Sigfrido Delgado

About Sigfrido Delgado

Sigfrido (Sig) Delgado, age 48, is Avanos Medical’s Senior Vice President, Operations. He joined Avanos in May 2024 as SVP, Integrated Supply Chain and was appointed SVP, Operations on September 1, 2024, after more than 20 years in medical device manufacturing, supply chain, and operations at Jabil Healthcare (VP, Global MedTech), Johnson & Johnson, Ethicon, and Cordis. He holds a BS in Mechanical Engineering from MIT and an MS in Engineering Management from Florida International University and is a Six Sigma Black Belt . During 2024, Avanos delivered $687.8M in net sales, $107.6M in adjusted EBITDA, and $83M in free cash flow as it executed its transformation program; Q4 organic growth was 5% and net debt near year-end was ~$20M, framing the operational context for Delgado’s remit .

Past Roles

Organization	Role	Years	Strategic Impact
Jabil Healthcare	Vice President, Global MedTech Business	2019–2024	Led global manufacturing solutions for MedTech; scale and operational rigor relevant to Avanos supply-chain transformation
Johnson & Johnson / Ethicon / Cordis	Engineering and leadership roles	Various	Deep operations and manufacturing leadership in surgical devices and interventional businesses

External Roles

Organization	Role	Years	Strategic Impact
N/A disclosed	—	—	No current public company directorships or external governance roles disclosed

Fixed Compensation

Component	2024 Detail	Notes
Base Salary	$465,000 annual rate	Joined May 2024; proxy lists annual salary level
Salary Earned (2024)	$295,909	Partial year
Defined Contribution/Other	$16,420 (401(k) and NQ contributions included in All Other Compensation)	NQ 401(k) company contribution $202; aggregate balance $198 as of 12/31/24

Performance Compensation

Annual Cash Incentive (MAAP)
- Target: 60% of base salary; prorated for 2024 start date .
- Metrics/Weights: Adjusted Net Sales (30%); Adjusted EBITDA (40%); Strategic Initiatives (30%) .
- 2024 Company Results/Payout Factors: Adjusted net sales $687.7M → 89%; Adjusted EBITDA $107.8M → 78%; Strategic Initiatives → 80%; aggregate payout 81.5% .
- Delgado 2024 Payout: $144,615 (prorated) .
Long-Term Incentive (LTI)
- 2024 Grants: Sign-on TRSUs only (no PRSUs in 2024) .
- 2024 Award Mix (company program context): Executives received 50% TRSUs / 50% PRSUs; PRSUs measured on Free Cash Flow and YoY ROIC with 0–200% payout range; 2024 performance component for 2024 PRSUs tracking at 103.8% (context, Delgado did not receive these PRSUs in 2024) .
- Beginning 2025 LTI Eligibility: Offer letter set 2024 target $625,000 and eligibility for future annual LTIs (target/mix set by Committee) .

Incentive Plan Table (2024)

Metric	Weight	Threshold	Target	Maximum	Actual/Payout
Adjusted Net Sales	30%	$670M	$690M	$710M	$687.7M → 89%
Adjusted EBITDA	40%	$100M	$110M	$120M	$107.8M → 78%
Strategic Initiatives	30%	Committee assessment	Committee assessment	Committee assessment	80% (no multiplier)

Equity Ownership & Alignment

Beneficial Ownership: 17,606 shares (all unvested TRSUs); <1% of shares outstanding .
Vested vs. Unvested: 17,606 unvested TRSUs from sign-on; market value $280,288 at 12/31/24 ($15.92/sh) .
Vesting Schedules:
- Sign-on TRSUs (17,606 granted 5/13/2024): Cliff vest on May 13, 2027 .
Stock Ownership Guidelines: 2x base salary for executive officers; compliance window 3 years; he does not yet meet guideline; executives must retain 50% of net shares until compliant .
Hedging/Pledging: Prohibited by Insider Trading Policy; executives must pre-clear trades ; compensation program also states no executive officer hedging/pledging .
Clawback: NYSE-compliant clawback policy applies to executive officers and designated VPs .

Ownership Table

Item	Amount
Shares Beneficially Owned	17,606 (<1%)
Unvested TRSUs	17,606 (vest 5/13/2027)
In-the-money Options	None disclosed for Delgado
Market Value of Unvested (12/31/24)	$280,288

Implications for selling pressure: No scheduled vesting until May 2027, no options currently disclosed as exercisable, and a mandatory 50% retention policy until ownership guidelines are met—limiting near-term selling pressure .

