Kristin Peck
ZoetisAbout Kristin Peck
Kristin C. Peck, 53, is Chief Executive Officer of Zoetis (CEO since 2020) and a director since October 2019. She holds a B.A. from Georgetown University and an MBA from Columbia Business School . Under her leadership, Zoetis delivered 2024 revenue of $9.256B (+8% reported; +11% operational), adjusted net income of $2.693B (+15% operational), and adjusted diluted EPS of $5.92; the Board raised the quarterly dividend 16% in December 2024 . The 2022–2024 performance share unit (PSU) cycle vested at 0% as Zoetis’ relative TSR ranked at the 17th percentile versus the S&P 500 peer group, demonstrating pay-for-performance rigor .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Zoetis | Chief Executive Officer | 2020–present | Leads strategy and execution across companion animal and livestock; serves on Board |
| Zoetis | EVP & Group President, U.S. Operations, Business Development & Strategy | 2018–2019 | Oversaw U.S. ops and BD/strategy, including manufacturing/supply and marketing/sales oversight |
| Zoetis | EVP & President, U.S. Operations | 2015–2018 | Led U.S. commercial operations |
| Zoetis | EVP & Group President | 2012–2015 | Drove corporate development, global manufacturing & supply, marketing/market research; helped lead 2013 IPO |
| Pfizer | EVP, Worldwide Business Development & Innovation | 2004–2012 | Member of Pfizer’s Executive Leadership Team; human capital and BD leadership |
| Boston Consulting Group | Consultant | 1999–2004 | Strategy and operations advisory |
| Prior finance roles | Prudential Realty Group; The O’Connor Group; J.P. Morgan | N/A | Finance/PE/real estate experience |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| BlackRock, Inc. | Director (public company) | Since Sep 2021 | Current public board |
| Mayo Clinic | Board of Trustees | N/A | Non-profit governance |
| Catalyst | Director | N/A | Global non-profit advancing women in leadership |
| Thomson Reuters | Director (prior) | N/A | Prior public board service |
Board Governance and Director Service
- Peck is a Zoetis director since October 2019; she holds no Board committee roles . The Board is majority independent; Peck is the only non-independent director as the sitting CEO .
- Board leadership is separated: independent Chair (Michael B. McCallister); if CEO and Chair roles were combined, a lead independent director would be appointed. Directors hold regular executive sessions led by the independent Chair .
- 2024 cadence: the Board met five times; all directors attended ≥75% of applicable meetings .
- Employee directors receive no additional pay for Board service .
Fixed Compensation
| Component (CEO) | 2024 Detail | Notes |
|---|---|---|
| Base Salary | $1,300,000 (effective Jan 1, 2024) | Approved Feb 6, 2024 |
| Target Bonus % | 150% of base salary | Unchanged for 2024 |
| Target AIP ($) | $1,950,000 | 150% of $1.3M |
| Actual AIP Paid (2024) | $2,730,000 (140% of target) | Approved Feb 6, 2025 |
| “All Other Compensation” (2024) | $426,913 | Includes company contributions to DC plans ($34,500), Supplemental Savings Plan ($305,716), other ($86,697 incl. $79,919 personal security) |
Performance Compensation
Annual Incentive Plan (AIP) – Design and 2024 Outcomes
- AIP pool funded 40% Revenue, 40% Adjusted Diluted EPS, 20% Free Cash Flow (FX-excluded for goal-setting) .
- 2024 AIP funding approved at 140% of target based on results below .
| Metric | 2024 AIP Target | 2024 AIP Results | Result vs Target |
|---|---|---|---|
| Revenue ($MM) | 9,183 | 9,443 | 103% |
| Adjusted Diluted EPS ($) | 5.81 | 6.16 | 106% |
| Free Cash Flow ($MM) | 1,789 | 2,362 | 132% |
- CEO AIP payout for 2024: 140% of target ($2.73M) reflecting company and individual performance .
Long-Term Incentives (LTI) – Mix, Grants, and Performance
- 2024 LTI mix for NEOs: 50% PSUs (Relative TSR), 25% RSUs (3-yr graded), 25% Stock Options (3-yr graded; 10-yr term) .
- 2022–2024 PSU payout: 0% at 17th percentile Relative TSR vs S&P 500 Group .
| CEO 2024 LTI Component | Grant Value ($) | Shares/Units | Vesting & Performance |
|---|---|---|---|
| PSUs (Relative TSR) | 6,374,876 | 23,724 target | 3-year cliff; 0–200% payout vs S&P 500 Group percentiles |
| RSUs | 3,187,500 | 16,251 | 1/3 per year over 3 years |
| Stock Options | 3,187,500 | 62,500 | 1/3 per year; $196.14 exercise; 10-year term |
2025 design changes: PSUs will measure Relative TSR vs S&P 500 Health Care index (not entire S&P 500) and add a 3-year operational revenue growth metric to the PSU program .
Equity Ownership & Alignment
- Beneficial ownership (as of Mar 20, 2025): 95,006 common shares; vested options for 335,231 shares .
