Michael Hutchinson
TERADATA CORP /DE/About Michael Hutchinson
Michael Hutchinson is Teradata’s Chief Operating Officer, appointed effective February 24, 2025; age 59. He previously served as Chief Customer Officer since January 2022 and joined Teradata in June 2021 as SVP, Worldwide Customer Success, Consulting and Renewals . Prior roles include SVP & Chief Customer Officer at Verint (Aug 2020–May 2021), SVP Global Professional Services & Support (Apr 2018–Aug 2020), and nearly 30 years at Oracle, most recently Group VP, North America Customer Success (Dec 2015–Mar 2018) . Company performance in 2024 included Total ARR of $1.474B, Public Cloud ARR of $609M, GAAP diluted EPS $1.16, Non-GAAP diluted EPS $2.42, Cash from Operations $303M, and Free Cash Flow $277M . The 2024 annual incentive paid out at 80% based on actual results (Non-GAAP operating margin achieved $376M vs $337M target; ARR growth metrics below threshold) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Teradata | Chief Operating Officer | Feb 2025–present | Leads global operations (IT, InfoSec, Strategy & Operations) and Global Customer Services to execute Trusted AI strategy |
| Teradata | Chief Customer Officer | Jan 2022–Feb 2025 | Drove customer experience, retention, NPS and use‑case expansion; led customer success unit |
| Teradata | SVP, WW Customer Success, Consulting & Renewals | Jun 2021–Dec 2022 | Defined global customer success strategy and value realization |
| Verint Systems | SVP & Chief Customer Officer | Aug 2020–May 2021 | Led customer engagement/retention strategy |
| Verint Systems | SVP Global Professional Services & Support | Apr 2018–Aug 2020 | Ran global services and support operations |
| Oracle Corporation | Group VP, North America Customer Success | Dec 2015–Mar 2018 | Scaled enterprise customer success; cloud transition execution |
| Oracle Corporation | Various leadership roles | 1990–2015 | Multiple roles of increasing responsibility across 28 years |
External Roles
No public company directorships or committee roles disclosed for Michael Hutchinson. (None disclosed in SEC filings) .
Fixed Compensation
| Component | 2024 (CCO) | 2025 (COO terms) |
|---|---|---|
| Base Salary ($) | 426,400 | 458,300 |
| Target Annual Incentive (% of base) | 100% | 100% |
| Actual Annual Incentive Paid ($) | 341,120 | — |
| All Other Compensation ($) and key items | 10,811 total; includes 401(k) $9,714, life insurance $768, charitable match $329 (no travel allowance) | — |
Performance Compensation
Annual Cash Incentive – 2024 Management Plan Results (Company measures)
| Measure | Weight | Threshold | Target | Maximum | Actual | Payout |
|---|---|---|---|---|---|---|
| Total ARR Growth (CC) ($mm) | 30% | 75 | 94 | 103 | (70) | — |
| Public Cloud ARR Growth (CC) ($mm) | 30% | 160 | 200 | 220 | 90 | — |
| Non-GAAP Operating Margin ($mm) | 40% | 303 | 337 | 371 | 376 | 200% |
| Total Payout (company factor) | — | — | — | — | — | 80% |
Notes: ARR metrics required at least threshold operating margin to fund; overall payout for all NEOs was 80%, with no individual modifiers used .
Long-Term Incentive (LTI)
- 2024 awards mix: 60% performance-based RSUs (2024–2026 LTIP) and 40% service-based RSUs (3-year graded vesting) .
- Michael Hutchinson 2024 LTI target values: $1,800,000 (performance RSUs) and $1,200,000 (service RSUs), total $3,000,000; 2023–2025 LTIP goal modifications created incremental fair value of $785,069 (accounting only) .
- 2024–2026 LTIP performance measures: 40% 2026 Total ARR; 20% 2026 Total Public Cloud ARR; 40% cumulative Free Cash Flow; threshold/target/max goals set; payouts capped at 150% due to 2024 goal resets (targets confidential) .
- 2022–2024 LTIP payout: 72% overall; Free Cash Flow achieved $1,130mm (78% payout), annual Total Cloud ARR payouts 133% (2022), 73% (2023), 0% (2024) .
| 2022–2024 LTIP Metric | Weight | Threshold ($mm) | Target ($mm) | Maximum ($mm) | Actual ($mm) | Payout (%) |
|---|---|---|---|---|---|---|
| Free Cash Flow | 40% | 1,064 | 1,182 | 1,300 | 1,130 | 78 |
| 2022 Total Cloud ARR | 20% | 328 | 360 | 376 | 365 | 133 |
| 2023 Total Cloud ARR | 20% | 499 | 555 | 583 | 524 | 73 |
| 2024 Total Cloud ARR | 20% | 655 | 728 | 764 | 620 | — |
| Total Payout | — | — | — | — | — | 72 |
2025 design changes: long-term mix shifted to 50% performance / 50% service; performance metrics include 50% 2025 Total ARR (pro-rata vesting), 25% Rule of 40 each of 2025–2027, and 25% Free Cash Flow each of 2025–2027; max payout reset to 200% for 2025–2027 LTIP . Mr. Hutchinson’s 2025 performance RSUs follow the same goals as other executives .
