CLEVELAND, OH—Hyster-Yale, Inc. (NYSE:HY), a global leader in industrial trucks, tractors, trailers, and stackers production, with annual revenue of $4.27 billion, has reported changes to its executive compensation structure.
According to InvestingPro analysis, the company currently trades at an attractive P/E ratio of 5.56 and appears undervalued based on its Fair Value metrics. The announcement came through a recent SEC filing, which detailed adjustments to the pay of key personnel as part of the company's long-term succession planning.
Effective January 1, 2025, Anthony Salgado, currently the Chief Operating Officer of Hyster-Yale's operating subsidiary, Hyster-Yale Materials Handling (NYSE:HY), Inc. (HYMH), will see an increase in his base salary to $768,439 annually upon his promotion to Chief Executive Officer of HYMH. This promotion and salary adjustment reflect both his merit and the new responsibilities he will assume.
In addition to the base salary increase, Salgado's target cash opportunity under the Annual Incentive Compensation Plan will rise to 75% of his new role's salary midpoint, up from 70%. His target opportunity under the Long-Term Equity Incentive Plan will also increase from 145% to 160% of the role's salary midpoint. Furthermore, his perquisite cash allowance will grow from $30,000 to $35,000 per year.
Alfred M. Rankin, Jr., the Executive Chairman of the Board, will also have his compensation adjusted. Rankin's base salary will be set at $1,009,411 annually, a slight decrease from the 2024 amount of $1,041,926. However, his target cash opportunity and long-term equity incentive targets will remain unchanged at 90% and 220% of his role's salary midpoint, respectively. Rankin's perquisite cash allowance will continue to be $40,000 annually.
These compensation adjustments were approved on Thursday, December 13, 2024, by the Compensation and Human Capital Committee of the Board of Directors and are part of Hyster-Yale's strategy to ensure a smooth transition in leadership and to align executive pay with the company's performance and future objectives.
In other recent news, Hyster-Yale Materials Handling, Inc. reported a slight revenue increase in their Q3 2024 results, with consolidated revenue reaching $1 billion, marking a 2% year-over-year increase. However, the company saw a decline in operating profit, falling to $33 million from $56 million, and net income decreased to $17 million from $36 million. In addition to these financial developments, Hyster-Yale announced the expansion of its Board of Directors and the appointment of Ann O'Hara as its newest member.
O'Hara, who has led Huhtamaki OYJ's North America segment since 2020, brings a wealth of experience to the Hyster-Yale board. Her tenure at Huhtamaki saw the North American business generate over $1.5 billion in revenue in 2023. Despite facing supply chain constraints and production issues, Hyster-Yale maintains a robust $2.3 billion backlog expected to support 2025 production levels.
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