- Unvested/Outstanding awards at 12/31/2024 (market price $162.93):
| Item | Quantity | Market/Notional Value |
|---|---|---|
| Unvested RSUs | 16,378 | $2,668,468 |
| Unearned PSUs (open cycles) | 23,909 | $3,895,493 |
- Ownership policies:
- Executive stock ownership guidelines set as a multiple of base salary; executives must retain net shares until in compliance. As of last annual measurement, all NEOs are in compliance .
- Anti-hedging and anti-pledging policies prohibit hedging, short sales, derivatives, and pledging of Zoetis stock by directors and executives .
Insider Transactions (recent)
| Date | Type | Shares | Price | Source |
|---|---|---|---|---|
| Feb 19, 2025 | Open market sale | 382 | $156.68 (WAP) | SEC Form 4 (Peck) |
Note: The above sale is de minimis relative to Peck’s 95K+ beneficial shares and sizable vested/unvested equity, suggesting limited incremental selling pressure from this transaction alone .
Employment Terms
| Topic | Key terms |
|---|---|
| Employment agreement | Company does not maintain employment agreements with executives (U.S.), relying on plan-based governance |
| Severance (non-CIC) | CEO: 18 months base salary; 1.5x target annual incentive; 12 months benefits; outplacement |
| Severance (CIC, double-trigger) | CEO: 30 months base salary; 2.5x target annual incentive; 18 months benefits; full vesting of unvested equity at target for PSUs upon qualifying termination |
| Equity vesting | RSUs/options: graded over 3 years; PSUs: 3-year cliff with 0–200% payout matrix; market-standard retirement/restructuring/death/disability treatments |
| Clawback & recovery | Robust clawback covering misstatements and misconduct; NYSE-compliant recovery policy adopted Oct 2023 |
| Anti-hedging/pledging | Prohibited for directors and colleagues, including executives |
Compensation Structure Analysis
- Alignment and mix: Approximately 92% of CEO target total direct compensation is incentive-based; 80% is long-term equity (50% PSUs tied to Relative TSR) .
- Rigor: The 0% PSU vesting for 2022–2024 (17th percentile Relative TSR) shows downside symmetry; AIP metrics (Revenue, Adj. EPS, FCF) supported a 140% payout on strong 2024 operating results .
- 2025 changes: Moving PSU TSR comparator to Health Care index and adding 3-year operational revenue growth improve line-of-sight and sector relevance while maintaining at-risk design .
- Governance: No excise tax gross-ups; no option repricing; double-trigger CIC; anti-hedging/pledging; independent compensation consultant; 91% Say-on-Pay support in 2024 .
Say-on-Pay, Peer Group, and Shareholder Feedback
- Say-on-Pay approval: 91% for 2023 NEO pay at 2024 Annual Meeting .
- Compensation peer group (2024 decisions) included 15 large-cap life sciences/med-tech names (e.g., Agilent, IDEXX, Thermo Fisher, Gilead, Boston Scientific, Stryker); Zoetis ranked ~50th percentile in revenue and ~70th percentile in market cap within the group .
- 2025 peer updates: Illumina and Mettler-Toledo removed; Edwards Lifesciences, Vertex, and Bristol Myers Squibb added .
Performance & Track Record (select 2024–2025 disclosures)
- 2024: Revenue $9.256B (+8% reported; +11% operational); adjusted net income $2.693B (+15% operational); dividend increased 16%; $1.858B in share repurchases .
- 2025 (Q3) commentary: Portfolio execution amid U.S. vet clinic/vet dermatology dynamics; focused plan to stabilize/re-accelerate Librela; multiple pipeline/regulatory milestones across OA pain and parasiticides; revised FY25 revenue guidance to $9.400–$9.475B with maintained adjusted EPS guidance of $6.30–$6.40 .
Equity Ownership & Director Governance (additional)
- 5%+ holders: Vanguard (9.04%), BlackRock (8.18%) as of filings referenced in proxy .
- No related-party transactions in 2024 requiring disclosure .
Investment Implications
- Pay-for-performance alignment is strong: high at-risk mix, stringent PSU design (recent 0% payout), and 2025 PSU enhancements tie outcomes more closely to sector-relative returns and operational growth .
- Retention and overhang: Meaningful unvested equity (RSUs/PSUs) and options create retention hooks; anti-hedging/pledging plus ownership guidelines align incentives, while insider selling appears minimal relative to holdings, limiting selling overhang signals .
- Downside protection and governance: No single-trigger CIC; double-trigger with capped multiples (2.5x for CEO) and robust clawback/recovery regime mitigate adverse incentive risks; 91% Say-on-Pay support suggests investor acceptance of design .
- Execution risk: 2022–2024 TSR underperformance versus broad S&P 500 peer group (driving 0% PSU payout) underscores the importance of near-term product stabilization and pipeline delivery, which management is addressing via targeted initiatives and sector-tuned PSU metrics from 2025 onward .