Raúl Valentín
ABM INDUSTRIES INC /DE/About Raúl Valentín
Raúl Valentín is Executive Vice President and Chief Human Resources Officer (CHRO) at ABM, serving as CHRO since September 2021 and previously SVP, Human Resources from February 2019 . He is 61 years old and has held senior HR leadership roles at Coty (2016–2018) and Comcast (2011–2016), including VP Talent Acquisition and VP HR for Strategic & Business Development . ABM’s performance context during his tenure includes FY2024 revenue of $8.36B (+3.2% YoY), adjusted EBITDA of $498.1M and a 6.2% adjusted EBITDA margin, with organic growth led by Technical Solutions and Aviation; free cash flow was $167.3M . Over recent cycles, ABM’s three-year TSR performance ranked at the 48th percentile (2022–2024, PS payout 61%) and 55th percentile (2021–2023, PS payout 115%), reflecting pay-for-performance calibration to relative TSR .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ABM Industries | EVP & CHRO | Sep 2021–Present | Leads enterprise human capital strategy, workforce systems and leadership development |
| ABM Industries | SVP, Human Resources | Feb 2019–Aug 2021 | Enterprise HR leadership and transformation |
| Coty Inc. | SVP, Human Resources | 2016–2018 | Senior HR leadership |
| Comcast | VP, Strategic & Business Dev HR | 2015–2016 | Human resources leadership for strategy and BD |
| Comcast | VP, Talent Acquisition | 2011–2015 | Led enterprise talent acquisition |
Fixed Compensation
| Year | Base Salary ($) | Target Bonus (% of Salary) | Actual Bonus Paid ($) |
|---|---|---|---|
| FY2024 | 500,000 | 70% | 459,341 |
Performance Compensation
Annual Cash Incentive Program (CIP) – FY2024
| Component | Weight (of total) | Threshold | Target | Maximum | Actual | Funding Level | Weighted Funding |
|---|---|---|---|---|---|---|---|
| Adjusted Net Income | 49.0% (equiv. 70% of Financial Objectives) | $179.75M | $211.47M | $243.19M | $226.39M | 128.9% | 63.2% [derived: 49.0%×128.9%] |
| Organic Revenue | 21.0% (equiv. 30% of Financial Objectives) | $7.564B | $8.134B | $8.947B | $8.333B | 101.3% | 21.3% [derived: 21.0%×101.3%] |
| Financial Objectives subtotal | 70.0% | — | — | — | — | 120.6% | 84.4% |
| Safety Objectives | 10.0% | — | — | — | — | 118.0% | 11.8% |
| Personal Objectives (Valentín) | 20.0% | — | — | — | — | 175.0% | 35.0% |
| Total CIP Payout (Valentín) | — | — | — | — | — | 131.2% of target | $459,341 |
Valentín’s FY2024 personal objectives focused on cross-selling incentives, HR field reorganization, retention tool deployment (frontline attrition reduction), centralized leave team, and rollout of payroll/time systems with AI pilots and productivity tools .
Long-Term Incentives (LTI)
| Award | Metric/Structure | Grant/Target | Vesting | Notes |
|---|---|---|---|---|
| 2024–2026 TSR-Modified PS | 75% M&A adjusted EBITDA; 25% adjusted revenue; TSR modifier 80–120% vs S&P Composite 1500 Commercial Services & Supplies Index | 11,865 PS at target (grant-date value $44.24/share) | Vests, if earned, Jan 9, 2027 (3-year performance average) | Possible payout 0–240% of target |
| 2024 RSUs | Time-based | 8,307 RSUs (grant-date value $42.13/share) | 1/3 annually over 3 years | Dividend equivalents accrue, settle on vest |
| 2023–2025 PS (unearned, target) | TSR-modified program | 10,966 PS (target; market value $581,834 at $53.06) | Vests, if earned, Jan 10, 2026 | — |
| 2022–2024 PS (earned) | TSR-modified program | Payout 61% of target; 4,412 shares earned for Valentín (incl. DEUs) | Certified Jan 8, 2025 | Company TSR at 48th percentile; TSR modifier 98% |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 20,416 shares of ABM common stock |
| Shares outstanding | 62,213,237 (as of Feb 1, 2025) |
| Ownership % | ≈0.03% (20,416 / 62,213,237) ] |
| Unvested RSUs (10/31/2024) | 8,385 RSUs; market value $444,883 at $53.06/share |
| PS (unearned targets, 10/31/2024) | 2023–2025: 10,966 PS, $581,834; 2024–2026: 11,976 PS, $635,432 (market values at $53.06/share) |
| Value realized on vesting (FY2024) | $248,089 (stock awards vested in FY2024) |
| Hedging/Pledging | Prohibited for directors and executive officers |
| Ownership guidelines | EVPs must hold shares equal to 3× base salary; NEOs either met or are positioned to achieve within required period |
Employment Terms
Key Contract Economics
- At-will employment; severance on involuntary termination without cause or for “good reason”: 2.0× base salary + target bonus; prorated bonus; 18 months health insurance; 12-month non-compete and non-solicit .
