Craig Balis
Garrett MotionAbout Craig Balis
Senior Vice President & Chief Technology Officer at Garrett Motion (GTX), age 60. Balis has served as CTO since the Honeywell spin-off in 2018; prior roles include VP & CTO of Honeywell Transportation Systems (2014–2018), VP Engineering (2008–2014), and leadership roles at Garrett Engine Boosting Systems since 1998; earlier, seven years as an advanced technology manager at AlliedSignal Aerospace. He holds BS and MS degrees in Engineering from the University of Illinois . Garrett’s 2024 performance: net sales $3.475B (-11% YoY), net income $282M (8.1% margin), Adjusted EBITDA $598M (17.2% margin), Adjusted EBIT $485M (14.0% margin), Adjusted Free Cash Flow $358M (60% conversion). Shareholder support strong with ~98% Say-on-Pay approval in 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Garrett Motion / Honeywell Transportation Systems | CTO (Garrett Motion); VP & CTO (Honeywell Transportation Systems) | 2014–present | Led turbocharger innovation; electrification vectors; advanced powertrain and fuel cell compressor programs . |
| Honeywell Transportation Systems | VP Engineering | 2008–2014 | Drove engineering execution across turbo systems development . |
| Garrett Engine Boosting Systems | Director Program Mgmt/Product Development | 1998–2008 | Program leadership for boosting technologies . |
| AlliedSignal Aerospace | Advanced Technology Manager | ~1991–1998 | Advanced tech work in aircraft turbine engines . |
Fixed Compensation
| Item | 2024 | Notes |
|---|---|---|
| Annual Base Salary (set) | $495,431 | Increased 1.5% effective Aug 1, 2024 . |
| Salary Paid (2024) | $491,160 | USD converted from CHF per policy . |
| Target ICP (% of salary) | 70% | Short-Term Incentive target . |
| ICP Payout (cash) | $479,454; 138% of target | Paid March 2025 . |
| Perquisites (Car allowance; tax planning) | $22,916; $8,739; Total $31,655 | Standard Swiss exec car policy; tax planning reimbursement . |
Performance Compensation
2024 Short-Term Incentive (ICP) – Company Metrics
| Metric | Weight | Threshold (50%) | Target (100%) | Max (200%) | Achievement | Payout |
|---|---|---|---|---|---|---|
| Adjusted EBITDA ($M) | 40% | $527 | $620 | $713 | $615 | 97% |
| Adjusted EBITDA Margin (%) | 40% | 14.7% | 16.0% | 17.3% | 17.5% | 200% |
| Adjusted Free Cash Flow Conversion (%) | 20% | 51.0% | 60.0% | 69.0% | 61.0% | 111% |
• Individual KPI pool (25% of ICP): committee determined above target; Balis’s individual goals included EV growth vector milestones, core turbo transformation, R&D productivity, and ESG deliverables .
2024 Long-Term Incentive (LTI) Grants (60% PSUs / 40% RSUs)
| Grant Date | Instrument | Shares Granted | Grant-Date Fair Value ($) | Vesting / Performance |
|---|---|---|---|---|
| 3/5/2024 | PSUs | 64,567 | $738,645 | 3-year perf. period (2024–2026); evenly weighted on Relative TSR, cumulative Adjusted EBITDA, cumulative Adjusted EBITDA Margin; 0–200% payout . |
| 3/5/2024 | RSUs | 43,045 | $399,384 | Time-based; vest in 3 equal annual installments on each anniversary . |
| 2024 LTI Target Opportunity | Mix | — | $1,154,029 (aggregate value) | Target LTI sizing equal to 200% of base salary . |
• 2023 cycle PSUs outstanding: 114,205 unearned shares (perf. period 2023–2025); market value $1,031,271 as of 12/31/2024; metrics at 2024 year-end: EBITDA and margin at 100% achievement; Relative TSR at 140% achievement (final vesting at cycle end) .
• 2024 cycle PSUs outstanding: 107,611 unearned shares; market value $971,727 as of 12/31/2024 .
