Robert Hureau
About Robert Hureau
Robert P. Hureau, age 58, became President & Chief Executive Officer of Alamo Group Inc. effective September 2, 2025, and also serves as a director of the company . He holds a BS and an MBA from Babson College’s F.W. Olin Graduate School of Business . 2024 company performance before his appointment: net sales ~$1.6B, diluted EPS $9.63, EBITDA $221M; five‑year TSR to 12/31/24 equaled 151.71 versus S&P 500 Industrials at 176.44 . Early under Hureau’s tenure, Q3’25 results showed Industrial Equipment net sales $247.0M (+17% y/y), Vegetation Management $173.1M (−9% y/y), adjusted EBITDA $55.0M (13.1% margin), operating cash flow YTD $102.4M, cash $244.8M, total debt $209.4M, with healthy revolver availability; he highlighted strong Industrial momentum, improving bookings in Vegetation, facility consolidations, and an active M&A pipeline .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| American Trailer World (ATW) | Chief Executive Officer | Apr 2019–Aug 2025 | Merged/integrated two businesses to form ATW, executed multiple acquisitions, sold aftermarket parts distribution business, delivered strong shareholder returns |
| American Trailer World (ATW) | EVP & Chief Financial Officer | Jan 2018–Apr 2019 | Built finance platform prior to CEO role at a leading industrial manufacturer/retailer |
| Pharmaceutical Product Development (PPD) | EVP & Chief Financial Officer | Not disclosed | Senior finance leadership at a global clinical research organization |
| Sensata Technologies | SVP & Chief Financial Officer | Not disclosed | Senior finance leadership at a global industrial sensors and controls manufacturer |
External Roles
No public company directorships disclosed beyond ALG as of his appointment and subsequent SEC filings through November 2025 .
Fixed Compensation
| Element | Terms |
|---|---|
| Base Salary | $975,000 effective 9/2/2025 |
| Sign‑on Bonus | $200,000; subject to repayment upon certain separations within one year |
| Target Annual Bonus (EIP) | 110% of base salary (pro‑rated for 2025) |
| 2025 Target LTI Value | $2,500,000 total: 50% restricted stock (RSAs; ratable over 3 years) and 50% PSUs (2025–2027 performance cycle) |
| 2026 Target LTI (planned) | Compensation Committee to recommend $3,000,000 target value |
| Relocation/Legal | Relocation costs reimbursed; up to $25,000 legal fee reimbursement |
| Deferred Compensation Plan | Eligible beginning 1/1/2026 for discretionary contributions up to 6% of base+bonus; 3‑year cliff vesting; acceleration upon change in control |
Performance Compensation
Annual Cash Incentive Plan (EIP) Structure
| Component | Design |
|---|---|
| Payout Range | 0%–200% of target based on performance |
| CEO Metrics (program precedent) | In 2024 for the CEO/CFO: 75% Company adjusted pre‑tax income, 25% Company inventory turnover; targets set in February each year |
| Example 2024 Targets/Payout Curve | Pre‑tax income target $197.3M; inventory turnover target 3.1; threshold at 50%, max at 200% |
| 2024 Outcomes (Program Reference) | Adjusted pre‑tax income $158.89M and inventory turnover 2.8 yielded partial payouts; CEO payout example shown for plan calibration |
Note: Hureau participates in the EIP at a 110% target; specific 2025 metric weightings for him were not disclosed. The company’s EIP historically ties payouts to Company/divisional financial metrics (e.g., adjusted pre‑tax income, inventory turnover) .
