Stacey Kennedy
CEO PMI U.S. at PM
Executive
About Stacey Kennedy
Stacey Kennedy is President, Americas Region and CEO of PMI’s US Business, appointed effective January 1, 2023, with salary grade 24 . She has 14.00 credited years of service with PMI and affiliates as of December 31, 2024 . Company performance over her NEO tenure includes the 2022–2024 PSU cycle vesting at an overall 170% performance factor (driven by TSR at the 95th percentile and 12.2% three-year adjusted diluted EPS CAGR excluding currency) , and FY2024 adjusted net revenues and adjusted operating income growth of 10.1% and 14.9% respectively excluding currency and acquisitions .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Philip Morris International (PMI) | President, Americas Region & CEO of PMI’s US Business | 2023–present | Led Americas to exceed targets; integrated Swedish Match’s U.S. business; prepared organization for planned 2024 IQOS U.S. launch . |
| PMI (International Assignment) | Prior international assignment (Hong Kong) | pre‑2023 → relocation June 2023 | Relocated from Hong Kong to Switzerland; received transitional housing support before current U.S. assignment . |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | 836,747 | 904,926 |
| IC Target as % of Base Salary | 100% | — (target $895,621) |
| Actual IC Payout | 1,181,950 ($); 132% of base salary | 1,513,600 ($) |
| All Other Compensation ($) | 2,407,624 | 2,313,631 |
- 2023 base salary was increased effective Jan 1, 2023 to CHF 750,000 ($809,717) upon appointment to her current role . For 2024, the Committee approved increasing her base salary to CHF 810,000 (approx. $928,101) effective Apr 1, 2024 .
Performance Compensation
Annual Incentive (IC Award) – Company Metrics and Ratings
| Metric | Weight | 2023 Performance Rating | 2024 Performance Rating |
|---|---|---|---|
| Market Share (Top 30 OI Markets) | 15% | 110% (19 markets vs target 15–17) | 105% |
| Smoke‑Free Shipment Volume | 15% | On target (125.3bn units) | 100% |
| Adjusted Net Revenues (organic) | 20% | On target (7.8% growth) | 147% |
| Adjusted Operating Income (organic) | 15% | 93% (below target) | 150% |
| Operating Cash Flow | 20% | On target (‑2.8% currency‑neutral) | 150% |
| Strategic Initiatives | 15% | 110% | 110% |
| Swedish Match Modifier | +10pp (achieved) | Applied | — |
- Overall IC performance rating: Committee approved 110 for 2023 (rounded down from 112) ; the 2024 weighted table sums to ~129 (Committee table presented) .
Equity Awards – Grants and Vesting
| Grant Year | Grant Date | Type | Target/Granted Units | Grant Date Fair Value ($) | Vesting |
|---|---|---|---|---|---|
| 2024 | 2/8/2024 | PSUs | Target 10,690 (threshold 5,345; max 21,380) | 937,449 | 0–200% vests on 2/17/2027 based on TSR, EPS CAGR (ex‑currency), Sustainability Index (40%/30%/30%) |
| 2024 | 2/8/2024 | RSUs | 7,130 | 634,641 | 100% vests 2/17/2027; quarterly dividend equivalents |
| 2023 | 2/9/2023 | PSUs | Target 6,200 (threshold 3,100; max 12,400) | 710,694 | 0–200% vests on 2/18/2026 (same metric weights) |
| 2023 | 2/9/2023 | RSUs | 5,070 | 517,241 | 100% vests 2/18/2026; quarterly dividend equivalents |
| 2022 | 2/10/2022 | PSUs | Earned 9,945 at 170% factor (vested 2/19/2025) | — | Cycle performance overall 170% |
| 2022 | 2/10/2022 | RSUs | 4,790 (vested 2/19/2025) | — | 100% vest |
- 2024 company PSU metrics remained TSR (relative; cap if absolute TSR < 0), currency‑neutral adjusted diluted EPS CAGR, and Sustainability Index; weights 40%/30%/30% .
- 2022–2024 PSU cycle results: TSR at 95th percentile (200%), EPS CAGR ex‑currency 12.2% (200%), Sustainability Index final rating 89%; overall performance factor 170% .
Stock Vested and Value Realized
| Year | Shares Vested | Value Realized ($) |
|---|---|---|
| 2024 (stock awards) | 18,917 | 1,701,962 |
| 2025 Dividend Equivalents on Vested PSUs | — | 153,949 |
Equity Ownership & Alignment
| Date | Beneficial Ownership (Shares) | % of Shares Outstanding | Notes |
|---|---|---|---|
| Mar 15, 2024 | 19,280 | <1% (outstanding 1,554,551,026) | Includes deferred stock per table footnote . |
| Mar 14, 2025 | 29,595 | <1% (outstanding 1,556,488,205) | PMI notes each named individual <1% . |
- Unvested/Unearned equity at year‑end:
- As of Dec 31, 2024: 7,130 RSUs unvested; 21,380 PSUs unearned (market values $858,096 and $2,573,083) .
