max | Actual | Payout Basis |
|---|---|---|---|---|
| ARR (constant currency) | 51% | $958M → $1,008M → $1,058M | $1,032M | Straight-line; 50% at threshold, 100% at target, 150% at max |
| Adjusted Non-GAAP Operating Income (Loss) | 34% | -$5M → $25M → $55M | $66M | Straight-line; includes SBC; reconciliation shown |
| Strategic Scorecard (VPMOM) | 15% | 50% → 100% → 150% | 100% | Discretionary assessment |
Equity awards (FY2025):
| Award Type | Grant Date | Target Shares | Vesting Schedule | Key Performance / Price Terms |
|---|---|---|---|---|
| Performance‑Vesting RSUs | 9/11/2024 | 24,909 | Cliff vests 9/15/2027 (3‑yr); continued employment required | 3‑yr average Performance Factor: ARR 60% / Adj. OI 40%; 50–150% payout vs target |
| Time‑Vesting RSUs (annual) | 9/11/2024 | 24,909 | Quarterly over 4 years | |
| Time‑Vesting RSUs (retention) | 9/11/2024 | 33,212 | 10% per quarter for first 2 years; 5% per quarter in year 3 | |
| PSU “Kicker” (additive) | FY2025 | Add’l 25–100% of target (if Final PF >100%) | Vests 9/15/2027, employment condition | Based on stock price CAGR from 9/11/2024 to 9/11/2027: Threshold +15% ($232.01), Target +20% ($263.61), Max +25% ($297.95) |
Prior performance grant (FY2023 – Second Tranche payout):
| Tranche | Performance Target (ARR, CC) | Actual | Payout | Shares to Mullen |
|---|---|---|---|---|
| FY2025 ARR (3‑yr tranche) | $900M → $1,000M → $1,100M | $1,040M | 120% of target | 14,456 |
Grant date fair value of FY2025 RSUs to Mullen: $13,954,852 .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (10/20/2025) | 81,489 shares; includes 16,830 RSUs vesting within 60 days; <1% of class |
| Shares outstanding (record date) | 85,018,893 |
| Ownership % (computed) | ≈0.096% (=81,489 / 85,018,893) |
| Unvested equity (selected items, 7/31/2025) | Time RSUs: 22,405 (3/15/2022) $5,068,459; 7,529 (9/15/2022) $1,703,210; 17,927 (9/13/2023) $4,055,446; 20,239 (9/11/2024) $4,578,467; 23,249 (retention, 9/11/2024) $5,259,389 |
| Performance RSUs (unearned, 7/31/2025) | 31,869 (9/13/2023) $7,209,405; 24,909 (9/11/2024) $5,634,914 |
| Options | None outstanding; no options granted to NEOs in FY2025 |
| Ownership guidelines (execs) | CEO 4x salary; other Section 16 execs 1.5x salary within 3 years; all eligible NEOs met requirements by 7/31/2025 |
| Hedging/Pledging | Prohibited for directors/officers/employees; pre‑clearance required; blackout periods enforced |
Option/RSU vesting activity (FY2025):
| Item | Shares | Value Realized ($) |
|---|---|---|
| Shares acquired on vesting (Mullen) | 62,583 | 12,278,939 |
Employment Terms
| Provision | Terms |
|---|---|
| Employment start date | Appointed CRO/President effective 2/3/2022 |
| Executive Agreement | Executed Feb 2022; amended Sep 2024 |
| Severance (no CIC) | Cash severance = 12 months base salary ($500,000 as tabled); 12 months health benefits ($26,055) |
| Change‑in‑Control (double trigger) | Cash severance = 1x (base + target bonus) ($1,000,000); 12 months benefits ($26,055); full acceleration of all equity on qualifying termination |
| CIC (no termination; awards not assumed) | Full acceleration of outstanding equity per table valuation |
| Special retention protection | If terminated under defined company‑controlled circumstances by 7/31/2026, 50% of unvested equity accelerates; value example $18,851,591 (as of 7/31/2025) |
| Clawbacks | Dodd‑Frank compliant “Required” policy for restatements; broader “Supplemental” policy incl. reputational harm and incentive comp recovery; applies to cash/equity incentives; 3‑year lookback |
| Tax gross‑ups | No 280G/4999 excise tax gross‑ups; cutback if beneficial |
Compensation Structure
Multi‑year NEO totals (Mullen):
| Year | Salary ($) | Stock Awards ($) | Non‑Equity Incentive ($) | Total ($) |
|---|---|---|---|---|
| 2025 | 612,500 | 13,954,852 | 795,849 | 15,370,059 |
| 2024 | 500,000 | 5,863,259 | 610,000 | 6,979,140 |
| 2023 | 500,000 | 3,175,326 | 629,000 | 4,310,256 |
Design highlights:
- Mix: Salary + annual cash bonus + RSUs (time and performance) with PSU “kicker” tied to stock price CAGR for CEO/President .
- FY2025 bonus weighting increased to 85% financial (ARR + Adjusted OI) / 15% strategic scorecard .
Governance and Shareholder Feedback
- Say‑on‑pay support: Over 98% approval at 2024 annual meeting; Board maintained program design with added PSU modifier for CEO/President .
- Peer group benchmarking: FY2025 peer set of 16 U.S. software companies; equity awards generally around 50th percentile guidance .
Risk Indicators & Notes
- Insider policy prohibits hedging and pledging (alignment positive) .
- Late Section 16 filing: One late Form 4 for Mullen due to administrative error (process risk, not economic) .
- Equity acceleration on CIC can create transaction‑timing incentives; clawbacks mitigate financial misstatement risks –.
Investment Implications
- Strong pay-for-performance linkage: Bonus and performance RSUs tied to ARR and Adjusted OI; stock price CAGR “kicker” amplifies upside, aligning with long-term value creation but increases sensitivity to share price momentum .
- Retention risk mitigated: One-time retention RSUs (33,212) and special acceleration protection through FY2026 reduce near-term attrition risk; sizable unvested equity suggests ongoing alignment but potential periodic supply as awards vest .
- Ownership alignment: Compliance with executive ownership guidelines and prohibition of hedging/pledging support alignment; beneficial ownership ≈0.096% of shares outstanding, with meaningful unvested equity exposure .
- CIC economics: Double-trigger severance and full equity acceleration in a change‑in‑control could bias management toward favorable deal outcomes; no excise tax gross‑ups is shareholder-friendly .