Michael West
MOODYS CORP /DE/About Michael West
Michael West is President of Moody’s Ratings (formerly Moody’s Investors Service) since November 2019, and is 56 years old as of the FY2024 10-K . He joined Moody’s in 1998 after credit roles at Bank of America and HSBC; he holds a Bachelor’s degree in Politics with Economics and is an Associate of the Chartered Institute of Bankers (UK) . In 2024, Ratings delivered 33% revenue growth with a 60.1% adjusted operating margin under West’s leadership . Company TSR ranked at the 72nd percentile vs peers over one year and 67th percentile over three years ending Dec 31, 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Moody’s Ratings | President | Nov 2019–present | Led Ratings through issuance rebound, disciplined cost control, and market outreach (over 500 events), delivering 33% revenue growth and 60.1% adjusted operating margin in 2024 . |
| Moody’s Ratings | Managing Director—Head of Ratings & Research | Jun 2016–Oct 2019 | Oversaw development of ratings opinions across global groups; advanced research strategy . |
| Moody’s Ratings | Managing Director—Head of Global Structured Finance | Feb 2014–May 2016 | Led global SF franchise; strengthened analytics and market positioning . |
| Moody’s Ratings | Managing Director—Head of Global Corporate Finance | Jan 2010–Jan 2014 | Led global corporate ratings; earlier led Corporate Finance for EMEA, European corporates, and EMEA leveraged finance . |
| Bank of America; HSBC | Various credit roles | Pre-1998 | Credit underwriting and analysis experience; foundational expertise for ratings leadership . |
External Roles
No current public-company directorships or external board roles disclosed for Michael West in Moody’s filings .
Fixed Compensation
Three-year compensation detail for Michael West:
| Component (USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary | $581,250 | $625,000 | $700,000 |
| Stock Awards (RSUs + PSUs grant-date fair value) | $1,439,898 | $1,800,036 | $6,150,316 |
| Option Awards (grant-date fair value) | $359,994 | $449,967 | $2,349,991 |
| Non-Equity Incentive (Annual Cash Incentive Paid) | $434,400 | $1,114,300 | $2,091,000 |
| All Other Compensation | $92,632 | $67,998 | $114,499 |
| Total | $2,908,173 | $4,057,301 | $11,405,806 |
2024 base salary was increased to $750,000 per the base salary schedule; this table reflects the Summary Compensation Table paid base ($700,000) versus approved base salary level used in program design .
Performance Compensation
2024 annual cash incentive structure and results:
| Item | Detail |
|---|---|
| Weighting | 67% Financial metrics; 33% Strategic & Operational metrics . |
| Financial Metrics | MIS Operating Income, MA Operating Income, MA ARR (for Company-level pool funding) . |
| S&O Focus Areas | Customer metrics (NPS/net expansion), GenAI launches/usage, platform engineering, inclusion/retention, risk management . |
| Threshold/Target/Max & Actual (Financial) | MIS Op Inc: $1,347M / $1,823M / $2,298M; Actual $2,330M . MA Op Inc: $549M / $676M / $804M; Actual $690M . MA Sales metric was replaced by MA ARR for 2024 pool funding . |
| Individual Payout—Michael West | Target $1,250,000; Paid $2,091,000; 167% of target based on exceptional Ratings performance and execution . |
2024 long-term incentives (LTI) design:
| Metric | Weighting | Target Design | Vesting |
|---|---|---|---|
| Performance Shares (2024–2026) | EPS for Compensation Purposes (50%), MIS Ratings Performance (25%), MA Cumulative Revenue (25%) | Earn 0–200% based on 3-year performance | Cliff vest at 3 years (Mar 1, 2027) . |
| RSUs | — | Time-based | 25% per year over four years (Mar 1, 2025–2028) . |
| Stock Options | — | Strike at arithmetic mean high/low on grant date; performance-based via price appreciation | 25% per year over four years; expire 10 years from grant . |
| MIS Growth Accelerator (West) | PSUs 67%; Options 33% | PSUs earn 0–130% based on MIS Adjusted Operating Margin in 59–62% range over 4-year period ending Dec 31, 2027; Options vest 50% at 2 years, 50% at 4 years . |
Key 2024 LTI grants for Michael West:
| Grant Date | Award Type | Shares/Units | Exercise Price | Grant-Date Value | Vesting |
|---|---|---|---|---|---|
