Micah Young
MASIMOAbout Micah Young
Micah Young is Executive Vice President and Chief Financial Officer of Masimo, serving as CFO since October 2017; age 46. He previously held finance leadership roles at NuVasive (2012–2017), Zimmer (2002–2009), and was an auditor at Deloitte (2000–2002). He holds a B.S. in Accounting and Criminal Justice from Indiana Wesleyan University and is a Certified Public Accountant (inactive) . Company performance context: FY2024 consolidated revenue was $2,094M (+3% constant currency); non-GAAP diluted EPS was $4.40; operating cash flow was $196M (+109% YoY) . Pay-versus-performance TSR index for Masimo in 2024 was 107.20 vs Nasdaq Health Care Index 142.13 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| NuVasive, Inc. | VP Finance; Senior Director Finance, Global Ops | 2009–2017 | Finance leadership in medtech growth and operations |
| Zimmer Holdings, Inc. | Various accounting/finance positions | 2002–2009 | Orthopedics finance, manufacturing and global operations exposure |
| Deloitte & Touche LLP | Auditor | 2000–2002 | External audit foundation; controls and reporting |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | — | — | No external public board roles disclosed |
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | 577,364 | 600,875 | 627,822 |
| Target Bonus (% of Salary) | 100% (company practice) | 100% (company practice) | 100% (target $622,507) |
| Actual Bonus Paid ($) | 540,788 | 0 | 834,159 (134% of target) |
| All Other Compensation ($) | 12,022 | 12,359 | 11,850 |
Notes:
- NEO annual bonus targets set at 100% of base; annual metrics utilize Adjusted Revenue and Adjusted Non-GAAP EPS .
- FY2024 bonuses paid in 2025; Micah received 134% of target based on performance .
Performance Compensation
| Metric | Weighting | Threshold | Target | Maximum | Actual Performance | Payout |
|---|---|---|---|---|---|---|
| Adjusted Revenue ($M) | 50% | 90% of target | $2,165 | 110% of target | $2,097 (97%) | Interpolated; contributed below target to total |
| Adjusted Non-GAAP EPS ($) | 50% | 90% of target | 3.60 | 110% of target | 4.40 (122%) | 200% for this component |
- FY2024 total payout for eligible NEOs (excl. Consumer COO) resulted in 134% of target for Micah Young .
- FY2025 annual cash metrics: Adjusted Revenue (50%), Adjusted Non-GAAP EPS (40%), Adjusted True Incremental Contract Value (10%); thresholds/targets set at/above high-end guidance .
Equity Awards (Structure, Grants, and Vesting)
| Component | FY 2024 Grants (Number & Fair Value) | Vesting / Terms | FY 2025 Design |
|---|---|---|---|
| PSUs | 16,898 target ($2,137,428) | 3-year cumulative performance: 50% Non-GAAP Operating Income + 50% Relative TSR vs Nasdaq Composite; capped at 100% if absolute TSR negative; vest in 2027 (50–200% payout) | 60% of equity mix; 3-year cumulative metrics: Adjusted Revenue (60%) + Adjusted Non-GAAP Operating Income (40%); Relative TSR modifier vs S&P Healthcare Equipment Select Index (0.75x–1.25x; neutral at 50th percentile; cap 250%) |
| Stock Options | 11,954 ($712,487), strike $126.49 | 5-year ratable, 20% per year | 20% of equity mix; 5-year ratable |
| RSUs (Retention) | 30,000 ($3,794,700) | 50% vest 3/1/2025 and 50% vest 3/1/2026 | 20% of mix; 4-year ratable |
| Additional 2025 Award | — | — | RSU grant 7/21/2025 vests 25% annually over four years (Form 3/insider filing) |
Outstanding holdings at 12/28/2024 include multiple option tranches (exercisable and unexercisable), unearned PSUs, and the 30,000 RSU schedule as shown in the Outstanding Equity Awards table .
Equity Ownership & Alignment
- Beneficial ownership: 68,713 shares (17,436 held directly; 51,277 options exercisable within 60 days) .
- Stock ownership guidelines: Executives must hold ≥1x base salary; as of March 1, 2025, current executive officers were in compliance or within grace period .
- Hedging prohibited; pledging requires pre-approval and demonstrated repayment capacity without resort to pledged securities .
- Clawback policy: Recovery of incentive compensation (cash/equity, including vested) if restatement due to material noncompliance; applies to current/former executive officers .
Employment Terms
| Provision | Basic Severance (No CIC) | Change-in-Control (CIC) – Covered Termination | CIC Without Termination |
|---|---|---|---|
| Cash | 1x annual salary ($622,507 illustrative at 12/28/2024) | 2x salary or salary + avg bonus depending case; illustrative cash $1,703,329 | — |
| Benefits | 12 months COBRA; illustrative $26,399 | 12 months COBRA; illustrative $28,109 | — |
| Equity Acceleration | No CIC: RSU 30,000 accelerated ($5,129,100 value) | 100% of in-the-money options and unvested PSUs at target; illustrative value $11,608,370 | 50% acceleration of unvested (illustrative $5,804,185) |
| Conditions | Release, non-disparagement, IP NDA, non-compete during benefits period | Same; 50% acceleration at CIC and 100% upon covered termination | 50% acceleration at CIC |
Governance policies include no tax gross-ups for CIC benefits; plan administrator may reduce benefits to avoid excess parachute payments under IRC 280G/4999 .
Risk Indicators & Red Flags (context)
- DOJ subpoena and civil investigative demand related to Rad-G/Rad-97 complaints and the timing of a voluntary recall; company investigating recall timing (Aug 2023 decision; Feb 2024 initiation) .
- Broader litigation disclosures (e.g., intellectual property matters) and governance transitions noted in 10-K risk factors .
Compensation Peer Group & Say-on-Pay
- Peer group includes Align Technology, Dexcom, ResMed, Teleflex, Insulet, ICU Medical, QuidelOrtho, Merit Medical, and others (additions/removals noted) .
- Say-on-Pay approvals: 56% (2023) and 64% (2024); program changes in 2024–2025 responded to investor feedback (e.g., three-year PSU metrics, TSR modifier, rigorous targets) .
Expertise & Qualifications
- Technical/financial expertise across medtech operations, finance, and auditing (NuVasive, Zimmer, Deloitte); CPA (inactive); B.S. in Accounting and Criminal Justice .
- Board-designated financial oversight role reflected in CFO certifications and signing of SEC exhibits/filings .
Investment Implications
- Strong alignment: high proportion of at-risk pay via PSUs and options; rigorous three-year PSU structure with financial metrics and relative TSR modifier enhances pay-for-performance and long-term value creation .
- Near-term selling pressure from scheduled RSU vesting (30,000 split across March 2025/2026; plus 2025 RSU vesting 25% annually) may create incremental insider liquidity windows; monitoring Form 4 activity is warranted .
- Change-in-control economics include substantial equity acceleration (100% upon covered termination); retention risk is mitigated by multi-year PSUs and ownership guidelines but CIC terms could incentivize transitions depending on strategic outcomes (e.g., Sound United separation) .
- Governance enhancements and say-on-pay trajectory indicate responsiveness to shareholders; clawback, no hedging, pledging pre-approval, and no CIC gross-ups reduce red flags .