Stefano Volpetti
Chief Global Growth Officer at PM
Executive
About Stefano Volpetti
Stefano Volpetti (age 53) is President, Smoke‑Free Inhalable Products & Chief Consumer Officer at Philip Morris International (PMI). He joined PMI in June 2019 as Chief Consumer Officer, was appointed President, Smoke‑Free Products Category & CCO in Nov 2021, elevated to his current role in Jan 2023, and reconfirmed as President, Smoke‑Free Products Category & CCO effective Apr 1, 2025, reporting to the CEO . PMI’s 2024 incentive framework delivered a company performance rating of 130 (rounded) on metrics including Adjusted Net Revenues (+9.8% organic), Adjusted Operating Income (+14.9% organic), Operating Cash Flow ($12.2B), Smoke‑Free shipment volume, and market share in top OI markets, underpinning above‑target payouts for NEOs . Over 2022–2024, PMI’s PSU program paid at 170% of target, driven by top‑tier relative TSR (95th percentile), 3‑yr adjusted EPS CAGR ex‑FX of 12.2%, and Sustainability Index performance .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| PMI | President, Smoke‑Free Inhalable Products & Chief Consumer Officer | Jan 2023–present | Leads global smoke‑free inhalable portfolio and consumer strategy . |
| PMI | President, Smoke‑Free Products Category & Chief Consumer Officer | Nov 2021–Dec 2022 | Category leadership for smoke‑free; consumer transformation . |
| PMI | Chief Consumer Officer | Jun 2019–Oct 2021 | Drove consumer‑centric transformation post‑entry to PMI . |
| Procter & Gamble | VP & Brand Franchise Leader (global BU); 22‑year tenure across Italy, Mexico, Europe | 2016–2019 (VP); 1993–2015 (prior) | Global brand/P&L leadership; multi‑market execution expertise . |
| Luxottica Group S.p.A. | Chief Marketing Officer | 2015 | Brand and consumer leadership in premium eyewear . |
External Roles
No current public company directorships disclosed for Mr. Volpetti .
Fixed Compensation
| Metric (USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary | $942,912 | $1,045,066 | $1,079,465 |
| All Other Compensation (perqs) | $24,483 | $28,356 | $44,575 (car $42,872; tax prep/other $1,703) |
| Pension – Change in PV | — | $4,343,543 | $916,064 |
Pension balances at 12/31/2024 (retention anchor):
- Pension Fund of Philip Morris in Switzerland: $11,395,634; IC Pension Plan: $1,088,801; Supplemental Plan: $945,658 .
Performance Compensation
Annual Incentive (Cash)
| Item | 2024 |
|---|---|
| Target as % of Base Salary | 100% |
| Actual Payout as % of Base Salary | 143% (paid Feb 2025) |
2024 corporate scorecard (weights and ratings):
| Measure | Weight | Rating | Notes |
|---|---|---|---|
| Adjusted Net Revenues (organic growth) | 20% | 147 | +9.8% organic vs 7.5–8.5% target . |
| Adjusted Operating Income (organic growth) | 15% | 150 | +14.9% organic vs 8.4–9.7% target . |
| Operating Cash Flow (USD) | 20% | 150 | $12.2B vs $9.8–$10.2B target . |
| Smoke‑Free Shipment Volume | 15% | 100 | 156.5bn within target 153.4–158bn . |
| Share of Top 30 OI Markets | 15% | 105 | 18 markets vs 15–17 target . |
| Strategic Initiatives | 15% | 110 | Harm reduction, portfolio, W&H, culture . |
| Overall (rounded) | — | 130 | Committee rounded from 129 |
Role‑specific contribution highlights for Mr. Volpetti in 2024: continued IQOS ILUMA rollout momentum; innovation pipeline progress; reshaped e‑vapor strategy; IQOS brand equity; focus on youth access prevention—supporting above‑target individual ratings .
Long‑Term Equity (PSUs/RSUs)
Policy: 60% PSUs (3‑yr performance), 40% RSUs (3‑yr cliff); no stock options .
2024 awards (granted Feb 8, 2024):
| Type | Target as % of Base | Actual as % of Base |
|---|---|---|
| PSUs (2024–2026 cycle) | 105% | 126% |
| RSUs (vest 2/17/2027) | 70% | 84% |
Grant detail (2024):
| Grant | Threshold (#) | Target (#) | Max (#) | RSUs (#) | Grant Date/ Vest Date |
|---|---|---|---|---|---|
| 2024 PSUs | 7,405 | 14,810 | 29,620 | — | Grant 2/8/2024; vest 0–200% on 2/17/2027 |
| 2024 RSUs | — | — | — | 9,870 | Grant 2/8/2024; 100% vests 2/17/2027 |
PSU metrics and most recent payout history:
- 2022–2024 cycle paid at 170% (rounded) based on: TSR vs peer group at 95th percentile (200% factor), 3‑yr adjusted diluted EPS CAGR ex‑FX 12.2% (200%), Sustainability Index aggregate 89% (converted ratings) .
