Alf Melin
TechnipFMCAbout Alf Melin
Executive Vice President and Chief Financial Officer of TechnipFMC since 2021; previously Senior Vice President roles in Finance Operations and Surface Americas (2017). Age 55 as of 2025, and a Rule 3b-7 executive officer with no legal proceedings noted in the last 10 years . During his CFO tenure, company financials improved: FY 2022–FY 2024 Revenues rose from $6.70B* to $9.10B*, and EBITDA from $0.58B* to $1.40B*, reflecting strong execution and margin expansion initiatives; multi-year TSR outperformance versus peers is documented in the company’s pay-versus-performance disclosures * * . In 3Q25, Melin guided 2026 Subsea revenue of $9.1–$9.5B with adjusted EBITDA margin 20.5%–22%, and raised 2025 free cash flow guidance to $1.3–$1.45B while increasing repurchase authorization by $2B .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| TechnipFMC | EVP & CFO | 2021–Present | Led balance sheet strengthening, investment-grade rating achievement, and increased shareholder distributions . |
| TechnipFMC | SVP, Finance Operations | 2017–2021 | Advanced finance operations supporting margin and free cash flow improvement . |
| TechnipFMC | SVP, Surface Americas | 2017–2017 | Operational finance leadership for Surface segment . |
External Roles
No external public company directorships or external positions disclosed in Company filings for Melin .
Fixed Compensation
Multi-year cash and equity compensation for Melin:
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | $650,000 | $700,000 | $750,000 |
| Target Bonus (%) | 100% | 100% | 100% |
| Actual Bonus Paid ($) | $786,500 | $1,102,500 | $1,170,000 |
| Stock Awards ($) | $2,249,668 | $2,503,948 | $2,622,577 |
Grant detail (2023 awards):
| Award | Grant Date | Target Units | Vesting |
|---|---|---|---|
| RSU | 2/21/2023 | 44,967 | Ratable, 1/3 each year over 3 years |
| PSU – TSR | 2/21/2023 | 52,463 | Cliff after 3-year performance period (2023–2025) |
| PSU – ROIC | 2/21/2023 | 52,463 | Cliff after 3-year performance period (2023–2025) |
Key governance and practices:
- Share ownership guideline for CFO: 5x base salary; all executive officers met requirements in 2024 (and retention requirement applies until in compliance) .
- Clawback policy covers restatements and misconduct; authority to cancel and claw back incentive compensation .
- No hedging or pledging of Company securities permitted; no tax gross-ups on severance .
Performance Compensation
Annual cash incentive (2024 structure and outcomes):
| Component | Weight | Target | Actual | Payout |
|---|---|---|---|---|
| Adjusted EBITDA Margin | 25% | 14.5% | 15.2% | 146% |
| Free Cash Flow | 25% | $430M | $679M | 192% |
| Sustainability Scorecard (2024–2026) | 25% | Targeted multi-metric goals | Above target | 115% |
| Individual Performance (API) | 25% | Stretch objectives | Achieved; CFO focus on debt reduction, distributions, ERP | 170% average for NEOs |
2025 framework changes:
- Financial measures (Adjusted EBITDA Margin + FCF) weight increased from 50% to 70%
- Individual performance increased to 30%; sustainability embedded within API (no standalone metric) .
PSU payouts:
- 2022–2024 PSU performance: Relative TSR > 75th percentile and ROIC > max; weighted payout 200% .
PSU/RSU vesting schedules:
- PSUs: three-year cliff vest; 2024 awards vest 2/20/2027 (performance period 2024–2026) .
- RSUs: three-year ratable vest annually on grant anniversary (policy updated starting 2023) .
Equity Ownership & Alignment
Beneficial ownership and near-term vesting/exercisability (as of March 3, 2025):
| Holder | Shares Owned (#) | % of Class | Options Exercisable ≤60d (#) | RSUs/PSUs Vesting ≤60d (Gross #) |
|---|---|---|---|---|
| Alf Melin | 459,044 | <1% | 13,760 | 420,684 |
Ownership guidelines and compliance:
- CFO guideline 5x base salary; compliance met in 2024 .
- Prohibition on hedging/pledging; no pledging disclosed .
Vesting deliveries and realized values (signaling potential tax-related net share sales but not option selling):
- 2024: Shares acquired on vesting 260,798; value realized $5,868,373 .
- 2023: Shares acquired on vesting 24,460; value realized $360,296 .
- Options: No option exercises disclosed for 2024 or 2023 for Melin .
- Company does not currently grant new stock options .
