Ajay Singh
Pure StorageAbout Ajay Singh
Ajay Singh is Chief Product Officer of Pure Storage (since January 2021), age 67, with degrees from IIT Kanpur (B.Tech, Electrical Engineering), Carnegie Mellon University (M.S., Electrical/Computer Engineering), and Stanford GSB (MBA) . FY2025 company performance tied to executive pay included revenue of $3.168B vs. $3.128B target, non-GAAP operating profit of $559M vs. $532M target, and audited NPS of 81; storage-as-a-service TCV missed target ($393M vs. $600M), driving PSU payout at 73% . FY2024 Say‑on‑Pay support was low (~40%), prompting adjustments and reaffirmation of pay-for-performance practices .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| VMware | SVP & GM, Cloud Management Business Unit | 2015–2021 | Led cloud management portfolio; relevant to Pure’s transition to subscription/as-a-service models . |
External Roles
None disclosed in the proxy for public company directorships or committee roles .
Fixed Compensation
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Base Salary ($) | 550,000 | 550,000 | 550,000 |
| Target Bonus % of Salary | — | — | 100% (increased from 80% in March 2024) |
| Actual Cash Bonus ($) | 660,000 | 585,200 | 686,400 |
Notes:
- FY2025 corporate performance factor set at 96% for executives; Ajay’s individual performance factor 130%, yielding $686,400 earned bonus .
- Cash bonus metrics and weights: Revenue 60%, Non-GAAP Operating Profit 25%, NPS 15% .
Performance Compensation
Annual Bonus Design and Outcomes (FY2025)
| Metric | Weight | Target | Actual | Funding |
|---|---|---|---|---|
| Revenue ($B) | 60% | 3.128 | 3.168 | 112% |
| Non-GAAP Operating Profit ($M) | 25% | 532 | 559 | 115% |
| NPS | 15% | 80–82 | 81.0 | 100% |
| Corporate Performance Factor | — | — | — | 96% (executives) |
| Ajay Singh Individual Factor | — | — | — | 130% |
| Ajay Singh Bonus Earned ($) | — | — | — | 686,400 |
FY2025 PSUs (one-year performance, three-year time vest)
| Element | Details |
|---|---|
| Metric | Combined: total revenue + 70% of storage-as-a-service TCV |
| Target/Max Shares (Ajay) | 75,546 target; 151,092 max |
| Public targets | Revenue $3.1B; Storage-as-a-service TCV $600M |
| Actuals | Revenue $3.168B; TCV $393M; Combined metric $3.44B |
| Payout | 73% of target (Ajay earned 55,149 shares) |
| Vesting | 1/3 on Mar 20, 2025; remainder quarterly over 2 years |
Long-Term 5-Year PSU (granted FY2024; market-cap condition)
| Feature | Details |
|---|---|
| Metric | Market cap ≥ $21B; measures at end of FY2026/2027/2028 (33%/67%/100% banked); vests Mar 20, 2028; 1-year post-vest hold |
| Ajay Target Shares Outstanding | 284,734 (unearned as of FY2025) |
| Status | No shares banked or vested through FY2025 |
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Beneficial Ownership (shares) | 211,824; <1% of outstanding |
| Shares Outstanding (for % calc) | 327,142,977 |
| Ownership % (calc) | ≈0.065% (211,824 ÷ 327,142,977) |
| Vested vs Unvested (as of 2/2/2025) | Unvested RSUs: 17,581 (2018–2022 grant cycle) , 13,297 (2021 cycle) , 47,279 (2024 cycle) ; FY2025 PSU target 75,546 (earned later at 73%) ; 5-Year PSU target 284,734 (market condition) |
| Stock Awards Vested in FY2025 | 206,024 shares vested; $11,706,947 realized value |
| Stock Ownership Guidelines | 2× base salary for executives (5× for CEO, 5× for directors); compliance met or on track company-wide |
| Hedging/Pledging | Prohibited; no margin accounts or derivatives; 10b5‑1 plan policy in place |
| Clawback | NYSE/SEC-compliant clawback for Section 16 officers upon restatement (misconduct not required) |
Employment Terms
| Term | Ajay Singh |
|---|---|
| Current Role & Start | Chief Product Officer; since Jan 2021 |
| Base Salary | $550,000 |
| Target Bonus | 100% of base (raised from 80% in March 2024 for FY2025 program) |
| Severance (no change-in-control) | Lump sum 6 months base ($275,000); up to 6 months company-paid health coverage ($15,632) |
| Change-in-Control (double-trigger) | Lump sum 12 months base + 12 months target bonus ($1,100,000); up to 12 months health coverage ($31,263); 100% acceleration of time-based awards and FY2025 PSUs at 100% target; 5-Year PSU subject to special CoC acceleration rules |
| Tax Gross-Ups | None for parachute/deferred comp; “best after tax” cutback applies |
| Perquisites | Executive physical exam up to $7,500; no other executive-specific perqs; all other comp items include 401(k) match, limited event tax gross-ups, life insurance; Ajay FY2025 All Other Comp $8,260 |
Performance & Track Record
- FY2025 delivery highlights tied to Singh’s remit: Pure Fusion v2 shipped; engineering process improvements and readiness for FlashBlade//EXA launch supporting GPU-intensive workloads; reflected in a 130% individual performance factor for bonus .
