Renato Bacchi

About Renato Bacchi

Renato Bacchi is Executive Vice President and Chief Commercial Officer at Alcoa Corporation, serving in this role since August 2023. He leads sales and trading, marketing, supply chain, commercial operations, procurement, global energy assets, and innovation and technology programs, with notable 2024 achievements including extending access to competitive power for the Portland smelter and progressing ELYSIS technology toward industrial-scale demonstrations . Alcoa reported $11.9 billion in FY 2024 revenue and a 196% year-over-year increase in adjusted EBITDA excluding special items, underscoring stronger operating performance; PRSU awards for the 2022–2024 period paid at 52.0% due to below-target Relative TSR and Average ROE, indicating mixed pay-for-performance outcomes on long-term metrics . Age and formal education for Mr. Bacchi were not disclosed in the latest proxy.

Past Roles

External Roles

No external directorships or board roles for Mr. Bacchi were disclosed in the proxy .

Fixed Compensation

Performance Compensation

2024 IC plan achievement level was 148.3% of target driven by improved financial/operational performance; Bacchi’s individual contribution factor was 100% for final payout determination .

Equity Ownership & Alignment

Note: Until ownership requirements are met, NEOs must retain 50% of net shares acquired upon vesting/exercise; Bacchi met his guideline as of year-end 2024 .

Employment Terms

• Corporate Officer Executive Severance Agreement (U.S. form): If terminated without cause, Bacchi receives the greater of policy amounts or: one year base salary; pro-rated annual bonus based on goal achievement; reasonable outplacement (up to 12 months); continued health benefits for one year; lump sum to provide one year of ERIC contributions; subject to one-year non-compete/non-solicit and general release; aggregate cash cap of 2.99x base + annual incentive outside of CIC .
• Change-in-Control (CIC) Severance Plan (double-trigger if awards assumed): For non-Tier I participants like Bacchi, cash severance equals 2x base salary + 2x target annual incentive; pro-rated target bonus; continued benefits up to two years; lump-sum ERIC equivalent for two years; up to 12 months outplacement; excise tax cutback to maximize after-tax amounts .

Potential Payments Upon Termination or Change-in-Control (as of 12/31/2024; $ at $37.78/share for equity):

Performance & Track Record

• 2024 outcomes: Alcoa delivered significant operating improvements; adjusted EBITDA excluding special items increased 196% YoY; FY 2024 revenue was $11.9B .
• Bacchi-led commercial initiatives: Extended long-term alumina sales; secured Portland smelter power; progressed ELYSIS technology to industrial-scale demonstrations .
• Sustainability/commercial innovation: In November 2025, Bacchi highlighted first consumer packaging use of ELYSIS carbon-free aluminum via collaboration with Ball and Unilever, evidencing market adoption of low-carbon products in Alcoa’s value chain .
• Say-on-Pay governance signal: 2024 Say-on-Pay approved by >96% of votes cast, indicating broad shareholder support for compensation programs .

Compensation Structure Analysis

Program features include clawback policy, double-trigger CIC treatment for equity when awards are assumed, robust stock ownership guidelines, and prohibitions on hedging/pledging and short selling .

Equity Ownership & Alignment Details

Employment Terms (Severance & CIC)

• Corporate Officer Executive Severance: One year salary, pro-rated bonus, 12 months outplacement, 12 months health benefits, one year ERIC, one-year non-compete/non-solicit; general release required; 2.99x cash cap outside CIC .
• CIC Plan: Double-trigger; 2x base + 2x target bonus; pro-rated target bonus; benefits up to two years; ERIC equivalent; outplacement; excise tax cutback .
• Executive Officer Severance Policy: Generally limits severance to ≤2.99x base + target bonus without shareholder ratification .

Investment Implications

• Alignment: Bacchi’s compensation is heavily at-risk via PRSUs/RSUs, with long-term metrics tied to TSR, ROE, and Carbon Intensity, aligning incentives with shareholder returns and sustainability priorities . Strong governance features—clawbacks, prohibition of hedging/pledging, and ownership guidelines—reduce misalignment risk .
• Execution and performance signals: Below-target PRSU payout (52.0% for the 2022–2024 cycle) reflects relative TSR/ROE underperformance; however, 2024 operational and financial improvements drove above-target annual IC results, indicating near-term momentum but mixed long-term track record on equity metrics .
• Vesting-related supply: Bacchi has meaningful scheduled vesting (multiple RSU tranches and PRSU settlements through 2027); while holdings meet ownership guidelines, vesting could create intermittent supply if shares are sold, though company policy restricts hedging/pledging and shares are often retained to maintain guideline compliance .
• Retention/transition risk: CIC and severance protections are standard and double-trigger, balancing retention with shareholder safeguards; cash payout limits and excise tax cutbacks reduce pay-risk inflation .
• Governance/Shareholder sentiment: High Say-on-Pay support (>96%) suggests investors broadly back the pay design, reducing governance overhang risk .

Additional context: Bacchi’s commercial leadership includes sustainability-driven innovation (ELYSIS deployment) and commercial contracts, which can support long-term value creation in pricing and cost of energy—key levers in an aluminum cycle .