Rukmini Sivaraman
NutanixAbout Rukmini Sivaraman
Nutanix CFO since May 2022, age 44, with prior roles in FP&A, Strategic Finance, and People Operations; earlier career as an investment banker at Goldman Sachs (2009–2017). Education: MBA, Kellogg School of Management (Northwestern); MS in Electrical Engineering, University of Michigan, Ann Arbor . Under her finance leadership, Nutanix delivered FY2025 revenue of $2.54B (+18% YoY), ARR of $2.22B (+17% YoY), free cash flow of $750.2M (30% margin), Rule-of-40 score of 48, and first full year of GAAP profitability ($188.4M net income) . FY2025 annual incentives paid out at 126.9% of target on mixed results (ARR below target band; non-GAAP operating margin >112.4% of target), while multi-year PRSUs track relative TSR above the 75th percentile vs Nasdaq peers .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Nutanix | Chief Financial Officer | Since May 2022 | Drove growth/profitability; FY2025 Rule-of-40=48, GAAP profitability achieved |
| Nutanix | SVP FP&A & Strategic Finance | Jan 2022–May 2022 | Supported subscription growth and margin discipline |
| Nutanix | SVP Strategic Finance; Chief People Officer; SVP People & Business Operations | Not disclosed | Enabled operational efficiency and talent programs supporting FCF scale |
| Goldman Sachs | Investment Banker | 2009–2017 | Capital markets and strategic advisory experience leveraged in CFO role |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Goldman Sachs | Investment Banker | 2009–2017 | Transactional and analytical rigor underpinning corporate finance execution |
Fixed Compensation
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Base Salary ($) | $449,431 | $474,431 | $518,615 |
| Target Bonus (% of Salary) | Not disclosed | 75% | 100% |
| Target Bonus ($) | Not disclosed | $356,250 | $520,000 |
| Actual Annual Incentive Paid ($) | $376,313 | $249,375 | $659,880 |
Multi‑year compensation mix:
| Component | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Stock Awards ($) | $4,778,000 | $5,939,485 | $7,262,718 |
| Non‑Equity Incentive ($) | $376,313 | $249,375 | $659,880 |
| Total ($) | $5,603,744 | $6,665,291 | $8,444,213 |
Performance Compensation
FY2025 Annual Incentive Plan structure and results:
| Metric | Weight | Target Range → Payout Curve | FY2025 Achievement | Payout % | Weighted Payout |
|---|---|---|---|---|---|
| Annual Recurring Revenue (ARR) | 65% | <95%→0%; 95–100%→0–100%; 100–105%→100–200%; ≥105%→200% | Between 95% and 100% of target | 87.5% | 56.9% |
| Non‑GAAP Operating Margin | 35% | <87.6%→0%; 87.6–100%→0–100%; 100–112.4%→100–200%; >112.4%→200% | >112.4% of target | 200% | 70.0% |
| Total Payout vs Target | — | — | — | — | 126.9% |
FY2025 equity grants (annual cycle):
| Grant Type | Grant Date | Target Units (#) | Vesting | Design |
|---|---|---|---|---|
| Time‑based RSUs | 9/10/2024 | 47,640 | 16 equal quarterly installments; first vest 12/15/2024 | Time-based; aligns with long-term stockholder value |
| PRSUs (rTSR vs Nasdaq Composite) | 9/10/2024 | 47,640 at target | Three measurement periods (FY25, FY25–26, FY25–27); vest each September following period; first two periods capped at 100%; max 200% with value cap ($267.30) |
PRSU performance status (company-level design metrics):
| Cycle | Year 1 TSR | Percentile | Year 1 Payout (% of Target) |
|---|---|---|---|
| FY25–FY27 | 40.1% | 83.8% | 33.3% |
Vesting activity FY2025:
| Shares Acquired on Vesting (#) | Value Realized ($) |
|---|---|
| 209,173 | $13,004,018 |
Equity Ownership & Alignment
Beneficial ownership and compliance:
- Beneficial ownership: 254,637 shares; <1% of outstanding .
- Ownership guidelines: NEOs must hold stock equal to 100% of base salary; as of 7/31/2025, each NEO met/exceeded requirements except the new CLO; Sivaraman exceeded guideline .
- Hedging/pledging: Prohibited; pre‑clearance required for trades; 10b5‑1 plan guidelines enforced .
Unvested awards as of 7/31/2025:
| Award | Grant Date | Unvested Units (#) | Market Value ($) |
|---|---|---|---|
| RSUs | 10/11/2021 | 2,589 | $194,615 |
| RSUs | 5/1/2022 | 19,041 | $1,431,312 |
| RSUs | 8/25/2022 | 31,250 | $2,349,063 |
| RSUs | 8/29/2023 | 42,888 | $3,223,891 |
| RSUs | 9/10/2024 | 38,708 | $2,909,680 |
| PRSUs (rTSR) | 8/25/2022 | 53,091 | $3,990,850 |
| PRSUs (rTSR) | 8/29/2023 | 121,576 | $9,138,868 |
| PRSUs (rTSR) | 9/10/2024 | 95,280 | $7,162,198 |
Policy highlights and controls:
- Clawback policy compliant with SEC/Nasdaq; recovery of erroneously awarded incentive comp for restatements .
