Edmond E. Hughes
Executive Vice President and Chief Human Resources Officer at 
HUNTINGTON INGALLS INDUSTRIES
HUNTINGTON INGALLS INDUSTRIESExecutive
About Edmond E. Hughes
Executive Vice President and Chief Human Resources Officer at HII since April 2022; previously Vice President, Human Resources & Administration at Ingalls Shipbuilding (2006–2022), with earlier HR leadership roles at General Motors and TRW Automotive. Education: B.S. (Tougaloo College) and M.B.A. (Indiana University) . Age 61 as of February 2025 . During his tenure, HII’s TSR was +15.2% in 2023 and −25.7% in 2024; the 2022–2024 LTIP cycle paid out at 109% of target on EBITDAP, ROIC and relative EBITDAP metrics, indicating mixed market returns but LTIP goal attainment tied to operating and cash metrics .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| HII – Ingalls Shipbuilding | Vice President, Human Resources & Administration | 2006–2022 | Senior HR leadership supporting shipbuilding workforce, labor and administration |
| General Motors | HR roles (increasing responsibility) | Not disclosed (pre-2006) | Large-scale manufacturing HR experience |
| TRW Automotive | HR roles (increasing responsibility) | Not disclosed (pre-2006) | Automotive sector HR and operations exposure |
Fixed Compensation
- Not individually disclosed for Mr. Hughes in recent proxy NEO tables; HII does not maintain individual employment agreements for executives .
Performance Compensation
- HII Annual Incentive Plan (AIP) metrics for corporate executives emphasized operating margin (OM) and operating cash flow (OCF), plus strategic leadership; 2024 corporate score totaled 65 points, reflecting headwinds on cash flow while OM modestly exceeded target .
- Long-term equity (RPSRs) used 3-year performance measured on EBITDAP, ROIC, and relative EBITDAP vs S&P A&D Select; 2022–2024 cycle paid 109% of target (EBITDAP 200 at 40% weight; ROIC 58 at 40%; relative EBITDAP 30 at 20%) .
AIP – Corporate 2024 (illustrative for corporate officers)
| Metric | Weight | 0% Target | 100% Target | 200% Target | Actual/Points | Final AIP Points |
|---|---|---|---|---|---|---|
| OM — Performance (%) | 45% | 5.60 | 6.61 | 7.03 | 102 points | 46 |
| OCF — Performance ($M) | 45% | 1,233 | 1,527 | 1,620 | Not met (0 points) | 0 |
| Strategic Leadership | 10% | 0 | 100 | 200 | 186 points | 19 |
| Total | — | — | — | — | — | 65 |
LTIP – 2022–2024 RPSR Results
| Metric | Weight | 100% Target | Actual | Payout (Points) | Contribution |
|---|---|---|---|---|---|
| EBITDAP ($M) | 40% | 3,605 | 3,852 | 200 | 80 |
| ROIC (%) | 40% | 50.43 | 49.02 | 58 | 23 |
| Relative EBITDAP Growth (%) | 20% | 55.00 | 31.00 | 30 | 6 |
| Total LTIP Score | — | — | — | — | 109 |
- Vesting terms: RPSRs vest after three-year performance; RSRs vest on a graded three-year schedule; no dividends paid before vest; accrued dividend equivalents paid only upon vesting .
Equity Ownership & Alignment
- Stock ownership guidelines: elected officers reporting to the CEO must hold HII shares equal to 3× base salary; CEO 7×; holdings include direct shares, RSRs, and qualified plan equivalents; NEO compliance levels disclosed (e.g., CEO at 171% of target) though Hughes-specific compliance was not disclosed .
- Prohibitions: hedging, short sales, and pledging company stock are prohibited; company states directors and executive officers had no pledged shares; dividend equivalents on RSUs accrue but are not paid prior to vesting .
Employment Terms
- At-will employment; no individual employment or change-in-control agreements; Dodd-Frank clawback policy applies to incentive compensation .
- Severance plan (for elected officers): lump sum equal to 1.5× base salary + target bonus; 18 months employer-paid medical/dental premiums; financial planning and outplacement benefits; equity awards prorate/accelerate per plan (death/disability/retirement) and accelerate at target upon qualifying termination tied to change-in-control (double trigger) .
Performance & Track Record
- 2024 performance highlights: consolidated revenue $11.5B, operating margin 4.6%, net earnings $550M; free cash flow $40M amid inflation, labor and supply chain challenges; 1-year TSR −25.7% and $368M returned via dividends/repurchases .
- Governance and pay quality: say-on-pay approvals consistently strong (96% in 2024; 97% in 2023–2020), indicating investor support for pay-for-performance design .
HII Financial Context (last 3 fiscal years)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($USD) | $10,676,000,000 | $11,454,000,000 | $11,535,000,000 |
| EBITDA ($USD) | $1,151,000,000* | $1,119,000,000* | $991,000,000* |
| Net Income ($USD) | $579,000,000 | $681,000,000 | $550,000,000* |
Values marked with * retrieved from S&P Global.
Risk Indicators & Red Flags
- Hedging/pledging prohibitions mitigate alignment risk; strong clawback policy enhances accountability .
- Section 16 reporting: prior (2023 proxy) noted Hughes corrected delayed reporting of small dividend reinvestment share acquisitions; company reported timely filings in 2024 except for a July-2024 delay applicable to executive officers generally (restricted stock rights accruals), later corrected .
- No executive tax gross-ups; no repricing of options; no employment/CIC agreements (shareholder-friendly) .
Expertise & Qualifications
- Deep HR leadership across heavy manufacturing and defense; led HR at Ingalls Shipbuilding for 16 years prior to CHRO role .
- Education: B.S. Tougaloo College; M.B.A. Indiana University .
Investment Implications
- Alignment: CHRO role is governed by rigorous ownership guidelines, clawbacks, and prohibitions on hedging/pledging—reducing misalignment risk even without individual compensation disclosure .
- Incentive levers: Corporate AIP punished OCF underperformance (2024 score 65), while LTIP paid 109% on 2022–2024 RPSRs—indicating stronger multi-year operating performance than single-year cash generation; expect HR priorities around retention and productivity to remain central to achieving OM/OCF targets .
- Retention/transition risk: Absence of employment/CIC agreements plus standardized severance (1.5× salary+bonus) suggests market-standard protection; no pledging and strong say-on-pay support reduce governance overhang .
- Signal: 2024 TSR decline and AIP shortfall vs OCF targets emphasize execution on cash conversion and throughput; monitoring insider Forms 4 for Hughes would refine views on near-term selling pressure, though current policies limit hedging/pledging .