Employment Terms

Start Date and Roles: Offer dated 3/28/2024; start 5/6/2024 as SVP, Integrated Supply Chain; appointed SVP, Operations on 9/1/2024 .
Compensation per Offer:
- Base Salary: $465,000 .
- Target Bonus: 60% of base salary; prorated for 2024 .
- LTI Eligibility: 2024 LTI target $625,000; future LTIs at Committee discretion .
- Sign-on: $500,000 total ($150,000 cash within 90 days; $350,000 TRSUs vesting 3rd anniversary) .
- Benefits: Standard executive plans (medical, dental, vision, life, disability, 401(k)) .
Severance/Change-in-Control (plan-based, not individual contract):
- Non-CIC Involuntary Termination (Severance Pay Plan): 1.5x (salary+target bonus), 6 months COBRA, outplacement; potential value for Delgado as of 12/31/24: Cash $1,116,000; benefits/other $47,307; total $1,163,307 .
- Double-Trigger CIC (Executive Severance Plan): 2x (salary+target bonus), 24 months COBRA-equivalent value, additional retirement match; equity vests at target; potential value for Delgado as of 12/31/24: Cash $1,767,000; equity $280,288; benefits/other $43,301; total $2,090,589 .
- Death/Disability: Illustrative payout values at 12/31/24 of $1,338,385 (death) and $338,385 (disability) .

Potential Payments Table (as of 12/31/2024)

Scenario	Cash Payment ($)	Equity Accelerated ($)	Benefits/Other ($)	Total ($)
CIC Qualified Termination	1,767,000	280,288	43,301	2,090,589
Involuntary (no CIC)	1,116,000	—	47,307	1,163,307
Death	1,279,000	59,385	—	1,338,385
Disability	279,000	59,385	—	338,385

Plan safeguards/terms: Double-trigger CIC; no excise tax gross-ups; no employment contracts; prohibition on repricing options without stockholder approval .

2024 Compensation Summary (Named Executive Officer Disclosure)

Component	2024 Amount
Salary	$295,909
Stock Awards	$350,000 (sign-on TRSUs)
Non-Equity Incentive Plan	$144,615
All Other Compensation	$16,420
Total	$806,844

Performance & Track Record (Company context during tenure)

2024 financial performance: Net sales $687.8M; Adjusted EBITDA $107.6M; Adjusted diluted EPS $1.35; cash on hand $107.7M .
Transformation execution: Divested Respiratory Health business; cost management; expected gross savings ~$50M vs. 2022 by 2025; Q4 organic growth 5% .
Annual incentive results reflect measured execution: 81.5% aggregate payout on FY24 MAAP .

Governance, Policies, and Risk Controls (Highlights)

Clawback policy aligned with NYSE rules; applies to execs and VPs .
No hedging/pledging; pre-clearance of trades required ; compensation program reiterates no executive hedging/pledging and no repricing without stockholder approval .
Stock ownership guidelines (2x salary) with a 3-year compliance horizon; 50% net share retention until compliant .
No related-party transactions reported for 2024 .

Investment Implications

Alignment and retention: A cliff-vesting sign-on RSU grant (vesting May 2027) and a 50% net-share retention requirement until meeting 2x salary ownership enhance long-term alignment and reduce near-term selling pressure .
Pay-for-performance: Cash incentives tied to net sales, adjusted EBITDA, and strategic initiatives; LTI PRSU framework (for broader execs) emphasizes free cash flow and ROIC—drivers that matter for deleveraging and reinvestment .
Downside protections and change-in-control: Standard, market-level severance (1.5x non-CIC; 2x CIC with double-trigger) and equity vesting at target under CIC maintain management continuity without shareholder-unfriendly tax gross-ups .
Execution risk: Delgado’s operational mandate sits within an ongoing transformation (portfolio focus, cost actions, supply-chain optimization). 2024 incentives paid at 81.5% reflect progress but also room to improve EBITDA and strategic objectives—key watch items as 2025–2026 PRSUs (for other execs) hinge on FCF and ROIC delivery .

Note: No Form 4 insider trading data was retrieved in this analysis; insider selling pressure assessment is based on disclosed vesting schedules and ownership/retention policies.