Steve Weinrauch
TRUPANIONAbout Steve Weinrauch
Dr. Steve Weinrauch (BVMS, MRCVS) is Trupanion’s Executive Vice President, Veterinary & Product. He joined Trupanion in 2013 after nine years of full-time veterinary practice, became Chief Veterinary Officer in 2015, expanded to Chief Product Officer in 2016, and in early 2023 took on Executive Vice President responsibilities across North America; he is a USDA Accredited Veterinarian and P&C-licensed producer/adjuster, and has founded animal-care non-profits (2nd Chance Rescue, MightyVet.org) . Company performance context: in 2024 Trupanion delivered $1,286M revenue (+16%), subscription revenue of $856.5M (+20%), adjusted operating income (AOI) of $114.468M, free cash flow of $38.6M, and a cumulative TSR value of $131.12 for a $100 initial investment (company-selected measure AOI used in pay-versus-performance) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Trupanion | Director of Veterinary Direct Pay | 2013–2015 | Built direct-pay capability to veterinarians, aligning product to clinical workflows |
| Trupanion | Chief Veterinary Officer | 2015–2016 | Led veterinary strategy; strengthened clinical integration |
| Trupanion | Chief Product Officer | 2016–2022 | Oversaw product design/development; enhanced lifetime value/retention drivers |
| Trupanion | EVP, North America | 2023 | Drove North America growth and execution |
| Trupanion | EVP, Veterinary & Product | 2024–present | Combined product stewardship with veterinary-channel leadership |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| 2nd Chance Rescue (501(c)(3)) | Co-Founder & Medical Director | Not disclosed | Animal rescue leadership and clinical oversight |
| MightyVet.org (501(c)(3)) | Founder | Not disclosed | Veterinary professional support/education |
| National Veterinary Associates | Director of De Novo Development | Not disclosed | Growth of new veterinary sites and operations |
| Large Washington Hospital | Partner Veterinarian & Chief of Staff | Not disclosed | Clinical leadership and practice management |
Fixed Compensation
| Metric | 2023 |
|---|---|
| Base Salary ($) | $300,000 |
| Target Bonus (% of Salary) | 40% |
| Target Bonus ($) | $120,000 |
| Actual Bonus Earned ($) | $95,276 |
| Bonus Form (Cash/RSUs) | $0 cash; RSUs valued $79,864 with 20% premium, fully vested at grant, subject to 2-year lock-up |
Performance Compensation
| Component | Metric | Weighting | Target | Actual/Payout | Vesting/Delivery |
|---|---|---|---|---|---|
| Short-Term Incentive (2023) | Corporate monthly goals: Gross New Pets <3 yrs; Cancellations; Subscription AOI; plus individual goals tied to vet growth/product | 50% corporate / 50% individual | $120,000 | $95,276 (≈79% of target) | RSUs in lieu of cash at 20% premium; fully vested at grant; 2-year lock-up |
| Long-Term Incentive (2023 performance) | RSUs | N/A | 23,031 RSUs | Grant-date fair value $662,326 | Two tranches: 16,229 RSUs granted Feb 2024 vest quarterly over 2 years; 5,655 RSUs granted Aug 2023 vest over 4 years |
Individual achievements assessed included oversight of North American veterinary growth, product design/development, growth initiatives, and regulatory/media support .
Equity Ownership & Alignment
- RSU awards tied to 2023 performance: total 23,031 RSUs (16,229 granted Feb 2024, 5,655 granted Aug 2023) with two- and four-year vesting schedules that support retention and long-term alignment .
- Company stock ownership guidelines: executives must hold equity equal to 3× base salary; directors 3× annual compensation; CEO 5× base salary; five-year compliance window; hedging prohibited and pledging discouraged with pre-approval oversight .
- Section 16 compliance note: Steve Weinrauch filed one late Form 4 in June 2024 (grant/vest in May) and one late Form 4 in November 2024 (grant/vest in November), indicating equity transactions and potential administrative timing risk rather than systematic selling pressure .
Employment Terms
| Scenario | Cash Severance | Equity Acceleration | Other |
|---|---|---|---|
| Termination without Cause (no Change in Control) | Salary for minimum 2 weeks + 2 weeks per completed year, up to 26 weeks; plus earned but unpaid bonuses | No acceleration | 1 month medical premium; separation agreement required |
| Termination without Cause within 3 months before or 12 months after Change in Control | Six months of salary (greater of current or at CoC), plus any unpaid earned bonuses | Immediate vesting of all unvested equity awards | 280G cutback to maximize net after-tax; separation agreement required |
Additional policies: compensation clawback covering restatements, recalculation, or misconduct (applies to incentive compensation including stock price/TSR-based metrics) .
Performance & Track Record
| Metric (Company) | 2023 | 2024 |
|---|---|---|
| Total Revenue ($M) | $1,108.6 | $1,285.7 |
| Adjusted Operating Income ($M) | $83.545 | $144.468 (company reconciliation table AOI) |
| Internal Rate of Return (new pets) | 36% | 37% (illustrative single pet IRR) |
| Free Cash Flow ($M) | $0.4 | $38.6 |
| Cumulative TSR (value of $100) | $83.00 (2023) | $131.12 (2024) |
Compensation Committee & Governance Context
- Say-on-pay approvals: 94.4% (2023); 96.4% (2024), indicating strong shareholder support for pay design .
- Peer benchmarks used (2024/2025 examples): animal health and insurance comparators (e.g., IDEXX, Elanco; AEL; Safety Insurance; Skyward Specialty), supplemented by broader market surveys to calibrate competitiveness and dilution .
- Executive pay mix emphasizes performance-based RSUs with two-year vesting for performance grants (closer to performance year) and four-year schedules for new hire/promotion/spot grants, aligning realized pay to value creation and retention .
Investment Implications
- Alignment: Weinrauch’s incentives are tightly linked to core operating drivers (subscription AOI, lifetime value per pet, IRR) and equity vesting over 2–4 years, encouraging long-term product/veterinary-channel execution and disciplined pet acquisition economics .
- Retention: Two- and four-year RSU schedules from 2023 performance (total 23,031 RSUs) create ongoing vesting through 2025–2027, lowering near-term flight risk while maintaining performance accountability .
- Selling pressure: Late Form 4s reflect grant/vest timing rather than programmatic selling; hedging is prohibited and pledging is discouraged/controlled, reducing misalignment or leverage risk signals .
- Change-in-control economics: Single-trigger equity acceleration tied to termination without cause within the CoC window plus six months salary could modestly increase deal-related payouts, but standardized severance suggests limited excess parachute exposure; clawbacks further mitigate risk .
- Execution risk: Management’s 2024 transition to a unified MIP (AOI/LVP/IRR) simplifies incentives and removes individual components, increasing exposure to corporate outcomes—beneficial if product/vet initiatives sustain LVP/IRR while AOI scales; pay-versus-performance and high say-on-pay support indicate investor confidence in the framework .