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TriNet Group, Inc. (NYSE: TNET) is a leading provider of human capital management (HCM) solutions, specializing in serving small and medium-sized businesses (SMBs). The company operates as a professional employer organization (PEO), offering services such as payroll processing, employee benefits, risk mitigation, compliance, and HR expertise. TriNet also provides cloud-based HRIS tools to help businesses manage HR processes efficiently.
- Insurance Services - Offers access to health, dental, vision, and other insurance plans for Worksite Employees (WSEs), while managing insurance claims and ensuring compliance with healthcare regulations.
- Professional Services - Provides HR services, including payroll, tax administration, compliance support, and employee benefits tailored to SMBs across various industries.
- HRIS Cloud Services - Delivers cloud-based Human Resources Information System (HRIS) solutions, enabling businesses to manage HR processes such as onboarding, performance management, and benefits administration.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Kelly Tuminelli ExecutiveBoard | Executive Vice President and Chief Financial Officer | Board and Chair of the Audit Committee of TaskUs | Kelly Tuminelli has served as the Executive Vice President and Chief Financial Officer at TriNet Group, Inc. since October 26, 2020, leading the company’s finance and insurance services. She previously held leadership roles at Genworth Financial, GE Capital, and PwC, and she actively contributes externally as a board member by serving as Chair of the Audit Committee of TaskUs. | |
Michael Q. Simonds ExecutiveBoard | President and Chief Executive Officer | Michael Q. Simonds is the CEO of TriNet Group, Inc. since **February 16, 2024 ** and serves as a Class III director; he has previously held executive roles at Unum Group and worked as a consultant at McKinsey & Company. | View Report → | |
Jay Venkat Executive | Executive Vice President, Chief Digital & Innovation Officer | Jay Venkat has been serving as the Executive Vice President, Chief Digital & Innovation Officer at TriNet since June 30, 2022. He built a distinguished career at Boston Consulting Group, leading technology and digital transformation projects, and previously worked as a field engineer at Halliburton. | ||
Sidney Majalya Executive | Senior Vice President, Chief Legal Officer, and Secretary | Sidney Majalya is the Senior Vice President, Chief Legal Officer, and Secretary at TriNet Group since September 16, 2024, where he oversees legal, risk, and regulatory compliance. Previously, he held senior legal roles at Binance U.S., Intel, Uber, and Oracle. | ||
Timothy Nimmer Executive | Senior Vice President, Insurance Services and Operations | Timothy Nimmer joined TriNet (TNET) as Senior Vice President, Insurance Services and Operations on June 24, 2024, where he reports directly to President and CEO Mike Simonds. Previously, he held key executive roles at Aetna Inc. and Aon, leading significant initiatives in pricing, underwriting, and digital transformation. | ||
Brian Evanko Board | Director | President and CEO of Cigna Healthcare; Executive Vice President and CFO of The Cigna Group | Brian Evanko serves as a Class I Director on TNET's Board since July 8, 2024 and brings extensive leadership experience from his roles as President and CEO of Cigna Healthcare and as Executive Vice President and CFO of The Cigna Group. | |
David C. Hodgson Board | Chair of the Board | Vice Chairman and Managing Director of General Atlantic; Member of the Board of Trustees of Johns Hopkins Medicine; Director of Royalty Pharma; Director of Alignment Healthcare; Director of Howden Group; Chair of the Manhattan Theatre Club; Member of the President's Leadership Council of Dartmouth College Board of Trustees; Member of the Advisory Council at Stanford Graduate School of Business | David C. Hodgson has been a member of TriNet's Board since June 2005 and has served as the Chair of the Board since May 2018. He brings over 40 years of leadership experience, including his active role as Vice Chairman and Managing Director at General Atlantic since 1982. | |
Maria Contreras-Sweet Board | Independent Director | Director at Regional Management Corporation; Director at Zions Bancorporation; Board member at Bipartisan Policy Center; Board member at Los Angeles World Affairs Council; Board member at Town Hall of Los Angeles; Distinguished Fellow at the Larta Institute | Maria Contreras-Sweet has been an Independent Director at TriNet Group, Inc. since November 2020, where she also serves as Chair of the Risk Committee and a member of the Nominating and Corporate Governance Committee. Previously, she held leadership roles such as SBA Administrator and Managing Member, showcasing her diverse expertise in government, corporate, entrepreneurial, and nonprofit sectors. | |
