Sunitha Araamudhu
PERDOCEO EDUCATIONAbout Sunitha Araamudhu
Sunitha Araamudhu, age 55, is Senior Vice President and President of the American InterContinental University System (AIUS), appointed in September 2024. She joined Perdoceo in August 2011 and progressed through marketing and operations roles, including Chief Operating Officer of AIUS; her prior employers include HSBC Bank (Vice President of Marketing) and Sears Holding Corp. She holds an MBA from the University of Chicago Booth School of Business and an MS from Cleveland State University . Context for performance: PRDO’s operating income rose to $174.3M in 2024, with AIP AOI at $194.6M (max payout), student enrollments up 20%, but revenue down 4.0% ($28.7M) YoY; company TSR value of a $100 investment was $145.08 for 2024, and net income was $147.6M .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Perdoceo Education Corporation | President, American InterContinental University System | Appointed Sep 2024 | Oversees AIUS strategy and outcomes; cross-system collaboration |
| Perdoceo Education Corporation | Senior Vice President—AIUS | Current | Executive oversight across AIUS operations |
| Perdoceo Education Corporation | Chief Operating Officer—AIUS | Not disclosed | Evaluated strategies; ensured top-quality outcomes |
| Perdoceo Education Corporation | Marketing & operations roles | Aug 2011–present | Progressive responsibilities enhancing student experiences and operations |
| HSBC Bank | Vice President of Marketing | Not disclosed | Consumer marketing leadership |
| Sears Holding Corp. | Marketing roles | Not disclosed | Retail marketing experience |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | None disclosed | — | — |
No public company boards or external directorships disclosed for Ms. Araamudhu .
Fixed Compensation
| Component | 2024 | Notes |
|---|---|---|
| Base Salary | Not disclosed | Ms. Araamudhu was not a Named Executive Officer in 2024; individual compensation not itemized in proxy . |
| Target Bonus % (AIP) | Not disclosed | AIP design for execs: 80% AOI, 20% individual goals; individual targets disclosed only for NEOs . |
| Actual Bonus Paid | Not disclosed | Company-level 2024 AIP AOI achieved max (200%); individual payouts disclosed for NEOs only . |
Performance Compensation
Annual Incentive Plan (AIP) – Company Design and 2024 Outcomes
| Metric | Weighting | Target | Actual | Payout | Notes |
|---|---|---|---|---|---|
| Adjusted Operating Income (AIP AOI) | 80% | $166.0M | $194.6M | 200% | Payout scale capped at 200%; overachievement drove max payout . |
| Individual Goals | 20% | Not disclosed | Max applied for NEOs | Up to 200% (capped by AOI factor) | Qualitative strategic objectives; individual goals for NEOs achieved at max . |
AIP framework applies to senior executives; Ms. Araamudhu’s specific target/payout not disclosed .
Long-Term Incentive (LTI) Design
| Award Type | Performance Metric | Performance Period | Vesting | Payout Range | Notes |
|---|---|---|---|---|---|
| Performance-Based RSUs (PSUs) | Adjusted Operating Income (recent awards) | Two-year AOI with 3rd-year threshold | Cliff vest at year 3 | 0–200% of target | Threshold check in year 3 reduces vesting to 50% if third-year minimum not met . |
| Time-Based RSUs | — | — | 25% per year over 4 years | N/A | Settled in stock; dividend equivalents accrue and pay upon vesting . |
Historical PSUs from 2022 vested at 200% based on adjusted EBITDA; illustrates performance orientation of PSU program, though individual award amounts disclosed only for NEOs .
Equity Ownership & Alignment
| Item | Policy / Status |
|---|---|
| Stock Ownership Guidelines (SVPs) | 1.5x base salary multiple; retain 50% of net shares until guideline met . |
| Compliance Status | As of most recent measurement, all designated officers have attained the applicable guideline . |
| Hedging/Pledging | Prohibited for covered persons (directors/executive officers); margin purchases and derivatives banned; limited exceptions for entities at Board discretion . |
| Beneficial Ownership | Not individually disclosed for Ms. Araamudhu; ownership table lists directors and NEOs plus group totals . |
Employment Terms
| Provision | Terms |
|---|---|
| Executive Severance Plan Eligibility | Executive officers eligible; Ms. Araamudhu is listed as an executive officer . |
| Severance (Involuntary, not for cause) | Lump sum equal to 1x base salary + 1x target annual bonus; partially subsidized COBRA for 1 year; outplacement assistance; subject to release and 1+ year non-compete/non-solicit/confidentiality . |
| Change-in-Control (2016 Plan) | Double-trigger: upon CIC plus involuntary termination not for cause within 24 months, options become fully exercisable; RSUs fully vest; PSU performance deemed met at target . |
| LTI Restrictive Covenants | One or two-year post-termination non-solicitation, non-disclosure, non-competition on 2024 LTI awards . |
| Clawback Policy | “No fault” recoupment of incentive compensation upon accounting restatement; effective Dec 1, 2023; applies to current/former executive officers . |
| Tax Gross-ups | None on change-in-control or severance; highlighted under compensation best practices . |
Performance & Track Record
| Metric | 2023 | 2024 | Notes |
|---|---|---|---|
| Operating Income ($M) | $150.4 | $174.3 | Up YoY. |
| Revenue ($M) | Prior year baseline | -$28.7 change (-4.0%) | Down YoY; CTU -$12.0; AIUS -$26.8; +$10.0 USAHS contribution . |
| Total Student Enrollments | — | +20.0% YoY; CTU +8.1%; AIUS +11.8% | Highlights execution in retention/engagement . |
| AIP AOI ($M) | $199.2 | $194.6 | 2024 achieved max payout; design differences noted in reconciliation . |
| Net Income ($M) | $147.7 | $147.6 | Pay-versus-performance disclosure . |
| TSR ($100 Investment) | $96.74 | $145.08 | Company cumulative TSR metric . |
Compensation Governance & Peer Benchmarking
- Comparison/peer group of 16 companies used for 2024 target setting (e.g., Grand Canyon, Strategic Education, Graham Holdings); size-adjusted medians and survey data applied .
- Say-on-pay approval was ~97% at 2024 annual meeting; investor outreach conducted; no structural concerns reported .
- Best practices include stock ownership guidelines, double-trigger CIC, clawback, caps on incentives, no hedging/pledging, and no tax gross-ups or option repricing without shareholder approval .
Investment Implications
- Strong pay-for-performance alignment: Executive incentives tied 80% to AOI with capped payouts and PSU design requiring multi-year performance; 2024 overachievement drove max AIP, consistent with improved operating income and enrollment trends .
- Retention risk appears mitigated: Executive Severance Plan (1x salary+bonus), double-trigger CIC protections, and 1–2 year non-compete/non-solicit restrictions on LTI awards support continuity without excessive guarantees .
- Alignment safeguards: Strict anti-hedging/pledging, meaningful ownership guidelines (SVPs at 1.5x salary) with retention ratios, and a “no fault” clawback reduce governance red flags and enhance shareholder alignment .
- Monitoring points: Individual compensation and ownership for Ms. Araamudhu are not itemized; track future proxies/8‑Ks for any changes in role, compensation targets, or equity grants, and watch standard vesting cycles (e.g., mid-March vest dates) for potential insider activity consistent with company-wide practices .