Patrick J. Lord

About Patrick J. Lord

Patrick J. Lord, Ph.D., is Executive Vice President and Chief Operating Officer (COO) of Lam Research, a role he has held since March 1, 2023; he is 59 years old as of August 2025 and holds B.S., M.S., and Ph.D. degrees in mechanical engineering from MIT . His remit spans Global Operations; Customer Support; Global Quality; Environmental Health & Safety; Global Government Affairs & Trade; Information Technology; Cybersecurity; and Global Resilience, Security & Transformation, reflecting broad operational accountability and risk management oversight . Under his tenure, Lam’s calendar-year 2024 revenue was approximately $16.2B (+13% y/y), with operating cash flow of ~$4.6B (28% of revenues), while FY2025 reported net income of ~$340M and non-GAAP operating margin of 32.3%, aligning his incentive metrics to profitability and TSR outcomes .

Past Roles

Organization	Role	Years	Strategic Impact
Lam Research	EVP & COO	Mar 2023–present	Expanded remit to include GIS and Global Resilience/Security/Transformation; drive operational effectiveness, productivity, and business resilience .
Lam Research	EVP, CSBG & Global Operations	Sep 2020–Feb 2023	Led Customer Support Business Group and global operations, integrating lifecycle support with cost/quality initiatives .
Lam Research	SVP & GM, CSBG	Dec 2016–Sep 2020	Scaled CSBG revenues and offerings across spares, refurbishment and upgrades to optimize uptime and cost for customers .
Lam Research	Group VP & Deputy GM, Global Products Group	Sep 2013–Dec 2016	Product design/engineering governance across etch/deposition; business processes for cost, quality, volume, reliability .
Lam Research (via Novellus acquisition)	Head of DGSI Business Units	Jun 2012–Sep 2013	Led Direct Metals, GapFill, Surface Integrity Group & Integrated Metals units following Novellus acquisition .
Novellus Systems	SVP & GM, DGSI; SVP BD & Strategic Planning	2001–2012	Business development, strategic planning, and BU leadership across CMP, DGSI; senior roles in marketing and product .
KLA-Tencor	Product marketing/management roles	~1995–2001	Product marketing and management across inspection/metrology, pre-Lam career foundation .

External Roles

Organization	Role	Years	Strategic Impact
Novellus Systems	Various senior roles incl. SVP/GM, BD & Strategic Planning	2001–2012	Grew multiple process BUs and strategic planning capabilities prior to Lam acquisition .
KLA-Tencor	Product marketing/management	~1995–2001	Market-led product management experience in inspection/metrology .

Fixed Compensation

Metric	CY 2023	CY 2024	CY 2025
Base Salary ($)	577,661	685,000	725,000
Target Bonus (% of Base)	110%	110%	110%
Target Bonus ($)	635,427	753,500	797,500
Actual AIP Paid ($)	610,010	922,510	—

Calendar 2024 AIP mechanics and payout (Dr. Lord)

Component	Metric	Weighting	Target level design	Actual Result	Factor Applied
Funding Factor	non-GAAP operating margin	N/A	Sets max pool funding	250.0% of target pool	2.50x
Corporate Performance Factor	non-GAAP operating margin	1/3	Stretch goal above AOP; scaled more rapidly around AOP for 2024	Achieved	1.06
Profitability Performance Factor	non-GAAP gross margin	1/3	Stretch goal above AOP; scaled more rapidly around AOP for 2024	Achieved	1.10
Individual Performance Factor	Corporate & individual goals	1/3	Weighted corporate plan contribution, individual contribution, corporate modifier	Average for NEOs	1.05
Dr. Lord payout ($)	Computed	—	2024 target $753,500	Result	$922,510

Performance Compensation

LTIP structure and grants

Program	Vehicle	Metric	Mix (% of LTIP target)	Grant/Performance Dates	Vesting	Grant Details (Dr. Lord)
2025/2027 LTIP	Market-based PRSUs	Relative TSR vs XSOX (percentile rank); capped at 100% if absolute TSR negative	60% (EVP)	Grant 2/28/2025; Performance 2/3/2025–2/2/2028	Cliff at 3 years	40,565 target PRSUs
2025/2027 LTIP	Service-based RSUs	Service	40% (EVP)	Grant 2/28/2025	1/3 vest on 1st, 2nd, 3rd anniversaries	27,043 RSUs
2022/2024 LTIP payout	Market-based PRSUs	TSR vs XSOX (index comparison)	—	Performance 2/1/2022–1/31/2025	—	56.94% of target; 17,309 shares paid

Market-based PRSU payout curve (2025/2027)

TSR Percentile vs XSOX	Earned (% of Target)
≥75th percentile	150%
50th percentile	100%
25th percentile	50%
<25th percentile	0%

Options and vesting schedules

Grant Date	Exercisable (#)	Unexercisable (#)	Exercise Price	Vesting Convention
3/1/2024	10,610	21,220	$98.15	1/3 annually for 3 years
3/1/2023	14,070	14,070	$49.09	1/3 annually for 3 years
3/1/2022	10,130	—	$54.06	Fully vested; original 3-year schedule

Equity Ownership & Alignment

Item	Value
Beneficial ownership (shares)	71,455; <1% of class (outstanding shares 1,261,032,300)
Shares vest/exercisable within 60 days	34,810 (options/RSUs)
Unvested RSUs (2/28/2025 grant)	27,043; market value $2,628,580 at $97.20 closing price
Market-based PRSUs (target, 2/28/2025 grant)	40,565; target payout value $3,942,918 at $97.20
Stock ownership guideline (EVP)	2× base salary; executive officers in compliance or have time remaining
Hedging/pledging	Prohibited under insider trading policy .

