W. Nicholas Howley, CEO of TransDigm Group Incorporated, stands out for his unique approach to executive compensation. He emphasizes performance and equity, favoring stock options over a high base salary. His annual salary is surprisingly low at just $7,000, while...

W. Nicholas Howley, CEO of TransDigm Group Incorporated, stands out for his unique approach to executive compensation. He emphasizes performance and equity, favoring stock options over a high base salary. His annual salary is surprisingly low at just $7,000, while his total compensation can reach astonishing amounts. For instance, in 2018, he earned over $25 million, mainly from executing stock options tied to company performance. This structure aligns his goals with shareholders, aiming for long-term growth and value creation. Notably, he has been with TransDigm since 2003 and transitioned to the CEO role in 2009, leading the firm through significant expansions in the aerospace parts market. Beyond money, Howley utilizes company aircraft for personal use, a common perk for top executives. His strategic focus on aligning management rewards with company success makes him a pivotal figure in ensuring that everyone benefits when the company thrives.

Quick Links

1. Rivals

2. Holdings

3. Insider Trading

4. Compensation History

5. Other TransDigm Group CEOs

T

W. Nicholas Howley

Ex-CEO of TransDigm Group

Education

Not specified

Field of Expertise

Business & Management

Sector of Economy

Industrials

Born

January 1, 1956 - 69 years ago

CEO of TransDigm Group for

8 years 9 months (Jul 2009 - Apr 2018)

Previous Experience

Chairman and Chief Executive Officer at TransDigm Group Incorporated

Rivals

Competitors/colleagues of W. Nicholas Howley

H

Christopher J. Nassetta

CEO of Hilton Worldwide

2023 Compensation

Stock

$32.00M

Salary

$1.30M

Bonus

$0.00

Other

$729.69K

Total Holdings

$654.02M

C

David C. Adams

CEO of Curtiss-Wright

2023 Compensation

Stock

$0.00

Salary

$1.00M

Bonus

$0.00

Other

$0.00

Total Holdings

$16.02M

M

Anthony G. Capuano

CEO of Marriott International

2023 Compensation

Stock

$0.00

Salary

$1.40M

Bonus

$5.60M

Other

$981.36K

Total Holdings

$46.65M

C

Lynn M. Bamford

CEO of Curtiss-Wright

2023 Compensation

Stock

$1.33M

Salary

$989.23K

Bonus

$0.00

Other

$44.14K

Total Holdings

$8.63M

Holdings

See how much did W. Nicholas Howley make over time.

W. Nicholas Howley's holdings reflect his commitment to performance; he has a substantial number of stock options linked to the company's success. In 2018 alone, he exercised 109,200 options, securing a total value exceeding $25 million from them. His wealth...

W. Nicholas Howley's holdings reflect his commitment to performance; he has a substantial number of stock options linked to the company's success. In 2018 alone, he exercised 109,200 options, securing a total value exceeding $25 million from them. His wealth fluctuates based on the performance of TransDigm, showcasing an adaptive investment style where higher earnings come from successful company strategies rather than a steady salary. Notably, Howley’s stock option strategy leads him to accumulate most of his wealth through performance-linked incentives. As he manages TransDigm’s growth, it's clear that his wealth is closely tied to the company's performance metrics, ensuring he is equally invested in the company's trajectory.

Mar 18, 2025

P

shares

PRM @ $9.02

T

shares

TDG @ $1.34K

Total Stock Sold

$1.07B

TDG

$1.07B

2,944,719.876 TDG shares

What if they kept their stock?

If W. Nicholas Howley didn't sell their stock, today they would have:
Extra TDG2,944,719.876 shares worth $1.01B.
This is -5.05% and $53.97M less than what they got when they sold the stock.

Charitable Transactions

TDG

8,262 shares

TDG

PRM

3,965,105 shares

PRM

Recent Charitable Transactions

PRM

1,363,982 shares

PRM

May 15, 2024

Charity

PRM

2,601,123 shares

PRM

Dec 6, 2022

Charity

TDG

8,262 shares

TDG

Aug 23, 2019

Charity

Insider Trading

See recent insider trades of W. Nicholas Howley.

TDG

$7.40M

TDG at $1.35K/share

Mar 17, 2025

Sale

TDG

$7.19M

TDG at $1.31K/share

Feb 18, 2025

Sale

TDG

$7.09M

TDG at $1.30K/share

Jan 15, 2025

Sale

TDG

$6.95M

TDG at $1.27K/share

Dec 16, 2024

Sale

TDG

$6.94M

TDG at $1.27K/share

Nov 15, 2024

Sale

TDG

$7.66M

TDG at $1.40K/share

Oct 15, 2024

Sale

TDG

$7.53M

TDG at $1.38K/share

Sep 16, 2024

Sale

TDG

$6.90M

TDG at $1.26K/share

Aug 15, 2024

Sale

TDG

$6.30M

TDG at $1.24K/share

Jul 15, 2024

Sale

TDG

$7.18M

TDG at $1.31K/share

Jun 17, 2024

Sale

Compensation History

See how much did W. Nicholas Howley make over time.

W. Nicholas Howley's compensation strategy is intriguing; in 2018, he made around $25 million primarily from stock options. His cash salary is only $7,000, but he receives a performance-based bonus intended to challenge and motivate him towards achieving long-term goals. This unique pay structure is designed to align his interests with those of the shareholders. His compensation scheme reflects a model often seen in private equity, emphasizing performance and long-term value. This means that if TransDigm does well, he does well, which could lead to a significant economic win-win situation. The company has adopted this performance-centric compensation philosophy to attract and retain executive talent, ensuring that the management’s rewards mirror the success of the business.

Year

2018

Total Compensation

$28.53M

Salary

$7.00K

Board Justification

TransDigm's compensation philosophy is to align management's interests with those of stockholders through performance-based incentives, with a focus on long-term value creation.

Bonus

$1.80M

Board Justification

Mr. Howley received his annual incentive by means of a grant of options in lieu of cash, reflecting a value of $1,800,000 for fiscal 2018.

Other

$791.26K

Board Justification

Includes dividend equivalents paid on vested options.

Restricted Stock

$25.93M(109.2K Options)

Board Justification

Mr. Howley exercised 109,200 options during fiscal 2018.

Performance Metrics

Performance metrics include EBITDA growth, management of capital structure, cash generation, and acquisition performance.

Other TransDigm Group CEOs

Here are other CEOs of TransDigm Group

Kevin Stein

CEO of TransDigm Group

April 2018 - Present