Kevin Hettrich
QuantumScapeAbout Kevin Hettrich
Kevin Hettrich (age 43) is QuantumScape’s Chief Financial Officer (CFO) since 2018; he previously held finance and product management roles at the company and earlier worked at Bain Capital and McKinsey. He holds a B.A. in Economics (Pomona College), an MBA (Stanford GSB), and an M.S. in Environment and Resources (Stanford) . QuantumScape is pre‑revenue and compensates executives against operational milestones; company TSR since the 2020 listing moved from $228.24 to $14.03 for a $100 initial investment, with net losses of $(1,681,777)k (2020), $(45,966)k (2021), $(411,907)k (2022), $(445,145)k (2023), and $(477,857)k (2024) .
Past Roles
| Organization | Role | Years | Source |
|---|---|---|---|
| QuantumScape | Chief Financial Officer | 2018–present | |
| QuantumScape | VP, Business Operations | 2016–2018 | |
| QuantumScape | Sr. Director, Finance & Product Management | 2014–2016 | |
| QuantumScape | Director, Product Management | 2013–2014 | |
| QuantumScape | Manager, Product Management | 2012–2013 |
External Roles
| Organization | Role | Years | Source |
|---|---|---|---|
| Bain Capital | Private Equity Associate | 2007–2009 | |
| McKinsey & Company | Business Analyst | 2004–2007 |
Fixed Compensation
| Item | 2024 | Notes |
|---|---|---|
| Base Salary ($) | $489,000 | 4% increase vs 2023 |
| Target Bonus (% of eligible earnings) | 50% | Set by compensation committee |
| Actual Bonus Paid ($) | $290,672 | Paid in fully-vested RSUs |
| Actual Bonus RSUs (#) | 60,066 | Interim Aug 2024, final Feb 2025 grants |
Performance Compensation
Annual Bonus Plan Mechanics and Outcome (Company-wide, applied to NEOs including CFO)
| Metric Group | Weighting / Potential Payout | Target | Actual Achieved | Payout (% of target) | Vesting / Form |
|---|---|---|---|---|---|
| A: Technical (spec & delivery achievement) | 35% for 1 goal | 1 goal | 1 | 35% | Paid as fully-vested RSUs; interim Aug 2024; final Feb 2025 |
| B: Technical/Operational/Commercial | 10 goals × 10% each (max 100%) | 10 goals | 8 | 80% | Paid as fully-vested RSUs |
| C: Corporate Development | 3 goals × 5% each (max 15%) | 3 goals | 2 | 10% | Paid as fully-vested RSUs |
| Total | Max 150% | — | 11/14 goals | 125% | RSUs granted; immediate vest; sale-to-cover for taxes |
2024 Long-Term Incentive Refresh Awards (CFO)
| Award Type | Target Value ($) | Shares (#) | Vesting | Milestones/Notes |
|---|---|---|---|---|
| RSUs (50%) | $3,720,816 | 311,105 | Quarterly over 4 years beginning Aug 15, 2024 | Standard quarterly vest dates: Feb 15, May 15, Aug 15, Nov 15 |
| PSUs (50%) | $3,720,816 | 311,105 | 25% per milestone; vest next quarterly date post-certification, deadline May 2027 | One 2024 milestone achieved → 25% vested Feb 2025 |
Previously Granted Outstanding Equity (select items relevant to CFO)
| Grant | Type | Shares/Units (#) | Vesting/Status | Source |
|---|---|---|---|---|
| 03/03/2022 | RSUs | 52,244 unvested at 12/31/2024 | Time-based; continues per schedule | |
| 01/24/2023 | RSUs | 94,985 unvested at 12/31/2024 | Time-based; continues per schedule | |
| 04/06/2023 | RSUs | 83,925 unvested at 12/31/2024 | Time-based; continues per schedule | |
| 01/24/2023 | PSUs | 113,982 unearned at 12/31/2024 | Performance; vest per PSU milestones | |
| 04/06/2023 | PSUs | 25,177 unearned at 12/31/2024 | Performance; vest per PSU milestones |
Equity Ownership & Alignment
Beneficial Ownership
| As-of Date | Class A Shares Beneficially Owned (#) | % of Class A | Notes |
|---|---|---|---|
| March 31, 2025 | 435,690 | <1% (*) | Includes 55,541 RSUs vesting within 60 days |
| March 31, 2024 | 593,065 | <1% (*) | Includes 525,653 options exercisable within 60 days and 36,098 RSUs vesting within 60 days |
(*) Represents beneficial ownership of less than 1% .
