Scott C. Hensel
Executive Vice President, Global Services & Delivery at IT
Executive
About Scott C. Hensel
Scott C. Hensel (age 52) is Executive Vice President, Global Services & Delivery at Gartner, Inc., in the role since November 2020; he previously served as EVP, Consulting after joining Gartner in 2017, and earlier was President of Terex Services and a partner at McKinsey & Company for 14 years . Gartner’s 2024 performance underpinning Hensel’s incentive framework included EBITDA of $1,586 million (FX-neutral) and revenue of $6,331 million (FX-neutral) versus targets, leading to strong bonus payouts; Contract Value (CV) rose 7.8% to $5,262 million, and five‑year TSR rose from $100 to $314, illustrating value creation during Hensel’s tenure in senior leadership . Gartner highlighted Research CV growth (7% GTS, 12% GBS), Conferences revenue at $583 million (+15% FX‑neutral), and Consulting revenue growth of 9% (FX‑neutral) in 2024, supporting pay-for-performance alignment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Gartner, Inc. | EVP, Global Services & Delivery | Nov 2020–present | Leads enterprise-wide services and delivery; aligns service execution with CV and revenue growth metrics driving long-term performance |
| Gartner, Inc. | EVP, Consulting | 2017–Nov 2020 | Drove consulting as extension of IT Research; Consulting grew 9% in 2024 (FX-neutral), exiting with strong backlog/pipeline |
| McKinsey & Company | Partner | 14 years (notional tenure) | Advised IT and advanced industries; partner-level execution experience strengthens operating rigor and client impact |
| Terex Corporation | President, Terex Services, Parts & Customer Solutions | Not disclosed | Led aftermarket services P&L; operational leadership in industrial services prior to Gartner |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| McKinsey & Company | Partner | 14 years | Strategy and operations advisory across IT and advanced industries, informing execution discipline |
| Terex Corporation | President, Terex Services, Parts & Customer Solutions | Not disclosed | Scaled services and customer solutions; relevant to Gartner’s delivery leadership |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $541,059 | $557,291 (3.0% increase; effective Apr 1, 2024) |
| Target Bonus (% of Salary) | 95% prior framework; increased by 5% to align with market (applies to NEOs other than CEO) → 100% for 2024 | 100% |
| Actual Bonus Paid ($) | $817,270 | $906,155 (paid Feb 2025) |
| Other Compensation ($) | $73,218 | $80,144 |
| Other Compensation Components ($) | 401(k) match $7,200; NQDC match $47,620; Other/perqs $18,398 | 401(k) match $7,200; NQDC match $47,620; Other/perqs $25,324 (incl. Winner’s Circle event tax gross‑up $2,406) |
Performance Compensation
Annual Bonus – 2024 Structure and Outcomes
| Component | Weight | Target | Actual | Payout % | Resulting Payout Mechanics |
|---|---|---|---|---|---|
| EBITDA (FX‑neutral) | 50% | $1,497m | $1,586m | 196.7% | Bonus payouts certified at 162.6% overall; cash paid Feb 2025 |
| Revenue (FX‑neutral) | 50% | $6,274m | $6,331m | 128.5% | Awards capped at 200%; performance-only basis |
Long-Term Equity – 2024 Grants and PSU Performance
| Instrument | Grant Date | Metric | Target | Actual | Earned/Outcome | Vesting |
|---|---|---|---|---|---|---|
| PSUs | 2/8/2024 | Contract Value (CV; FX-neutral) | $5,222m | $5,262m | 120.8% of target → 5,026 units earned for Hensel | 25% per year over 4 years starting 2/8/2025 |
| SARs | 2/8/2024 | Stock price appreciation | 4,845 SARs | Strike $456.18; 7‑yr term | Realizable only if stock > strike | 25% per year over 4 years |
Equity mix emphasizes performance: 70% PSUs, 30% SARs; all long-term awards vest 25% annually, aligning retention with multi‑year shareholder value creation .
Historical Equity Activity (Liquidity/Pressure Signals)
| Activity (2024) | Quantity | Value Realized |
|---|---|---|
| SARs exercised | 14,550 | $5,211,519 |
| Stock awards vested/released | 8,516 shares | $3,959,394 |
Equity grant dates and schedules imply forward vesting events: 2022 grants begin 2/10/2023 vesting annually; 2023 grants begin 2/9/2024; 2024 grants begin 2/8/2025; each at 25% per year over four years .