- Current PSU cycles (2024–2026; 2025–2027): TSR 40%, EPS CAGR ex‑FX 30%, Sustainability Index 30% (Product 20%, Operational 10%); 0–200% payout; committee retains adjustment discretion .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership (3/14/2025) | 92,350 shares; each NEO <1% of outstanding . |
| Unvested/Unearned Equity (12/31/2024) | RSUs unvested: 9,870 (2024 grant); 8,390 (2023 grant). PSUs unearned: 29,620 (2024 cycle); 25,160 (2023 cycle) . |
| Dividend Equivalents | RSUs: quarterly through vest; PSUs: paid at vest on earned shares . |
| Ownership Guidelines | Salary Grade multiples: Grade 26 = 5x; Grade 25 = 3x; unvested PSUs don’t count; compliance required within 5 years (new hire) / 3 years (promotion) . |
| Compliance Status | All NEOs complied with guidelines as of 12/31/2024 . |
| Hedging/Pledging | Prohibited (anti‑hedging and anti‑pledging policies); short sales also prohibited . |
| Post‑Termination Holding | If vesting accelerates (other than death/disability), 12‑month holding on resulting shares . |
Vesting runway and potential selling pressure:
- Feb 18, 2026: RSUs (2023 grant) and PSUs (2023 cycle) cliff/settlement .
- Feb 17, 2027: RSUs (2024 grant) and PSUs (2024 cycle) cliff/settlement . These clustered events can create tax‑driven liquidity needs around vest dates (supply), though policies restrict hedging/pledging and impose post‑termination holds .
Employment Terms
- Appointment chronology: CCO (Jun 2019); President, Smoke‑Free Products Category & CCO (Nov 2021); President, Smoke‑Free Inhalable Products & CCO (Jan 2023); reappointed President, Smoke‑Free Products Category & CCO effective Apr 1, 2025 .
- Severance/Non‑compete: PMI states NEOs’ contracts generally do not include severance or change‑in‑control provisions; Mr. Volpetti’s severance provisions applied only for two years upon commencement and are no longer applicable .
- Change‑in‑Control: 2017 & 2022 Performance Incentive Plans include double‑trigger vesting; if awards not replaced, RSUs vest fully and PSUs valued (target or actual depending on cycle elapsed) and paid; if replaced, full vest on qualifying termination within 2 years post‑CIC .
- Estimated CIC value (12/31/2024 assumption): Unvested PSUs $4,735,773; Unvested RSUs $3,156,781; Annual Incentive for completed cycle $1,050,421; Total $8,942,975 .
- Clawback: SEC/Dodd‑Frank compliant Policy for Recovery of Erroneously Awarded Incentive Compensation adopted Sep 13, 2023; Committee oversees implementation (in addition to broader misconduct/fraud recoupment policy) .
- Insider trading: Company policy in place; code of conduct applies to all executives .
Additional Program Context (Pay‑for‑Performance)
- 2024 NEO base salaries: Mr. Volpetti $1,088,514 (decision‑date FX) .
- 2024 NEO equity targets and actuals (illustrative): Mr. Volpetti PSUs 105% target/126% actual; RSUs 70% target/84% actual, consistent with exceeding individual objectives .
- Compensation peer group (for benchmarking and TSR comparison): Altria, Anheuser‑Busch InBev, BAT, Coca‑Cola, Colgate‑Palmolive, Diageo, Heineken, Imperial Brands, Japan Tobacco, Johnson & Johnson, Kimberly‑Clark, Kraft Heinz, McDonald’s, Mondelēz, Nestlé, PepsiCo, Procter & Gamble, Roche, Unilever .
- Say‑on‑pay: 2024 approval 92.88% after engagement and program refinements .
Equity & Cash Realizations (Recent)
- 2024 stock vested value realized by Mr. Volpetti: $3,270,589; shares acquired on vesting: 36,352 .
- 2022 grants vested Feb 19, 2025: RSUs 7,970; PSUs (2022 cycle) 20,332 at 170% performance; PSUs dividend equivalents paid in 2025: $314,740 .
Investment Implications
- Alignment high; risk moderate: A large share of Mr. Volpetti’s target pay is at‑risk (100% cash target with 143% payout in 2024 and PSU/RSU mix tied to TSR, EPS ex‑FX, sustainability), with stringent ownership, anti‑hedging/pledging, clawback, and post‑termination holding provisions—supporting shareholder alignment .
- Retention durable: Significant unvested equity scheduled for 2026–2027 and meaningful pension value ($13.43m aggregate present value) create retention hooks amid ongoing category growth priorities (IQOS ILUMA, ZYN expansion) .
- Selling pressure windows: February 2026 and 2027 vesting events may prompt tax‑related dispositions; monitor Forms 4 around those dates and quarter‑end blackout windows for potential flow‑through to supply .
- Execution track record: 2024 corporate over‑delivery (organic revenue and OI growth and cash flow) and 170% PSU payout on 2022–2024 signal strong execution of smoke‑free strategy—positive for confidence in leadership continuity and incentive calibration, with program credibility reinforced by robust say‑on‑pay support .