Equity Ownership & Alignment
| Ownership Detail | Data |
|---|---|
| Beneficial Ownership (3/14/2025) | 119,433 shares total; includes 99,148 common shares and 20,285 RSUs vesting within 60 days . |
| % of Shares Outstanding | ~0.058% (119,433 / 204,546,908) . |
| Shares Pledged | None (company states no pledging by directors/executives) . |
| 2024 Stock Vested | 110,100 shares; realized value $1,032,202 . |
| Unvested RSUs (as of 12/31/2024) | 43,045; market value $388,696 @ $9.03 . |
| Unearned PSUs (as of 12/31/2024) | 114,205 (2023 grant), $1,031,271; 107,611 (2024 grant), $971,727 . |
| Ownership Guidelines | 3x base salary; all NEOs in compliance as of 12/31/2024; 50% post-vest retention until guideline met . |
| Hedging/Pledging Policy | Prohibited for executives/directors; bans short sales and derivative transactions . |
Note: RSU tranches from 3/5/2024 vest in ~14,348 shares per year (43,045/3) on each anniversary, which can create recurring settlement-related supply; policy restrictions and retention guidelines mitigate immediate selling pressure .
Employment Terms
| Provision | Key Terms |
|---|---|
| Role / Tenure | SVP & CTO since 2018 spin-off; prior Honeywell roles; age 60; University of Illinois BS/MS . |
| Base Salary & Incentives | 2024 base salary $495,431; ICP target 70%; LTI target 200% of salary . |
| Non-Compete / Non-Solicit | 2-year post-termination non-compete and non-solicit; confidentiality/IP agreements required . |
| Severance (No CIC) | Company Severance Plan: 18 months base salary continuation (24 months for CEO), prorated annual bonus based on actual performance . |
| Severance (Double-Trigger CIC) | 18 months base + 1.5x target bonus (CEO: 24 months + 2.0x), prorated bonus; equity acceleration if awards not assumed/substituted . |
| Equity Treatment (Termination/CIC) | Without cause/good reason/retirement: next scheduled RSU tranche vests; PSUs prorated to end of cycle. Under double-trigger CIC when awards not assumed: all RSUs vest; all PSUs vest at 100% for performance metrics with equitable stock price adjustment; settle within 60 days . |
| Clawback | Mandatory recovery of incentive compensation upon qualifying restatement; policy on file with 10-K . |
| Tax Gross-Ups | None on excise taxes; no single-trigger provisions; no option repricing . |
| Deferred Compensation | Garrett Supplemental Savings Plan legacy balance: $362,355; 2024 earnings $14,603; lump-sum distribution post-separation per election . |
| Pension | Swiss broad-based plan; present value of accumulated benefits $1,041,714; 2024 interest credit 6.5%; immediate vesting; employer and employee contributions age-based . |
Summary of Potential Payments (as of 12/31/2024):
- Termination without cause (no CIC): cash $1,222,601; equity acceleration $938,708; total $2,161,308 .
- Termination without cause in connection with CIC: cash $1,742,804; equity acceleration $2,231,855; total $3,974,658 .
Performance & Track Record
- 2024 corporate results underpin pay-for-performance: net sales $3.475B, net income $282M, Adj. EBITDA $598M, Adj. EBIT $485M, FCF $358M; strong margins and cash generation; capital return via $296M buybacks and planned dividends/share repurchases for 2025 .
- Balis’s 2024 individual objectives targeted EV growth vectors, turbo transformation, R&D productivity, ESG—committee assessed above target and ICP payout at 138% of target, consistent with outperformance on EBITDA margin and FCF conversion .
- Governance and investor alignment: Say-on-Pay ~98% approval in 2024; board oversight and independent compensation consultant (Meridian); strong stock ownership and anti-hedging/pledging policies .
- Compliance note: nine Form 4s for executive officers (including NEOs) were filed three days late related to PSU vesting; administrative oversight acknowledged .
Investment Implications
- Compensation alignment: Heavy weighting to Adjusted EBITDA, margin, and FCF conversion in ICP; PSUs tied to Relative TSR and profitability metrics create direct linkage to shareholder value. Strong 2024 EBITDA margin beat (17.5% vs 16.0% target) drove ICP upside, signaling disciplined operating execution .
- Retention risk: Robust double-trigger CIC protections, two-year non-compete/non-solicit, and multi-year PSU cycles reduce departure risk; equity acceleration terms are standard but contingent on awards not being assumed in a transaction .
- Trading signals: Scheduled RSU vesting (three equal tranches from 3/5/2024 grant) implies recurring settlement flows; however, prohibition on hedging/pledging and 50% retention until 3x salary guideline achieved temper immediate selling pressure. Insider late Form 4s were procedural rather than economic; no pledging disclosed .
- Governance quality: No excise tax gross-ups, no single-trigger CIC, no option repricing; strong Say-on-Pay outcome and independent committee oversight support investor confidence in pay practices .