Alignment notes

LTIP is majority performance-based (relative TSR) with explicit negative-TSR cap, increasing sensitivity to shareholder outcomes .

AIP uses profitability (non-GAAP operating margin and gross margin) plus corporate/individual goals, reinforcing focus on margin discipline .

Employment Terms

Executive Severance & Change-in-Control (CIC) Economics (Tier 1 – EVP)

Scenario	Cash Severance	Short-term Incentive	Equity Treatment	Benefits/Other
Involuntary (not for cause), no CIC/Acquisition	100% of base salary; 150% for CEO	50% of Five-Year Average; plus pro-rata current-year incentive (corporate results; individual at target/peer-average)	Pro-rata vesting of performance RSUs (cash based on performance to date × stock price); pro-rata vesting of service RSUs/options granted ≥12 months prior	Medical continuation; confidentiality/non-compete; release; 6-month non-solicit .
Disability/Death	Pro-rata current-year incentive (corporate results; individual at target/peer-average)	N/A	Vesting of service RSUs/options; pro-rata performance RSUs based on performance to date	Medical continuation .
CIC or Acquisition (double trigger)	150% of base; 150% of Five-Year Average; plus pro-rata Five-Year Average in year of termination (200% multiples for CEO)	As above	Service RSUs/options granted prior to CIC: vest at termination; Performance RSUs: cash award = pro-rata performance to CIC + pro-rata target to period end × stock price	Medical continuation; release; 6-month non-solicit .

Potential Payments Illustration (as of 6/29/2025; Dr. Lord)

Scenario	Total ($)
Involuntary – Not for Cause	7,459,099
CIC or Acquisition (Double Trigger)	18,559,011
Disability/Death	17,720,425

Governance/Policy Provisions

Clawback: SEC/Nasdaq-compliant policy (effective 2023), recoupment of incentive-based compensation upon restatement regardless of fault; supersedes prior policy .
Tax gross-ups: No gross-ups for perquisites/CIC; relocation gross-ups may apply broadly (example shown for another NEO) .
Option repricing: Prohibited without shareholder approval .
Insider trading: Hedging/pledging prohibited; blackout periods in effect .

Performance Compensation – Detailed AIP Table (CY 2024)

Metric	Weight	Targeting Approach	Actual vs Target	Payout Factor
non-GAAP operating margin (Corporate)	33.3%	Stretch goals above AOP; accelerated scaling between AOP and “1.0” level (2024 only)	Achieved stretch	1.06
non-GAAP gross margin (Profitability)	33.3%	Stretch goals above AOP; accelerated scaling between AOP and “1.0” level (2024 only)	Achieved stretch	1.10
Individual Performance	33.3%	Corporate plan contribution + individual contributions + corporate modifier	Avg. applied to NEOs	1.05

Compensation Structure Analysis

Shift from options to RSUs: 2025/2027 LTIP removed options, increasing service RSU mix while keeping market-based PRSUs constant; committee cited resilience amid stock volatility and peer alignment .
Negative TSR cap: PRSU payouts capped at 100% if absolute TSR is negative, limiting upside in down markets .
AIP complexity reverted: 2025 AIP returns to linear factor relationships (removing 2024 accelerated scaling) to reduce complexity while maintaining stretch goals .
Strong Say-on-Pay: Advisory approvals exceeded 90% from 2021–2024, signaling investor support for pay design .

Equity Ownership & Pledging

Ownership guidelines: EVP 2× salary; all NEOs in compliance or within the allowed time window to reach compliance .
Pledging/hedging: Prohibited by policy, reducing alignment risk; exchange fund participation limited and diversified .
Related-party transactions: None reported for executives in FY2025, reducing conflict risk .

Expertise & Qualifications

Technical/operator: Nearly three decades across semiconductor equipment operations and product leadership; prior senior roles at Novellus; product/marketing roles at KLA-Tencor; MIT-trained engineer .
COO remit: Cross-functional leadership including cybersecurity and government affairs/trade, aligning with Lam’s risk and compliance scope .
Appointment details: Named COO effective March 1, 2023; no special arrangements; no family relationships or related transactions .

Investment Implications

High alignment: Majority performance-based LTIP tied to relative TSR with negative-TSR cap, AIP anchored to operating and gross margin, and strict hedging/pledging prohibitions support shareholder alignment .
Realized performance signal: 2022/2024 PRSU payout of 56.94% (underperforming XSOX) indicates realistic calibration and payout discipline; near-term RSU vesting and options schedules provide predictable supply, with some options deeply in-the-money and others near current pricing .
Retention economics: Double-trigger CIC and pro-rata vesting mechanics reduce windfall risk while providing retention; severance multiples for EVPs are moderate vs peers, with clawback overlay mitigating restatement risk .
Business performance backdrop: CY2024 revenue growth (+13% y/y to ~$16.2B) and FY2025 non-GAAP margin (32.3%) tie directly to AIP profitability metrics, reinforcing management focus on margin and cash generation .