Matt Tappin
STEMAbout Matt Tappin
Matt Tappin (age 38) is President, Software Division at Stem, Inc., serving in this role since September 2024; previously President of Asset Management (Mar 2023–Sep 2024), VP Corporate Development (May 2021–Mar 2023), with earlier roles in corporate development at Shell (Aug 2019–May 2021) and Centrica (Jun 2017–Aug 2019), and earlier experience as an investment banker at Lazard and corporate attorney at Simpson Thacher . Education: B.A. Washington University in St. Louis; J.D. and LL.M. from Duke University School of Law . Company performance context: FY 2024 revenue declined materially versus prior years, with a significant net loss; TSR also deteriorated in 2024, framing incentive alignment and execution risk for the software strategy .
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($USD) | $362.98M | $461.52M | $144.58M |
| EBITDA ($USD) | -$83.07M* | -$137.15M* | -$129.72M* |
| Net Income ($USD) | -$124.05M | -$140.41M | -$854.01M |
Values retrieved from S&P Global for metrics marked with an asterisk.
| Pay vs Performance (Value of Initial $100 Investment; TSR) | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| TSR (Indexed to $100) | 47.13 | 20.45 | 3.18 |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Stem, Inc. | President, Software Division | Sep 2024–present | Leads development and execution of software business |
| Stem, Inc. | President, Asset Management Division | Mar 2023–Sep 2024 | Led asset management initiatives |
| Stem, Inc. | VP, Corporate Development | May 2021–Mar 2023 | Corporate development for growth and strategy |
| Royal Dutch Shell | Corporate Development, New Energies | Aug 2019–May 2021 | Focused on investments in the electricity sector |
| Centrica | Corporate Development, Distributed Energy (Global) | Jun 2017–Aug 2019 | Led corporate development for distributed energy globally |
| Lazard | Investment Banker, Power/Energy/Infrastructure | Prior to 2017 | Transactional experience in energy sectors |
| Simpson Thacher & Bartlett | Corporate Attorney | Prior to Lazard | Legal foundation for transactions and corporate matters |
External Roles
- Not disclosed for Tappin; skip.
Fixed Compensation
- Tappin is not a named executive officer in 2024; specific base salary and cash incentive details are not disclosed in proxy tables. Company-wide compensation framework includes base salary plus annual cash incentives and long-term equity, but NEO-specific details only cover Carrington, Buzby, Hole, and Carlson .
Performance Compensation
Company-wide Annual Incentive Plan (AIP) metrics (applicable to executives) in 2024:
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Adjusted EBITDA | Not disclosed | Not disclosed | Below threshold | 0% payout for NEOs | Cash AIP (no vesting) |
| Contracted Annual Recurring Revenue (CARR) | Not disclosed | Not disclosed | Below threshold | 0% payout for NEOs | Cash AIP (no vesting) |
| Revenue | Not disclosed | Not disclosed | Below threshold | 0% payout for NEOs | Cash AIP (no vesting) |
| Operating Cash Flow | Not disclosed | Not disclosed | Below threshold | 0% payout for NEOs | Cash AIP (no vesting) |
- 2024 AIP added Operating Cash Flow to better align with cash generation; NEOs earned no annual cash incentive due to missing thresholds .
Equity program guardrails:
- Minimum one-year vesting for most awards; limited exceptions permitted (≤5% pool); prohibition on option/SAR repricing or cash buyouts; dividends/dividend equivalents only on vest; robust clawback aligned to NYSE Rule 303A.14 and Rule 10D-1 .
Equity Ownership & Alignment
Initial beneficial ownership (Form 3 filed July 24, 2023) – RSUs and Options outstanding and vesting:
| Instrument | Amount | Strike | Expiration | Vesting Schedule |
|---|---|---|---|---|
| RSUs (total) | 133,745 | N/A | N/A | 14,318 vest 100% on 12/31/2023; 73,684 vest in 3 equal annual installments starting 2/15/2024; 40,193 vest in 3 equal annual installments starting 3/1/2024; 5,550 vest in 2 equal annual installments starting 5/24/2024 |
| Stock Option | 95,187 | $10.25 | 02/15/2033 | Vests in 3 equal annual installments beginning 2/15/2024 |
| Stock Option | 83,735 (20,933 exercisable at filing) | $9.33 | 03/01/2032 | Remaining vests in 3 equal annual installments beginning 3/1/2024 |
| Stock Option | 9,249 (4,625 exercisable at filing) | $25.34 | 05/28/2031 | Remaining vests in 2 equal annual installments beginning 5/24/2024 |
Trading plan (10b5-1):
- Adopted March 18, 2025; duration 3/18/2025–3/31/2026; authorizes sale of up to 20,017 shares, subject to conditions .
Ownership policies:
- Stock ownership guidelines: CEO 5x salary; other executive officers 2x salary; 5-year compliance horizon and 50% net-share retention until met; compliance confirmed for NEOs and board as of March 31, 2025 (status for Tappin not specifically disclosed) .
- Hedging prohibited; pledging discouraged; as of December 31, 2024 no pledged shares by directors/executive officers .
Employment Terms
- Specific employment agreement, severance multiples, and change-of-control terms for Tappin are not disclosed. Equity awards are governed by the 2024 Equity Incentive Plan/2021 Plan: change-in-control treatment includes potential assumption/substitution, vesting acceleration at Board discretion, or cancellation for consideration; no automatic vesting mandated .
Performance & Track Record
- Executive leadership commentary: Tappin highlighted technical and grid-integration excellence in the IEEE 2800-compliant Camino Solar project deployment, underscoring software and engineering capabilities aligned with grid reliability and value capture .
- Company TSR and financials: TSR indexed value fell sharply in 2024 (3.18 vs 47.13 in 2022); FY 2024 revenue contracted to $144.58M and net loss widened significantly, contextualizing pay-for-performance strictness and turnaround priorities .
Board Governance (for directors)
- Not applicable; Tappin is not a director.
Compensation Committee Analysis
- Independent compensation consultant (FW Cook) engaged in 2024; committee oversight of executive compensation and equity plans with no repricing and clawback enforcement .
Related Party Transactions and Red Flags
- No related party transactions identified since 2023 under Item 404 standards .
- Insider trading policy prohibits hedging; no pledges by executive officers; clawback policy in place; equity plan prohibits repricing—reducing governance risk .
Investment Implications
- Compensation alignment: 2024 AIP metrics (EBITDA, CARR, revenue, operating cash flow) produced zero payout for NEOs, reflecting strict pay-for-performance amid challenging results; equity awards carry one-year minimum vest and clawback, supporting alignment .
- Insider selling pressure: A modest 10b5-1 plan to sell up to 20,017 shares through March 2026 suggests limited incremental supply; monitor Form 4s and actual executions for signal strength .
- Retention risk: Multiple RSU/option tranches vesting through 2025 (per Form 3) provide retention hooks; no hedging and no pledging reduce misalignment risk .
- Execution risk: Material FY 2024 revenue decline and large net loss raise execution stakes for Tappin’s software strategy; TSR deterioration underscores market sensitivity to delivery—watch software ARR, cash generation, and margin trends versus AIP metrics .
- Governance: No repricing, clear clawback, and ownership guidelines are positives; absence of Tappin-specific severance/change-in-control disclosures means limited visibility into cash severance economics—rely on plan-level treatment for equity .