Erhaan Shaikh
LATTICE SEMICONDUCTORAbout Erhaan Shaikh
Erhaan Shaikh, 57, is Senior Vice President, Worldwide Sales at Lattice Semiconductor (LSCC), promoted on Feb 10, 2025 after joining Lattice in Oct 2020 and leading channel, pricing, and supply management transformations . He holds a Master of Engineering Management (Santa Clara University), a B.S. in Electrical Engineering (UC Davis), and completed the Stanford‑Intel Executive Accelerator Program at Stanford GSB . Company performance context: FY2024 revenue was $509.4M with a 31.8% adjusted EBITDA margin, while TSR ranked at the 27th percentile vs. the Russell 3000 (pay‑vs‑performance disclosure) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Lattice Semiconductor | Corporate VP, Worldwide Channel Sales → SVP, Worldwide Sales | 2020–2025 | Transformed worldwide distribution/channel strategy, pricing policy, and customer supply management; deepened customer/partner relationships . |
| Fungible (acquired by Microsoft) | SVP, Sales & Marketing | 2018–2020 | Grew enterprise/data center-oriented sales & marketing footprint . |
| Intel/Altera | VP & GM, PSG Auto/Military/Embedded; multiple sales engineering, regional, BU leadership roles | ~2003–2018 | Led embedded markets and regional sales execution in FPGA ecosystem . |
| Synplicity; Xilinx; Wyle Electronics | Sales/Regional Leadership | Various | EDA and FPGA vendor-side sales leadership across geographies . |
External Roles
No public company directorships or disclosed external board roles. Education and executive program participation as noted above .
Fixed Compensation
Not individually disclosed for Mr. Shaikh. Company-wide design elements for executives:
- Annual Corporate Incentive Plan (CIP) used for non‑sales employees and, in 2024, the SVP Worldwide Sales (then Mark Nelson) participated in CIP rather than a sales plan .
- 2024 CIP weighting: 33% Non‑GAAP operating income, 33% Revenue, 33% Management Objectives; payout capped at 200% per component .
- 2024 results: thresholds for Non‑GAAP operating income and Revenue were not met; management objectives attainment was 57% but did not pay due to threshold gating, yielding 0% total payout .
Performance Compensation
Company programs governing executive incentives; specific grants to Mr. Shaikh were not disclosed. The following summarizes Lattice’s 2024 performance equity designs:
| Metric/Instrument | Weighting/Structure | Target/Threshold | Actual/Payout Mechanics | Vesting |
|---|---|---|---|---|
| Revenue Growth PRSUs | 4 tranches; annual organic revenue YoY growth and must exceed Gartner Non‑Memory Semi benchmark | ≥10% YoY growth earns ≥100% of target (0–250% range) | Each tranche measured by year; vesting occurs 13 months post measurement; 2025 start later modified to 2026–2029 periods | 13 months post each period; other terms unchanged after Feb 28, 2025 modification . |
| TSR PRSUs | Relative TSR vs. Russell 3000 | 26th percentile = 50% payout; 55th = 100%; 75th = 200% (CEO up to 250%) | Linear interpolation; no vesting below 26th percentile | Tested for vesting on third anniversary of grant (CEO’s certain awards tested later) . |
Equity Ownership & Alignment
- Stock ownership guidelines: CEO must hold stock equal to 3x base salary; Section 16 officers (includes SVP roles) must hold 2x base salary; five-year phase-in to comply .
- Hedging/pledging prohibited; no margin accounts; short sales, derivatives, and hedging transactions barred by insider trading policy .
- Clawback: Compensation Recovery policy applies to recover incentive compensation upon accounting restatement or material noncompliance with financial reporting .
Employment Terms
Not individually disclosed for Mr. Shaikh. Company policies:
- Change-in-control treatment generally “double trigger” (requires both a change in control and qualifying termination) for payments/benefits .
- No tax gross-ups under IRC 280G/4999 for executive officers (other than standard relocation) .
Performance & Track Record
- Leadership impact at Lattice: transformed distribution and channel strategy, pricing policy, and customer supply management since 2020; promoted to SVP in 2025 amid executive team refresh .
- Company execution: double-digit new product revenue growth (Nexus/Avant) in 2024; strong free cash flow and continued share repurchases .
- FY2024 financial performance context: revenue contraction vs. 2023 amid cyclical downturn; sustained gross margin and adjusted EBITDA margin; TSR underperformed peers (27th percentile) .
Company Performance (context during Shaikh’s tenure)
| Metric | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|---|
| TSR Percentile vs Russell 3000 | 93rd | 89th | 59th | 43rd | 27th |
| Value of $100 Investment (Company TSR) | $238.27 | $400.73 | $337.39 | $358.76 | $306.60 |
| Metric | FY 2024 |
|---|---|
| Revenue ($M) | $509.4 |
| GAAP Gross Margin (%) | 66.8% |
| Adjusted EBITDA Margin (%) | 31.8% |
Compensation Structure Analysis
- Increased use of performance-based equity (PRSUs) with rigorous hurdles (revenue growth > market benchmark and TSR percentile), aligning pay with long-term value creation; CEO/NEO PRSU mix heightened in 2024 .
- Zero payout under 2024 CIP underscores strict threshold gates; no discretionary override—supports pay-for-performance discipline .
- No repricing of options; governance guardrails (ownership guidelines, clawback, hedging/pledging prohibitions) mitigate misalignment risks .
Risk Indicators & Red Flags
- Threshold gating and tough PRSU benchmarks reduce risk of windfall payouts; however, revenue-linked PRSUs can create pressure to push near-term bookings—monitor sales quality and pipeline conversion .
- No hedging/pledging allowed—a positive alignment signal .
- 2024 TSR underperformance vs. peers may raise investor focus on commercial execution in 2025+ .
Say‑on‑Pay & Shareholder Feedback
- Strong historical support: 97% approval in 2024 for prior year NEO compensation, indicating investor confidence in program design .
Expertise & Qualifications
- Deep FPGA and semiconductor commercial leadership across EDA, FPGA vendors, and data center/storage segments; formal engineering and management education and executive program training .
Investment Implications
- Positive: Experienced sales leader with demonstrated capability to optimize channels and pricing; governance structures (ownership, clawback, anti‑hedging) support alignment; PRSU designs incentivize durable revenue growth and TSR outperformance .
- Watch: Revenue-growth PRSU hurdles may intensify near-term sales push—monitor mix quality, backlog health, and design-win conversion; company TSR lag in 2024 heightens execution bar for 2025+ .
- Overall: Leadership changes position Lattice for the next growth phase; track sales momentum in Communications/Computing and Industrial/Automotive segments alongside disciplined margin/FCF delivery to confirm incentive alignment translating into shareholder returns .