Douglas R. Bettinger

About Douglas R. Bettinger

Douglas R. Bettinger is Executive Vice President and Chief Financial Officer of Lam Research, responsible for Finance, Tax, Treasury, Investor Relations and Corporate Analytics. He joined Lam in 2013 after CFO and senior finance roles at Avago (now Broadcom), Xilinx, 24/7 Customer, and Intel; he holds an MBA (University of Michigan) and a B.S. in Economics (University of Wisconsin). As of August 7, 2025, he is 58 years old. Lam delivered FY2025 revenue of $18.44B and net income of $5.36B, with non‑GAAP operating margin of 32.3%; CY2024 revenue was ~$16.2B (+~13% YoY). The 2022–2024 LTIP PRSUs paid at 56.94% of target as Lam underperformed the XSOX index by 21.53% over the period, evidencing pay-for-performance alignment.

Past Roles

Organization	Role	Years	Strategic impact
Lam Research	EVP & CFO	2013–present	Company’s principal financial officer; oversight of Finance, Tax, Treasury, IR and Corporate Analytics.
Avago Technologies (now Broadcom)	SVP & CFO	2008–2013	Corporate finance leadership for a large semiconductor company.
Xilinx	VP Finance & Corporate Controller	2007–2008	Corporate controller functions and finance leadership.
24/7 Customer	Chief Financial Officer	2004–2007	CFO of a privately‑held company.
Intel Corporation	Senior finance roles	1993–2004	Corporate planning/reporting controller; Malaysia site operations controller.

External Roles

Organization	Role	Years	Notes
Lattice Semiconductor Corporation	Director	Current	Public company board service.
SEMI	Board of Industry Leaders	Current	Industry leadership role.
University of Wisconsin College of Engineering	Industrial Advisory Board	Current	Academic–industry advisory role.

Fixed Compensation

Component	2024	2025
Base Salary ($)	726,150	775,000 (effective Feb 17, 2025)
Target Bonus (% of Base)	115%	115%
AIP Target ($, CY2024 basis)	835,073	—
Actual AIP Payout ($, CY2024)	1,022,379	—

Performance Compensation

Annual Incentive Program (AIP) – CY2024 outcomes

Factor	Metric	Weighting	Result	Payout Factor
Corporate Performance	Non‑GAAP operating margin	Equal weighting across factors	—	1.06
Profitability Performance	Non‑GAAP gross margin	Equal weighting across factors	—	1.10
Individual Performance	Leadership objectives (market, safety/quality/customer, human capital, financial)	Equal weighting across factors	—	1.05

Notes:

Funding Factor set on non‑GAAP operating margin; CY2024 funding was 250% of target (cap) based on actual results.
Individual performance components included Market Performance & Execution, Safety/Quality/Customer Satisfaction, Human Capital & Sustainability, and Financial Performance.

Long‑Term Incentive Program (LTIP)

2025/2027 Awards (grant date Feb 28, 2025)

Instrument	Target Shares (#)	Payout Range	Performance Metric	Vesting/Measurement	Grant Date Fair Value ($)
Market‑based PRSUs	50,153	0–150% of target	Relative TSR vs performance index constituents; cap 100% if absolute TSR negative	3‑year period (Feb 3, 2025–Feb 2, 2028)	4,316,669
Service‑based RSUs	33,435	n/a	Service	1/3 annually on each of 1st, 2nd, 3rd anniversaries	2,483,552

2022/2024 LTIP PRSU Payouts (performance period Feb 1, 2022–Jan 31, 2025)

Item	Value
Target PRSUs (#)	38,000
Actual Payout (#)	21,637 (56.94% of target)
Lam vs XSOX (market price)	Underperformed by 21.53% (17.07% vs 38.60%)

LTIP design changes (effective 2025/2027): removed stock options; equity mix now market‑based PRSUs + service‑based RSUs; relative TSR measured vs peer percentile to mitigate outlier effects; payouts capped at 100% if absolute TSR is negative.

Equity Ownership & Alignment

Beneficial Ownership Snapshot (as of Sept 5, 2025)

Metric	Value
Shares Beneficially Owned (#)	1,093,082 (<1% of outstanding)
Shares Vesting/Exercisable within 60 days (#)	113,730
Shares Outstanding (for % calc) (#)	1,261,032,300
Executive Stock Ownership Guideline	Executive Vice Presidents: 2x base salary
Guideline Compliance	All NEOs in compliance or within time to meet requirements
Hedging/Pledging	Prohibited by Insider Trading Policy (limited exchange fund exception)

Outstanding Equity Awards at FY2025 Year‑End (selected)

Grant Date	Type	Exercisable Options (#)	Unexercisable Options (#)	Exercise Price ($)	Expiration	RSUs Unvested (#)	RSUs MV ($)	Unearned PRSUs (#)	PRSUs MV ($)
2/28/2025	RSUs	—	—	—	—	33,435	3,249,882	—	—
2/28/2025	PRSUs	—	—	—	—	—	—	50,153	4,874,872
3/1/2024	Options	13,240	26,480	98.15	3/1/2031	—	—	—	—
3/1/2024	RSUs	—	—	—	—	8,830	858,276	—	—
3/1/2024	PRSUs	—	—	—	—	—	—	39,720	3,860,784
3/1/2023	Options	34,180	17,090	49.09	3/1/2030	—	—	—	—
3/1/2023	RSUs	—	—	—	—	5,700	554,040	—	—
3/1/2023	PRSUs	—	—	—	—	—	—	51,280	4,984,416
3/1/2022	Options	37,980	—	54.06	3/1/2029	—	—	—	—
3/1/2021	Options	16,620	—	59.88	3/1/2028	—	—	—	—
3/2/2020	Options	11,710	—	30.03	3/2/2027	—	—	—	—

Vest schedule reference: RSUs vest in three equal annual installments from grant; PRSUs cliff‑vest based on 3‑year performance.

Realized Equity in FY2025

Metric	Value
Shares Acquired on Vesting (#)	35,967
Value Realized on Vesting ($)	2,760,108

Employment Terms

Policy Overview (Severance & Change‑in‑Control)

Executive Severance Policy (Tier 1 for CEO/President/EVPs, includes CFO): upon Involuntary Termination (not for cause, outside a CIC), cash severance equals 100% of base salary + 50% of five‑year average AIP payout + pro‑rated AIP (based on corporate results and assumed individual performance), plus medical benefits, pro‑rated vesting of older service‑based RSUs, and cash settlement for pro‑rated performance‑based RSUs based on performance to date.
Change‑in‑Control Policy: double‑trigger required (CIC plus qualifying termination); no single‑trigger; provides designated severance payments/accelerations.
Clawback: recoupment of excess incentive‑based compensation for the three completed fiscal years preceding a required restatement; applies regardless of fault; effective for awards received on/after Oct 2, 2023.
Tax gross‑ups: none for perquisites or change‑in‑control; relocation exceptions may apply.
Insider Trading Policy: prohibits pledging and hedging (limited diversified exchange fund allowance under thresholds).

Potential Payments as of June 29, 2025 (illustrative)

Scenario	Severance ($)	5‑yr Avg STI ($)	Pro‑rata STI ($)	Options Accel ($)	RSUs Accel ($)	PRSUs Accel ($)	Health ($)	Total ($)
Involuntary Termination (Not for Cause)	775,000	500,444	371,354	205,517	245,722	6,834,229	35,022	8,967,288
CIC + Qualifying Termination	1,162,500	1,501,331	417,036	822,166	4,662,198	14,083,502	35,022	22,683,755

Deferred Compensation

Item	Detail
EDCP Balance (FY2025 year‑end)	$9,497,149 (CFO)
EDCP CIC Distribution	Amounts credited after Dec 31, 2004 paid in a lump sum on 1st business day of 18th month following CIC (per plan)

Compensation Structure Insights

Program design emphasizes at‑risk pay: AIP tied to non‑GAAP operating and gross margin plus individual objectives; LTIP shifted to PRSUs + RSUs with removal of options in 2025, aligning more closely with prevalent peer practices and moderating volatility.
LTIP relative TSR changes reduce outlier influence and cap upside when shareholders experience negative absolute returns, tightening pay‑for‑performance alignment.
Compensation benchmarking uses a technology/semi peer group; the committee does not “target” a specific percentile—pay positioning reflects role, performance, and market.
Say‑on‑Pay support exceeded 90% from 2021–2024; ongoing shareholder outreach shaped 2025 LTIP refinements (negative TSR cap).

Investment Implications

Alignment: Significant equity exposure (1.09M shares beneficially owned), ownership guidelines (2x salary for EVPs), prohibitions on hedging/pledging, and a robust clawback enhance long‑term alignment and reduce governance risk.
Retention vs. Transaction Incentives: Double‑trigger CIC with substantial equity acceleration (total ~$22.7M as of FY2025) provides retention and transaction certainty; outside CIC, severance is moderate with pro‑rated equity—balanced retention economics.
Performance Sensitivity: 2022–2024 PRSUs paid at 56.94% on index underperformance, while FY2025 fundamentals improved (revenue +23.7% YoY; net income +40% YoY), suggesting LTIP outcomes will remain sensitive to market‑relative returns even amid operational strength.
Near‑Term Flow: RSU tranches vest annually (e.g., 2/28 in 2026–2028 for 2025 grants), and the CFO realized ~$2.76M on vesting in FY2025; periodic Form 4 sales around vest dates (tax/liquidity) may create modest, predictable insider supply.
Governance Overhang: No CIC tax gross‑ups; double‑trigger only; high say‑on‑pay support—low governance overhang from compensation structure.

Appendix: Company Performance Context (select)

Metric	Period	Value
Revenue	FY2025	$18,435,591,000
Net Income	FY2025	$5,358,217,000
Non‑GAAP Operating Margin	FY2025 (PVP table)	32.3%
Revenue	CY2024	~$16.2B (+~13% YoY)