| Feb 20, 2024 | Annual PSUs (2024–2026) | Target 5,643 (Threshold 1,411; Max 11,286) | — | $2,100,099 | Cliff at Mar 1, 2027 . |
| Feb 20, 2024 | RSUs | 1,881 | — | $700,033 | 25% each Mar 1, 2025–2028 . |
| Feb 20, 2024 | Annual Options | 5,853 | $372.16 | $699,960 | 25% each annually; expire Feb 20, 2034 . |
| Feb 20, 2024 | MIS Growth Accelerator PSUs (2024–2027) | Target 9,002 (Max 11,703) | — | $3,350,184 | Cliff at Mar 1, 2028 . |
| Feb 20, 2024 | MIS Growth Accelerator Options | 13,640 | $372.16 | $1,650,031 | 50% at 2 years; 50% at 4 years; expire Feb 20, 2034 . |
Performance share cycle 2022–2024 payouts:
| Metric | Threshold | Target | Maximum | Actual | Earned % of Target |
|---|---|---|---|---|---|
| MCO EPS for Compensation Purposes | $36.25 | $42.65 | $51.18 | $30.94 | 21.8% overall (combined metrics) . |
| MA Revenue for Compensation Purposes | $8,573M | $10,085M | $12,103M | $9,120M | 21.8% overall (combined metrics) . |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Shares Beneficially Owned | 4,784 shares as of Dec 31, 2024 . |
| Options Exercisable Within 60 Days | 4,722 shares . |
| RSUs Vesting Within 60 Days | 1,371 shares . |
| Stock Ownership Guidelines | NEOs must hold 3× base salary; 75% net-share retention until met; all NEOs in compliance as of Dec 31, 2024 . |
| Anti-Hedging/Pledging | Short sales, margin purchases, pledging, and derivative hedges prohibited under Securities Trading Policy . |
| Option Exercises in 2024 | 10,296 shares exercised; value realized $1,904,995 . |
| Stock Vested in 2024 | 2,297 shares vested from RSUs/PSUs; value realized $874,192 . |
| Deferred Compensation | 2024 registrant contributions $80,812; aggregate balance $666,778 . |
Employment Terms
| Provision | Key Terms |
|---|---|
| Employment Agreements | None for U.S. executives; at-will employment . |
| Career Transition Plan (CTP) | If terminated without Cause: up to 52 weeks salary continuation, benefits, outplacement; prorated target bonus if employed ≥6 months; 1-year non-compete/non-solicit/disparagement obligations tied to CTP payments . |
| Change in Control Severance Plan (CICP) | Double-trigger; for non-CEO executives: lump-sum 2× (base + target bonus) plus 2 years medical/dental; 2-year non-compete and non-solicit; no excise tax gross-ups . |
| Equity Treatment on Termination | Death/disability: immediate vest of RSUs and pro rata PSUs; Retirement after 1 year: immediate RSU vest, pro rata PSUs, continued option vesting; CIC: unassumed awards vest; assumed awards vest on qualified termination; PSUs paid at 100% of target on CIC . |
| Estimated Payments (as of Dec 31, 2024) | CIC total $19,640,100; Death/Disability $9,898,899; Retirement $5,076,325; RIF/Job Elimination $2,063,753; Unsatisfactory Performance $426,877 . |
| Clawback Policy | Recoupment for restatements and misconduct; applies to cash incentive, performance-based, and time-based equity . |
| Tax Gross-ups | Generally no gross-ups; de minimis items only—Mr. West had de minimis tax gross-up reflected in 2024 footnote . |
Investment Implications
- Pay-for-performance alignment is robust: 86% of West’s target direct compensation is “at risk” (consistent across NEOs), with 2024 payout at 167% of target driven by strong Ratings revenue growth and margin execution .
- Multi-year equity leverage is significant: 2024 grants include large MIS Growth Accelerator PSUs and options tied to delivering 59–62% adjusted operating margin over 2024–2027, with back-weighted vesting that enhances retention and creates medium-term performance pressure .
- Ownership alignment is high: compliance with 3× salary ownership guideline and 75% hold-until-met rule, alongside strict anti-pledging/hedging, reduces misalignment risk and limits hedging-driven trading signals .
- Potential selling pressure windows: scheduled RSU vesting annually through 2028 and PSUs in 2027–2028; 2024 option exercises (10,296 shares) indicate ongoing monetization, though activity is governed by strict pre-clearance and window policies .
- Downside protection and governance: double-trigger CIC at 2× salary+bonus and strong clawback policy limit windfall risk; say-on-pay support ~93% in 2024 underscores shareholder alignment .