Outstanding Options (as of 12/31/2024)
| Grant Date | Exercisable Options (#) | Exercise Price ($) | Expiration | Notes |
|---|---|---|---|---|
| 05/03/2016 | 58 | 1.31 | 05/03/2026 | 2010 Plan |
| 03/15/2017 | 50,907 | 1.33 | 03/15/2027 | 2010 Plan |
| 06/05/2019 | 266,088 | 2.38 | 06/05/2029 | 2010 Plan |
| 12/16/2021 (EPA) | 419,956 unexercisable | 23.04 | 12/16/2031 | EPA options irrevocably waived/forfeited Feb 24, 2025 |
EPA Program Mechanics and Status (context for CFO options)
| Tranche | Business Milestones Required | Stock Price Target ($) | Achieved? |
|---|---|---|---|
| 1–5 | 1 to 5 milestones among 11 defined (A-sample; B-sample validation; multi-GWh deliveries; revenue; cumulative production; EBITDA margin; market share) | $60, $120, $180, $240, $300 | One business milestone achieved; no stock price targets achieved; no vesting to date |
EPA Waiver (Feb 24, 2025): NEOs including CFO waived EPA options without consideration due to misalignment post-CEO transition, administrative burden, and deep out-of-the-money status (stock $5.19 at 12/31/2024 vs $60+ thresholds); outstanding EPA options reduced to 1.9M by 3/31/2025 (11% remaining) .
Alignment Policies
- Stock ownership guidelines: CFOs must hold stock equal to 3× base salary within 5 years; must retain 50% of net shares from equity vesting until compliant; management tracks compliance (officers are either compliant or in phase-in) .
- Hedging and pledging are prohibited; derivatives and margin accounts disallowed .
- Clawback policy (Oct 2023) compliant with SEC/NYSE: recovers erroneously awarded incentive compensation on restatements; no indemnification or reimbursement for clawbacks .
Employment Terms
Core Employment/CIC Structure
- At‑will employment; original offer letter from Oct 14, 2011 (legacy QS) includes confidentiality, non‑solicit, IP assignment provisions .
- Change‑in‑Control (CIC) and Severance Agreements: initial 3‑year term, auto-renew annually; double‑trigger for equity acceleration; best‑net cutback vs full severance to optimize post‑tax outcome under 280G/4999 .
Potential Payments (assuming termination at 12/31/2024)
| Scenario | Salary Severance ($) | Bonus Severance ($) | Health Coverage ($) | Accelerated Vesting Value ($) |
|---|---|---|---|---|
| Termination Without Cause (outside CIC period) | 244,500 | 145,336 (committee discretion) | 396 | — |
| Termination Without Cause or Resignation for Good Reason (double‑trigger CIC) | 489,000 | 290,672 | 793 | 4,949,366 (at $5.19/share) |
Change‑in‑Control period defined as 3 months pre‑ to 12 months post‑CIC; outside CIC, no equity acceleration; under CIC, 100% equity acceleration .
Performance & Track Record
Company TSR and Net Loss (context during CFO’s tenure)
| Year | TSR ($ value of $100 invested) | Net Loss ($000s) |
|---|---|---|
| 2020 | 228.24 | (1,681,777) |
| 2021 | 59.97 | (45,966) |
| 2022 | 15.32 | (411,907) |
| 2023 | 18.78 | (445,145) |
| 2024 | 14.03 | (477,857) |
2024 operational achievements included Alpha‑2 customer shipments, ramp of “Raptor” separator heat‑treatment, low‑volume B0 QSE‑5 cells (844 Wh/L, ~12.2‑minute 10–80% charge), and the PowerCo licensing deal supporting a capital‑light model .
Compensation Structure Analysis
- Increased emphasis on PSUs: since 2023, PSU proportion has grown; in 2024 at least 50% of NEO grants were PSUs (CFO: 50%) aligning pay with milestone achievement .
- Cash vs equity: CFO’s 2024 cash increased modestly (4%); annual bonus paid entirely in fully‑vested RSUs to conserve cash .
- EPA options repricing/modification: none; instead, irrevocable waiver and forfeiture in 2025 to eliminate underwater, misaligned awards and reduce equity overhang .
- Governance safeguards: no hedging/pledging; no golden parachute tax reimbursements; no single‑trigger CIC .
Related Party Transactions
No Kevin Hettrich‑specific related person transactions are disclosed in the proxy statements reviewed .
Compensation Peer Group (Benchmarking)
- 2024 peer group included Ballard, Bloom Energy, BorgWarner, ChargePoint, Cognex, Gentherm, Lear, Lucid Group, Lumentum, Lyft, Plug Power, Power Integrations, Sunrun, Teradyne, Thor Industries, Trimble, Virgin Galactic, Visteon .
- 2025 peer group changes: added Enovix, Fluence Energy, indie Semiconductor, IonQ, LiveWire Group, SiTime; removed Lear, SunPower, Teradyne, Trimble, Virgin Galactic .
- Independent consultant Compensia advises the compensation committee .
Investment Implications
- Alignment: Heavy use of PSUs and RSU bonus payments ties CFO compensation to milestone execution; hedging/pledging prohibitions and ownership guidelines strengthen alignment .
- Retention: Significant unvested RSUs and PSUs (including 2024 PSUs with milestones through May 2027) provide retention incentives; severance provides moderate protection outside CIC and full acceleration under double‑trigger CIC .
- Trading signals: RSU bonus and quarterly time‑based vesting imply periodic sale‑to‑cover activity for taxes; the 2025 EPA waiver reduced potential insider option overhang and future selling pressure from underwater options .
- Execution risk: Company remains pre‑revenue with ongoing net losses and low TSR; compensation design focused on technical milestones reflects the development stage profile and puts weight on delivery of QSE‑5 and licensing commercialization to drive value .