Ahmad Khan
KLAAbout Ahmad Khan
Ahmad Khan is President, Semiconductor Products and Customers at KLA, overseeing the Semi PC, EPC, and Instruments businesses; he has held the President role since August 2019 and previously led the Global Products Group and Patterning Division, after joining KLA in 2003 following nine years at Applied Materials; he holds a bachelor’s degree in electronics engineering technology from DeVry University . He was age 47 in the 2021 proxy and 48 in the 2022 proxy, implying ~6 years in the current role as of FY2025 . His incentive framework ties pay to Operating Margin Dollar and a balanced scorecard (short-term bonus), three-year Relative Free Cash Flow Margin PRSUs, and one-time EPS-based PRSUs aligned to a 2026 plan; bonus outcomes included 198% of target for calendar 2020, 142% for 2022, 118% for 2023, and 144% for 2024, reflecting strong operational execution across cycles .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| KLA | President, Semiconductor Process Control | Aug 2019 – present | Oversaw Semi PC segment; accountable for segment strategy and execution |
| KLA | EVP, Global Products Group | Dec 2016 – Aug 2019 | Led wafer inspection and patterning divisions; product portfolio stewardship |
| KLA | EVP, Patterning Division | Aug 2015 – Dec 2016 | Directed technology roadmaps and customer collaboration strategies |
| KLA | VP & GM, Optical Films Metrology | 2007 | Expanded metrology businesses; divisional P&L management |
| KLA | Senior Director, Business Development (Films & Surface Tech) | 2003 | Drove growth initiatives; strategic partnerships |
| KLA | Executive responsibilities expanded to Resistivity, Optical CD, Implant, Thermawave, Overlay, SensArray | 2008 onward | Built a comprehensive Metrology Division portfolio |
| Applied Materials | Product engineering, support, operations, senior mgmt | ~1994–2003 | End-to-end product and operations leadership in semi equipment |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | None disclosed in KLA proxies for Ahmad Khan | — | — |
Fixed Compensation
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|---|
| Base Salary ($) | 575,000 | 641,346 | 650,000 | 758,174 | 750,000 |
| Target Bonus % of Salary (plan basis) | 100% (calendar 2020 plan) | 100% (calendar 2022 plan) | 100% (unchanged vs 2022) | 100% (unchanged vs 2023) | 100% (FY25 terms reference CY2024 plan continuity) |
Notes: Target bonus % is set on a calendar-year plan; FY columns reflect the applicable calendar-year plan referenced in the corresponding proxy discussion .
Performance Compensation
Annual Bonus Outcomes (Calendar-Year Basis)
| Metric | CY 2020 | CY 2022 | CY 2023 | CY 2024 |
|---|---|---|---|---|
| Bonus Plan design | Operating Margin Dollar + Balanced Scorecard + individual multiplier | Operating Margin Dollar + Balanced Scorecard + individual multiplier | Operating Margin Dollar + Balanced Scorecard + individual multiplier | Operating Margin Dollar + Balanced Scorecard + individual multiplier |
| Company Payout Multiple | 165% (funding before individual multiplier) | 118% | 118% | 144% (for each NEO) |
| Individual Bonus Achievement % | 120% (Ahmad Khan) | 120% (Ahmad Khan) | 100% (Ahmad Khan) | 80%–120% range (NEOs) |
| Target Bonus % of Salary | 100% | 100% | 100% | 100% (unchanged vs 2023) |
| Actual Bonus Paid ($) | 1,138,500 | 920,400 | 810,569 | 1,433,077 (paid in FY2025 for CY2024 plan) |
Long-Term Equity Incentives
- RSUs: Service-vesting; FY2025 RSUs vest 25% annually over four years .
- Annual PRSUs: Performance-vesting tied to three-year Relative Free Cash Flow Margin vs peers; FY2025 PRSUs vest 100% at three years .