Employment Terms
Severance and change-of-control economics:
| Scenario | Cash Severance | Bonus Treatment | Benefits | Equity | Notes |
|---|---|---|---|---|---|
| Termination without cause | 18 months base + target annual cash incentive | Prorated target for year of termination | 18 months premiums; outplacement; financial/tax assistance | Per plan terms | Non-compete/non-solicit; no tax gross-ups |
| Change-in-control (double trigger) – CFO | 3x greater of current or agreement base; and 3x greater of avg actual last 3 yrs or current-year target bonus | Prorated target for year of termination | 36 months premiums; up to $50,000 outplacement | Accelerated vesting of all outstanding equity; PSUs vest at target | 24-month window; best-after-tax 280G cutback; no tax gross-ups |
Company Performance During Tenure
TechnipFMC financials and trajectory (USD):
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($) | $6,700,400,000* | $7,827,100,000* | $9,103,400,000* * * |
| EBITDA ($) | $576,800,000* | $964,000,000* | $1,401,200,000* |
| Growth | FY 2023 vs FY 2022 | FY 2024 vs FY 2023 |
|---|---|---|
| Revenue YoY (%) | 16.9%* | 16.3%* |
| EBITDA YoY (%) | 67.1%* | 45.3%* |
Values retrieved from S&P Global.*
Additional operating and capital allocation signals under Melin:
- 2024 achievements: inbound orders $11.6B, backlog $14.4B; cash from operations $961M; free cash flow $679.4M; shareholder distributions $486M; investment-grade ratings .
- 3Q25: inbound $2.6B; adjusted EBITDA ~$531M ex-FX; net cash position $439M; repurchase authorization increased by $2B (to $2.3B total) .
Compensation Peer Group & Governance
- Compensation peer group used to benchmark NEO pay includes AECOM, Jacobs Solutions, KBR, SLB, Halliburton, Transocean, Quanta, Dover, Fluor, Valmont, Weatherford, NOV, ChampionX, Chart, Baker Hughes, APA, Devon, Oceaneering; Flowserve added in 2024 review .
- Compensation and Talent Committee (independent): John O’Leary (Chair), Claire Farley, John Yearwood; 4 meetings in 2024; uses independent consultants (FW Cook, then Pearl Meyer in 2H24) .
- Say-on-pay outcomes: 96.5% approval in 2023 and 86% approval in 2024; robust shareholder engagement (contacted ~56–59% of shares; met ~29–37%) .
Risk Indicators & Red Flags
- No hedging or pledging permitted; no tax gross-ups; double-trigger CoC only; no option repricing; current program emphasizes at-risk pay and clawbacks, reducing misalignment risk .
- Delinquent Section 16(a) reporting and related party transactions sections are provided in proxy; no issues flagged for Melin in reviewed materials .
Investment Implications
- Pay-for-performance alignment is strong: higher weighting to financial metrics in 2025 sharpens focus on EBITDA and FCF; PSU framework (TSR/ROIC) with caps on payouts under negative absolute TSR mitigates windfall risk .
- Retention risk appears moderate: meaningful unvested PSU/RSU overhang (420,684 units vesting within 60 days; substantial ongoing 3-year PSU cycles) and robust CoC protections reduce near-term departure risk, while the program’s majority at-risk mix maintains performance incentives .
- Insider selling pressure is limited: no option exercises disclosed in 2023–2024; higher vesting deliveries in 2024 drove realized values but primarily reflect award schedules rather than directional selling; prohibition on hedging/pledging reduces misalignment .
- Equity ownership and guidelines: CFO meets 5x salary requirement, with sub-1% ownership of outstanding shares, consistent with large-cap norms; continued buybacks (authorization +$2B) and FCF guidance underscore capital-return discipline under CFO stewardship .
Say-on-Pay & Shareholder Feedback
| Year | Approval (%) | Engagement Highlights |
|---|---|---|
| 2023 | 96.5% | Contacted 56% of shares; met 29%; focus on program design and metrics . |
| 2024 | 86% | Contacted 59% of shares; met 37%; increased financial metric weighting for 2025 . |
Company Financials – Reference
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($) | $6,700,400,000* | $7,827,100,000* | $9,103,400,000* * * |
| EBITDA ($) | $576,800,000* | $964,000,000* | $1,401,200,000* |
Values retrieved from S&P Global.*
Employment Terms Summary (CFO)
- Executive Severance Guidelines: 18 months base + target bonus; prorated target bonus; 18 months benefits; equity per plan; no gross-ups .
- Change-in-control: double trigger; CFO entitled to 3x salary and bonus (greater of averages or targets), 36 months benefits, equity acceleration with PSUs at target; best-after-tax 280G cutback; no gross-ups .
Investment Implications
- Strong execution and capital returns under CFO oversight (elevated FCF, buybacks, net cash) bolster confidence in continued TSR; compensation levers are appropriately tied to EBITDA, FCF, TSR, and ROIC, with governance safeguards (clawbacks, no hedging/pledging) supporting alignment .
- Retention risk is mitigated by vesting schedules and double-trigger CoC; monitoring of future PSU outcomes (2023–2025 and 2024–2026 cycles) and say-on-pay trends is prudent as financial targets tighten and sustainability moves into API .
- Trading signals: watch quarterly vesting dates and Form 4s for net share dispositions due to tax withholding; lack of option exercises and policy constraints imply limited directional selling pressure, while large repurchase capacity can be supportive for the stock .