Kyle Raabe
GENERAC HOLDINGSAbout Kyle Raabe
Kyle Raabe, age 50, is President, Consumer Power at Generac Holdings, Inc., a role he has held since November 2019. He previously led sales and operations at The Master Lock Company and earlier held multiple distribution leadership roles at Generac; he holds a BA in Biological Science from Lawrence University . Company performance metrics directly tied to Raabe’s incentives include consolidated Adjusted EBITDA and Primary Working Capital (PWC), which exceeded 2024 targets (Adjusted EBITDA $789.1m vs. $744.3m target; PWC 30.5% vs. 32.2% target), driving above-target bonus payouts; Generac also reported ~24% year-over-year Adjusted EBITDA growth in 2024, 500bps gross margin expansion, and record $741m operating cash flow and $605m free cash flow .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Generac Holdings Inc. | President, Consumer Power | Nov 2019–Present | Leads consumer segment; AIP metrics show Consumer Power EBITDA above target and PWC at maximum in 2024, supporting strong variable pay outcomes . |
| The Master Lock Company | SVP, North American Sales, Demand Planning & Sales Operations | 2018–2019 | Ran NA sales and operations for security products; commercial accountability for demand planning and sales execution . |
| The Master Lock Company | VP of Sales, Commercial Security & Safety | 2015–2018 | Led sales across commercial security/safety segments . |
| Generac Power Systems | Director/VP Wholesale & Industrial Distribution Sales | 2007–2015 | Built dealer and wholesale distribution; led industrial distribution sales . |
| Veolia North America (Environmental Services) | Led Midwest Regional Service Operations | Pre-2007 | Managed regional service operations prior to joining Generac . |
External Roles
No public company directorships or external board roles disclosed for Raabe in SEC filings .
Fixed Compensation
| Metric | 2023 | 2024 | 2025 (Approved) |
|---|---|---|---|
| Base Salary ($) | 400,000 | 424,180 | 467,000 (approved Mar 2025) |
| Target AIP Bonus (% of base) | 75% (unchanged from prior year) | 75% | 75% (policy basis; % unchanged) |
| Target AIP ($) | — | 322,500 | — |
Notes:
- Committee raised Raabe’s base from $400,000 to $430,000 in Feb 2024; and to $467,000 in Mar 2025 based on market benchmarking and 2024 performance .
- AIP % remained 75% of base for Raabe; CEO/CFO differ .
Performance Compensation
Annual Performance Bonus (AIP) – 2024
| Component | Weighting | Target | Actual | Payout/Result | Notes |
|---|---|---|---|---|---|
| Consumer Power Adjusted EBITDA | 50% | Not disclosed | Above Target | Above Target (component >100%) | Segment goals not disclosed; committee applies same rigor as enterprise metrics . |
| Consumer Power PWC (% of Net Sales) | 25% | Not disclosed | At Maximum | At Maximum (component at cap) | Segment PWC component reached maximum . |
| Consolidated Adjusted EBITDA | 25% | $744.3m | $789.1m | 97.5% weighted payout | Enterprise metric applied to Raabe’s 25% component . |
| Individual Performance Modifier | — | — | — | +10% | Applied post-metrics based on defined goals . |
| Total AIP Payment ($) | — | — | — | 585,082 | Derived from components and modifier . |
Long-Term Equity Incentives – March 1, 2024 Grants
| Award Type | Shares/Units (#) | Fair Value ($) | Vesting Schedule | Performance Metrics |
|---|---|---|---|---|
| Performance Shares (PSUs) – Target | 3,558 | 400,096 | Cliff vest on 3rd anniversary based on performance (50–200% of target) | 3-year goals: revenue growth, EBITDA margin, FCF conversion (2024–2026) . |
| Restricted Stock (RSUs) | 1,779 | 200,049 | 1/3 each year over 3 years | Time-based . |
| Stock Options | 3,373 (strike $112.45) | 200,002 | 25% per year over 4 years | Time-based; options pricing per policy . |
Prior-cycle PSU outcome:
- 2022–2024 PSU cycle paid 0% (revenue CAGR 4.4% vs 12% threshold; EBITDA margin 18.7% vs 20.8% threshold; FCF conversion 70.6% vs 75% threshold) .
Option/stock activity in 2024:
- Raabe reported no option exercises; 1,393 shares vested from stock awards (net 778 shares received after tax withholding via net share settlement) .