Equity Ownership & Alignment
| Ownership Element | Detail |
|---|---|
| Total beneficial ownership | 58,590 shares; includes 35,985 vested & exercisable SARs; <1% of shares outstanding; to Company’s knowledge, none pledged |
| Stock ownership guidelines | 3× base salary for executive officers; all NEOs compliant as of Dec 31, 2024; 50% net-after-tax holding requirement until compliant |
| Hedging/pledging | Prohibited by Insider Trading Policy; applies to all directors and executive officers |
| Vested vs. unvested (selected awards) | Unexercisable SARs: 2,889 @ $180.64 (exp 2/10/2028); 3,416 @ $302.90 (exp 2/9/2029); 4,128 @ $351.03 (exp 2/9/2030); 4,845 @ $456.18 (exp 2/8/2031) . Unvested PSUs: 3,667; 3,202; 3,971; 5,026 across award years (market values shown at $484.47 YE price) . |
| Option/SAR term | SARs are stock-settled, 7‑year term; value only if stock exceeds grant price |
Employment Terms
| Provision | Detail |
|---|---|
| Employment agreement | Only CEO has an employment agreement; other executive officers (including Hensel) are at‑will |
| Severance (no CIC) | 12 months continued base salary; reimbursement of COBRA premiums up to 12 months; unvested equity forfeited (except death/disability/retirement) |
| Change-in-control (CIC) | Double‑trigger required; if terminated without cause within 12 months post‑CIC, all unvested outstanding equity vests (PSUs at target if performance not yet determined); SARs/options fully exercisable |
| Modeled termination values (12/31/2024) | NEO Double‑Trigger: total $10,032,752 for Hensel (includes $9,453,448 value of unvested equity and $579,304 severance/COBRA) |
| Non‑compete/Non‑solicit | Separation agreements require reaffirmation of confidentiality, non‑compete, and non‑solicit obligations (duration not disclosed for non‑CEO executives) |
| Clawback | Dodd‑Frank/NYSE‑compliant recoupment of excess incentive‑based compensation upon material restatement for prior three fiscal years |
| Deferred compensation | 2024 Executive contributions $54,820; Company match $47,620; earnings $104,946; balance $774,109 |
| Perquisites | Participates in employee charitable matching; modest perqs; 2024 “Other” includes Winner’s Circle event tax gross‑up $2,406; no excise tax gross‑ups for severance/CIC |
Compensation Governance & Peer Benchmarking
- Pay-for-performance emphasis: 100% of bonus and 70% of equity awards are performance-based; awards capped at 2×; longer-than-typical four-year vesting promotes retention .
- Ownership discipline: Robust stock ownership and holding policies; prohibition on hedging/pledging elevates alignment .
- Peer group benchmarking: 2024 peer set spans 17 companies (e.g., Adobe, ServiceNow, Intuit, Moody’s); Committee reviews 25th/50th/75th percentile data without targeting a specific percentile; Exequity serves as independent advisor .
- Say‑on‑Pay support: 92% approval in 2024; program structure unchanged following strong shareholder backing .
Performance & Track Record
| Measure | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| TSR – $100 initial investment (Company) | 104 | 217 | 218 | 293 | 314 |
| Net Income ($mm) | 267 | 794 | 808 | 882 | 1,254 |
| Contract Value (CV, $mm) | 3,605 | 4,247 | 4,660 | 4,839 | 5,262 |
- 2024 operating highlights: Research revenue +5% (FX-neutral) with CV growth +8% (GTS +7%, GBS +12%); Conferences revenue $583m (+15% FX-neutral); Consulting +9% FX-neutral; robust FCF supported shareholder returns ($735m buybacks) .
- Bonus outcomes and PSU earnings mirror EBITDA, revenue, and CV performance, demonstrating direct pay-for-performance linkage .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited; none of executive/board holdings pledged to the Company’s knowledge .
- Related party transactions: None material since Jan 1, 2024; strong RPT policy under Audit Committee oversight .
- Option repricing/tax gross‑ups: No option repricing; no excise tax gross-ups for severance/CIC; minor event-related tax gross‑ups noted (e.g., Winner’s Circle) .
- Section 16 compliance: No delinquency disclosed for Hensel; isolated late Form 4s for others due to administrative error .
Compensation Peer Group (2024)
Adobe; Akamai; Aon; Autodesk; Cadence Design; Equifax; Intuit; Moody’s; ServiceNow; Splunk*; SS&C; Synopsys; Interpublic Group; Thomson Reuters; Verisk; VMware**; Workday .
- Notes: Splunk acquired March 2024; VMware acquired November 2023 .
- Targeting: Committee reviews market data; does not fix pay to a specific percentile; considers performance, tenure, and retention .
Say‑on‑Pay & Shareholder Feedback
| Year | Approval Rate |
|---|---|
| 2024 | 92% of votes cast |
Company engages investors and maintained program design given consistent strong support .
Investment Implications
- Alignment and incentives: Hensel’s pay mix is highly performance-weighted (100% of bonus, 70% of equity tied to EBITDA, Revenue, and CV), with four‑year vesting promoting retention and long‑term value creation; 2024 payouts at 162.6% for bonus and 120.8% for PSUs reflect strong execution .
- Insider supply dynamics: Predictable 25% annual vesting across 2022–2024 grants creates scheduled release events; 2024 SAR exercises ($5.2m realized) and award vesting ($4.0m) indicate ongoing liquidity but are balanced by robust ownership/holding requirements and a prohibition on hedging/pledging, mitigating misalignment risk .
- Retention and CIC economics: For non‑CEO executives, severance is modest (12 months base + COBRA), with equity acceleration only on double‑trigger CIC, reducing windfall risk while ensuring protection in transactions; modeled double‑trigger value for Hensel totals ~$10.0m at 12/31/2024, largely equity‑driven .
- Execution track record: Company‑level TSR and CV/net income growth over 2020–2024 are strong; 2024 segment performance underscores operating resilience and supports continued pay‑for‑performance structures that investors typically favor .