David Orr
ABM INDUSTRIES INC /DE/About David Orr
David M. Orr is Executive Vice President and Chief Financial Officer of ABM, appointed effective June 6, 2025; he is 51 and has been with ABM since 2001 across finance, strategy, and operations . He holds a B.S. in Business Administration from the University of North Carolina at Chapel Hill and an MBA from UNC Charlotte’s Belk College of Business . In fiscal 2024, ABM delivered revenue of $8.4 billion (+3.2% YoY) with adjusted EBITDA of $498.1 million and a 6.2% adjusted EBITDA margin, providing the baseline operating context as Orr took the CFO role . As CFO, he guided Q3 FY2025 commentary noting 5% organic revenue growth, strong free cash flow exceeding $150 million, and indicated full-year adjusted EPS and margin would be toward the lower end of prior guidance ranges ($3.65–$3.80; 6.3%–6.5%) given higher interest expense and strategic pricing decisions .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ABM Industries | Executive Vice President & CFO | 2025–present | Elevated to CFO to accelerate growth and transformation; focus on cash discipline and operational excellence |
| ABM Industries | SVP, Financial Planning & Analysis | 2015–2025 | Led enterprise forecasting, budgeting, strategic planning; enhanced reporting and performance measurement; supported transformation processes |
| ABM Industries | VP, Strategic Solutions | 2008–2015 | Aligned financial strategy with growth initiatives in operations |
| ABM Industries (Amtech Lighting Services division) | Finance & Administration/Operating roles (Southeast region) | 2001–2008 | Built field and client operations insight; progressed to VP Finance & Administration |
External Roles
No external public-company directorships or outside board roles for David Orr are disclosed in the filings and press materials reviewed .
Fixed Compensation
| Component | Detail |
|---|---|
| Base Salary | $560,000 per year |
| Target Annual Cash Incentive | 85% of base salary |
| Target Annual Equity Incentive | 175% of base salary |
| Promotion RSU Grant (June 2025) | $180,000 grant value; vests 1/3 on each of the first three anniversaries of grant date |
| Promotion Performance Share Grant (June 2025) | $270,000 grant value; 3-year performance period with payout based on adjusted EBITDA and revenue; subject to TSR modifier vs S&P Composite 1500 Commercial Services & Supplies Index |
Performance Compensation
| Incentive Type | Metric | Weighting | Target | Actual/Payout | Vesting/Measurement |
|---|---|---|---|---|---|
| Performance Shares (Promotion Grant) | Adjusted EBITDA | Not disclosed; metric specified | Not disclosed | Not applicable (grant in 2025; performance period ongoing) | 3-year performance period; TSR modifier relative to S&P Composite 1500 Commercial Services & Supplies Index |
| Performance Shares (Promotion Grant) | Revenue | Not disclosed; metric specified | Not disclosed | Not applicable (grant in 2025; performance period ongoing) | 3-year performance period; TSR modifier relative to S&P Composite 1500 Commercial Services & Supplies Index |
| RSUs (Promotion Grant) | Time-based service | — | — | — | Vests 1/3 annually over 3 years |
| ABM LTI Program Design (Context) | Company-wide PS program uses M&A adjusted EBITDA (75%) and adjusted revenue (25%) with TSR modifier (80%–120%) over 3 years (2024–2026 cycle) | 75% / 25% | Targets not publicly disclosed during cycle | 2022–2024 PS payout 61% of target (company-wide context) | Annual funding averaged over 3 years; TSR modifier applied |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | David Orr is not listed in the FY2025 proxy’s “Security Ownership of Directors and Executive Officers” table as of Feb 1, 2025; his CFO appointment occurred June 2025 and his holdings are expected to be disclosed in subsequent filings |
| Stock Ownership Guidelines | Executive Vice Presidents must hold ABM shares equal to 3x base salary; unvested RSUs count; unearned PSs and options do not count |
| Anti-Hedging/Pledging | Hedging and pledging of ABM stock prohibited |
| Clawback Policy | Dodd-Frank/NYSE-compliant clawback; recoupment for accounting restatements and serious misconduct; award agreements subject to clawback |
| Alignment Design | Significant at-risk pay via annual cash incentives and performance-based equity; ABM emphasizes pay-for-performance and multi-year vesting to align with TSR and financial outcomes |
Employment Terms
| Provision | Detail |
|---|---|
| Employment Agreement (At-Will) | Standard executive agreement executed upon CFO appointment |
| Severance (No Cause / Good Reason) | 2x sum of base salary + target annual cash bonus; 18 months medical benefits; prorated annual cash bonus for year of termination based on actual performance; any earned but unpaid bonus; subject to release |
| Change-in-Control (Double Trigger) | If terminated without cause or resigns for good reason within 2 years post-CoC: 2.5x sum of base salary + target cash bonus; full vesting of unvested equity (performance awards at target); present value of health/welfare benefits for 18 months; payment of earned and pro rata incentive at target; confidentiality/non-compete covenants apply |
| Restrictive Covenants | Confidentiality, employee and customer non-solicitation, and non-competition covenants in employment and CoC agreements |
| Tax Gross-Ups | None; ABM does not provide tax gross-ups |
Investment Implications
- Near-term selling pressure from insider vesting appears limited; promotion RSUs vest over three years and PS awards are contingent on multi-year adjusted EBITDA/revenue outcomes with a TSR modifier, aligning Orr’s realized value with long-term performance .
- Severance and change-in-control protections (2x/2.5x cash multiples and full equity vesting at target on double trigger) reduce retention risk around strategic transitions while maintaining shareholder-friendly guardrails (no tax gross-ups; double-trigger only) .
- As CFO, Orr emphasized disciplined cash collections and acknowledged margin/EPS guidance skews to the lower end due to interest expense and strategic pricing—supporting prudence in capital allocation while ABM sustains organic growth and robust free cash flow generation in Q3 FY2025 .
- Governance policies (anti-hedging/pledging, strong clawback, 3x salary ownership guidelines) enhance alignment and mitigate risk of misaligned incentives, consistent with ABM’s high say-on-pay support (98% in 2024) and pay-for-performance framework .