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Beneficial Ownership (Shares) | 16,180 (as of Apr 17, 2025) |
| Ownership as % of Shares Outstanding | 0.027% (16,180 / 59,614,025) |
| Options Exercisable within 60 Days | 6,912 |
| Options Unexercisable Outstanding | 7,998 (347 (2021), 922 (2022), 3,356 (2023), 3,373 (2024)) |
| Unvested RSUs (by grant) | 246 (Mar 1, 2022), 1,486 (Mar 1, 2023), 1,779 (Mar 1, 2024) |
| Unvested Performance-Based Equity (by cycle) | 369 (2022 grant – 2022–2024 cycle; paid 0%) ; 1,115 (2023 grant – 2023–2025) ; 1,779 (2024 grant – 2024–2026) |
| Stock Ownership Guidelines | Top Executives: 3× base salary; retention ratios apply until met |
| Hedging/Pledging | Prohibited for executives (no short sales, options, derivatives; no pledging/margin accounts) |
| Compliance Status | All NEOs have met their ownership requirement or are building ownership in compliance |
Insider selling pressure indicators:
- No option exercises in 2024; share withholding on vesting reduces immediate open-market supply; company reports quarterly tax-withholding repurchases tied to vested awards .
Employment Terms
| Term | Detail |
|---|---|
| Current Role Start | President, Consumer Power since Nov 2019 |
| Agreements | Nondisclosure & noncompete agreements (standard for executives) |
| Change-in-Control (CIC) Policy | Double trigger; if terminated without Cause or for Good Reason during Protection Period (120 days pre-CIC to 24 months post-CIC): lump sum 2× (base + target bonus), 24 months benefits continuation, and accelerated vesting of unvested equity at “target” for performance awards . |
| CIC Economics (as of Dec 31, 2024) | Salary $860,000; Bonus $645,000; Benefits $30,888; Accelerated Equity $1,335,963; Total $2,871,851 . |
| Clawbacks | Compliant with SEC/NYSE rules; restatement recovery (3-year lookback) and misconduct recovery; expanded in 2023 . |
| Tax Gross-ups | None for executives . |
| Single-Trigger CIC | Not provided; no single-trigger severance . |
Compensation Structure Analysis
- Pay mix shifted to more performance-based equity: PSU weighting increased from 33% to 50% in 2024; options and RSUs each 25%, emphasizing multi-year performance alignment .
- 2024 cash bonus sharply increased vs. 2023 for Raabe ($585k vs. $165k) on segment overachievement and enterprise metrics, with a +10% individual modifier; base raised to $467k in 2025 to reflect market alignment .
- Tough long-term goals: the 2022–2024 PSU cycle paid 0%, indicating challenging targets; future PSU outcomes will hinge on revenue growth, margins, and FCF conversion through 2026 .
Performance & Track Record
- Segment execution: Consumer Power delivered “Above Target” EBITDA and “At Maximum” PWC in 2024 AIP, indicating strong operational control and working capital discipline within Raabe’s business .
- Product leadership: Publicly quoted leading launch of ecobee by Generac smart thermostat with integrated home energy management, signaling focus on connected residential energy and load coordination during outages .
Compensation Committee & Peer Benchmarking
- Committee: Human Capital & Compensation Committee chaired by Marcia Avedon; uses independent consultant Pay Governance; five meetings in 2024 .
- Peer group and market positioning: Benchmarked to a manufacturing/energy-tech peer set (e.g., AME, HUBB, RRX, ENPH, SEDG, etc.); total direct compensation targeted around market median with pay-for-performance upside .
- Say-on-pay: 2024 approval >93%, indicating strong shareholder support for compensation practices .
Investment Implications
- Alignment: Raabe’s pay is tightly linked to segment and enterprise financials; higher PSU weighting increases multi-year performance leverage, and clawbacks/anti-hedging/anti-pledging policies strengthen alignment .
- Retention: Significant unvested RSUs/PSUs and 24-month CIC severance reduce near-term departure risk; 2024 showed no option exercises by Raabe and only net-settled vesting, suggesting limited selling pressure from personal activity .
- Execution signal: 2024 AIP overachievement in Consumer Power and enterprise metrics, plus product initiatives (ecobee integration), support confidence in operational delivery; however, prior PSU zero payout underscores rigorous long-term hurdles that will govern equity realization through 2026 .