Michael J. Angelakis Board | Independent Director | ExxonMobil Board Member; Clarivate Plc Board Member; Bowlero Corporation Board Member; Arcis Golf Corporation Board Member; The Orogen Group Board Member | Michael J. Angelakis is an experienced leader serving as an Independent Director at TriNet since February 2017, with a strong background in investment and corporate leadership, having previously served as Chairman and CEO at Atairos Management, L.P. and as CFO at Comcast Corporation. | |
Paul Chamberlain Board | Board Member and Chair of the Compensation and Human Capital Management Committee | Board Member at ServiceNow, Inc. | Paul Chamberlain has served as a Board Director at TriNet Group, Inc. since December 2015, where he also chairs the Compensation and Human Capital Management Committee. Previously, he held senior roles at Morgan Stanley as Managing Director and Co-Head of Global Technology Banking, and he founded his own advisory firm, PEC Ventures, in January 2015. | |
Wayne B. Lowell Board | Independent Director | Wayne B. Lowell joined TriNet Group, Inc. as an Independent Director in August 2009 and serves as the Chair of the Finance and Audit Committee and a member of the Risk Committee; he previously led companies as CEO at Senior Whole Health Holdings, Inc. and as President of Jonchra Associates, LLC. |
- Given your decision to exit the HRIS SaaS-only business due to low margins and shrinking revenue, can you elaborate on how this strategic shift will impact your overall revenue growth and margins in the near term, and what measures are you taking to mitigate any potential negative effects?
- With elevated insurance cost ratios impacting margins, can you provide more detail on the steps you are taking to manage these costs, and how confident are you in your ability to bring the ICR back into your targeted range in the medium term?
- Considering the current low customer hiring environment and your reliance on net customer hiring for growth, what strategies are you implementing to drive revenue growth in the absence of significant CIE growth, and how realistic is your medium-term revenue growth target of 4% to 6% under these conditions?
- As you aim to increase sales through the broker channel, which currently contributes a smaller portion of new sales compared to the direct channel, what specific investments and changes are you making to effectively penetrate this channel, and how soon do you expect to see meaningful results from these efforts?
- In light of your peers potentially growing WSEs at a faster rate due to differences in their business models, what are the key differentiators in your approach that you believe will allow you to achieve comparable growth rates in WSEs, and how do you plan to overcome any structural limitations in your business model?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
The TotalSource unit of this company is a large PEO that represents significant competition in the PEO services market. | |
The PEO operations of this company are considered significant competition in the PEO services market. | |
The PEO operations of this company are considered significant competition in the PEO services market. | |
This company is part of the Peer Group Index used for comparison of cumulative total return. | |
This company is part of the Peer Group Index used for comparison of cumulative total return. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Clarus R+D | 2022 | The acquisition, completed on September 1, 2022, involved a $48 million deal structured largely with cash, and it expanded TriNet’s offerings by adding technology-enabled tax expertise for SMBs, including key assets such as technology (valued at $9 million) and customer relationships (valued at $5 million) while incurring $14 million in integration costs. |
Zenefits | 2022 | TriNet’s acquisition of Zenefits on February 15, 2022, was structured as a $209 million deal (with $192 million in cash and $17 million in stock) that strategically enhanced its HR service offerings for SMBs by incorporating a robust cloud HR platform and valuable intangible assets, positioning Zenefits as a wholly-owned subsidiary. |
Recent press releases and 8-K filings for TNET.
- Total Q1 revenues grew 1% to $1.3 billion, with full-year revenue guidance of $4.95–$5.14 billion
- Earnings details: GAAP EPS of $1.71 and adjusted EPS of $1.99 , while adjusted net income reached $99 million with an adjusted EBITDA of $162 million
- Approximately 1.2 million shares repurchased in Q1 to enhance shareholder value
- Operating expenses declined by 6% YoY, supporting efforts toward margin expansion
- Professional service revenues declined 2% to $209 million, with the adjusted EBITDA margin at 12.6%
- Strategic initiatives include launching benefit plan bundles in select markets and scaling the broker channel to drive new sales amidst a challenging environment
- TriNet Group Inc.’s Board of Directors approved a quarterly dividend of $0.275 per share for the company’s common stock.
- The dividend is set with a record and ex-dividend date on April 1, 2025 and a payout date on April 28, 2025.