Kurt W. Loring
APPLIED INDUSTRIAL TECHNOLOGIESAbout Kurt W. Loring
Kurt W. Loring is Vice President – Chief Human Resources Officer (CHRO) at Applied Industrial Technologies (AIT), serving as CHRO since 2014 and listed among the company’s named executive officers; he was age 56 per the FY2025 10‑K executive officer roster . AIT’s compensation program emphasizes pay-for-performance (average 69% performance-based for NEOs in 2025) with strong shareholder support (96% “say-on-pay” approval), framing Loring’s incentives and alignment context . Stock ownership guidelines require 3x base salary for executive officers, with anti-hedging/anti-pledging rules and robust clawbacks, further strengthening alignment and risk controls .
Past Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Applied Industrial Technologies | Vice President – Chief Human Resources Officer | 2014–present | Listed as executive officer; current election to office October 22, 2024 |
External Roles
- No external public-company directorships or outside executive roles for Loring were disclosed in AIT’s FY2024–FY2025 proxies and 10‑Ks reviewed .
Fixed Compensation
Base and Bonus Targets (FY2024)
| Item | Value |
|---|---|
| Base Salary | $407,000 |
| Target Bonus % (Management Incentive Plan) | 55% |
| Target Bonus ($) | $223,850 |
| Actual MIP Payout ($) | $225,283 |
Summary Compensation (USD)
| Year | Salary ($) | Stock Awards ($) | Option Awards ($) | Non‑Equity Incentive Plan ($) | All Other Compensation ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2024 | 407,000 | 397,603 | 157,179 | 225,283 | 46,888 | 1,233,954 |
| 2023 | 395,000 | 374,804 | 118,734 | 335,173 | 46,751 | 1,270,462 |
| 2022 | 380,000 | 327,184 | 95,688 | 346,940 | 47,618 | 1,197,430 |
Notes
- In FY2025, AIT temporarily reduced NEO base salaries for the first six months due to macro headwinds, then maintained FY2024 levels for the remainder; annual incentive targets as % of salary were maintained .
Performance Compensation
Annual Incentive Plan Structure and Outcomes (FY2024)
| Metric | Weight | Target | Actual | Payout |
|---|---|---|---|---|
| Net Income | 60% | $381.4m | $382.7m (adjusted) | 101.7% of prorated portion |
| Average Working Capital as % of Sales | 20% | 25.8% | 25.9% | 98.1% of prorated portion |
| Individual/Strategic (incl. sustainability/social) | 20% | N/A | N/A | $44,770 for Loring (equals 20% of target) |
Long‑Term Incentives – Grants
| Grant Date | Instrument | Amount/Units | Base/Strike | Grant Date FV ($) |
|---|---|---|---|---|
| 8/8/2023 | RSUs | 908 units | — | 129,771 |
| 8/8/2023 | SARs | 2,849 units | $142.92 | 157,179 |
| 8/8/2023 | Performance Shares (2024–2026) | Target 1,874; range 937–3,748 | — | Included in Stock Awards |
| 8/13/2024 | RSUs | 710 units | — | 140,175 |
| 8/13/2024 | SARs | 2,324 units | $197.43 | 179,633 |
| 8/13/2024 | Performance Shares (2025–2027) | Target 1,452; range 726–2,904 | — | (PS fair value reflected in Stock Awards line) |
Performance Share Achievement (“Banked”)
| Program | 2025 Banked as % of 2024 Target | 3‑Yr Payout (where applicable) |
|---|---|---|
| 2025–2027 | 101.4% | N/A |
| 2024–2026 | 70.2% | N/A |
| 2023–2025 | 109.2% | 140% of target for full cycle |
Equity Ownership & Alignment
Beneficial Ownership
| As‑of Date | Beneficially Owned Shares | Notes |
|---|---|---|
| Sep 1, 2024 | 60,311 | Includes 46,963 shares acquirable via vested options/SARs within 60 days |
| Aug 25, 2025 | 51,606 | Includes 37,881 shares acquirable via vested options/SARs; <1% of class (37,751,071 shares o/s) |
Outstanding Equity and Vesting (as of FY2025)
| Type | Status | Units | Price/Value | Vest/Expiry Details |
|---|---|---|---|---|
| SARs | Exercisable | 12,100 | $48.19 | Exp. 8/11/2026 |
| SARs | Exercisable | 8,000 | $54.90 | Exp. 8/10/2027 |
| SARs | Exercisable | 6,200 | $74.55 | Exp. 8/9/2028 |
| SARs | Exercisable | 9,300 | $53.87 | Exp. 8/13/2029 |
| SARs | Exercisable | 6,300 | $69.05 | Exp. 8/11/2030 |
| SARs | Exer./Unex. | 2,700/900 | $88.79 | Vested 8/10/2025; exp. 8/10/2031 |
| SARs | Exer./Unex. | 1,650/1,650 | $103.92 | Half vested 8/9/2025; remainder vests 8/9/2026; exp. 8/9/2032 |
| SARs | Exer./Unex. | 713/2,136 | $142.92 | 1/3 vested 8/8/2025; rest vests 8/8/2026 & 8/8/2027; exp. 8/8/2033 |
| SARs | Unexercisable | 2,324 | $197.43 | 1/4 vested 8/13/2025; rest vests 8/13/2026–2028; exp. 8/13/2034 |
| RSUs | Unvested | 1,200 | $278,940 (6/30/25) | Vested 8/9/2025 |
| RSUs | Unvested | 908 | $211,065 (6/30/25) | Vest 8/8/2026 |
| RSUs | Unvested | 710 | $165,040 (6/30/25) | Vest 8/13/2027 |
| Perf. Shares | Unearned | 3,497 | $812,878 (6/30/25) | 2023–2025 program; performance certified 8/12/2025 |
| Perf. Shares | Unearned | 1,661 | $386,099 (6/30/25) | 2024–2026 program; cycle ends 6/30/2026 |
| Perf. Shares | Unearned | 1,459 | $339,145 (6/30/25) | 2025–2027 program; cycle ends 6/30/2027 |
Insider Transactions – Value Realized (FY2025)
| Type | Shares | Value Realized ($) |
|---|---|---|
| SARs Exercised | 11,000 | 1,865,490 |
| Stock Awards Vested (RSUs/Banked PS) | 8,317 | 1,933,287 |
Ownership Guidelines and Compliance (as of 6/30/2025)
| Name | “Owned” Stock Value ($) | Guideline ($) |
|---|---|---|
| Kurt W. Loring | 3,757,396 | 1,221,000 (3x salary) |
Policies
- Hedging, short sales, margin purchases, and pledging AIT stock as collateral are prohibited by AIT’s Insider Trading Policy .
