Peter McGrath
About Peter McGrath
Peter McGrath, age 57, is Senior Vice President and Chief Financial Officer of Intuitive Machines (effective September 16, 2024), after serving as Chief Operating Officer and Vice President of Business Development; he joined the company in August 2020 . He holds a BS in Aerospace Engineering (USC), an MS in Aerospace Engineering (CSU Long Beach), and an MBA (USC Marshall), and brings 35+ years of aerospace program and business development experience, including a 31‑year career at Boeing focused on NASA and commercial space missions . During his tenure as a named executive, Intuitive Machines delivered FY2024 revenue of $228.0M (nearly 3x 2023), Q4 revenue of $54.7M (+79% YoY), backlog of $328.3M (+22% YoY), and improved Adjusted EBITDA from -$54.5M (2023) to -$41.7M (2024) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Intuitive Machines | VP, Business Development | Aug 2020 onward | Built BD pipeline supporting CLPS missions and diversified customers |
| Intuitive Machines | Chief Operating Officer | Pre‑Sept 2024 | Scaled operations through lunar missions preparation and delivery |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Boeing | Director, Global Sales & Marketing (Space Exploration BU) | 31 years | Shaped and captured business supporting NASA and commercial space exploration missions |
| Boeing Phantom Works | Project Engineer (DC‑XA, X‑33, X‑34) | — | Advanced experimental launch programs and technology demonstrators |
| Army BCT Modernization (through Boeing) | Increment 1 Production Program Manager | — | Delivered first three brigade sets of hardware to the warfighter |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | 375,000 | 398,269 |
| Target Bonus % | — | 60% (set on CFO appointment, Sept 2024) |
| Non‑Equity Incentive Plan Compensation ($) | — | 272,969 |
| Discretionary/Additional Bonus ($) | — | 59,296 |
| Stock Awards ($) | 1,890,000 | 818,125 |
| All Other Compensation ($) | 11,250 | 13,801 |
| Total Compensation ($) | 2,276,250 | 1,562,460 |
| Annual Base Salary Rate ($) | — | 450,000 (CFO role) |
Notes:
- The Compensation Committee uses pay mix of salary, annual cash incentives, and multi‑year RSUs; no tax gross‑ups; clawback policy adopted Oct 2, 2023 .
- 2024 salary reflects partial‑year role changes; CFO salary rate and 60% target bonus set September 2024 .
Performance Compensation
| Plan Element | Metric(s) | Weighting | Target | Actual | Payout | Vesting/Timing |
|---|---|---|---|---|---|---|
| 2024 Annual Incentive Plan – Financial & Strategic (“F&S”) | Bookings (25%), Revenue (25%), Gross Profit Margin (15%), Capital Needs (20%), Cash Reserve (15%); plus 5 strategic growth objectives | 70% (financial/strategic) of total plan | 100% of target | Financial portion: 134.9%; Strategic portion: 200%; Combined F&S: 154.4% | Included in Non‑Equity Incentive Comp ($272,969) | Approved in Q1 2025 by Board |
| 2024 Annual Incentive Plan – Individual | Individual performance | 30% of total plan | 100% of target | 100% for each NEO | Included in Non‑Equity Incentive Comp ($272,969); plus additional cash bonus ($59,296) | Paid subsequent to Board approval |
Notes:
- 2024 incentive construct weighted toward enterprise financial and strategic execution; Board approved an additional discretionary cash bonus on top of formulaic payouts .
Equity Ownership & Alignment
| Category | Detail | As of | Amount |
|---|---|---|---|
| Beneficial ownership (voting securities) | Total shares beneficially owned | Apr 8, 2025 | 522,428; <1% of voting power |
| Direct ownership | Class A Common Stock | Apr 8, 2025 | 109,644 |
| Options (2021 Unit Option Plan) | Exercisable | Dec 31, 2024 | 27,812 at $1.80; exp. 6/14/2031 |
| Options (2021 Unit Option Plan) | Unexercisable | Dec 31, 2024 | 55,625 at $1.80; exp. 6/14/2031 |
| RSUs (time‑based) | Grant 5/9/2023 – 250,000; 25% vest each Apr 11 (2023–2026) | Dec 31, 2024 outstanding 187,500 | Market value $3,405,000 at $18.16 |
| RSUs (time‑based) | Grant 2/7/2024 – 200,000; 25% vest each Apr 11 (2024–2027) | Dec 31, 2024 outstanding 200,000 | Market value $3,632,000 at $18.16 |
| RSUs (additional grants) | 125,000 (5/9/2023) vesting in equal installments beginning Apr 11, 2026; 150,000 (2/7/2024) vesting beginning Feb 7, 2026; 54,348 (2/7/2025) vesting beginning Feb 7, 2026 | Schedule | See footnote for vesting starts in 2026 |
| Hedging/Pledging | Company policy prohibits hedging and pledging unless pre‑approved exemption; pledging generally prohibited | Policy | Insider Trading Policy |
Notes:
- RSUs represent contingent rights; vesting is service‑based unless otherwise noted; RSU market values above computed per disclosure using $18.16 year‑end price .
- Stock ownership guidelines not disclosed; no pledging/hedging allowed under policy .
Employment Terms
| Provision | Key Terms |
|---|---|
| Employment & role | CFO effective Sept 16, 2024; reports to CEO |
| Severance (outside change‑of‑control) | If terminated without cause: 0.75x base salary + target annual bonus; prorated target bonus for year of termination; 3 months COBRA; 12 months outplacement; accrued vacation payout; equity: time‑based vests; performance‑based vests at 50% of target; 90 days to exercise vested options |
| Change‑of‑Control (CoC) severance | If termination without cause or involuntary termination within 24 months post‑CoC: 1.5x base salary + target bonus; prorated target bonus; COBRA 18 months; 12 months outplacement; accrued vacation payout; equity: all time‑based vests; performance‑based vests at target; 90 days to exercise vested options |
| Agreement term | Two‑year term from Mar 21, 2025; auto‑renews for successive one‑year terms unless canceled within 30 days |
| Clawback | Compensation recovery policy compliant with Nasdaq/Dodd‑Frank effective Oct 2, 2023 |
Investment Implications
- Pay‑for‑performance alignment: 2024 cash incentive plan weighted to enterprise metrics (bookings, revenue, margin, liquidity), with above‑target F&S performance (154.4%) and full individual scores, indicating strong operational execution; discretionary bonus layered on top reflects Board confidence .
- Upcoming vesting cadence: Significant RSU tranches from 2023–2024 grants continue vesting through 2027, with additional grants starting in 2026—potentially creating periodic liquidity windows and selling pressure around vest dates; options at $1.80 strike are long‑dated (2031) .
- Alignment and risk controls: Beneficial ownership is <1%; anti‑hedging/anti‑pledging policy mitigates misalignment risk; clawback policy in place .
- Retention economics: Double‑trigger CoC benefits at 1.5x salary+bonus and full time‑based equity acceleration provide retention through a transaction cycle while protecting shareholders from single‑trigger windfalls; non‑CoC severance set at 0.75x signals balanced posture .
- Company execution backdrop: Revenue nearly tripled in 2024 with backlog growth and improving Adjusted EBITDA trend, supporting the incentive outcomes and strengthening capital position; CFO signed Q4/FY2024 results release .