- No tax gross‑ups; Section 280G “best net” cut‑back if applicable .
Employment Terms
Employment agreement (at‑will) and current pay parameters:
- CFO promotion letter (April 10, 2022); at‑will; current base salary $520,000; annual incentive target 100% of salary .
- Initial promotion grant: 76,161 RSUs; 1/16 quarterly vesting from 9/15/2022 .
Severance protections:
- Executive Severance Policy: lump sum 100% base salary and up to 12 months health benefits (COBRA) for qualifying termination (without cause or constructive termination), subject to release .
- Change of Control and Severance Policy (double trigger within window): 100% acceleration of unvested time‑based equity; performance equity vests at actual if measurable, otherwise at target; 100% base salary + 100% target annual incentive; up to 12 months health benefits; 280G “best net” reduction if needed .
Potential payments (as of 7/31/2025):
| Scenario | Salary Severance ($) | Target Bonus Severance ($) | Accelerated Equity ($) | Health Benefits ($) | Total ($) |
|---|---|---|---|---|---|
| Involuntary/Constructive Termination | $520,000 | — | — | $37,876 | $557,876 |
| Termination in Connection with Change in Control | $520,000 | $520,000 | $30,328,841 | $37,876 | $31,406,717 |
Compensation Structure Analysis
- Shift to at‑risk pay: FY2025 increased CFO annual incentive target from 75% to 100% of salary (reflecting role development and market competitiveness) .
- Emphasis on PRSUs: 50% of annual equity value in PRSUs tied to relative TSR over three years, with interim measurements capped, and a value cap to limit windfalls .
- Annual incentive metric evolution: replaced cost-based metric with non‑GAAP operating margin to reinforce disciplined growth; removed engagement metric to manage via individual goals .
- Governance improvements: Restated equity plan eliminates evergreen, forbids repricing without shareholder approval, prohibits dividends on unvested awards, strengthens clawback linkage, and avoids single‑trigger acceleration (unless awards not assumed) .
Say‑on‑Pay & Shareholder Feedback
- 2024 say‑on‑pay support: ~73% of votes cast (lower due to CEO supplemental performance award), with commitment to avoid one‑time awards absent extraordinary circumstances .
- 2025 engagement: outreach to holders of >51% of outstanding shares; engaged >32%; Board leaders present in 67% of Top‑20 holder engagements .
Compensation Peer Group (Benchmarking)
- FY2025 peer group included mid‑to‑large IT/software names; FY2026 updates added Cloudflare, Datadog, Snowflake, Zscaler; removed Box, Commvault, Informatica, Teradata to reflect size and M&A changes .
- Committee uses peer data as a reference point; does not benchmark to a specific percentile .
Risk Indicators & Red Flags
- Hedging/pledging prohibited; pre‑clearance and 10b5‑1 guidelines in place .
- No repricing without shareholder approval; no tax gross‑ups .
- Section 16 compliance: all required filings complied with FY2025 .
Expertise & Qualifications
- Finance, FP&A, and strategic finance leadership at Nutanix; prior investment banking at Goldman Sachs (transactional acumen) .
- Advanced technical education (MS EE), strengthening data‑driven decision‑making in subscription metrics and capital allocation .
Performance & Track Record
| Metric | FY2024 | FY2025 |
|---|---|---|
| Annual Recurring Revenue ($B) | $1.908 | $2.223 |
| Free Cash Flow ($M) | $597.7 | $750.2 |
| Revenue ($B) | Not disclosed in table | $2.54 |
| GAAP Net Income ($M) | (124.8) | 188.4 |
Relative TSR performance in PRSU cycles exceeded 75th percentile across outstanding cycles (triggered value cap for FY23–FY25 awards) .
Investment Implications
- Alignment: High unvested RSU/PRSU holdings and compliance with ownership guidelines anchor pay‑for‑performance; clawback, no hedging/pledging, and strengthened equity plan governance mitigate misalignment risk .
- Retention: Double‑trigger CIC protection with full time‑based equity acceleration and substantial outstanding PRSUs reduce near‑term departure risk; estimated CIC package ~$31.4M driven by equity acceleration .
- Trading signals: Significant FY2025 vesting (209K shares; $13.0M value) suggests ongoing supply from scheduled quarterly RSU vesting; hedging/pledging bans and pre‑clearance reduce opportunistic trading risk .
- Performance linkage: Annual incentives tied to ARR and operating margin, and PRSUs tied to relative TSR (with caps) balance growth, profitability, and shareholder returns; FY2025 126.9% payout reflects margin outperformance .