Alfred P. West, Jr.
SEI INVESTMENTSAbout Alfred P. West, Jr.
Founder of SEI Investments; Executive Chairman since June 2022 after serving as CEO from 1968 to May 31, 2022. Age 82; director since 1968. Under his leadership, SEI reported record 2024 revenue, operating income, and EPS, returned ~$620M to shareholders, and highlighted strong net sales momentum; pay-versus-performance data shows cumulative TSR improving to 134.7 by 2024, Net Income of $581,191K, and Adjusted Pre-Tax EPS of $5.98 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| SEI Investments Company | Chief Executive Officer | 1968–May 31, 2022 | Founder; drove strategic vision and development of business and solutions since inception . |
| SEI Investments Company | Executive Chairman | June 2022–Present | Executive Chairman; significant shareholder; Board concluded this structure best suits current needs . |
External Roles
No external public company directorships or committee roles for Mr. West were disclosed in the reviewed filings .
Fixed Compensation
Multi-year CEO compensation (historical, while serving as CEO):
| Metric | 2020 | 2021 |
|---|---|---|
| Salary ($) | 778,846 | 750,000 |
| Option Awards ($) | 1,014,000 | 373,625 |
| Non-Equity Incentive ($) | 1,100,000 | 1,210,000 |
| All Other Compensation ($) | 40,888 | 33,614 |
| Total ($) | 2,933,734 | 2,367,239 |
Notes:
- 2021 annual option grant: 25,000 options (exercise price $60.46) .
- Company policy: executive bonus targets generally 133%–147% of base salary; awards are judgment-based, not formulaic .
Performance Compensation
Annual Bonus (CEO, 2021)
| Metric | Target | Actual Payout | Payout vs Target | Performance Basis | Vesting/Payment Timing |
|---|---|---|---|---|---|
| Annual Non-Equity Incentive | $1,100,000 | $1,210,000 | 110% | Combination of Quantitative (EPS range, sales, business metrics) and Qualitative objectives; Committee applies judgment with no fixed weighting . | Paid following fiscal year . |
Stock Options (CEO awards and program mechanics)
| Grant Year | Vehicle | Quantity | Exercise Price | Vesting Triggers | Minimum Time Gate |
|---|---|---|---|---|---|
| 2021 | Options | 25,000 | $60.46 | 50% when Adjusted Pre-Tax EPS ≥ $5.75; 100% when ≥ $7.00 (ASC 718 adjustments apply) | ≥2 years for first threshold; ≥4 years for second |
| Program (2024 grants, reference) | Options | — | — | 100% vest when Adjusted Pre-Tax EPS ≥ $7.48; not earlier than 2 years from grant | ≥2 years |
| Program (RSUs) | RSUs | — | — | Time-based “cliff vest” on 3rd anniversary | 3 years |
Clawback: Company compensation recoupment policy aligned with NASDAQ/SEC rules; applies to cash- and equity-based incentive comp upon restatement .
Equity Ownership & Alignment
| Metric | 2022 | 2025 |
|---|---|---|
| Beneficial Ownership (Shares) | 19,808,333 | 3,717,286 |
| Ownership % of Outstanding | 14.4% | 3.0% |
| Options Exercisable within 60 Days | 227,500 | 210,000 |
| Shares Pledged as Collateral | 3,181,080 (subject to adjustment) | 3,473,822 (subject to adjustment) |
| Foundation/Trust Interests | West Family Foundation holdings included; certain family trusts holdings disclosed; some disclaimed beneficial ownership |
Policies:
- Stock Ownership Policy: Directors must hold ≥5× cash retainer; CEO ≥6× salary; other executives ≥4× salary; 50% must be in directly owned shares; generally compliant except one unnamed individual .
- Insider Trading Policy prohibits hedging and derivative transactions .
Insider selling/vesting indicators:
- 2021 CEO option exercise: 50,000 shares; value realized $2,269,000 .
Employment Terms
- Employment arrangements: Company disclosed named executive officers are employed “at will” without severance agreements or employment contracts (aside from the CEO successor’s agreement starting 2022) .
- Executive Severance and Change of Control Plan (adopted May 2024): standardizes severance and equity vesting mechanics; current participants listed (Denham, Lane, Peterson, McCabe). Mr. West is not listed as a participant .
