John Higgins
PEGASYSTEMSAbout John Higgins
John Higgins is 51 and serves as Pegasystems’ Chief of Client & Partner Success. He joined Pega in February 2021 as Head of Global Consulting and Client Success and was promoted to his current role on March 7, 2022. He previously led International Services (EMEA, APAC, LATAM) at Salesforce from July 2012 to September 2020. Higgins holds a B.S. in economics from University College Dublin . Company-level performance metrics relevant to his incentive design include 2024 TSR of 117.99 vs peer 223.41, net income of $99.2M, and ACV growth of 11% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Pegasystems | Head of Global Consulting and Client Success | Feb 2021–Mar 2022 | Led consulting and client success; platformed for promotion to Client & Partner Success |
| Pegasystems | Chief of Client & Partner Success | Mar 2022–Present | Drives client outcomes and partner ecosystem; comp tied to ACV/bookings objectives |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Salesforce | Led International Services for EMEA, APAC, LATAM | Jul 2012–Sep 2020 | Scaled global services execution across regions |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary | $441,153 (GBP-converted) | $472,372 (GBP-converted) | $480,381 (GBP-converted) |
| 2024 Base Salary Set (local) | — | — | £386,000 (4.0% YoY) |
| Target Bonus % (CICP) | 50% of earned base salary | 50% | 50% |
| Additional Cash Incentives (Sales commissions) | Operational metrics + commissions noted | Actual sales commissions $156,522 (GBP-converted) | Actual sales commissions $255,030 (GBP-converted; £203,000) |
| Non-Equity Incentive Plan (CICP cash paid) | $113,032 | $118,093 | $133,598; elected 50% of CICP in RSUs, cash portion £106,000 ($134,000) |
| All Other Compensation | — | $0 | $22,648 (UK pension contributions/allowances) |
| Total Compensation | $4,843,443 | $2,737,415 | $3,890,830 |
Performance Compensation
| Incentive Type | Metric | Weighting | Target | Actual/Payout | Vesting |
|---|---|---|---|---|---|
| Executive Incentive Plan (CICP) 2024 | Rule of 40 (ACV growth + FCF margin) & strategic initiatives | 75% financial; 25% strategic | Full achievement at Rule of 40 ≥39%; threshold 70% funding | Funding % set at 105%; Higgins elected 50% of CICP in RSUs; cash portion £106k ($134k) | RSU election grants vest 100% one year from grant, subject to threshold funding and good standing |
| Sales Commissions 2024 | Global ACV Bookings | n/a (plan-specific) | Target £180,000 | Actual £203,000 ($255,000) | Cash commission plan per year |
| Equity Grant 2024 | Periodic options + RSUs + PSOs | n/a | Annual NEO program | Grant-date fair value $2,861,000 | Options/RSUs: 4-year vest; PSOs: 2-year performance vesting |
| Performance Stock Options (PSOs) 2024 | Rule of 40 and ACV Growth (FY2024, FY2025 scales) | n/a | FY2024 scale: Rule of 40; FY2025 scale: ACV Growth + Rule of 40 (up to 180%) | Company achieved 100% of 2024 performance; 25% vested on first anniversary; 2025 vest potential up to 180% | Up to 25% eligible vest at year 1; up to 75% at year 2; non-earned PSOs forfeited |
Equity Ownership & Alignment
| Ownership Detail | Value |
|---|---|
| Shares owned | 13,489 |
| Shares acquirable within 60 days (options/RSUs) | 240,025 |
| Total beneficial ownership | 253,514 (<1%) |
| Stock ownership guidelines | CEO=3x salary; CEO direct reports=1x salary; directors=3x retainer; 5-year compliance window; retain 50% net shares until compliant; unvested awards excluded; status: compliant or within phase-in |
| Hedging & pledging | Hedging prohibited; pledged/margined shares reviewed; ESPP shares cannot be sold/pledged within one year |
Outstanding awards (selected entries; exercise prices, expiries, and unvested units reflect vesting supply and potential selling pressure):
- Options: multiple tranches including 33.90 (11/2/2032), 47.27 (3/7/2033), 52.47 (6/5/2032), 62.10 (3/5/2034), 85.40 (3/1/2032), 136.08 (3/1/2031), with exercisable/unexercisable counts per grant .
- RSUs unvested: examples include 460 units ($42,872), 2,300 units ($214,360), 830 units ($77,356), 1,199 units ($111,747), 4,628 units ($431,330), 10,253 units ($955,580), 2,233 units ($208,116), 17,609 units ($1,641,159) valued at $93.20, 12/31/2024 close .
2024 vesting/realization:
- RSUs vested: 16,040 shares; value realized $1,099,315. No option exercises reported for Higgins in 2024 .
Employment Terms
- Start date & tenure: Joined Feb 2021; promoted Mar 7, 2022 .
- Offer letter economics (UK employment agreement): probation 3 months; post-probation notice period 3 months; if terminated without cause in first year, severance equal to six months base salary; double-trigger change-of-control immediate vesting of new hire grant; three performance-linked equity grants totaling $1.5M expense (50% options/50% RSUs), with each $500k linked to ACV targets for 2021–2023, granted March 2022–2024, and if targets not achieved, vest 20% after year 1 then quarterly over four years per LTIP .
- Change-of-control economics (proxy): If terminated following a sale of Pega, Higgins’ unvested new hire RSUs and options accelerate; as of 12/31/2024, accelerated RSUs value $446,335; options value $0 (out-of-the-money at $93.20) .
- Severance definitions and plan-level administration/clawback: Committee may subject awards to forfeiture/recoupment for misconduct or per applicable law/company policy; right of repurchase and clawback mechanisms described .
Investment Implications
- Pay-for-performance alignment: Higgins’ CICP tied 75% to Rule of 40 and 25% to strategic initiatives; 2024 funding at 105% indicates above-target performance translation to cash and RSU awards. His election to receive 50% of bonus in RSUs increases equity alignment and creates vesting-date supply; RSU vesting is annual and contingent on threshold funding and good standing .
- PSO design drives execution focus: Two-year PSOs aligned to Rule of 40 and ACV growth with up to 180% vesting on year-two scale; 2024 performance achieved 100% (25% vested), creating potential incremental vesting in 2025 tied to ACV and Rule of 40. This structure incentivizes durable subscription growth and cash generation .
- Insider selling pressure: 2024 RSU vesting of 16,040 shares suggests periodic supply; significant unvested RSU balances (e.g., 10,253 and 17,609 units) imply continued annual vest events. Many older option grants remain out-of-the-money at $93.20, lowering near-term option exercise-driven selling .
- Ownership and retention: Beneficial ownership (253,514 total including acquirable within 60 days) and compliance with ownership guidelines signal alignment; hedging prohibited and pledging restricted/monitored reduce misalignment risk .
- Change-of-control terms: Double-trigger acceleration for new hire grants provides downside protection but is limited (options were out-of-the-money as of 12/31/2024), moderating windfall risk; broader plan allows acceleration subject to Board discretion and shareholder-approved plan authority .
- Governance signals: 2025 Say-on-Pay passed with strong support (FOR 73.5M vs AGAINST 1.8M), and amended LTIP approval indicates investor tolerance for performance equity programs; clawback policy per SEC Rule 10D-1 in place .
References:
Employment agreement: