Appal Chintapalli
COLUMBUS MCKINNONAbout Appal Chintapalli
Appal S. Chintapalli is President, EMEA & APAC at Columbus McKinnon (CMCO). He joined CMCO in March 2019 as VP, Engineered Products and was promoted to his current role in April 2022; age 50 as of the 2025 proxy. He holds an MBA from Harvard Business School and BS/MS in Chemical Engineering; prior roles include leadership at Vertiv (IT & Edge Infrastructure EMEA) and multiple marketing/operations roles at Emerson in the UK and U.S. .
Company performance context over his CMCO tenure:
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|---|
| Revenues ($USD) | 649,642,000 | 906,555,000 | 936,240,000 | 1,013,540,000 | 963,027,000 |
| EBITDA ($USD) | 66,769,000* | 113,306,000* | 137,656,000* | 154,794,000* | 130,638,000* |
*Values retrieved from S&P Global.
Additional pay-versus-performance context disclosed by CMCO shows cumulative TSR of $72.26 on initial $100 for FY2025 (versus higher prior years), with NEO “compensation actually paid” trending with TSR/net income/Adjusted EBIT over 2021–2025 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Columbus McKinnon | VP, Engineered Products | Mar 2019–Apr 2022 | Led engineered products before regional P&L promotion |
| Vertiv (Germany) | GM & VP, IT & Edge Infrastructure EMEA | Prior to 2019 | Ran EMEA infrastructure business |
| Emerson | VP Marketing, Emerson Network Power EMEA (London); VP Enterprise Services, Emerson Climate Division; Corporate Marketing Manager | Prior to 2019 | Regional go-to-market and services leadership across EMEA/U.S. |
External Roles
No external public company directorships for Chintapalli are disclosed in the CMCO proxy/exec officer biographies .
Fixed Compensation
| Item | FY2025 Detail |
|---|---|
| Base salary (rate) | $435,000 after a $35,000 (9%) increase; increase included merit and market adjustment per Meridian assessment . |
| Salary actually paid | $426,820 (Summary Compensation Table) . |
| Target annual bonus | 60% of base salary ($261,000 at target) . |
Performance Compensation
Annual Incentive Plan (AIP) – FY2025
| Metric | Threshold | Target | Maximum | Result | Payout driver result |
|---|---|---|---|---|---|
| Adjusted EBIT ($mm) | 101.8 | 127.3 | 146.4 | 101.9 | 50% of target for EBIT driver |
| Free Cash Flow ($mm) | 48.0 | 56.5 | 65.0 | 24.2 | 0% of target for FCF driver |
| Strategic Goals | 0–200% | 0–200% | 0–200% | — | Average NEO payout 98% for Strategic Goals |
| Appal S. Chintapalli outcome | — | Target = 60% of salary | — | — | Overall AIP rating 47% of target; payout 28% of base salary (=$122,866) |
Notes: AIP focused on EBIT and Free Cash Flow to drive profitable growth and cash discipline .
Long-Term Incentive (LTI) – FY2025 grants and structure
Target LTI opportunity for Chintapalli was 130% of base salary; 2025 mix: 50% PSUs, 25% RSUs, 25% stock options .
| Element | Grant date | Shares/units | Exercise price | Grant date fair value ($) | Vesting |
|---|---|---|---|---|---|
| PSUs (target) | Jul 22, 2024 | 8,133 | — | $306,533 | Cliff vest 100% on May 20, 2027 based on 3-year performance |
| RSUs | May 20, 2024 | 3,271 | — | $149,746 | 33% annually over 3 years beginning May 20, 2025 |
| Stock options | May 20, 2024 | 8,254 | $45.34 | $141,391 | 33% annually over 3 years beginning May 20, 2025 |
PSU performance curve for FY2025 grant (performance FY2025–FY2027): 50% weight Sales Growth, 50% weight Adjusted EBITDA margin improvement; Threshold: 1%/0 bps → 50% payout; Target: 5%/50 bps → 100%; Maximum: 9%/80 bps → 200%; linear interpolation .
PSU vesting outcome for FY2023 grant (ROIC-based): ROIC FY2025 certified at 5.8%, resulting in 63.3% payout; vesting in FY2026 (shares not shown in “Stock Vested” table for FY2025) .
Equity Ownership & Alignment
Beneficial ownership (as of May 27, 2025)
| Holder | Shares (total) | Notes |
|---|---|---|
| Appal S. Chintapalli | 37,721 | Includes 24,084 shares owned directly and 13,637 unvested RSUs; <1% of outstanding shares . |
Ownership guidelines and policies:
- Officer stock ownership guidelines: 3x base salary for “Other NEOs and Officers”; 50% retention requirement on after-tax shares until compliant .
- Anti-hedging/anti-pledging: No permitted hedging, pledging, short sales, or derivative transactions in company stock .
- Clawback: Policy broader than SEC requirements; applies to restatements and misconduct; covers cash and equity incentives .
Estimated guideline status (illustrative): At $16.93 share price (3/31/2025), value of 24,084 owned + 13,637 RSUs ≈ $639k vs. guideline of ~3× $435k = $1.305m (suggests ongoing retention requirement). Calculation uses proxy share counts and the $16.93 valuation reference; guidelines include RSUs and exclude options/PSUs .
Outstanding equity and near-term selling/exercise pressure (as of 3/31/2025)
| Instrument | Status/quantity | Strike/terms | Comments |
|---|---|---|---|
| Stock options (multiple grants 2019–2024) | Various exercisable tranches (e.g., 4,443; 6,841; 7,508 options) and unexercisable; additional 8,254 (2024 grant) unexercisable | Strikes: $25.52–$54.26 (e.g., $33.12, $36.16, $45.34); expiries 2029–2034 | With stock at $16.93 on 3/31/2025, options are out-of-the-money; limited exercise pressure near term . |
| Unvested RSUs | 1,276; 3,328; 3,271 units outstanding | 33% annually over 3 years from grant date | Predictable vesting-driven supply (May 22 and May 20 cycles) . |
| PSUs (unearned) | 3,830; 4,993; 8,133 units outstanding | FY2023 grant (ROIC FY2025); FY2024 grant (ROIC FY2026); FY2025 grant (Sales growth/EBITDA margin FY2025–FY2027) | FY2023 PSUs certified at 63.3% payout; FY2025 PSUs cliff-vest in 2027 subject to performance . |
Section 16 note: Company disclosed late filings in connection with May 20, 2024 RSU/option grants and May 22, 2024 RSU vesting for several officers including Chintapalli .
Employment Terms
- Employment agreements: No individual employment agreement disclosed for Chintapalli; NEOs (other than CEO) are covered by the Executive Severance Plan .
- Severance (non‑CIC): 1× base salary cash; LTI treated as “Retirement” under plan/award terms; 1 year health benefits at active rate; up to $15,000 outplacement (requires release) . Illustrative severance scenarios show Chintapalli estimates for various terminations based on $16.93 share price on 3/31/2025 .
- Change-in‑control (CIC): Double trigger. If terminated without cause or resigns for good reason within 6 months before or 24 months after a CIC: up to 3× (salary + greater of current/ pre‑CIC target bonus), 36× COBRA cost cash, 3‑year pension accrual value, and full vesting of options, RSUs, PSUs unless award agreements provide otherwise; other specified payments; CIC triggers include 20% ownership, board turnover, certain M&A/asset sales, or dissolution .
- Equity plan governance: 2016 LTIP prohibits repricing without shareholder approval; generally requires 1‑year minimum vesting; awards subject to clawback; change‑in‑control vesting under LTIP is double trigger .
Compensation Structure Analysis
- Mix shift to higher performance equity: LTI mix moved from one‑third each (options/RSUs/PSUs) in FY2023 to 50% PSUs / 25% RSUs / 25% options in FY2025, increasing performance leverage and alignment .
- AIP discipline in FY2025: FCF outcome at 0% despite strategic goals at 98% and EBIT at 50%, resulting in 47% of target AIP for Chintapalli (28% of salary paid), evidencing emphasis on cash/operating results .