Board Governance
| Attribute | Status/Details |
|---|---|
| Board Role | Executive Chairman since June 2022 . |
| Independence | Not an independent director (independents identified separately) . |
| Committees | No committee memberships shown for Mr. West; other directors hold Audit/Comp/Nominating/Legal roles . |
| Lead Independent Director | Kathryn M. McCarthy; chairs executive sessions without management . |
| Board Meetings | 9 meetings in 2024; all directors attended >75% of meetings and committees served . |
| Governance Mitigations | Lead Independent Director role; independent committees; insider trading and clawback policies . |
Dual-role implications:
- Historical CEO + Chairman combination; Board justified continued Executive Chairman structure given founder role, strategic vision, and significant shareholding, with mitigations via independent leadership and committees .
Performance & Track Record
Pay-versus-performance and company outcomes:
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| SEI TSR (Value of $100) | 88.89 | 95.47 | 92.66 | 102.46 | 134.70 |
| Industry Index TSR (Blend) | 125.65 | 180.24 | 129.82 | 181.96 | 247.25 |
| Net Income ($000s) | 447,286 | 546,593 | 475,467 | 462,258 | 581,191 |
| Adjusted Pre-Tax EPS ($) | 3.99 | 5.12 | 4.48 | 4.61 | 5.98 |
PEO compensation (West while CEO):
- Summary Compensation Table Total ($): 2020 $2,933,734; 2021 $2,367,239; 2022 $2,469,653 (reported in pay-versus-performance) .
- Compensation Actually Paid ($): 2020 $2,552,384; 2021 $2,475,614; 2022 $2,377,978 .
Business highlights:
- 2024 record revenue, operating income, EPS; capital returned ~$620M via dividends and buybacks .
Compensation Committee Analysis
- Committee: Independent directors (Chair Carl A. Guarino; members Jonathan A. Brassington, Kathryn M. McCarthy) .
- Consultant: Semler Brossy (independent; no conflicts per Committee analysis); advised on severance plan design and equity vesting components .
- Peer Group: Historical benchmarking cohort included Affiliated Managers Group, Black Knight, Broadridge Financial Solutions, Eaton Vance, Envestnet, FIS Global, Fiserv, Franklin Resources, Jack Henry & Associates, LPL Financial, MSCI, SS&C, T. Rowe Price Group, Virtu (2021/2022 references) . 2025 CD&A notes continued reference to the same cohort used in the 2023 analysis .
Say-On-Pay & Shareholder Feedback
| Year | Approval (%) | Company Response |
|---|---|---|
| 2021 | 96.8 | Continued program structure; benchmarking and option grant sizing reviewed . |
| 2024 | 61.8 | Adopted Executive Severance and Change of Control Plan; increased sales disclosure transparency by segment . |
Risk Indicators & Red Flags
- Shares Pledged: Significant pledging (3.47M shares) by Mr. West; collateral pledging is a governance alignment risk .
- Hedging: Prohibited for directors/executives under Insider Trading Policy (mitigates alignment dilution) .
- Related Party Transactions: None reported since Jan 1, 2024; policy requires Audit Committee pre-approval .
- Low Say-On-Pay: 2024 approval at 61.8% signals shareholder concern; company adopted severance standardization in response .
Compensation Structure Analysis
- Mix shift: Introduction of RSUs in 2022 added time-based equity to complement performance-vested options (lower volatility retention tool) .
- Option vesting tightened: EPS hurdles and minimum time gates maintained/increased (e.g., $7.48 EPS on 2024 grants) to reinforce performance orientation .
- Program-wide payouts: 2024 non-executive incentive pool at 115% of targets; executives at 110% of targets, reflecting record performance but disciplined differentiation .
Director Compensation (Board context)
Non-employee director structure: cash retainers ($70k base; chair/member fees by committee) and annual RSUs (2,175) in 2024; Lead Independent Director premium ($15k). Not applicable to Mr. West as an employee director .
Investment Implications
- Alignment: Founder-led Executive Chairman with large ownership but substantial share pledging; pledges are a material governance risk and potential selling pressure trigger in adverse markets .
- Incentives: Strong pay-for-performance architecture (EPS-based option vesting; RSU time gates; clawback; ownership guidelines). Lack of disclosed personal employment/severance protections suggests lower entrenchment for Mr. West relative to current executives .
- Retention/Transition: Governance mitigations (Lead Independent Director, independent committees) offset dual-role concerns. With CEO transition complete and standardized severance plan for executives, execution risk shifts toward sustaining EPS growth to unlock option value and maintaining net sales momentum .
- Trading Signals: Monitor Form 4s and any changes in pledging arrangements; watch say-on-pay trajectory in 2025 post-severance plan adoption. Continued buybacks and record EPS underpin support, but pledged shares and lower historical say-on-pay in 2024 warrant caution on governance premium .