Matthew Reed
AlcoaAbout Matthew Reed
Matthew T. Reed, 52, has served as Executive Vice President and Chief Operations Officer (COO) of Alcoa Corporation since January 1, 2024, overseeing daily operations across global bauxite, alumina, aluminum and transformation assets; he previously led Alcoa of Australia as VP Operations, Australia and President from June–December 2023, and before Alcoa held senior operating roles at OZ Minerals and SIMEC Mining in South Australia . In 2024, Reed’s organization recorded zero FSI-Actuals and fatalities, achieved annual production records at five smelters, relaunched the Alcoa Business System, and executed key portfolio actions, including the safe curtailment of Kwinana; his individual contribution factor for annual incentive was 110% with Company IC achievement at 148.3% of target, resulting in a $1,084,814 cash incentive for 2024 . His long-term equity is tied to multi-year performance—Relative TSR (35%), Average ROE (35%), and Carbon Intensity (30%)—with 2024 PRSUs measured over 2024–2026 and maximum payout capped at 200% of target . In September 2025, Reed publicly led the permanent closure decision for the Kwinana refinery, reinforcing operational portfolio discipline amid market and cost challenges .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Alcoa Corporation | EVP & Chief Operations Officer | Jan 2024–present | Leads global bauxite, alumina, aluminum, and transformation operations . |
| Alcoa of Australia | VP Operations, Australia; President, Alcoa of Australia | Jun 2023–Dec 2023 | Oversaw Australian operations; prepared portfolio actions and operational stability initiatives . |
| OZ Minerals Limited (Australia) | Operations Executive (COO) | Sep 2021–May 2023 | Ran group operations for base metals miner; preceded by GM, Projects (Jan–Aug 2021) . |
| SIMEC Mining (Australia) | Executive Managing Director (COO) | Sep 2017–Dec 2020 | Led mining operations across iron ore portfolio . |
External Roles
No public company board roles or external directorships disclosed for Reed in the Alcoa 2024 Form 10-K executive bios or 2025 Proxy (DEF 14A) reviewed .
Fixed Compensation
| Component (2024) | Detail | Amount |
|---|---|---|
| Base salary (earnings) | COO salary earned in 2024 | $665,000 |
| Target annual incentive | % of base salary | 100% |
| 2024 cash incentive paid (IC) | Company result 148.3% x individual 110% | $1,084,814 |
| All other compensation | Australian superannuation (14% employer contribution on base) | $93,100 |
| Total reported compensation | SCT total 2024 | $4,137,448 |
Notes
- Mr. Reed is paid in Australian dollars; values shown are U.S. Dollar equivalents using an internal rate of A$1.00 = US$0.70 as disclosed by Alcoa .
Performance Compensation
Annual Incentive Plan (IC) – Company Scorecard and Payout Mechanics (2024)
| Metric category | Metric | Weight | Target | Result | Achievement | Weighted result |
|---|---|---|---|---|---|---|
| Financial | Adjusted EBITDA excl. special items (non-normalized, $M) | 20% | 757 | 1,554 | 200% | 40.0% |
| Financial | Free Cash Flow – normalized ($M) | 20% | (677) | (174) | 184% | 36.8% |
| Financial | Alumina digester production (tpd) | 6% | 30,285 | 29,870 | 77% | 4.6% |
| Financial | Aluminum pot room production (kmt) | 9% | 2,256 | 2,219 | 73% | 6.6% |
| Financial | Alumina Cash Net Conversion Cost ($/mt) | 6% | 102 | 110 | 0% | 0.0% |
| Financial | Aluminum Cash Net Conversion Cost ($/mt) | 9% | 591 | 600 | 70% | 6.3% |
| Non-financial | Safety – Zero Fatalities (count) | 10% | 0 | 0 | 200% | 20.0% |
| Non-financial | FSI—Actual (count) | 10% | 3 (cap applies if any fatality) | 0 | 200% | 20.0% |
| Non-financial | Inclusive Culture – Global Women (%) | 5% | 20.5% | 20.1% | 81% | 4.0% |
| Non-financial | Underrepresented Employee Hires (%) | 5% | 33.0% | 38.5% | 200% | 10.0% |
| Company IC Achievement | 148.3% |
- IC structure: 70% financial / 30% non-financial; normalization applied for LME/API, FX, premiums/tariffs, and raw materials to focus on controllables .
- Individual contribution adjustment: Reed at 110%; formula is Salary x Target% x Company Achievement +/- Individual adjustment; paid Feb 2025 .
Long-Term Incentive (LTI) – 2024 Grants and Design
| Instrument | Grant date | Grant value (FMV) | Units (Reed) | Performance/vesting | Max payout |
|---|---|---|---|---|---|
| RSUs (time-based) | Jan 24, 2024 | $840,125 | 28,230 | Vest ratably over 3 years on each anniversary; Alcoa confirms specific vest dates 1/24/2025, 1/24/2026, 1/24/2027 | n/a |
| PRSUs (performance-based, 2024–2026) | Feb 21, 2024 | $1,454,409 | 45,070 target | Metrics: Relative TSR (35%), Average ROE (35%), Carbon Intensity (30%); 3-year performance period (1/1/2024–12/31/2026); settled in stock after period | 200% |
Additional context
- Equity mix for NEOs: 60% PRSUs (at target) / 40% RSUs; equity is majority of total comp; no stock options granted since 2019 .