- No tax gross‑ups; anti‑hedging/pledging; robust clawback: Shareholder‑friendly features, with explicit prohibition on pledging/hedging and broader-than-SEC clawback .
- Independent compensation consultant and peer benchmarking: Meridian supports HCC&S Committee; peer group refreshed (adds ATS, Helios, Mueller Water; removes Altra, Chart, CIRCOR, NN) to better fit size/financials .
Say‑on‑Pay & Shareholder Feedback
- 2024 Say‑on‑Pay received over 88% shareholder support, indicating broad approval of pay design and alignment at that time .
- Company conducts outreach and has adjusted practices responsive to shareholder feedback (per 2024 CD&A) .
Equity Ownership & Governance Policies Summary
- Officer ownership guideline: 3× salary for “Other NEOs and Officers”; includes outright shares and unvested time‑based RSUs; excludes options and PSUs; 50% after‑tax retention until compliant .
- Directors in compliance with their ownership guidelines as of 3/31/2025; officer compliance disclosed at policy level (retention requirement applies), with no individual officer compliance status provided .
Performance & Track Record Highlights
- FY2021–FY2025 revenue and EBITDA trajectory shown above; FY2025 softness vs. FY2024 reflected in AIP outcomes and TSR .
- “Pay versus Performance” disclosures show CAP moving directionally with TSR/net income/Adjusted EBIT over 2021–2025 .
Data Appendices
FY2025 Grants of Plan‑Based Awards (Chintapalli)
| Grant/date | Est. non‑equity incentive (Th/Tar/Max) | PSUs (Th/Tar/Max) | RSUs (#) | Options (#) | Option price | Grant date FV ($) |
|---|---|---|---|---|---|---|
| FY2025 AIP | $130,500 / $261,000 / $522,000 | — | — | — | — | — |
| Jul 22, 2024 | — | 4,066 / 8,133 / 16,266 | — | — | — | $306,533 |
| May 20, 2024 | — | — | 3,271 | — | — | $149,746 |
| May 20, 2024 | — | — | — | 8,254 | $45.34 | $141,391 |
Outstanding Equity Awards at 3/31/2025 (Chintapalli excerpts)
| Category | Quantity | Notes |
|---|---|---|
| Options – exercisable (examples) | 4,443 @ $35.16 (exp. 5/20/2029); 6,841 @ $25.52 (5/18/2030); 7,508 @ $54.26 (5/17/2031); others | All shown strikes above $16.93 price on 3/31/2025 . |
| Options – unexercisable | 8,254 @ $45.34 (5/20/2034); 4,340 @ $33.12 (5/16/2032); 8,923 @ $36.16 (5/22/2033) | . |
| Unvested RSUs | 1,276; 3,328; 3,271 | Market values shown in proxy use $16.93 per share . |
| Unearned PSUs | 3,830; 4,993; 8,133 | Performance-based; see vesting conditions above . |
Investment Implications
- Alignment and incentives: Greater weighting to PSUs (50%) and consistent use of EBIT/FCF in AIP indicate strong pay-for-performance linkage; FY2025 AIP paid below target due to cash/EBIT shortfalls despite high strategic score, reinforcing discipline .
- Selling pressure/overhang: RSU tranches vest annually (May cycle) creating recurring supply; most options are deeply out-of-the-money at $16.93 (3/31/2025), limiting near-term exercise-driven sales; FY2023 ROIC PSUs vested at 63.3% in FY2026, adding episodic supply .
- Ownership alignment: Beneficial ownership is modest (<1% of shares); estimated ownership value vs. 3× salary guideline suggests continued retention requirement (50% after-tax shares), supporting long-term alignment but also implying ongoing accumulation needs .
- Retention/CIC economics: Base severance is moderate (1× salary) but CIC protection is robust (up to 3× salary+bonus and full equity vesting), reducing unwanted turnover risk in strategic scenarios while maintaining a double-trigger standard .
- Governance risk flags: No hedging or pledging permitted; no excise tax gross-ups; clawback policy broader than SEC requirements; option repricing prohibited—overall governance posture appears shareholder-friendly .