Albert Hofeldt
STEMAbout Albert Hofeldt
Albert Hofeldt, age 55, is Stem’s Chief Technology Officer (CTO) since October 2024; he previously served as Executive Vice President and Senior Vice President of Technology from June 2022 to October 2024 . He holds a Ph.D. in Engineering from Oxford University and has led large-scale data, ML, and platform transformations in energy and fintech, including launching multi-asset-class blockchain trading and energy/machine learning platforms at LiquidX and Genscape . Company performance-linked pay uses Adjusted EBITDA, Contracted Annual Recurring Revenue (CARR), Revenue, and Operating Cash Flow; no annual cash incentive was paid to NEOs for 2024 due to missing thresholds, indicating rigorous targets and a challenged operating year . As of March 31, 2025, Stem’s stock closed at $0.35 and the Board proposed a reverse split to address NYSE minimum price compliance, contextualizing equity award value and potential dilution dynamics .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Stem, Inc. | EVP/SVP Technology | Jun 2022 – Oct 2024 | Led technology organization; promoted to CTO, driving software-forward strategy execution |
| LiquidX | Chief Technology Officer | Jul 2018 – Jul 2022 | Built tech organization; launched a multi-asset class blockchain trading and digitization platform |
| Genscape | Chief Technology Officer | Oct 2012 – Jun 2018 | Led transformation; launched multi-asset class energy/machine learning platform |
| Thomson Reuters | Senior leadership positions | Not disclosed | Held senior leadership roles in technology; enterprise platform experience |
| Deloitte; Accenture | Technology consulting | Not disclosed | Delivered technology consulting; systems and data initiatives |
Fixed Compensation
- The 2025 proxy details program design but does not disclose Hofeldt’s individual base salary or target bonus; NEOs’ base salaries and targets are set by role, market data, and internal equity, with annual review by the Compensation Committee .
- Elements of executive compensation at Stem include base salary (fixed), annual cash incentives (100% metrics-based), and long-term incentives (RSUs and stock options) .
| Compensation Element | Company Program Design | CTO-Specific Disclosure |
|---|---|---|
| Base Salary | Reviewed annually; factors include role scope, market data, experience, and internal equity | Not disclosed in DEF 14A 2025 |
| Target Bonus (AIP) | 100% metric-based (Adjusted EBITDA, CARR, Revenue, Operating Cash Flow) | Not disclosed in DEF 14A 2025 |
| Long-Term Incentives | RSUs (time-based) and stock options; annual awards generally in late February | Not disclosed in DEF 14A 2025 |
Performance Compensation
| Metric | Rationale | 2024 Outcome |
|---|---|---|
| Adjusted EBITDA | Normalized view and path to positive EBITDA; aligns cost discipline | No AIP payout to NEOs; thresholds not achieved |
| Contracted Annual Recurring Revenue (CARR) | Focus on software/services; positioning for future cash flow | No AIP payout to NEOs; thresholds not achieved |
| Revenue | Snapshot of delivery capability | No AIP payout to NEOs; thresholds not achieved |
| Operating Cash Flow | Aligns incentives to cash generation | No AIP payout to NEOs; thresholds not achieved |
Note: Hofeldt is not listed as a 2024 NEO; individual targets, weightings, and payouts for the CTO were not disclosed .
Equity Ownership & Alignment
- Stock ownership guidelines: CEO 5x salary; other executive officers 2x salary; retain 50% of net shares until guideline met; five-year window to comply. As of March 31, 2025, all NEOs and board members were in compliance; CTO-specific compliance was not disclosed .
- Insider trading policy prohibits short-term trading, short sales, options/derivatives, and hedging; pledging is discouraged. As of December 31, 2024, no director or executive officer had pledged shares .
- Clawback policy adopted October 2023 to recover excess incentive-based compensation over prior three fiscal years upon restatement; the 2024 Equity Plan also embeds recoupment mechanics triggered by restatements or cause .
- Equity plan guardrails: one-year minimum vesting (limited exceptions), no automatic vesting on change in control, no option/SAR repricing or cash buyouts without stockholder approval .
| Equity Overhang Snapshot (as of March 31, 2025) | Value |
|---|---|
| Total shares underlying outstanding options | 4,377,879 |
| Weighted average option exercise price | $6.14 |
| Weighted average remaining option term | 5.6 years |
| Total shares underlying outstanding unvested RSUs | 11,408,229 |
| Total shares available for grant | 5,574,979 |
| Total common shares outstanding | 166,172,052 |
| Fully-diluted overhang (pre-proposal) | 11.4% |
| Overhang if 7.5M Additional Shares approved | 14.8% |
Section 16 compliance note: The company reported one late Form 3/A for Hofeldt in 2024 filings, indicating a corrected initial ownership report; monitor future Form 4s for trading activity .
Employment Terms
- Role/tenure: CTO since October 2024; executive technology leadership at Stem since June 2022 .
- Individual employment agreement, severance multiples, and change-in-control triggers for the CTO are not disclosed in the proxy. For other NEOs, severance is nine months of base outside CIC and 1x salary+target bonus during the CIC period, subject to release and covenants; equity acceleration terms vary by agreement, illustrating company practice but not CTO-specific terms .
- Plan-level change-in-control mechanics allow assumption/substitution, selective acceleration, lapse of repurchase rights, or cancellation for consideration; in absence of board action, awards are assumed or accelerate prior to the effective date (no automatic vesting mandated) .
- Governance guardrails: no excise tax gross-ups; no repricing; minimum one-year vesting; robust transfer restrictions and no dividends on options/SARs .
Investment Implications
- Alignment positives: anti-hedging/pledging policy, formal clawback, ownership guidelines, and tight equity plan guardrails reduce agency risks and discourage aggressive financial engineering .
- Dilution and selling pressure: large outstanding RSUs/options and potential addition of 7.5M shares raise overhang to 14.8% if approved; 92.8% employee equity participation and 2024 share utilization of 8.9% heighten dilution optics and may increase supply from routine vestings, warranting Form 4 monitoring for CTO activity .
- Pay-for-performance discipline: no AIP payout to NEOs for 2024 underscores rigorous targets amid operational transition; for the CTO, program design applies, but individual targets/payouts not disclosed, limiting precision in pay-performance calibration analysis .
- Retention risk vs. value creation: depressed share price ($0.35 at March 31, 2025) and reverse split proposal to maintain NYSE listing suggest equity award value compression—balancing retention incentives against dilution will be key for Hofeldt’s ability to deliver software execution and ML platform advancements .