- Historical calibration: 2022 PRSU cycle (pre-Reed tenure) paid at 52% of target for Company performance over 2022–2024 .
Equity Ownership & Alignment
| Measure | Detail |
|---|---|
| Beneficial ownership (as of Mar 1, 2025) | 9,410 shares beneficially owned; Additional underlying stock units (unvested RSUs and deferred units) 46,150; total 55,560; ownership <1% of outstanding . |
| Outstanding equity at 12/31/2024 | Unvested RSUs: 28,230 (MV $1,066,529 at $37.78); Unearned PRSUs (target): 45,070 (MV $1,702,745) . |
| Upcoming vesting cadence | 2024 RSUs vest ratably on 1/24/2025, 1/24/2026, 1/24/2027, creating periodic liquidity windows/possible selling pressure . |
| Ownership guidelines | COO multiple: 3x salary; as of 12/31/2024, Reed had not yet met guideline (joined Jan 2024); must retain 50% of net shares until compliant . |
| Hedging/pledging | Short sales, hedging, margin accounts, and pledging are prohibited for officers and directors . |
Employment Terms
| Term | Provision |
|---|---|
| Role start date | EVP & COO effective Jan 1, 2024 . |
| Severance – Termination without Cause | Cash severance equal to 52 weeks base salary; pro-rata IC based on actual 2024 payout; RSUs/PRSUs require ≥1 year for pro-rata (none in Reed’s case for 2024 awards); outplacement $8,908; additional superannuation $186,200; total illustrative value $1,944,922 . |
| Severance – Change in Control (double trigger) | 2x (base salary + target incentive); pro-rata bonus at target; full value of 2024 RSUs $1,066,529 and PRSUs (at target) $1,702,745 accelerates; additional superannuation $372,400; total illustrative value $6,475,582 . |
| Death/Disability | Full value of 2024 RSUs and PRSUs (at target); total illustrative value $3,854,088 (Death) and $2,769,274 (Disability) . |
| Annual Incentive – CIC provision | Committee may pay a pro‑rata portion of target IC for the year through CIC date . |
| Retirement and pension | Not eligible for U.S. defined benefit pension; not eligible for Alcoa USA Deferred Compensation Plan . |
| Superannuation (Australia) | 14% employer contribution on base salary (reflected in “All Other Compensation”) . |
Investment Implications
- Alignment and at-risk pay: Reed’s comp is highly equity-centric (PRSUs/RSUs) with a three-year performance program tied to Relative TSR, ROE, and decarbonization—clear linkage to shareholder value and sustainability priorities; 2024 Company IC achievement at 148.3% and Reed’s 110% individual factor indicate strong execution in safety, cost/productivity and portfolio actions during his first year .
- Retention and selling pressure: Material unvested equity (28,230 RSUs; 45,070 target PRSUs) plus 3x salary ownership guideline and 50% net-share holding requirement reduce near-term selling incentives, though annual RSU vesting dates (each Jan 24 in 2025–2027) are potential windows for incremental supply .
- Change-of-control economics: A standard double-trigger CIC package (2x salary + target bonus and equity acceleration) limits entrenchment risk and is within market norms; “without cause” severance equals one year of salary—moderate shareholder risk profile .
- Risk mitigants: No options granted since 2019; prohibitions on hedging/pledging/margin accounts; normalization in annual metrics focuses payouts on controllables, reducing windfall/penalty from commodity and FX volatility .
- Execution track record: 2024 safety outperformance (zero fatalities, 200% safety metric payout), operational stability and portfolio moves (e.g., Kwinana closure) support confidence in operational turnaround and risk management under Reed’s remit .
Appendix: Key 2024 Compensation Tables (for Reed)
2024 Grants and Awards (Reed)
| Item | Value/Units |
|---|---|
| RSUs granted (1/24/2024) | 28,230 units; FMV $840,125 |
| PRSUs granted (2/21/2024, target) | 45,070 units; FMV $1,454,409 |
| 2024 base salary earnings | $665,000 |
| IC target (% and $) | 100%; $665,000 |
| 2024 IC payout | $1,084,814 (Company 148.3%, Individual 110%) |
| All other compensation | $93,100 (Australian superannuation) |
Outstanding Equity at FY-End 2024 (Reed)
| Award type | Units | Market value at $37.78 |
|---|---|---|
| Unvested RSUs | 28,230 | $1,066,529 |
| Unearned PRSUs (target) | 45,070 | $1,702,745 |
Beneficial Ownership (as of March 1, 2025)
| Category | Shares/Units |
|---|---|
| Total beneficial ownership | 9,410 shares (<1%) |
| Additional underlying stock units (incl. unvested RSUs/deferred units) | 46,150 |
| Total (beneficial + additional) | 55,560 |