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Ryan McGroarty

Chief Financial Officer and Treasurer at LifeStance Health Group
Executive

About Ryan McGroarty

Ryan McGroarty, age 52, has served as LifeStance Health Group’s Chief Financial Officer and Treasurer since March 17, 2025. He previously served as CFO of Help at Home, LLC (Sep 2021–Mar 2025) and held multiple CFO roles at The Cigna Group, including CFO of Cigna’s Government Business Segment (2017–Sep 2021) and CFO of Cigna HealthSpring (2014–2017). He holds a BA in Finance from Michigan State University and an MBA from the University of Rochester . Company performance context prior to his appointment: FY2024 revenue grew 19% to $1.25B and Adjusted EBITDA increased 103% to $119.7M, with free cash flow of $85.7M .

Past Roles

OrganizationRoleYearsStrategic impact
Help at Home, LLCChief Financial OfficerSep 2021–Mar 2025Led finance, accounting, treasury, and revenue management functions at the largest U.S. homecare company .
The Cigna GroupCFO, VP Government Business Segment2017–Sep 2021CFO leadership for Government Business; prior CFO of Cigna HealthSpring (Medicare Advantage) .
Cigna HealthSpringChief Financial Officer2014–2017Segment CFO responsibilities for HealthSpring .

External Roles

OrganizationRoleYearsNotes
Not disclosedNo public company directorships disclosed in the proxy’s executive officer section .

Fixed Compensation

ElementAmountEffective dateTerms
Base salary$550,000Mar 17, 2025Per employment agreement .
Target annual bonus85% of base salary2025 plan yearActual payout based on achievement of performance objectives .
Sign-on bonus (cash)$570,000On commencement (2025)One-time; subject to repayment in certain circumstances .

Performance Compensation

Equity Incentives (Initial CFO Grant)

Grant typeTarget grant date valueGrant dateVesting schedulePerformance conditions
Time-based RSUsIncluded in ~$5,000,000 aggregateMar 17, 20251/3 on each of the first three anniversaries (Mar 17, 2026; Mar 17, 2027; Mar 17, 2028), subject to continued employment .
Performance-based RSUsIncluded in ~$5,000,000 aggregateMar 17, 20251/3 on each of the first three anniversaries, vesting solely to the extent underlying performance targets are achieved, subject to continued employment .

Annual Bonus Plan Metrics (Company program design)

Metric categoryNotes
RevenueUsed in 2024 bonus framework .
Adjusted EBITDAUsed in 2024 bonus framework .
Free Cash FlowUsed in 2024 bonus framework .
Patient SatisfactionUsed in 2024 bonus framework .

Company RSU Performance Outcomes (Context: FY2024, for NEO awards)

Performance period yearMetric (weight)Threshold ($)Target ($)Actual ($)Payout (% of target RSUs)
2024Revenue (50%)1,119M1,215M1,251M100% .
2024Adjusted EBITDA (50%)80M85M120M100% .

Note: The company historically ties performance RSUs to revenue and Adjusted EBITDA; specific metric weights/targets for McGroarty’s 2025–2027 PSUs were not disclosed in the 8‑K .

Equity Ownership & Alignment

ItemRyan McGroartyCompany context
Beneficial ownership (shares)Not individually disclosed in Beneficial Ownership table as of Apr 11, 2025388,882,916 shares outstanding .
Ownership % of outstandingN/A
Hedging/pledging policyHedging and pledging of company stock are prohibited .
Clawback policyDodd‑Frank compliant clawback adopted Nov 2023; applies to Section 16 officers (includes CFO) .
Equity compensation plan2021 Equity Incentive Plan; grants may be time- and performance-based RSUs; no stock options granted to NEOs in 2024 .

Employment Terms

TermDetail
Start dateAppointed CFO and Treasurer effective March 17, 2025 .
Employment agreementProvides base, target bonus, sign-on bonus, and equity grants as noted; bonus paid based on performance objectives .
Severance (non‑CIC)If terminated without cause or resigns for good reason: continued payment of base salary for 12 months, subject to release; also eligible under Company Severance and Change in Control Policy .
Change-in-control (CIC) policyDouble-trigger: if terminated without cause or resigns for good reason within 6 months before to 12 months after CIC → lump sum salary (12 months for participants other than CEO), lump sum target annual bonus, health benefit payments; full acceleration of unvested time-based awards and PSUs granted on/after Jun 9, 2021 (PSUs deemed earned at target and converted to time-based) .
Equity vesting treatment (CIC/non‑CIC)CIC acceleration as above; otherwise vesting per award terms; RSUs vest over three years from grant date .
Restrictive covenantsConfidentiality/IP assignment; non‑compete and non‑solicit during employment and for 18 months post‑termination .
Tax gross‑upsNo agreements providing change in control excise or other tax gross‑up provisions for executives .
401(k)/retirementCompany offers 401(k) with employer match; no SERP or other non‑qualified retirement benefits .
Insider trading/hedgingInsider Trading Policy in place; prohibits hedging; policy document filed with FY2024 Form 10‑K .
Proxy holder designationMcGroarty designated as one of the proxy holders for the 2025 Annual Meeting .

Investment Implications

  • Compensation alignment: Heavy use of RSUs with three-year vesting and performance conditions ties McGroarty’s realized pay to multi-year operational delivery; prohibition on hedging/pledging and an active clawback further strengthen alignment .
  • Retention risk: An 18-month non‑compete/non‑solicit and staggered three-year RSU vesting reduce near-term attrition risk; severance provides 12 months’ salary if terminated without cause/good reason, balancing retention with governance .
  • Potential selling pressure windows: Annual RSU vesting dates around March 17 in 2026, 2027, and 2028 could create incremental supply; PSUs add variability based on performance determination timing .
  • CIC economics: Double-trigger severance plus full acceleration of unvested equity (PSUs at target) can be value-meaningful in M&A scenarios; investors should model dilution/overhang and potential lump-sum cash obligations under CIC .
  • Performance levers to watch: Revenue, Adjusted EBITDA, and free cash flow have historically driven incentive outcomes; FY2024 achieved 100% PSU payouts on these metrics, underscoring sensitivity of equity vesting to operational execution .