Equity Ownership & Alignment
- Beneficial ownership: 28,630 shares as of March 21, 2025; less than 1% of outstanding .
- Outstanding (unvested) equity awards at 12/31/2024:
| Grant | Type | Units Unvested | Market Value ($) |
|---|---|---|---|
| 02/27/2024 | Service RSUs | 27,631 | 860,706 |
| 02/27/2024 | Performance RSUs (2024–2026, target) | 41,446 | 1,291,043 |
| 03/06/2023 | Service RSUs | 13,588 | 423,266 |
| 03/06/2023 | Performance RSUs (2023–2025, target) | 30,573 | 952,349 |
| 03/01/2022 | Service RSUs | 5,643 | 175,779 |
| 03/01/2022 | Service RSUs (additional tranche) | 18,282 | 569,484 |
- Ownership guidelines: Executives must hold stock equal to a multiple of base salary; Hutchinson’s guideline is 3x and he is in compliance .
- Hedging/pledging: Company policy prohibits hedging and pledging by executive officers; insider trading policy enforces windows, pre-clearance, and derivative bans .
Upcoming vesting schedules (key dates):
- Service RSUs granted 02/27/2024 vest in equal annual installments on 02/27/2025, 02/27/2026, 02/27/2027 .
- Performance RSUs (2024–2026) vest after certification in Q1 2027 .
- Service RSUs granted 03/06/2023 vest on 03/06/2025 and 03/06/2026 .
Employment Terms
| Term | Details |
|---|---|
| Appointment | COO effective Feb 24, 2025; principal operating officer |
| Base + Bonus (2025) | Base salary $458,300; annual incentive target 100% of base |
| 2025 LTI Grants | Target $2,250,000 service RSUs (vest Mar 3, 2026/2027/2028); $2,250,000 performance RSUs (3-year period starting Jan 1, 2025; same goals as other execs) |
| Change-in-Control (CIC) Severance | Double-trigger; 2.0x base salary + average annual incentive (3 years), pro‑rata incentive, 2 years benefits, 1 year outplacement/financial counseling; no excise tax gross‑ups |
| CIC Equity Treatment | If awards assumed: continue vesting; accelerate on qualifying termination within 24 months; if not assumed: accelerate at target or actual performance at CIC |
| Estimated CIC payout (if terminated at CIC) | Cash $1,598,252; RSUs $4,272,612; welfare $43,631; outplacement $18,000; total $5,932,495 |
| Executive Severance Plan (non-CIC) | 1 year salary + target incentive continuation; pro‑rata target bonus; 1 year benefits; up to 1 year outplacement; pro‑rata vesting of RSUs; retirement-eligible participants receive an additional year of vesting service for service RSUs |
| Estimated non-CIC separation | Cash $852,800; RSUs $2,969,825; welfare $21,048; outplacement $18,000; total $3,861,673 |
| Restrictive covenants | Non-compete and non-solicit obligations (generally 12 months), confidentiality; equity vesting contingent on compliance |
| Retirement eligibility | Eligible at age 55+; as of Dec 31, 2024, retirement-eligible; RSUs would vest pro‑rata upon retirement with Committee consent; estimated RSU value $2,845,193 |
| Clawbacks | Mandatory recoupment of excess incentive pay upon restatement; harmful activity forfeiture/recoup provisions |
Governance/say‑on‑pay context:
- 2025 Annual Meeting: say‑on‑pay votes For: 64,232,529; Against: 12,994,794; Abstain: 139,873; Broker non‑votes: 9,175,750 .
- 2024 say‑on‑pay approval: 95.4% .
Investment Implications
- Alignment: 2025 LTIP balances retention and performance (50/50) and introduces Rule of 40 and FCF metrics, improving linkage to profitable growth. Hutchinson’s 2025 grant terms are consistent with other executives, aligning incentives with ARR growth and profitability .
- Retention risk: Executive Severance and CIC protections reduce exit uncertainty; however, retirement eligibility and sizable unvested RSUs create natural retention levers and potential future selling windows as service RSUs vest on 2/27 and 3/03 cycles .
- Selling pressure indicators: Upcoming annual RSU vesting dates (Feb/Mar 2025–2028) and Q1 2027 performance RSU certification are likely trading windows; hedging/pledging prohibitions and ownership guidelines mitigate misalignment .
- Pay-for-performance: 2024 annual payout at 80% reflects underperformance in ARR growth despite margin strength; 2022–2024 LTIP paid 72%. Adjustments to 2023–2025 and 2024–2026 LTIP goals (cap lowered to 150%) were implemented to preserve retention and motivation amidst market shifts—watch for proxy adviser sensitivity and shareholder response (2025 say‑on‑pay support moderated from 2024) .
Appendix: Award and Share Tables
- 2024 Summary Compensation for Michael Hutchinson (CCO): Salary $413,722; Stock Awards $3,359,568; Non‑Equity Incentive $341,120; All Other $10,811; Total $4,125,221 .
- 2024 Grants: 2024–2026 LTIP target 41,446 units ($1,544,692 target value); 2024 service RSUs 27,631 units ($1,029,807); incremental fair value of modified 2023–2025 LTIP $785,069 .