Aaron Stucki
TE ConnectivityAbout Aaron Stucki
Aaron K. Stucki is President, Transportation Solutions at TE Connectivity (TEL). He is age 51, with <1 year in the current role and 13 years at TE; prior roles include President, Communications Solutions; GM, Industrial & Commercial Transportation; SVP & GM SubCom; SVP & GM Consumer Devices; and VP & CFO, Consumer Solutions; earlier, 13 years at GE . Company performance in FY2024 featured $15.8B revenue, record GAAP operating margin of 17.6%, record GAAP net income of $3,193M, GAAP EPS of $10.34, cash from operations of ~$3.5B, and TSR of ~24.5% including dividends, underpinning above-target incentive payouts at corporate and segment levels .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| TE Connectivity | President, Transportation Solutions | Oct 2024–present | Leads TE’s largest segment (Automotive, Commercial Transportation, Sensors) following segment reorg to sharpen strategic alignment . |
| TE Connectivity | President, Communications Solutions | Oct 2020–Oct 2024 | Drove segment performance; FY2024 segment bonus score 170.8% amid strong second-half revenue and operating income . |
| TE Connectivity | GM, Industrial & Commercial Transportation | May 2017–Oct 2020 | Led ICT BU across automotive-adjacent markets . |
| TE Connectivity | SVP & GM, SubCom | Apr 2015–May 2017 | Led subsea communications systems business . |
| TE Connectivity | SVP & GM, Consumer Devices | Oct 2013–Apr 2015 | Managed consumer connectivity businesses . |
| TE Connectivity | VP & CFO, Consumer Solutions segment | Jul 2011–Oct 2013 | Finance leadership for Consumer Solutions . |
| General Electric | Various roles | ~1998–2011 | 13-year tenure across GE; operational/financial leadership experience . |
External Roles
No public company board roles disclosed for Stucki .
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | $555,794 | $568,636 | $582,300 |
| Target Bonus (%) | — | 85% | 85% |
| Actual Annual Incentive ($) | $937,125 | $497,051 | $849,303 |
| All Other Compensation ($) | $1,127,408 | $1,165,561 | $2,036,199 (expatriate-related allowances and tax gross-ups) |
| Total Compensation ($) | $4,251,790 | $3,960,476 | $5,206,045 |
FY2025 role terms (effective Oct 1, 2024): base salary $675,000; annual bonus up to 95% of base; annual LTI target $2,600,000 .
Performance Compensation
Annual Incentive Plan (FY2024 – Communications Solutions; Stucki)
| Metric | Weighting | Target (Illustrative) | Actual | Payout Score |
|---|---|---|---|---|
| EPS (company) | 20% | 1H: $3.50–$3.75; 2H: $3.52–$3.82 | 1H: $3.67; 2H: $3.82 | 100.6% |
| Business Unit Revenue | 30% | 1H: $881–$917; 2H: $938–$976 | 1H: $876; 2H: $1,102 | 197.8% |
| Business Unit Operating Income | 30% | 1H: 19–20%; 2H: 19.7–21.3% | 1H: 21.6%; 2H: 23.9% | 185.9% |
| KPI (weighted average of BU KPIs) | 20% | Not disclosed (competitive sensitivity) | Not disclosed | 160.2% |
| Total AIP Earned | — | — | — | 170.8% |
Notes: Two semi-annual performance intervals with a single year-end payout; non-GAAP adjustments (FX, restructuring, M&A) applied consistently; overall AIP payouts capped at 200% of target; payout constrained if operating income < target .
Long-Term Incentives (Design and FY2024 Grants)
| Vehicle | Weight | Performance Measure | Vesting | Grant Detail (11/15/2023) |
|---|---|---|---|---|
| Performance Stock Units (PSUs) | 50% | 3-year average relative EPS growth vs S&P 500 Non-Financial Index (25th/50th/75th percentiles → 50%/100%/200% of target) | Cliff vest after MDCC certification at 3 years; DEUs accrue | Target PSUs: 6,580; Threshold: 3,290; Max: 13,160; Grant-date fair value: $867,047 |
| Stock Options | 50% | Share price appreciation | 25% per year over 4 years; 10-year term | Options granted: 21,950; Exercise price: $131.77; Grant-date fair value: $871,196 |
FY2022 PSU payout (vested Dec 2024): Stucki earned 5,786 shares vs 5,070 target (108% of target) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership (as of Jan 13, 2025) | 135,388 shares; includes 111,798 shares issuable upon exercise of options presently exercisable or within 60 days . |
| Shares Outstanding (voting) | 298,472,685 (Jan 13, 2025) . |
| Ownership as % of Outstanding | ~0.045% (135,388 ÷ 298,472,685) . |
| Outstanding Awards (9/27/2024 snapshot) | Unexercisable options include 6,638 (2020 grant), 11,026 (2021), 18,338 (2022), 21,950 (2023); unearned PSUs target units 7,085 (2022 grant) and 6,696 (2023 grant) . |
| Stock Ownership Guidelines | 3x base salary for executives; all NEOs met requirements at FY2024 year-end . |
| Hedging/Pledging | Prohibited for executives and directors (no margin or pledging allowed) . |
Employment Terms
| Provision | Terms |
|---|---|
| Current Role Compensation (effective Oct 1, 2024) | Base $675,000; annual bonus up to 95% of base; annual LTI target $2,600,000 . |
| AIP Structure | Two semi-annual performance intervals; single year-end payout; metrics include EPS, revenue, operating income, KPIs; score modifiers for “quality of earnings” . |