- Change-in-control: double-trigger; severance 2.5× base salary + target bonus; 18 months health/welfare; accelerated equity vesting; no excise tax gross-ups (payments reduced only if net after-tax benefit increases) .
- Clawback: NYSE/Dodd-Frank compliant policy to recover erroneously awarded incentive comp on restatement; enhanced forfeiture/repayment remedies for “cause” misconduct .
Scenario Values (as of Oct 31, 2024)
| Scenario | Unpaid Bonus ($) | Severance ($) | Health/Welfare ($) | Equity Vesting ($) | Total ($) |
|---|---|---|---|---|---|
| Change-in-control + qualifying termination | 350,000 | 1,250,000 | 44,934 | 2,231,600 (at target) | 3,876,534 |
| Termination w/o cause or resignation for good reason | 350,000 | 1,700,000 | 27,320 | 1,151,285 (at target) | 3,228,605 |
| Retirement | — | — | — | 847,812 (RSUs vest; PS prorated; at target) | 847,812 |
| Death or Disability | 350,000 | — | — | 2,231,600 (at target) | 2,581,600 |
Vesting Schedules (as disclosed)
- RSUs: 1/3 on first, second, and third anniversaries of grant; dividend equivalents convert to RSUs and settle on vest .
- PS 2023–2025: vests Jan 10, 2026, based on three one-year performance periods plus TSR modifier .
- PS 2024–2026: vests Jan 9, 2027, based on three one-year performance periods plus TSR modifier .
Performance & Track Record
- FY2024 company context: revenue $8.36B (+3.2%), adjusted EBITDA $498.1M, adjusted EBITDA margin 6.2%, operating cash flow $226.7M, free cash flow $167.3M; dividend increased 18% to $0.265/share post-FY-end; Technical Solutions grew 20% revenue with microgrid momentum .
- Relative TSR outcomes: 2022–2024 three-year TSR at 48th percentile led to 61% PS payout ; prior 2021–2023 TSR at 55th percentile led to 115% PS payout .
- FY2024 CHRO achievements: cross-selling incentives; HR field reorg; centralized leave process; retention tool reducing frontline attrition; payroll/time systems rollout; AI pilots; productivity optimization .
Governance, Pay Practices, and Shareholder Feedback
- Compensation practices: emphasis on at-risk pay, PS metrics tied to financials and TSR; independent consultant; no tax gross-ups; double-trigger CIC; anti-hedging/pledging; clawback; stock ownership and retention requirements .
- Say-on-pay approval: 98% approval at March 2024 meeting covering FY2023 compensation .
- Related party transactions: none in FY2024 .
- Section 16(a) filings: one late Form 4 for dividend equivalents credited on May 6, 2024, including for Raúl Valentín (filed one day late due to administrative error) .
Investment Implications
- Alignment is strong: CHRO’s pay structure ties 60% of LTI to EBITDA/revenue with TSR modifier and RSUs for retention; ownership guidelines (3× salary) and anti-hedging/pledging reinforce skin-in-the-game .
- Retention risk appears contained: robust severance and double-trigger CIC terms, continued vesting mechanics on retirement (proration for PSs), and multi-year RSU schedules support continuity through ABM’s systems and human capital transformation .
- Trading signals: FY2024 PS payout at 61% and CIP above target reflect balanced performance calibration; limited personal ownership (~0.03%) is typical for EVPs but increases the relative importance of LTI outcomes; no hedging/pledging permitted .
- Governance quality: high say-on-pay approval and standard best practices (no gross-ups, clawback) reduce compensation-related headline risk .