- Executives must retain net shares from equity awards until guideline compliance is achieved .
- Clawbacks: recoupment for competition/misconduct, restatements (36 months look‑back), and mandatory recovery per NYSE Section 10D policy; policy filed as 10‑K exhibit .
Employment Terms
Change-in-Control (CIC) Agreements and Severance
- AIT maintains double‑trigger CIC agreements with the CEO, CFO, and CHRO (Loring): benefits only if termination by the executive for “good reason” or by AIT “without cause” within two years after a CIC; includes a three‑year non‑compete (one year under older form) and no excise tax gross‑up .
- Outside CIC, AIT has no employment contracts or executive severance policy for other NEOs; severance for non‑CIC terminations is at Committee discretion .
Potential Payments (as of 6/30/2025)
| Scenario | Base Salary ($) | MIP ($) | Perf. Shares ($) | SARs ($) | RSUs ($) | KERP ($) | Health Benefits ($) | Outplacement ($) | Life/Disability ($) | Total ($) |
|---|---|---|---|---|---|---|---|---|---|---|
| Termination (No CIC) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Retirement | 0 | 0 | 1,167,829 | 319,446 | 474,663 | 30,732 | 0 | 0 | — | 1,992,669 |
| CIC + Qual. Termination | 610,500 | 335,775 | 1,167,829 | 8,611,495 | 655,044 | 0 | 42,439 | 25,000 | — | 11,448,082 |
| Death | 0 | 0 | 1,167,829 | 319,446 | 474,663 | 30,732 | 0 | 0 | 300,000 | 2,292,669 |
| Disability | 0 | 0 | 1,167,829 | 319,446 | 474,663 | 30,732 | 0 | 0 | See LTD footnote | 1,992,669 |
Deferred Compensation (FY2025)
| Plan | Executive Contributions ($) | Company Credits ($) | Aggregate Earnings ($) | Balance at FYE ($) |
|---|---|---|---|---|
| Key Executive Restoration Plan (KERP) | 0 | 30,732 | 51,344 | 443,164 |
| Supplemental Defined Contribution Plan | 76,540 | 0 | 63,067 | 630,933 |
Perquisites and “All Other Compensation” Components (FY2025)
| Item | Amount ($) |
|---|---|
| Retirement Savings Plan Contributions | 6,105 |
| KERP Account Credits (gross amounts shown elsewhere) | 30,732 |
| Life Insurance Benefits | 1,019 |
| Perquisites & Other Personal Benefits | 58 |
Governance and Shareholder Feedback
- “Say‑on‑pay” approval: 97% (prior year) and 96% (2025), with no material program changes in response .
- Best‑practice scorecard includes double‑trigger CIC, no repricing, no hedging/pledging, significant ownership guidelines, and independent consultant oversight .
Investment Implications
- Strong alignment: Loring exceeds stock ownership guidelines ($3.76m “owned” vs $1.22m requirement) with prohibited hedging/pledging and robust clawbacks; governance and 96% “say‑on‑pay” support reduce pay‑risk concerns .
- Retention risk appears contained: substantial unvested RSUs and performance shares with scheduled vesting through 2027 and double‑trigger CIC protection (three‑year non‑compete) support continuity .
- Trading/flow watch: sizeable FY2025 realizations ($1.87m from SARs exercised; $1.93m from vesting) and upcoming RSU/PSU vest dates can create episodic supply as awards settle; monitor 8/8/2026 and 8/13/2027 RSU vests and performance share certifications for planned sales windows .
- Pay-for-performance calibration: annual metrics tied to Net Income and working capital efficiency produced near‑target payouts in FY2024; multi‑year PS cycles averaged high achievement (e.g., 140% for 2023–2025), signaling consistent execution against financial goals used in incentives .