Akash Palkhiwala
QUALCOMM INC/DEAbout Akash Palkhiwala
Qualcomm’s Chief Financial Officer since November 2019 and Chief Operating Officer since January 2024, with 23 years of service at the company, spanning finance leadership across QCT, treasury, and interim CFO roles . Under his finance/operating stewardship in FY2024, Qualcomm delivered GAAP revenue $39.0B (Non-GAAP $38.9B), GAAP diluted EPS $8.97 (Non-GAAP $10.22, +21% y/y), record operating cash flow $12.2B, and a 61% total shareholder return, while returning $7.8B to shareholders via $4.1B buybacks and $3.7B dividends .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Qualcomm | COO | Jan 2024–present | Consolidated operational execution across businesses; reinforced profitable growth focus via ACIP weighting shift |
| Qualcomm | CFO | Nov 2019–present | Led capital allocation and profitability focus; oversaw strong FY2024 TSR (+61%) and cash returns ($7.8B) |
| Qualcomm (QTI/QCT) | SVP & Interim CFO | Aug–Nov 2019 | Ensured continuity of finance leadership during transition |
| Qualcomm (QTI) | SVP, QCT Finance | Dec 2015–Aug 2019 | Drove P&L oversight and cost discipline for chip business |
| Qualcomm | SVP & Treasurer | Oct 2014–Dec 2015 | Managed liquidity, capital markets, and treasury optimization |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| None disclosed in proxy for NEO | — | — | — |
Fixed Compensation
- Executive officers are at-will; no employment contracts .
| Metric | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
| Salary ($) | $750,214 | $750,214 | $848,151 (paid); Annual base set at $900,000 post-COO appointment |
| ACIP Target (% of Salary) | — | 150% | 150% |
| All Other Compensation ($) | $186,556 | $151,539 | $106,194 |
- FY2024 perquisites and benefits detail: NQDC company match $39,009; charitable match $55,000; 401(k) match $6,032; executive life insurance premiums $6,153 .
Performance Compensation
Annual Cash Incentive Plan (ACIP) – FY2024 design and payout
| Component | Weighting/Rules | Target | Actual | Payout |
|---|---|---|---|---|
| Adjusted Revenues | 40% weighting | 100% | 105.1% of target | Contributes to 107.9% weighted performance |
| Adjusted Operating Income | 60% weighting | 100% | 109.7% of target | Contributes to 107.9% weighted performance |
| Human Capital Advancements (modifier) | Multiplier 0.9–1.1 | Meets expectations | 1.0 applied | Final funding 139% of target |
| Akash Palkhiwala ACIP | Target 150% of salary | $1,350,000 | Funding 139% | Earned $1,877,000 |
- ACIP cap: 200% of target; no discretionary adjustments applied for FY2024 .
Long-Term Incentives Structure
| Instrument | Measurement | Payout Schedule | Vesting |
|---|---|---|---|
| PSUs (60% of FY2024 LTI value) | 50% RTSR vs NASDAQ-100; 50% 3-year average Adjusted EPS | 0–2x target; RTSR capped at target if absolute TSR negative | 3-year cliff vest |
| RSUs (40% of FY2024 LTI value) | Time-based | — | Vests annually over 3 years |
FY2024 Equity Grants (Akash Palkhiwala)
| Grant Date | Award Type | Target Units | Max Units | Grant-Date Fair Value ($) |
|---|---|---|---|---|
| 12/13/2023 | RTSR PSUs | 11,199 | 22,398 | $2,100,148 |
| 12/13/2023 | EPS PSUs | 15,130 | 30,260 | $2,100,044 |
| 12/13/2023 | RSUs | 20,173 | — | $2,800,012 |
| 1/22/2024 | RTSR PSUs | 4,055 | 8,110 | $900,088 |
| 1/22/2024 | EPS PSUs | 5,888 | 11,776 | $900,099 |
| 1/22/2024 | RSUs | 7,850 | — | $1,200,030 |
PSU Outcomes – Performance Periods Ending FY2024 (granted FY2021)
| Metric | Target | Actual | Payout |
|---|---|---|---|
| RTSR vs NASDAQ‑100 | 55th percentile | 62nd percentile | 120% |
| Adjusted EPS (3-year) | $11.00 | $10.29 | 78% |
| Aggregate Earned | — | — | 98% of target |
Equity Ownership & Alignment
- Beneficial ownership: 69,021 shares as of December 15, 2024 .
- Stock ownership guidelines: Executive officers must hold 2x base salary; all NEOs met guidelines as of December 15, 2024 .
- Hedging/pledging: Corporate policy prohibits hedging and pledging for Designated Insiders (officers); options and derivatives trading also prohibited .
- Options: No stock options outstanding or granted to NEOs; Akash holds no options .
Outstanding Unvested/Unearned Equity (as of Sept 29, 2024)
| Category | Units | Market/Payout Value ($) |
|---|---|---|
| Unvested RSUs and completed-measurement PSUs | 71,761 | $12,208,699 |
| Unearned PSUs (measurement incomplete) | 109,633 | $18,651,863 |
Vesting Schedules and Key Dates
| Grant Date | Award Type | Units | Vesting Schedule/Dates |
|---|---|---|---|
| 12/13/2023 | RSUs | 20,173 | 33-1/3% each on 12/15/2024, 12/15/2025, 12/15/2026 |
| 1/22/2024 | RSUs | 7,850 | 33-1/3% each on 12/15/2024, 12/15/2025, 12/15/2026 |
| 12/13/2023 | PSUs (RTSR/EPS) | Target totals: 11,199 / 15,130 | 100% cliff; scheduled 12/15/2026 (payout subject to performance) |
| 1/22/2024 | PSUs (RTSR/EPS) | Target totals: 4,055 / 5,888 | 100% cliff; scheduled 12/15/2026 (payout subject to performance) |
Note: Annual RSU vestings can create routine sell-to-cover tax transactions; PSUs settle at end of performance period, potentially influencing equity supply around vest dates .
Employment Terms
- At-will employment; no individual employment contracts; no single-trigger CIC; no excise tax gross-ups .
- Clawback: ACIP and PSUs subject to incentive compensation repayment policy; policy is filed with the 10‑K .
Severance and Change-in-Control Economics (Executive Officer Plans)
| Scenario | Cash Severance | COBRA Premiums | Equity Treatment |
|---|---|---|---|
| Involuntary Termination (no CIC) | 1.5x base salary + 1.5x target bonus; pro‑rata target bonus for year of termination | Company-paid for severance period (≤ COBRA limits) | RSUs prorated to first anniversary; PSUs prorated with performance measured through fiscal year of termination |
| Change-in-Control (double-trigger) | Same cash severance terms as above upon qualifying termination | Same COBRA terms | Full acceleration: PSUs vest in full; EPS deemed at target; RTSR measured through fiscal year of termination |
Deferred Compensation
| Metric | FY2024 Amount ($) |
|---|---|
| Executive contributions to NQDC | $700,141 |
| Company match to NQDC | $39,009 |
| Aggregate NQDC balance at FY2024 year-end | $10,076,469 |
Multi-Year Total Compensation (Summary Compensation Table)
| Metric | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
| Salary ($) | $750,214 | $750,214 | $848,151 |
| Stock Awards ($) | — | $7,390,206 | $10,000,421 |
| Non-Equity Incentive Plan ($) | $1,339,000 | $225,000 | $1,877,000 |
| All Other Compensation ($) | $186,556 | $151,539 | $106,194 |
| Total ($) | $2,275,770 | $8,516,959 | $12,831,766 |
Say-on-Pay & Shareholder Feedback
- 2024 say-on-pay approval: 92% support; active outreach to holders of ~40% of shares outstanding .
- Program features: balanced metrics (Adjusted Revenues, Adjusted OpInc, EPS, RTSR), robust stock ownership, clawback, caps and negative TSR guardrail on RTSR PSUs .
Investment Implications
- Pay-for-performance alignment is strong: ACIP and PSUs tied to profitability (Adjusted OpInc/EPS) and relative TSR, with guardrails and caps; FY2024 payout 139% reflects operating outperformance, not committee discretion .
- Retention risk looks contained: Significant unvested RSUs and PSUs through 12/15/2026, stock ownership guideline compliance, and double-trigger CIC reduce incentives to depart prematurely .
- Selling pressure windows: Annual RSU vesting each December and PSU cliffs in 2026 could drive periodic tax-related sell-to-cover activity; no options outstanding, and insider policy prohibits hedging/pledging, limiting adverse alignment risks .
- Severance economics are market-standard (1.5x pay; double-trigger equity) without tax gross-ups or single-trigger features—shareholder-friendly structure that limits windfalls and aligns outcomes with performance and continuity .