- Company-level achievements: revenue beat ($3.168B), non-GAAP op profit beat ($559M), NPS 81; subscription ARR reached $1.7B; storage-as-a-service TCV missed ($393M vs. $600M), moderating equity payout to 73% .
Compensation Structure Analysis
- Cash vs. Equity Mix: Equity-heavy pay; executives’ average target pay mix 79% equity, 11% cash bonus, 10% base, indicating strong equity-at-risk emphasis .
- Metric Rigor: Cash bonus metrics balanced growth (revenue), profitability, and customer satisfaction; PSU metric added subscription TCV to revenue to drive mix shift; missing TCV target reduced payout to 73% .
- Governance Response: After ~40% Say-on-Pay support in 2024, committee reduced one-off equity inflation, reaffirmed performance dependence, and disclosed 5-Year PSU progress transparently .
Compensation Peer Group (Benchmarking)
Akamai, Arista Networks, Box, Dropbox, Elastic, F5, Guidewire, Juniper Networks, Logitech, NetApp, New Relic, Nutanix, Palo Alto Networks, Splunk; used for market-competitive pay setting without rigid percentile targeting .
Say‑on‑Pay & Shareholder Feedback
- FY2024 Say‑on‑Pay approval: slightly >40% in favor (failed) .
- Company response: enhanced engagement (48% of shares engaged; 40% with committee chair), refined equity design in FY2025, committed ongoing disclosure on 5‑Year PSU progress .
Risk Indicators & Red Flags
- Hedging/pledging prohibited; robust clawback—favorable alignment .
- No excise tax gross‑ups; “best after tax” provision—shareholder-friendly .
- Large vesting volumes (206,024 shares in FY2025) imply potential periodic selling for tax/portfolio diversification via 10b5‑1 plans; no specific Ajay Form 4 anomalies disclosed (late filings cited for CFO and CRO only) .
Equity Ownership & Alignment Details
| Breakdown (as of FY2025 year-end) | Shares / Value |
|---|---|
| Beneficially Owned | 211,824 shares (<1%) |
| Unvested RSUs (examples) | 17,581; 13,297; 47,279 |
| FY2025 PSU Target (earned later) | 75,546 target; 55,149 earned at 73% |
| 5‑Year PSU Target | 284,734; market-cap metric unearned |
| Vested in FY2025 | 206,024 shares; $11,706,947 value |
Employment Contracts, Covenants, and Plans
- Severance Plan: company-wide plan for VP+ includes double-trigger CoC protection; time-based awards fully accelerate; performance awards at 100% target; 5‑Year PSU has tailored CoC/death/disability mechanics .
- 10b5‑1 Trading Plans: encouraged under insider policy; blackout windows enforced .
- Non-compete/non-solicit: not disclosed in proxy; skip.
Investment Implications
- Alignment: High equity-at-risk with PSU dependence and stringent clawback/anti-hedging policies supports shareholder alignment; Ajay’s ownership and guideline compliance further reduce misalignment risk .
- Retention: Meaningful unvested PSUs (FY2025 tranche continuing through 2027) and large 5‑Year PSU tied to market-cap (~through 2028) create strong retention incentives; severance/CoC terms are standard double-trigger, not excessive .
- Execution Signals: Ajay’s individual bonus factor (130%) recognizes delivery on Fusion v2 and AI storage roadmap; however, subscription TCV miss and 73% PSU payout highlight ongoing execution risk in scaling storage‑as‑a‑service revenue mix .
- Trading Pressure: Significant annual vesting volumes may drive periodic programmatic selling around vest dates for taxes/liquidity; monitor Form 4s and 10b5‑1 adoptions to gauge near‑term supply .
- Governance: Prior Say‑on‑Pay fail (2024) improved disclosure and moderated FY2025 equity grants; continued attention to equity design and subscription metrics likely as Pure scales ARR/TCV ambitions .
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