| Termination (post-CIC) | If involuntary termination without cause or resignation for “good reason” within 12 months of change in control: 12-month notice period (salary/benefits continue; equity continues vesting per award terms), followed by 12 months’ pay in consideration for non-compete/non-solicit . |
| Equity Treatment (post-CIC qualifying termination) | PSUs vest in full at target; stock options and RSUs fully vest; 280G cutback (no excise tax gross-up) . |
| Clawback | Recovery of erroneously awarded incentive compensation due to accounting restatement; broader recovery for overpayments based on deficient financial information; remedies for misconduct . |
| Equity Grant Timing | Annual grants during open trading window in Q1; options priced at NYSE closing price on grant date; no timing around MNPI . |
| Insider Trading Policy | Trading windows and restrictions; hedging prohibited; pledging prohibited . |
Insider Transactions and Vesting Schedules (Trading Signals)
| Date | Transaction | Shares | Price | Value | Notes |
|---|---|---|---|---|---|
| May 12, 2025 | Sale | 5,000 | $160.00 | $800,000 | Under Rule 10b5-1 plan adopted Nov 27, 2024; exercised 5,000 options at $66.74 same day; post-transaction direct ownership ~23,646 shares . |
| Jun 26, 2025 | Option exercise | — | $93.36 | $1,223,016 (conversion) | Form 4 filing (period of report Jun 26, 2025) . |
Additional context: Yahoo Finance lists multiple insider conversions and sales in 2024–2025 across TEL insiders, including Stucki’s exercises and sales; data corroborates ongoing option exercises and managed sales under plans .
Compensation Mix and Year-over-Year Shifts
- 2024: No target bonus change (85%); base salary increased 2% to $585,000; equity awards delivered (50% PSUs, 50% options); AIP payout for Stucki at 170.8% reflecting segment outperformance .
- 2025 role change: Base moved to $675,000; target bonus ceiling increased to 95%; annual LTI target materially higher at $2.6M, signaling retention focus and expanded scope .
Compensation Governance and Peer Group
- Say-on-Pay approval ~93% in FY2024; compensation philosophy emphasizes pay-for-performance and alignment; independent consultant (Pay Governance) supports MDCC .
- Peer group (21 companies) includes Amphenol, Aptiv, Honeywell, Texas Instruments, etc.; used for benchmarking, design, and pay-for-performance analyses .
Equity Incentive Details (Vesting Schedules)
| Award | Grant Date | Shares/Units | Vesting Schedule | Expiration |
|---|---|---|---|---|
| Stock Options | 11/15/2023 | 21,950 | 25% annually starting ≥12 months from grant; 4 tranches | 11/15/2033 |
| PSUs | 11/15/2023 | Target 6,580 | Cliff at 3 years based on relative EPS growth; DEUs accrue | N/A |
| Outstanding Options (examples) | 11/14/2022 | 6,112 exercisable; 18,338 unexercisable | Annual 25% ratable | 11/14/2032 |
| Outstanding PSUs (targets) | 2022 grant | 7,085 target units | Vests after 3-year performance period; market value at $151.22 as of 9/27/2024 | N/A |
Risk Indicators & Red Flags
- Expatriate-related perquisites and tax gross-up payments: FY2024 All Other Compensation included ~$771,483 foreign taxes paid on his behalf (net of withholdings), $253,811 tax gross-ups, housing allowances, visa costs, and other expatriate benefits; allowed under relocation policy but may draw investor scrutiny despite policy prohibitions on general excise gross-ups .
- Hedging and pledging prohibited; insider plan-based selling reduces signaling risk; no Section 280G gross-ups, with cutback applied if applicable .
Equity Ownership & Alignment (Guidelines Compliance)
- Executive stock ownership requirement: 3x base salary for non-CEO executives; all NEOs met ownership requirements at FY2024 year-end, supporting alignment .
- Beneficial holdings include significant in-the-money options, reinforcing long-term value creation incentives; no pledging permitted, reducing misalignment risk .
Investment Implications
- Compensation acceleration (base, bonus ceiling, and higher LTI target) upon elevation to Transportation Solutions suggests focus on retention and incentivizing execution in TE’s largest segment; performance-based design (PSUs on relative EPS; options) aligns realized pay with earnings and share appreciation .
- Insider activity shows structured 10b5-1 plan transactions; continued option exercises and measured sales imply manageable selling pressure; monitor future Form 4s for cadence and size relative to vesting to assess incremental pressure .
- Expat allowances and tax gross-ups (policy-permitted) inflate “all other compensation” optics; governance safeguards (clawback, no hedging/pledging, 280G cutback) offset shareholder concerns, while FY2024 AIP overachievement (170.8% segment payout) evidences execution .
Sources: TEL DEF 14A (Jan 17, 2025) [1:*], TEL 8-K (Sep 17, 2024) [4:*], SEC/market sources (full URLs above).