Long‑Term Incentive (Equity)
| Feature | Terms |
|---|---|
| Mix | 50% RSAs (time‑based); 50% PSUs (performance‑based) |
| RSA Vesting | Ratable over 3 years |
| PSU Performance Period | 3‑year cycle (for 2025 grant: Jan 1, 2025–Dec 31, 2027) |
| PSU Metrics (Program) | Cumulative Operating Income Growth and average ROIC; payout 50%–200% of target |
| Recent PSU Outcome (2022–2024) | Achieved 95% of target (Operating Income Growth $511.4M vs $515.16M target; avg ROIC 16% vs 16.8% target) |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership (Common) | 10,988 shares, directly owned (Form 3 filed 9/3/2025) |
| Ownership % of Outstanding | ~0.09% (=10,988 / 12,063,468 shares outstanding as of 2/21/2025) |
| Stock Ownership Guidelines (Executives) | CEO required to hold 5x base salary; 5‑year compliance window; must hold at least 50% of net shares until compliant |
| Hedging/Pledging | Prohibited for directors and executive officers |
| Clawback Policy | Recovery of performance‑based compensation (cash and equity) applies to NEOs |
Employment Terms
| Provision | Terms |
|---|---|
| Start Date | September 2, 2025 |
| Employment Status | NEOs serve at Board discretion; historically no fixed-term employment agreements (pre‑Hureau proxy baseline) |
| Severance (Outside CIC Period) | Cash equal to base salary + target bonus; up to 12 months healthcare reimbursement; subject to release |
| Change in Control (CIC) Severance | If terminated without cause or resigns for good reason during period from 6 months prior to through 24 months after a CIC: 3x (base + target bonus), acceleration of time‑based equity, up to 18 months healthcare; subject to release |
| Equity Acceleration | Time‑based equity accelerates under CIC terms above; PSUs remain performance‑based per program (company practice) |
| Deferred Compensation Plan | Eligible for up to 6% discretionary contributions; 3‑year vest; acceleration on CIC (plan adopted Nov 6, 2025, effective Jan 1, 2026) |
Board Governance
- Role: Hureau is both CEO and a director (non‑independent by definition) .
- Board Leadership: Independent Chair (Richard W. Parod) separates the Chair/CEO roles .
- Committees: All committees (Audit, Compensation, Nominating/Governance) are composed entirely of independent directors; CEOs are not committee members .
- Policies: Stock ownership guidelines, hedging/pledging prohibitions, and regular executive sessions reinforce governance safeguards .
Performance & Track Record
- Prior to ALG, Hureau led ATW’s transformation: merged two businesses to form ATW, executed acquisitions, divested aftermarket distribution at attractive returns, and focused on innovation/quality culture .
- Early ALG commentary (Q3’25): Strong Industrial Equipment growth; Vegetation Management softness with improving bookings; facility consolidation to reduce fixed costs; healthy cash and liquidity to fund organic investments and M&A strategy .
Compensation Committee, Peer Group, and Say‑on‑Pay
- Compensation Committee (as of Mar 10, 2025): Chair Robert P. Bauer; members Tracy C. Jokinen, Eric P. Etchart, Paul D. Householder, Colleen C. Haley; independent consultant Pay Governance used; practices include pay‑for‑performance, no single‑trigger CIC severance, no excise tax gross‑ups, no option repricing without shareholder approval .
- 2024 Peer Group used for benchmarking includes Allison Transmission, Federal Signal, Tennant, Wabash, Kadant, Helios, Watts Water, Franklin Electric, and others .
- Say‑on‑Pay 2024: ~99% support, indicating strong shareholder alignment with plan design .
Investment Implications
- Pay‑for‑Performance Alignment: High at‑risk pay (110% bonus target; 50% PSUs) tied to multi‑year operating income growth and ROIC metrics supports long‑term value creation; recent PSU outcome (95% of target for 2022–2024) signals rigor but achievable targets .
- Retention vs. Dilution: RSAs vest over 3 years and PSUs over 3 years, limiting near‑term selling pressure; hedging/pledging ban further aligns incentives; monitor upcoming Form 4 filings for insider transaction cadence .
- Change‑in‑Control Economics: Double‑trigger 3x (base+target) CIC package is market‑typical for small‑mid cap industrials but relevant to M&A scenarios; outside‑CIC severance at 1x balances retention and cost .
- Ownership and Skin‑in‑the‑Game: Initial direct stake of 10,988 shares is modest vs. CEO guideline (5x salary); expect equity-based compensation to increase alignment over 3–5 years; track compliance trajectory and incremental grants .
- Execution Focus: Q3’25 commentary highlights operational initiatives, backlog health, and M&A pipeline; key watch items are Vegetation Management recovery, PSU metric trajectories (OI growth, ROIC), cash generation, and disciplined capital allocation .