Lawrence A. Hilsheimer
GREIFAbout Lawrence A. Hilsheimer
Executive Vice President and Chief Financial Officer of Greif since May 2014; age 67 as of the 2025 annual meeting. Prior roles include CFO of Scotts Miracle-Gro, multiple President/COO and CFO roles at Nationwide Mutual Insurance, and senior partnership leadership at Deloitte. Company TSR over the last five fiscal years (base 10/31/2019) grew to $161.41 vs. peer index $122.76, reflecting outperformance under the current leadership team . Recent revenue and EBITDA trends are shown below.
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Revenues ($ USD) | 6,349,500,000* | 5,218,600,000* | 4,333,963,275* | 4,290,654,188* |
| EBITDA ($ USD) | 926,300,000* | 834,100,000* | 534,436,319* | 526,145,410* |
*Values retrieved from S&P Global
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| The Scotts Miracle-Gro Company | EVP & CFO | Apr 2013 – Apr 2014 | Public-company CFO experience; capital markets and FP&A leadership . |
| Nationwide Retirement Plans (Nationwide Mutual Insurance) | President & COO | Aug 2012 – Mar 2013 | P&L and operating leadership in financial services division . |
| Nationwide Direct & Customer Solutions (Nationwide Mutual Insurance) | President & COO | Jan 2010 – Jul 2012 | Led digital and direct customer platforms; operating transformation . |
| Nationwide Mutual Insurance Company | EVP & CFO | ~2008 – 2009 (two years prior to 2010) | Enterprise finance leadership at a major insurer . |
| Deloitte & Touche USA LLP | Vice Chairman & Regional Managing Partner | Prior to 2008 | Led large audit/advisory practice; Deloitte Foundation board experience . |
External Roles
| Organization | Role | Committees | Notes |
|---|---|---|---|
| Installed Building Products, Inc. (NYSE) | Director | Audit Chair; Nominating & Corporate Governance member | Public-company board oversight . |
| Root, Inc. (Nasdaq) | Lead Independent Director | Audit Chair | Governance and audit leadership at an insurtech firm . |
Fixed Compensation
| Item | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Base Salary ($) | 816,815 | 816,815 | 841,320 (3% increase) |
| STIP Target (% of base) | 100% | 100% | 100% |
| STIP Payout (% of target) | 84.3% (aggregate NEO payout) | 133.9% (aggregate NEO payout) | — |
| STIP Paid ($) | 595,390 | 1,093,944 | — |
Additional 2024 “All Other Compensation” totaled $570,843 (401k/retirement contributions, DC SERP credits, dividend equivalents, executive wellness), including above-market interest in DC SERP of $35,210 .
Performance Compensation
| Program | Metric | Weight | Threshold | Target | Maximum | Actual | Payout |
|---|---|---|---|---|---|---|---|
| FY 2024 STIP | OPBSI | 80% | $318.6m | $379.3m | $596.0m | $439.6m | 127.8% |
| FY 2024 STIP | OWC (% of revenue) | 20% | 11.9% | 11.3% | 10.7% | 10.9% | 158.3% |
| FY 2022–2024 LTIP (PSUs) | EBITDA (with TSR modifier) | 100% (+/−20% TSR) | $2,196m (33%) | $2,440m (100%) | $2,684m (200%) | $2,603m; TSR +11.6% | 186% of target (capped by design) |
Notes:
- STIP pays in cash post-fiscal year end; aggregate 2024 NEO payout was 133.9% .
- PSUs vest after the 3-year period; TSR modifier can adjust earned PSUs by ±20% .
