Philip N. McCabe
SEI INVESTMENTSAbout Philip N. McCabe
Executive Vice President, Investment Managers at SEI. In 2024, his annual bonus target was $1,000,000 and the Compensation Committee awarded 110% of target ($1,100,000), using company- and unit-level performance assessments rather than formulaic weightings . SEI emphasizes Adjusted Pre‑Tax EPS in equity vesting and incentive pool determinations; the company reported diluted EPS of $4.41 for 2024 and returned approximately $632.8 million via dividends and repurchases, which the Committee considered in awards . SEI’s Insider Trading Policy prohibits hedging transactions, and executives are subject to stock ownership guidelines (4× base salary for executive officers; at least 50% directly held shares) .
Past Roles
(Not disclosed in the available proxy filings.)
External Roles
(Not disclosed in the available proxy filings.)
Fixed Compensation
Summary Compensation (last 3 fiscal years)
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 609,423 | 650,000 | 650,000 |
| Option Awards ($) | 540,300 | 389,000 | 847,800 |
| Stock Awards (RSUs) ($) | 154,525 | 248,000 | 606,060 |
| Non‑Equity Incentive (Cash Bonus) ($) | 1,050,000 | 900,000 | 1,100,000 |
| All Other Compensation ($) | 31,347 | 20,118 | 20,718 |
| Total ($) | 2,385,595 | 2,207,118 | 3,224,578 |
Annual Bonus Target vs. Payout
| Metric | 2023 | 2024 |
|---|---|---|
| Target Bonus ($) | 1,000,000 | 1,000,000 |
| Actual Payout ($) | 900,000 | 1,100,000 |
| Committee approach | Discretionary, non‑formulaic; considers sales, earnings, revenues/margins, strategic/tactical goals, individual performance | Discretionary, non‑formulaic; holistic company and unit metrics; executive team payout set at 110% of target |
Performance Compensation
2024 Plan-Based Equity Awards
| Award Type | Grant Date | Shares/Options | Exercise Price ($/sh) | Grant Date Fair Value ($) | Vesting / Performance Conditions |
|---|---|---|---|---|---|
| RSUs | 12/12/2024 | 7,000 | — | 606,060 | Time-based, cliff vest on 3rd anniversary of grant |
| Options | 12/12/2024 | 36,000 | 86.58 | 847,800 | Performance-based; vest on Dec 31 of year in which Adjusted Pre‑Tax EPS ≥$7.48, and not earlier than 2nd anniversary |
Outstanding Equity Awards and Vesting Schedule (as of 12/31/2024)
| Instrument | Grant Date | Exercisable (#) | Unexercisable (#) | Strike ($) | Expiration |
|---|---|---|---|---|---|
| Stock Options | 12/8/2015 | 24,000 | — | 53.34 | 12/8/2025 |
| Stock Options | 12/13/2016 | 30,000 | — | 49.63 | 12/13/2026 |
| Stock Options | 12/12/2017 | 25,000 | — | 71.12 | 12/12/2027 |
| Stock Options | 12/11/2018 | — | 17,500 | 48.47 | 12/11/2028 |
| Stock Options | 12/9/2019 | — | 20,000 | 64.43 | 12/9/2029 |
| Stock Options | 12/8/2020 | 75,000 | — | 56.54 | 12/8/2030 |
| Stock Options | 12/10/2021 | 12,500 | 12,500 | 60.46 | 12/10/2031 |
| Stock Options | 12/5/2022 | 15,000 | 15,000 | 61.81 | 12/5/2032 |
| Stock Options | 12/15/2023 | — | 25,000 | 62.00 | 12/15/2033 |
| Stock Options | 12/12/2024 | — | 36,000 | 86.58 | 12/12/2034 |
| Unvested RSUs | 12/5/2022 | — | 2,500 | — | Vests 12/5/2025 |
| Unvested RSUs | 12/15/2023 | — | 4,000 | — | Vests 12/15/2026 |
| Unvested RSUs | 12/12/2024 | — | 7,000 | — | Vests 12/12/2027 |
Option Vesting Performance Thresholds
| Option Expiration | 50% Vesting Threshold (Adj. Pre‑Tax EPS) | 100% Vesting Threshold (Adj. Pre‑Tax EPS) |
|---|---|---|
| 12/15/2033 | $5.25 | $7.10 |
| 12/12/2034 | — (single hurdle) | $7.48 (and ≥2 years from grant) |
2024 Exercises/Vesting
| Name | Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Shares Acquired on Vesting (#) | Value Realized on Vesting ($) |
|---|---|---|---|---|
| Philip N. McCabe | 21,000 | 670,159 | — | — |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership (3/20/2025) | 280,759 shares; <1% of outstanding |
| Options/RSUs within 60 days | 219,000 options exercisable within 60 days |
| Stock Ownership Guidelines | Executives must hold equity equal to 4× base salary; at least 50% direct share ownership |
| Anti‑Hedging Policy | Hedging transactions prohibited for directors/officers |
| Pledging | No pledging disclosure for McCabe; pledging identified only for certain other holders in footnotes |
Employment Terms
Executive Severance and Change of Control Plan (McCabe)
| Scenario (as of 12/31/2024) | Cash Severance – Salary ($) | Cash Severance – Bonus ($) | RSUs – Accelerated ($) |
|---|---|---|---|
| Termination without cause / Resign for Good Reason | 975,000 (1.5× 2024 salary) | 2,000,000 (target + pro‑rata) | 278,370 |
| Disability | — | 1,000,000 (pro‑rata) | 1,113,480 |
| Death | — | 1,000,000 (target) | 1,113,480 |
| Retirement | — | — | — |
| Qualifying Termination following Change of Control | 975,000 (1.5× 2024 salary) | 2,000,000 (target + pro‑rata) | 1,113,480 |
Key plan mechanics include continued option vesting for 24 months post termination, extended exercise windows (up to 27 months or remaining term), pro‑rata vesting for unvested RSUs, and full acceleration upon death/disability or qualifying change‑of‑control termination .
Other terms: SEI states NEOs are at‑will without individual severance agreements (except the CEO); McCabe participates in the standardized Severance and Change of Control Plan; clawback policy aligned with NASDAQ listing rules .
Investment Implications
- Pay-for-performance alignment: Annual cash bonus awards are non‑formulaic but bounded by targets; 2024 payout at 110% signals strong corporate results while retaining Committee discretion . Options vest strictly on Adjusted Pre‑Tax EPS hurdles ($5.25/$7.10 for 2023 grants; $7.48 single hurdle for 2024 grants), incentivizing multi‑year earnings growth before vesting .
- Upcoming supply/vesting: RSUs scheduled to vest on 12/5/2025 (2,500), 12/15/2026 (4,000), and 12/12/2027 (7,000); 2024 option exercise activity (21,000 shares; $670,159 realized) provides recent liquidity data points .
- Retention vs. severance risk: Standardized severance economics (1.5× salary + target + pro‑rata bonus, plus equity vesting relief) reduce exit friction but can elevate cost in downside scenarios; full acceleration under change‑of‑control increases transaction‑related dilution risk if sizable unvested awards exist .
- Ownership and alignment: Beneficial ownership is <1% with 219,000 options exercisable within 60 days; anti‑hedging and ownership guidelines (4× salary) support alignment, though individual compliance for McCabe isn’t specified beyond aggregate disclosures .
Additional context: The Committee cited 2024 diluted EPS of $4.41 and $632.8 million of capital returned in setting awards, and broadly uses Adjusted Pre‑Tax EPS, sales/revenue/margins, strategic objectives, and unit performance to determine payouts across management .