Aaron Saak
About Aaron Saak
Aaron W. Saak is President & Chief Executive Officer of Crane NXT, Co. (CXT) and has served as CEO since November 2022; he is also a director (since 2023) and a member of the Board’s Executive Committee . He is 51 years old and brings significant experience leading global engineered technology businesses, with prior roles as President & CEO of Mobility Solutions at Vontier and President of Gilbarco Veeder‑Root . Under his tenure, Crane NXT delivered 2024 net sales of $1,486.8 million (up 6.9% y/y), with Adjusted Operating Profit of $347.3 million and cumulative TSR index value of 216 (value of initial $100 investment) as of 2024; non‑GAAP incentive metrics emphasize revenue, adjusted operating profit, and adjusted free cash flow . The company maintains separate CEO and Chairman roles, with Saak as CEO and John Stroup as non‑employee Chairman, and a strong governance framework including independent committees and executive sessions .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Crane NXT, Co. | President & Chief Executive Officer | Nov 2022–present | Led portfolio expansion (OpSec acquisition; signed De La Rue Authentication deal), deleveraging actions, and operational discipline around revenue growth and margins . |
| Vontier Corporation | President & CEO, Mobility Solutions | Jun 2022–Nov 2022 | Drove strategy in retail convenience technologies; short transition role before Crane NXT appointment . |
| Gilbarco Veeder‑Root (Vontier subsidiary) | President | Feb 2018–Jun 2022 | Led global engineered products business; customer‑focused, metrics‑oriented performance improvement . |
External Roles
No current public company directorships disclosed for Saak; prior leadership roles at Vontier/Gilbarco Veeder‑Root are operational positions, not board seats . If undisclosed, omit.
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | 46,154 | 800,000 | 850,000 |
| Bonus ($) – new‑hire/special | 350,000 | 350,000 | — |
| Target Bonus (% of salary) | — | 100% | 100% |
| Non‑equity incentive paid ($) | — | 984,800 | 694,450 |
| All other compensation ($) | 11,154 | 82,335 | 104,987 |
| Total compensation ($) | 2,607,341 | 6,299,752 | 6,423,788 |
Performance Compensation
Annual Incentive Plan design and 2024 outcomes
| Metric | Weight | Threshold (0% payout) | Target (100%) | Maximum (200%) | Actual | Payout |
|---|---|---|---|---|---|---|
| Revenue ($) | 25% | 1,287.4M | 1,430.5M | 1,573.6M | 1,401.4M | 19.9% |
| Adjusted operating profit ($) | 50% | 283.5M | 354.4M | 425.3M | 347.3M | 45.7% |
| Adjusted free cash flow ($) | 25% | 170.1M | 243.1M | 316.0M | 209.5M | 16.1% |
| Weighted payout | — | — | — | — | — | 81.7% |
Notes:
- Corporate metrics changed in 2024 to include revenue and use adjusted operating profit instead of adjusted EPS; aligns with growth strategy and peer practice .
- Bonus paid to Saak for 2024: $694,450 (81.7% of $850,000 target) .
Long‑term incentives (LTI) – grant structure and 2024 awards
- PRSUs: 3‑year performance period (Jan 1, 2024–Dec 31, 2026) based on relative TSR vs S&P Midcap 400 Capital Goods constituents; vesting 0–200% with linear interpolation; capped at target if absolute TSR negative and overall value capped at 4x original grant value .
- Stock options: 10‑year term, strike at grant date FMV, vest 25% per year over 4 years; value realized only if share price appreciates .
- TRSUs: vest 25% per year over 4 years; cash dividends paid on unvested TRSUs; counted at 65% net-of-tax for ownership guidelines .
| Award type | Grant date | Shares/Units (#) | Grant value ($) | Option strike ($/sh) |
|---|---|---|---|---|
| PRSUs (at target) | Feb 28, 2024 | 42,672 | 2,475,000 | — |
| TRSUs | Feb 28, 2024 | 15,517 | 900,000 | — |
| Stock options | Feb 28, 2024 | 46,088 | 1,125,000 | 58.00 |
| Total LTI (target) | — | — | 4,500,000 | — |
2022–2024 PRSU realizations:
- 2022 PRSUs (adjusted for spin): Crane NXT PRSUs earned at 185.7% of target for 2022–2024 period; Crane Company PRSUs (for other NEOs) earned at 159.8% of target; Saak’s awards were adjusted via replacement method to preserve Crane NXT exposure .
Equity Ownership & Alignment
- Stock ownership guidelines: CEO 6x base salary; TRSUs count at 65% net; unvested PRSUs and all options do not count. As of Mar 28, 2025, Saak either met the guideline or complied with 50% net‑shares retention until compliance .
- Anti‑hedging and anti‑pledging policies; none of the directors/executives engaged in hedging or pledging in 2024 .
Beneficial ownership (as of Mar 28, 2025)
| Category | Shares |
|---|---|
| Shares owned directly/beneficially | 25,127 |
| Options/DSUs/RSUs vested or vesting within 60 days | 105,618 |
| Total beneficially owned | 130,745 |
| Percent of class | <1% |
| Share units vesting after 60 days | 66,837 |
Outstanding equity awards (Dec 31, 2024)
| Category | Amount |
|---|---|
| TRSUs not yet vested (#; market value) | 60,046; $3,495,878 (at $58.22/sh) |
| PRSUs unearned (max shown per SEC; #; payout value) | 85,344; $4,968,728 (at $58.22/sh; subject to 4x value cap) |
| Options exercisable (#) | 47,047 (strike $44.93, exp. 2/6/2033) |
| Options unexercisable (#) | 141,146 (strike $44.93, exp. 2/6/2033); plus 46,088 (strike $58.00, exp. 2/28/2034) |
TRSU vesting schedule (selected dates; Saak)
| Vesting date | Shares scheduled |
|---|---|
| Feb 28, 2025 | 3,879 |
| Nov 28, 2025 | 13,915 |
| Feb 6, 2026 | 5,563 |
| Feb 28, 2026 | 3,879 |
| Nov 28, 2026 | 13,919 |
| Feb 6, 2027 | 5,566 |
| Feb 28, 2027 | 3,879 |
| Feb 28, 2028 | 3,880 |
Employment Terms
- No fixed‑duration employment contracts for U.S. executive officers; robust clawback policy for incentive compensation tied to financial measures, including TSR and stock price, for the prior three fiscal years in the event of a restatement .
- Non‑change‑in‑control severance practice (involuntary termination due to reorganization): lump‑sum equal to one year’s base salary plus continued health/welfare benefits for one year .
| Scenario | Cash ($) | Continued benefits ($) | Total ($) |
|---|---|---|---|
| Non‑CIC severance (workforce reduction) | 850,000 | 21,133 | 871,133 |
- Change‑in‑control (CIC) economics (double‑trigger): pro‑rated bonus (greater of prior year bonus or 3‑year average), plus 3x salary+average bonus, plus continued benefits for remainder of CIC protection period; equity accelerates upon qualifying termination post‑CIC (PRSUs earned at actual through CIC then time‑based vesting requirement satisfied upon termination) .
| CIC termination (12/31/2024 hypothetical) | Cash severance ($) | Continued benefits ($) | Total ($) |
|---|---|---|---|
| Without cause/for good reason | 5,327,800 | 63,399 | 5,391,199 |
Board Governance
- Board service: Director since 2023; member of Executive Committee (Stroup—Chair; Dinkins; Saak); committees are 100% independent except Executive Committee .
- Independence: Board determined Saak is not independent as CEO; all other directors were independent in 2024 .
- Structure: Separate Chairman (John S. Stroup) and CEO roles; regular executive sessions; annual board/committee self‑evaluations; majority voting with resignation policy .
- Attendance: Board met six times in 2024; all directors attended at least 75% of meetings; board members attended the 2024 annual meeting (except one former director); Saak’s director service is not separately compensated (no director fees) .
Director Compensation (for Saak as director)
- CEO does not receive director compensation; non‑employee director program details (retainers, DSUs) exclude Saak .
Compensation Structure Analysis
- Cash vs equity mix: Saak’s 2024 target LTI of $4.5M (55% PRSUs, 25% options, 20% TRSUs) vs salary $850k; heavy weighting to performance equity and options, reinforcing at‑risk pay .
- Metric changes: 2024 annual plan added revenue and replaced adjusted EPS with adjusted operating profit to align with strategic focus and peer practice; payout at 81.7% of target reflects shortfalls on revenue and adjusted FCF against targets .
- Governance features: No tax gross‑ups, no option repricing without shareholder approval, clawback policy, strict anti‑hedging/pledging, and independent compensation consultant (FW Cook) .
Say‑on‑Pay & Shareholder Feedback
- 2024 Say‑on‑Pay support exceeded 96%; no changes were made to the program in response .
Expertise & Qualifications
- Core credentials: Significant experience leading engineered technology businesses, strategic business development (organic and M&A), team building with ethics and continuous improvement focus; customer and metrics orientation .
- Education: Not disclosed in proxy/10‑K sections reviewed; omit if undisclosed.
Performance & Track Record
| Metric | 2023 | 2024 |
|---|---|---|
| Net sales ($mm) | 1,391.3 | 1,486.8 |
| Adjusted Operating Profit ($mm) | 345.2 | 347.3 |
| TSR index value (initial $100 investment) | 208 | 216 |
Highlights:
- M&A execution: Completed OpSec Security acquisition (May 2024); signed definitive agreement to acquire De La Rue Authentication Solutions (expected close 2Q 2025) .
- Capital structure: Increased revolver to $700M, added £300M delayed draw term loan for acquisition funding; repaid prior term loan; reduced net leverage to ~1.7x by Q3 2024 .
- Operational results: Q3 2024 sales +14.3% y/y; adjusted EPS $1.16; segment margins strong at CPI; SAT margins diluted by OpSec mix pending integration .
Compensation Peer Group (benchmarking)
- FW Cook advised on a 17‑company peer group spanning industrial/technology firms (AEIS, AIN, BRC, CGNX, DLX, ESE, GGG, HLIO, ITRI, MEI, NDSN, NVT, OSIS, VIAV, VNT; AIMC and DBD included based on 2022 data) with median revenue ~$1.8B and median market cap ~$2.7B at selection; target pay levels calibrated around 50th percentile with upside/downside per performance .
Related Party Transactions and Policies
- Robust conflicts policies and annual certifications; anti‑hedging policy prohibits collars/forwards for insiders; limited transactions with Crane Company due to separation agreements, reviewed for independence impacts .
Risk Indicators & Red Flags
- Positive: No hedging/pledging in 2024; clawback policy; no tax gross‑ups; strong independent committee oversight .
- Watch: SAT margins diluted by acquisition mix; goodwill/intangibles significant (58% of total assets; OpSec goodwill more sensitive in impairment sensitivity) . Ongoing cybersecurity/IT risks acknowledged with governance structure .
Investment Implications
- Alignment: CEO holds significant equity exposure with stringent 6x salary ownership guideline, PRSUs tied to relative TSR, and options—strong pay‑for‑performance with clawbacks and anti‑hedging/pledging policies reinforce alignment .
- Retention/trading signals: Upcoming TRSU/option vesting schedules and double‑trigger CIC protections lower near‑term forced selling pressure; blackout and insider trading policies reduce opportunistic trading; bonus payout below target indicates disciplined performance thresholds .
- Execution risk/margin mix: Acquisitions broaden SAT offerings but carry near‑term mix dilution; integration success and delivery on adjusted operating profit and FCF metrics will drive PRSU outcomes and investor returns .