Equity Ownership & Alignment
| Category | Detail |
|---|---|
| Beneficial ownership | Class A: 118,028 shares; Class B: 165,426 shares (each <1% outstanding) . |
| Unvested RSUs (10/31/24) | 34,864 units (value $2,176,908 at $62.44) . |
| Unvested PSUs at target (10/31/24) | 53,490 units (value $3,339,916 at $62.44) . |
| Recent LTIP grants | 2024-2026 RSUs: 12,248 (granted 12/12/2023; GDV $769,542); PSUs (target): 18,505 (GDV $1,124,549) . |
| Newly approved RSUs | 2025–2027 RSUs: 12,320 units (time-vest) . |
| Vesting schedule | RSUs: 2022–2024 vest 1/16/2025; 2023–2025 vest 1/14/2026; 2024–2026 vest 1/14/2027. PSUs: vest post-period within 1/14–3/15 windows for each cycle . |
| Ownership guidelines | Executives (non-CEO) must hold 3x base salary; NEOs in compliance or within 5-year window . |
| Hedging/pledging | Hedging/short sales prohibited; pledging requires pre-approval . No pledging disclosed for Hilsheimer . |
| Section 16 note | One late filing in FY 2024 for a purchase of 8,000 Class B shares (subsequently reported) . |
Employment Terms
- No employment agreement; no severance or change-in-control cash benefits for NEOs .
- Post-employment covenants (non-compete) required for LTIP participants .
- Clawback policy adopted to NYSE standards; recovery of erroneously awarded incentive compensation upon restatement .
- Stock ownership guidelines and 100% retention of LTIP shares until compliant .
- Equity plan CIC mechanics (2001 Plan) provide for immediate vesting of unvested options and lapse of restrictions on performance/restricted shares upon a change in control; options may be cashed out or terminated per fair value vs. strike . (Note: Company indicates no awards under the 2001 Plan in FY 2024; LTIP remains primary executive equity program .)
Compensation Structure Analysis
- Cash vs. equity mix: Significant at-risk pay via STIP and LTIP (CFO STIP target 100% of salary; LTIP mix 40% RSUs / 60% PSUs) .
- Performance linkage: STIP tied to OPBSI and OWC; LTIP PSUs tied to 3-year EBITDA with relative TSR modifier .
- 2024 outcomes: Above-target STIP payout (133.9%) and robust 186% PSU payout for 2022–2024 indicate overachievement on core profit and cash-efficiency metrics .
- Governance controls: Clawback, stock ownership/holding requirements, hedging ban, pledging restrictions, and Say-on-Pay approval >99% in 2023 .
Say-on-Pay & Peer Group
- Say-on-Pay: 2023 approval exceeded 99%; next advisory vote in 2026 .
- Peer benchmarking: Compensation Committee uses Willis Towers Watson; 2024 peer group includes AptarGroup, Berry Global, Crown, Graphic Packaging, H.B. Fuller, O-I Glass, Owens Corning, Packaging Corp. of America, Pactiv Evergreen, Sealed Air, Silgan, Sonoco, Timken, UFP Industries, Valmont, JELD-WEN, Avery Dennison, Cabot .
Performance & Track Record
- TSR: Company TSR value of initial $100 (10/31/2019 base) rose to $161.41 vs. Dow Jones U.S. Containers & Packaging Index $122.76 through FY 2024, highlighting relative outperformance .
- Management review: 2024 CEO evaluation cited strong value focus, margin expansion, portfolio reshaping, and execution; CFO feedback highlights proactive communication, balanced strategic-operational management, and strengthening financial position .
Investment Implications
- Alignment: High proportion of at-risk and performance-based pay with multi-year PSU metrics and meaningful unvested equity suggests strong alignment with shareholders .
- Near-term supply: RSU/PSU vesting windows (mid-Jan to mid-Mar) may create periodic liquidity events; monitor Form 4s around vest dates . The only noted disclosure was a late-filed purchase of 8,000 Class B shares in FY 2024—constructive signal .
- Governance/retention: No golden parachute or fixed severance reduces downside for investors; DC SERP present value ($3.34m) and ownership requirements support retention incentives .
- Execution risk: Elevated 2022–2024 PSU payout (186%) indicates ambitious but achievable targets; future cycles hinge on sustaining EBITDA growth and relative TSR in more mixed macro conditions .
Overall: Hilsheimer’s incentives are tightly coupled to profit quality (OPBSI/EBITDA) and capital efficiency (OWC), with additional discipline via ownership and clawback frameworks. Watch LTIP grant sizing and vesting cadence, and track insider activity around vest windows as potential trading signals.