Simon Wheeler
TRUPANIONAbout Simon Wheeler
Simon Wheeler, age 64, is Executive Vice President, International Business at Trupanion (TRUP). He leads expansion across existing markets like Australia and new markets including Japan, the UK, Brazil, and Western Europe; educated at Oundle School and with a degree in Economics from De Montfort University . Company performance during 2024 provides context for incentive alignment: total revenue rose 16% to $1,285.7M; subscription revenue grew 20% to $856.5M; free cash flow reached $38.6M; and net loss narrowed to $(9.6)M; the company estimated intrinsic value increased ~$879M to $2.01B . Trupanion’s cumulative TSR measured $131.12 in 2024 on a fixed $100 basis; adjusted operating income reached $114.5M, key in pay metrics .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Agria Pet Insurance Ltd | Managing Director (UK marketplace and underwriting branch, Agria Försäkring) | Not disclosed | Led UK market operations and underwriting, bringing deep pet insurance expertise |
| Allianz Animal Health (UK) | Senior roles (not specified) | Not disclosed | Contributed to building pet insurance capabilities within diversified insurance groups |
| Pinnacle Pet Health Care (UK) | Senior roles (not specified) | Not disclosed | Helped scale pet health insurance offerings in UK market |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Association of British Insurers (ABI) – Pet Insurance Committee | Past Chair | Not disclosed | Industry governance and standards-setting for UK pet insurance |
| Petplan Charitable Trust | Trustee | Not disclosed | Oversight of charitable support for veterinary and animal welfare initiatives |
Performance Compensation
Company incentive design used corporate metrics in 2024 (legacy program H1; MIP H2). While Wheeler’s individual payouts are not disclosed, MIP outcomes and metrics guide alignment.
| Metric (MIP H2 2024) | Targeting Approach | Actual Achievement | Implication |
|---|---|---|---|
| Adjusted Operating Income (Total Trupanion AOI) | Corporate financial performance (non-GAAP AOI excluding acquisition, development, stock comp, D&A) | 65% of target | Moderated payout on AOI component |
| Lifetime Value per Pet (LVP) | ARPU, retention, profit per pet over implied average life (36-month basis) | 200% of target | Drove payout above target |
| Internal Rate of Return (IRR) | Discipline in pet acquisition spend, retention and margins (average pet model) | 92% of target | Near-target contribution |
| MIP Payout (Corporate) | Payout range 0–200% of target | 106% of target | Above-target aggregate outcome |
Additional context on incentive architecture:
- H1 2024 legacy program metrics: Gross New Pets (U3), Cancellations, Subscription AOI (monthly goals, quarterly assessment) .
- H2 2024 MIP: 100% corporate goals (AOI, LVP, IRR), RSU conversion option with 20% premium and two-year lock-up .
Equity Ownership & Alignment
- Stock ownership guidelines: “Other Executive Officers” must hold 3x annual base compensation, to be met within five years of becoming an executive; eligible holdings include vested RSUs and in-the-money options (net basis) .
- RSU vesting standards under 2024 plan: long-term incentives generally vest quarterly over two years; new-hire/promotion/spot grants vest over four years (1/4 on ~1-year anniversary, then quarterly) .
- Hedging and pledging: Hedging is prohibited; pledging is discouraged and requires pre-approval, with ongoing committee oversight .
- Insider activity indicator: Wheeler filed one late Form 4 in June 2024 and three late Forms 4 in November 2024 for RSU grants/vests (signals ongoing vesting cadence; amounts not disclosed) .
Employment Terms
| Provision | Term | Notes |
|---|---|---|
| Severance (without cause) | Minimum two weeks’ salary plus two weeks per completed year of service, up to 26 weeks; earned but unpaid quarterly bonuses; one month medical premium | Applies to employees, including executives; requires release of claims |
| Change-in-control severance | Six months’ salary; earned but unpaid bonuses; immediate vesting of all unvested equity awards | Applies if terminated without cause within 3 months before or 12 months after a change-in-control; 280G “best net” cutback to maximize after-tax amount |
| Clawback | Recovery of incentive comp upon financial restatement, recalculation of performance measures, or misconduct | Applies to financial reporting measures, stock price and TSR; effective for awards paid on/after Oct 2, 2023 over the prior three fiscal years |
| Insider trading policy | Trading only in open windows; Rule 10b5-1 plans permitted; special blackouts possible | Company maintains detailed approval procedures and policy filed with 10-K |
Company Performance Context (2024)
| Metric | Value | Notes |
|---|---|---|
| Total Revenue | $1,285.7M | +16% YoY |
| Subscription Revenue | $856.5M | +20% YoY |
| Net Loss | $(9.6)M | Improved from $(44.7)M in 2023 |
| Operating Cash Flow | $48.3M | 2024 |
| Free Cash Flow | $38.6M | 2024 record |
| Cash & Short-term Investments | $307.4M | As of Dec 31, 2024 (incl. $35.4M outside insurance entities; $15M revolver availability) |
| Estimated Intrinsic Value | $2.01B | ~+$879M YoY increase (company estimate) |
| Cumulative TSR (fixed $100 basis) | $131.12 | 2024 |
| Adjusted Operating Income | $114.47M | 2024 (company-selected performance measure) |
Investment Implications
- Compensation structure vs performance: Corporate metrics (AOI, LVP, IRR) and equity-heavy vesting cadence promote long-term value creation and international growth discipline—supportive for Wheeler’s mandate; MIP payout at 106% reflects strong LVP momentum despite AOI underperformance .
- Retention and vesting pressure: Two/four-year RSU vest schedules and change-in-control acceleration improve retention; regular vesting generates periodic Form 4 activity but hedging is prohibited and pledging tightly controlled—reducing misalignment risks .
- Ownership alignment: 3x base salary ownership guideline for executive officers enhances “skin-in-the-game”; compliance status is tracked against a five-year horizon (individual compliance for Wheeler not disclosed) .
- Employment economics: Standardized severance and robust clawback regime limit windfall risks; double-trigger-style protection (timing window) with full equity acceleration in change-in-control scenarios could create departure optionality but also safeguards continuity during transactions .
- Execution risk: Wheeler’s remit spans multi-country market entry; performance dependencies include retention, ARPU, and disciplined PAC—areas embedded in pay metrics; watch international regulatory, pricing, and partner risks as they flow through AOI/LVP/IRR .
- Shareholder sentiment: Say-on-pay support was strong at ~96.4% in 2024, signaling broad investor alignment with program design .