Align Technology: CEO Realized Over $100M in Value Through Option Exercise, Given More Shares

Annual Meeting: May 18, 2022

Total reported compensation for Joe Hogan, who has been CEO of Align Technology since 2015, was reported as $21,591,400 for 2021. This represents an increase of 39 percent from 2020’s pay packages of $15,522,289. Specifically, Hogan’s option award increased somewhat and his annual bonus more than doubled.

The company has been on As You Sow’s list of Overpaid CEOs twice. As I noted in a 2019 blog post additional awards are unnecessary for retention given current holdings, “Hogan already has a significant stake in the company. . . If Hogan holds onto these vested shares it seems like that level of ownership already aligns his interests with shareholders.” The “if” in that sentence carries a lot of weight. In 2021, Hogan acquired 183,346 shares on vesting of options, realizing $107,684,921 in value. In 2020, Hogan also realized $26,022,523 in the vesting of stock awards.

The current proxy reports that Hogan holds 169,601 shares. The proxy statement filed for the 2020 annual meeting showed his ownership at 201,236 shares. In other words Hogan has cashed in prior awards and has a smaller stake in the company than he did in the past. Yet the company continues to give him more options.

Finally, I would note that Hogan received $60,739 in relocation expenses in 2021. The amount itself is not significant but the fact that it was awarded is telling. Relocation expenses are appropriate as part of a new hire package, and in certain cases to relocated more junior level employees if the company moves. The fact that Hogan applied for and received such benefits also suggests that he may be more focused on his individual wealth rather than that of the company.