- As of Dec 31, 2023: 5,070 RSUs unvested; 12,400 PSUs unearned (market values $476,986 and $1,166,592) .
- Ownership guidelines: Salary grade 24 requires holding 3× base salary; unvested PSUs do not count; all NEOs were in compliance as of Dec 31, 2024 and 2023 .
- Anti‑hedging/anti‑pledging: PMI prohibits hedging, short sales, and pledging/margin accounts for executives .
Employment Terms
- Contract/Severance: Ms. Kennedy is a Swiss payroll‑based executive; PMI discloses she does not have a special employment contract and NEO contracts generally have no change‑in‑control provisions (CFO has distinct severance terms) . Voluntary termination policy (adopted 2023) avoids cash severance and non‑competition payments for executive voluntary departures .
- Change‑in‑Control (illustrative, Dec 31, 2024): Estimated payout if awards not replaced or employment involuntarily terminated: Unvested PSUs $2,736,759; Unvested RSUs $2,044,747; Completed 2024 IC award $895,621; Total $5,677,127 (assumes CI price $120.35; PSUs at target where applicable) .
- Equity plan treatment: Double‑trigger vesting under 2017/2022 Performance Incentive Plans; if awards are replaced and employment ends involuntarily (or for good reason) within 2 years post‑CI, replacement awards fully vest .
- Clawbacks: Board‑approved recovery policy augmented Sept 13, 2023 to meet SEC/NYSE rules, enabling recoupment of erroneously awarded incentive compensation; PMI also maintains broader misconduct/restatement clawback authority .
- Post‑termination share holding: Shares from accelerated vesting must be held for at least one year .
Performance Compensation Detail (PSUs)
| Metric | Weight | Target/Scale | 2022–2024 Actual | Rating/Factor |
|---|---|---|---|---|
| TSR (relative; cap if absolute TSR < 0) | 40% | Below 25th=0%; 50th=100%; ≥80th=200% | 95th percentile | 200% |
| Adjusted Diluted EPS CAGR (ex‑currency) | 30% | <5%:0%; 8%:100%; ≥11%:200% | 12.2% | 200% |
| Sustainability Index (Product/Operational 20%/10%) | 30% | Aggregate KPI scaling to 0–200% per component | Final rating 89% | Converted per methodology |
Overall PSU performance factor: 170% (rounded) for the 2022–2024 cycle .
Perquisites and Other Benefits
- International assignment support: $2,335,645 (2023) and $2,272,108 (2024) covering housing, home leave, relocation, education, tax/social security equalization, and program allowances .
- 2024 breakdown: Housing $176,897; Home Leave $29,134; Relocation $101,597; Education $112,560; Tax/Social Equalization $1,797,469; Other $54,451 .
- Car expenses and tax preparation/other: Car $46,491 (2023); $40,449 (2024). Tax prep/other $25,488 (2023); $1,074 (2024) .
- Pension: Change in pension value contributed $1,752,402 (2023) and $1,016,815 (2024) to total compensation; credited service 14.00 years; present value of accumulated benefits disclosed across PMI Swiss plans .
Investment Implications
- Pay‑for‑performance alignment: High proportion of at‑risk pay via PSUs (60% of equity) tied to relative TSR, EPS CAGR (ex‑currency), and Sustainability Index; recent cycles paid at 170% due to strong performance, indicating alignment with shareholder returns during the period . The IC program uses multi‑factor operating metrics, with 2024 showing outsized ratings on adjusted net revenues, operating income, and cash flow, supporting a robust annual payout ($1.51M) .
- Vesting calendar and potential selling pressure: Significant RSU/PSU cliffs in Feb 2026 and Feb 2027 may create supply events; 2024 vesting delivered 18,917 shares to Kennedy ($1.70M realized), with dividends accruing on RSUs and paid at PSU vesting (e.g., $153,949 in 2025) . PMI’s post‑termination one‑year holding requirement applies only to accelerated vesting, not standard schedules .
- Ownership/retention risk: Kennedy complies with stringent 3× salary ownership guidelines; anti‑pledging/anti‑hedging policies reduce misalignment risk . She lacks an individualized severance/CIC agreement; equity plans’ double‑trigger vesting and strong performance‑based pay likely support retention, while voluntary termination policy reduces windfall risk in resignations .
- Strategic execution indicators: Narrative credits Kennedy with exceeding regional performance, integration of Swedish Match U.S., regulatory progress (including ZYN authorization), and preparation for IQOS U.S. launch—drivers that the Compensation Committee used to award above‑target equity in 2024 (PSUs 115% and RSUs 77% of base salary) and strong annual incentives .
Overall, Kennedy’s compensation is heavily performance‑linked with multi‑year PSUs anchored to TSR and EPS growth, compliance with rigorous ownership rules, and no executive‑friendly pledging or hedging—pointing to solid alignment. Upcoming large‑scale vesting in 2026/2027 could be monitored for trading flow impacts; retention appears supported by sustained award cadence tied to regional execution and U.S. commercialization milestones .