- EPS Awards (one-time in FY2023): Performance-vesting tied to non-GAAP EPS across FY2023–FY2026 (target-based accounting at grant) .
RSU Grants
| Metric | FY 2023 | FY 2025 |
|---|---|---|
| Target Value ($) | 2,100,000 | 3,000,000 |
| Shares (#) | 6,260 | 3,633 |
| Vesting | 25% per year over 4 years | 25% per year over 4 years |
Annual PRSU Structure (FY 2023)
| Metric | FY 2023 |
|---|---|
| Performance Metric | Relative Free Cash Flow Margin vs industry peer group |
| Threshold / Target / Max Percentile | 30th / 55th / 75th |
| Threshold / Target / Max Shares (Ahmad Khan) | 1,565 / 6,260 / 9,390 |
| Payout Interpolation | Linear between thresholds |
| Vesting | Based on 3-year performance (awarded FY2023) |
EPS Awards (FY 2023 one-time program)
| Metric | Threshold Shares (#) | Target Shares (#) | Maximum Shares (#) | Grant Date Fair Value ($) |
|---|---|---|---|---|
| Ahmad Khan EPS Awards | 6,290 | 12,581 | 31,452 | 4,999,689 |
FY 2022 PRSU Performance Determination (Earned and Vesting)
| Item | Detail |
|---|---|
| Metric & Targets | Relative Free Cash Flow Margin: Threshold 30th, Target 55th, Max 75th percentile |
| Actual Performance | 82nd percentile (payout 150% of target shares) |
| Vesting Schedule | Earned PRSUs: 50% vested Aug 2024; remaining 50% vested Aug 2025 |
| Ahmad Khan Actual Shares Earned | 10,090 |
Recent Stock Vesting (Realized Value)
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Shares Acquired on Vesting (#) | 45,879 | 42,891 |
| Value Realized on Vesting ($) | 17,897,004 | 24,592,432 |
Equity Ownership & Alignment
Beneficial Ownership
| Metric | Sep 12, 2022 | Sep 8, 2023 |
|---|---|---|
| Shares Beneficially Owned (#) | 12,637 | 8,836.392 |
| Percent of Shares Outstanding | <1% | <1% |
- Pledging/Hedging: Company policy prohibits hedging and short sales; proxies state that, other than potential margin account collateral, none of the reported shares were pledged as of Sep 12, 2022 .
Stock Ownership Guidelines (as of Jun 30, 2022)
| Metric | Total Shares (#) | Value ($) | Ratio vs Salary |
|---|---|---|---|
| Ahmad Khan | 72,052 | 22,990,352 | 35.4x |
Outstanding Equity Awards (as of Jun 30, 2025)
| Grant | Unvested RSUs (#) | Market Value ($) | Unearned PRSUs (#) | Market/Payout Value ($) |
|---|---|---|---|---|
| 8/5/2021 | 1,681 | 1,505,739 | 5,044.5 (performance-determined; 50% vest Aug 2024, 50% Aug 2025) | 4,518,560 |
| 8/4/2022 | 3,130 | 2,803,666 | 20,968 (annual PRSU) | 18,781,428 |
| 8/3/2023 | 4,371 | 3,915,280 | 8,742 (annual PRSU) | 7,830,559 |
| 8/1/2024 | 3,633.412 | 3,254,592 | 7,266.826 (annual PRSU) | 6,509,187 |
Note: Market values based on $895.74 closing price on June 30, 2025 .
Employment Terms
- Severance/Change-of-Control: Khan participates in KLA’s 2010 Executive Severance Plan; the plans define change-of-control and provide for pro-rated vesting and accelerated vesting of equity upon qualifying termination; FY2022 disclosed estimated equity vesting values for Khan of $35,131,346 (pro-rated $18,540,462; accelerated $16,590,884) . Change-of-control definition includes 50%+ voting power change, asset sale, merger not preserving >50% prior voting power, or board composition changes per “Incumbent Directors” test .
- Clawback: KLA maintains a clawback policy enabling recovery of performance-based compensation upon significant restatement due to fraud, misconduct, material non-compliance, or material errors, at the Compensation and Talent Committee’s discretion .
- Section 16 Compliance: FY2022 proxies note one late Form 4 filing (two transactions) for Khan among several executives .
- Hedging/Short Sales: Prohibited under Insider Trading Policy; pledging generally prohibited except margin collateral contexts as noted .
Comprehensive Compensation Summary (Ahmad Khan)
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|---|
| Salary ($) | 575,000 | 641,346 | 650,000 | 758,174 | 750,000 |
| Stock Awards ($) | 3,845,408 | 4,758,814 | 9,975,137 | 5,855,158 | 5,494,737 |
| Non-Equity Incentive ($) | 1,138,500 | 1,207,692 | 920,400 | 810,569 | 1,433,077 |
| All Other Compensation ($) | 199,056 | 458,034 | 26,853 | 27,509 | 32,630 |
| Total ($) | 5,757,964 | 7,065,886 | 11,572,390 | 7,451,410 | 7,710,444 |
Performance Compensation – Metric Details (structure and vesting)
| Component | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| Annual Bonus (CY2020) | Operating Margin Dollar + Balanced Scorecard + Individual | Not disclosed | OMD target (not disclosed) | OMD $2.213B (~12% above target); Scorecard “4+”; Individual 120% | 198% of target; $1,138,500 | Cash paid per plan |
| Annual Bonus (CY2022) | Operating Margin Dollar + Balanced Scorecard + Individual | Not disclosed | — | Company 118%; Individual 120% | 142% of target; $920,400 | Cash paid per plan |
| Annual Bonus (CY2023) | Operating Margin Dollar + Balanced Scorecard + Individual | Not disclosed | — | Company 118%; Individual 100% | 118% of target; $810,569 | Cash paid per plan |
| Annual Bonus (CY2024) | Operating Margin Dollar + Balanced Scorecard + Individual | Not disclosed | — | Company payout 144% for each NEO; individual multipliers 80–120% | $1,433,077 (Ahmad Khan) | Cash paid FY2025 |
| Annual PRSUs (FY2023) | Relative Free Cash Flow Margin vs peers | N/A (share-based scale) | 55th percentile | Determined after 3 years | 25%/100%/150% of target at 30th/55th/75th+ | Earned shares vest per program (FY2023 award: 3-year) |
| EPS Awards (FY2023 one-time) | Non-GAAP EPS (FY2023–FY2026) | N/A | Target shares per grant | Ongoing | Target-based accounting at grant | Service through FY2026 required |
Investment Implications
- Strong pay-for-performance alignment: Khan’s incentives are heavily equity-based and tied to multi-year operational metrics (Relative Free Cash Flow Margin) and long-term EPS outcomes, with consistent bonus outcomes driven by Operating Margin Dollar and balanced scorecard; FY2022 PRSUs paid at 150% (82nd percentile), underscoring outperformance .
- Retention risk moderate: Large unvested RSUs/PRSUs with clear vesting schedules (annual RSUs 25% over four years; FY2025 PRSUs 100% at three years; FY2022 PRSUs vesting split Aug 2024/Aug 2025) create forward overhang and retention hooks .
- Selling pressure timing: Significant annual vesting volumes (e.g., 45,879 shares in FY2023; 42,891 in FY2024) imply predictable liquidity/tax-related selling windows around vest dates; monitor August vest clusters for PRSUs .
- Alignment safeguards: Ownership guidelines significantly exceeded (35.4x salary as of Jun 30, 2022) and hedging/short sales prohibited; pledging effectively restricted, reducing misalignment/credit risk signals .
- Governance/Disclosure watchpoints: A single late Form 4 in FY2022 is a minor process flag; clawback policy is robust and board-driven, mitigating restatement risk on pay .