Alejandro Alcala

About Alejandro Alcala

Alejandro A. Alcala is Executive Vice President and Chief Operating Officer of Crane Company, promoted to COO on December 9, 2024; he is age 50 and has been an executive officer since 2020 . He joined Crane in 2013 and progressed through President roles (Pumps & Systems; ChemPharma & Energy), then Senior Vice President leading the Process Flow Technologies segment and regional operations, and in February 2023 became Executive Vice President overseeing all businesses prior to his promotion to COO . Company performance backdrop during his tenure includes strong segment execution: Aerospace & Electronics 2024 sales up 18% with margins up 230 bps to 22.4%, and Process Flow Technologies 2024 sales up 12% with record segment margins of 20.1% (adjusted 20.9%) . Executive incentives are tied to adjusted EPS and free cash flow, with PRSUs aligned to relative TSR vs the S&P MidCap 400 Capital Goods Group, reinforcing pay-for-performance .

Past Roles

External Roles

Fixed Compensation

Notes:

• Base salary increased by $55,000 to $700,000 in connection with promotion to COO effective December 9, 2024 .
• 2024 annual bonus for other NEOs (including Alcala) paid at 117.8% of target .

Performance Compensation

Annual Incentive Plan (AIP) – 2024

Design: Annual incentive metrics set at start of year; payouts range 0–200% with thresholds/caps; CEO also has strategic objectives (not applied to other NEOs) .

Long-Term Incentives (2024 Grants)

PRSU rules: Straight-line interpolation; negative TSR caps vesting at 100%; maximum value capped at 4x original grant value; no dividends during performance period .

Equity Ownership & Alignment

Ownership guidelines:

• Executive officers (CEO direct reports): minimum 4x base salary; other executive officers: 3x .
• Shares counting include owned shares, 401(k), and 65% of after-tax TRSUs; PRSUs and unexercised options do not count .
• Retention policy requires executives to retain at least 50% of net shares from option exercises or RSU vesting until guidelines met; as of March 3, 2025, all NEOs either met guidelines or were complying with retention ratio .

Hedging/pledging:

• Prohibited for directors and executive officers; no hedging or pledging transactions occurred in 2024 .

Options outstanding and RSU vesting schedule highlights (Crane Company):

• Unexercised options and unvested equity at 12/31/2024 show significant alignment; examples include options and RSUs scheduled vestings over 2025–2028 with regular cadence supporting retention .

Upcoming RSU vesting schedule (Crane Company, counts for Alcala):

Employment Terms

Change-in-control (CIC):

• Each executive has an agreement providing continued employment for 3 years or until normal retirement following a CIC; if terminated without cause or resigns for Good Reason during that period, entitled to a multiple of base salary and average annual bonus and certain benefits; equity awards accelerate upon termination following CIC; no excise tax gross-ups—payments are capped to maximize after-tax outcome if 4999 excise tax would apply .

Potential payments (as if terminated on Dec 31, 2024):

Equity treatment on termination:

• RSUs/PRSUs: For retirement, continue to vest per schedule subject to non-compete; death/disability leads to immediate vesting; termination after CIC triggers accelerated vesting; PRSU vesting amounts determined based on performance through event date (target if CIC occurs in first half of performance period) .

Clawback:

• “No-fault” clawback enables recovery of incentive awards in event of financial restatement regardless of executive fault .

Performance Compensation Details

PRSUs (relative TSR):

• Threshold: 25th percentile = 25% payout; Target: 50th percentile = 100%; Max: ≥75th percentile = 200%; straight-line interpolation; negative TSR cap at 100% .

Multi-Year Compensation Summary

Performance & Track Record

• Led Process Flow Technologies to record profitability and growth by repositioning the portfolio to higher-growth, higher-margin end markets as SVP PFT .
• As EVP, oversaw all segments post-separation, supporting strong execution; in 2024, A&E segment sales increased 18% with margins up 230 bps; PFT sales increased 12% with record margins .
• As COO, continues to drive differentiated strategic execution and M&A integration, including pending PSI acquisition (Druk, Panametrics, Reuter Stokes) expected to meet 10% ROIC by year five and align with Crane’s strategy .

Governance, Peer Group, and Say-on-Pay Context

• Compensation peer group reviewed by FW Cook; 2025 adjustments added RBC Bearings and Watts Water Technologies .
• 2024 Say-on-Pay approval exceeded 97%, indicating strong shareholder support for the compensation program .
• Compensation program best practices include prohibitions on hedging/pledging, clawback policy, majority of variable pay as long-term equity, and significant executive stock ownership requirements .

Investment Implications

• High equity mix and PRSUs tied to relative TSR support pay-for-performance and alignment; 2024 LTI allocations for Alcala: 50% PRSUs, 25% options, 25% TRSUs ($1,000,000 total) .
• Ownership guidelines and retention policy materially reduce near-term selling pressure; executives must retain at least 50% of net shares until guidelines met; Alcala’s beneficial ownership totals 96,284 shares with ongoing scheduled RSU vesting over 2025–2028 .
• Change-in-control agreements are double-trigger with capped payments (no gross-ups), mitigating excessive termination windfalls; estimated termination after CIC value for Alcala at year-end 2024: $9.7M, largely reflecting equity acceleration mechanics .
• Track record of portfolio transformation and segment margin expansion under Alcala’s leadership suggests continued execution strength; pending PSI acquisition underscores strategic focus on proprietary sensing technologies and expected attractive returns .