Eric Buss
About Eric Buss
Eric Buss, age 58, is Executive Vice President & Chief Administrative Officer at Life Time Group Holdings (LTH). He joined Life Time in 1999 and has served as EVP since 2005; he assumed his current CAO role in March 2016 overseeing legal, risk, HR, corporate development, and communications . Under the executive team’s leadership in 2024, Life Time delivered revenue of over $2.6B (+18.2% YoY), Adjusted EBITDA of $676.8M (+$140M YoY), net income of $156.2M, and reduced net-debt leverage to 2.3x; the company’s TSR measured from IPO rose to 124.62 by year-end 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Life Time Group Holdings | VP Finance & General Counsel; Secretary; SVP Corporate Development; EVP; CFO; EVP & Chief Administrative Officer | 1999–present; Secretary 2001; EVP 2005; CFO 2014; CAO since Mar 2016 | Built corporate development, finance, legal, and administrative functions; currently oversees legal, risk, HR, corporate development, and communications |
| Life Time Group Holdings | Led media division; supported finance function | 2010–2013 (media); 2013–2014 (finance) | Expanded brand/media; strengthened finance capabilities ahead of CFO role |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Faegre & Benson LLP (now Faegre Drinker) | Associate | 1996–1999 | Legal training foundational to GC and CAO responsibilities |
Multi-Year Compensation (Named Executive Officer)
| Metric (USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary | $747,116 | $750,000 | $756,731 |
| Stock Awards | $504,511 | $1,125,002 | $2,479,987 |
| Option Awards | $624,997 | $625,004 | — |
| All Other Compensation | $22,660 | $20,158 | $24,893 |
| Total | $1,899,284 | $2,520,164 | $3,261,611 |
Fixed Compensation
| Component | 2023 | 2024 |
|---|---|---|
| Annualized Base Salary | $750,000 | $775,000 |
| Short-Term Incentive Opportunity (Tranche 3 Max) | $750,000 | $930,000 |
Perquisites and gross-ups: car allowance $12,000, phone allowance $600, and tax gross-up on car allowance $10,073 in 2024 .
Performance Compensation
| Program | Metric | Weighting / Design | Target(s) | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| 2024 Bonus Program | Leverage Ratio | 25% of tranche two incentive; vests only if ≤3.0x | ≤3.0x | 2.3x | Included in full tranche 3 payout | Vested Feb 28, 2025 |
| 2024 Bonus Program | Adjusted EBITDA | Linear vest: Tranche1 $590M; Tranche2 $610M; Tranche3 $630M | $590M / $610M / $630M | $676.8M | $930,000 (tranche 3) | Vested Feb 28, 2025 |
| 2024 LTIP | RSUs | 50% of LTIP value; time-based | N/A | N/A | 58,358 units granted | Ratably over 3 years (Feb 28, 2025–2027) |
| 2024 LTIP | PSUs – Leverage | 25% of LTIP; one-third vest annually if leverage target met | ≤3.0x in 2024 | 2.3x | 19,453 units (first third vested) | One-third vested Feb 28, 2025; remaining subject to 2025–2026 |
| 2024 LTIP | PSUs – Adjusted EBITDA | 25% of LTIP; achievement each year up to 250% of target; vest at end of 3-year period | Tranches set annually | 2024 achieved at 250% | 38,906 target units; 2024 achievement counted at 250% of one-third | Vest after 2026 performance determination |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 1,423,118 shares (includes 252,773 shares held; 1,100,329 options vested & exercisable; plus options vesting soon) |
| Ownership % of Outstanding | <1% (“*”) of 217,711,044 shares outstanding (as of Mar 5, 2025) |
| Shares Held Directly | 252,773 shares |
| Options – Exercisable | 1,100,329 options vested & exercisable until expiration |
| Options – Next Vesting | 16,344 vest Mar 9, 2025; 21,172 vest Mar 17, 2025; 32,500 vest May 1, 2025 |
| In-the-Money Profile (12/31/2024 ref price $22.12) | Option strikes include $10.00, $13.65, $17.27, $18.00, $19.32, which are at or below $22.12 (implying in-the-money) |
| Unvested RSUs (examples) | 27,142 (granted 3/9/2023); 10,416 (granted 10/12/2021); 58,358 (granted 2/7/2024) |
| Unvested PSUs (examples) | 19,452 leverage PSUs (2/7/2024); 38,906 Adjusted EBITDA PSUs (2/7/2024 target) |
| Ownership Guidelines | 3x base salary for executive officers; 5-year compliance window; must retain 50% of net shares until compliant; executives “in compliance or progressing” |
| Hedging/Pledging | Prohibited: no hedging, derivatives, short sales, or pledging/margin accounts |
| Clawback | 3-year recovery of excess incentive comp upon restatement per NYSE/SEC rules |
Employment Terms
| Term | Detail |
|---|---|
| Agreement | Executive Employment Agreement effective Oct 12, 2021; 3-year initial term with successive 1-year auto-renewals unless notice given |
| Non-Compete / Non-Solicit | 24 months post-termination; perpetual confidentiality and mutual non-disparagement |
| Severance (no CIC) | If terminated without Cause or for Good Reason: cash equal to 1.5x (base + target bonus), plus COBRA up to 18 months; structured in installments and then over 12 months; “best net” 280G cutback applies |
| Change-in-Control | Double-trigger: if terminated without cause within 12 months post-CIC, awards fully vest; otherwise no automatic acceleration (committee may exercise discretion) |
| Potential Payouts (as of 12/31/2024) | Without cause/Good Reason (no CIC): cash $2,092,500; total $2,122,767 (incl. benefits) . CIC with termination: cash $2,092,500; equity acceleration $3,757,803; benefits $30,267; total $5,880,570 |
| Cause / Good Reason | Defined in agreement (e.g., willful failure, policy violations, felony; material reduction in comp or duties, breach, relocation beyond 75 miles) |
| Perquisites | Executive disability insurance; athletic club membership; car/phone allowances; aircraft primarily for business; Buss had no aircraft incremental cost in 2024 |
Compensation Structure Analysis
- Pay mix trending toward equity and performance: 2024 short-term incentive paid in performance RSUs tied to Adjusted EBITDA and leverage (no cash), and LTIP split evenly between time-based RSUs and multi-year PSUs on leverage and Adjusted EBITDA .
- Performance rigor increased: EBITDA tranches ($590M/$610M/$630M) with linear interpolation and leverage threshold ≤3.0x; actual 2024 results exceeded tranche 3 and leverage threshold, driving full vesting/payout .
- Governance and shareholder signals: Anti-hedging/pledging and clawback policy in place; 2024 Say-on-Pay passed with >96% approval, reinforcing investor support for design .
Investment Implications
- Alignment: Buss’s significant in-the-money, exercisable options (1.1M) and multi-year PSUs directly tie his upside to EBITDA growth and sustained leverage reduction—constructive for pay-for-performance alignment .
- Near-term supply risk: Multiple option tranches with strikes below $22.12 (including 750,000 @ $10) and upcoming 2025 vesting dates could create incremental selling pressure around vest/exercise windows, though anti-hedging/pledging reduces adverse alignment risks .
- Retention protections: 24-month non-compete and 1.5x severance reduce departure risk; double-trigger CIC acceleration is standard but can be value-relevant in transaction scenarios given equity acceleration quantum ($3.76M for Buss as of 12/31/24) .
- Performance trajectory: With EBITDA-focused incentives and 2024 execution (EBITDA $676.8M; leverage 2.3x), continued outperformance supports PSU realization and sustained equity value creation if operational momentum persists .