Anthony Grillo
About Anthony Grillo
Anthony Grillo (birth year: 1955) is a non‑interested, independent Director of Western Asset High Income Opportunity Fund Inc. (HIO), appointed effective November 15, 2024; he serves on the Nominating, Audit, Compensation, and Pricing & Valuation Committees and oversees 17 portfolios in the Franklin Templeton fund complex . He is retired; previously Founder/Managing Director/Partner of American Securities Opportunity Funds (2006–2018), Senior Managing Director at Evercore Partners (2001–2004), Joseph Littlejohn & Levy (1999–2001), and The Blackstone Group (1991–1999) .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| American Securities Opportunity Funds | Founder, Managing Director & Partner | 2006–2018 | Not disclosed |
| Evercore Partners Inc. | Senior Managing Director | 2001–2004 | Not disclosed |
| Joseph Littlejohn & Levy, Inc. | Senior Managing Director | 1999–2001 | Not disclosed |
| The Blackstone Group L.P. | Senior Managing Director | 1991–1999 | Not disclosed |
External Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Littelfuse, Inc. | Director | Since 1991 | Not disclosed |
| Oaktree Acquisition Corp. II | Director | 2020–2022 | Not disclosed |
| Oaktree Acquisition Corp. | Director | 2019–2021 | Not disclosed |
Board Governance
- Board composition: eight directors; seven are Independent. Eileen A. Kamerick (Independent) serves as Chair; Independent Directors regularly meet in executive session and are advised by independent counsel .
- Committee memberships: Grillo is a member of Audit, Nominating, Compensation, and Pricing & Valuation; all committees are comprised solely of Independent Directors and chaired by an Independent Director .
- Committee chairs and activity: Audit (Chair: Nisha Kumar; 4 meetings FY2024), Nominating (Chair: Hillary A. Sale; 7 meetings FY2024), Pricing & Valuation (Chair: Carol L. Colman; 4 meetings FY2024), Compensation (Chair: Peter Mason; 1 meeting FY2024) .
- Board activity and attendance: Board held 4 regular meetings in FY2024; each Director attended at least 75% of the meetings for which they were eligible. The Fund has no formal policy for director attendance at annual stockholder meetings; no Director attended the 2024 Annual Meeting. Note: Grillo’s appointment was effective November 15, 2024, after FY2024 ended .
- Independence safeguards: Nominating Committee evaluates independence and potential conflicts, including relationships with the adviser or service providers and service on competing organizations; Director qualification requirements include experience, limits on outside boards, and character/fitness per bylaws .
Fixed Compensation
| Metric | FY Ended 9/30/2024 | CY Ended 12/31/2024 |
|---|---|---|
| Aggregate compensation from HIO ($) | $0 | n/a |
| Total compensation from HIO + Fund Complex ($) | n/a | $32,989 |
| Pension/retirement benefits | None provided by the Fund | None provided by the Fund |
Notes:
- Compensation reflects service across HIO and other investment companies advised by FTFA; each Director currently holds 17 investment company directorships within the Fund Complex .
- No remuneration was paid to the “interested” Director (Ms. Trust) by the Fund in FY2024; independent directors are compensated for Board and committee service .
Performance Compensation
- No performance‑based compensation (e.g., RSUs/PSUs, options, performance metrics) for Directors is disclosed in the proxy. The compensation table presents cash compensation; no equity awards or bonus metrics are discussed for Directors .
Other Directorships & Interlocks
| Company | Relationship to HIO | Potential Interlock/Conflict Considerations |
|---|---|---|
| Littelfuse, Inc. | External public company directorship | No specific conflicts disclosed; Nominating Committee reviews affiliations and competing organizations as part of independence assessment . |
| Oaktree Acquisition Corp. II | Prior SPAC directorship | Tenure ended 2022; no conflicts disclosed with HIO or adviser . |
| Oaktree Acquisition Corp. | Prior SPAC directorship | Tenure ended 2021; no conflicts disclosed with HIO or adviser . |
- The proxy states that no non‑interested Director (including Grillo) or immediate family members had any interest in the Fund’s investment adviser or its affiliates as of December 31, 2024 .
Expertise & Qualifications
- Private equity and credit investing leadership (American Securities Opportunity Funds) and senior roles in investment banking/private equity at Evercore, JLL, and Blackstone—supporting valuation oversight and capital markets expertise .
- Oversees 17 portfolios in the Franklin Templeton fund complex, indicating breadth across fund governance and risk oversight frameworks .
- Board attributes noted: experience as managing director of a private equity and credit firm and in investment banking; selected based on character, integrity, willingness to serve, and time commitment .
Equity Ownership
| Holder | HIO Beneficial Ownership Dollar Range | Aggregate Dollar Range in Family of Investment Companies |
|---|---|---|
| Anthony Grillo | A = None | A = None |
Additional ownership context:
- As of the record date (February 7, 2025), Directors and officers as a group owned less than 1% of outstanding HIO shares .
Governance Assessment
- Strengths: Independent Director with deep PE/credit and investment banking experience; sits on all governance‑critical committees (Audit, Nominating, Compensation, Pricing & Valuation). Committee structures are fully independent with clear charters and active cadence (e.g., 4–7 meetings FY2024). Board leadership by an Independent Chair with regular executive sessions enhances oversight quality .
- Alignment concerns: Grillo reports “None” ownership in HIO and across the family of investment companies, which may be viewed as a skin‑in‑the‑game shortfall by some investors; the proxy does not disclose director stock ownership guidelines to mitigate this concern .
- Conflicts and related‑party exposure: Proxy explicitly discloses no interests for non‑interested Directors in the adviser or its affiliates. Nominating Committee process addresses independence, outside affiliations, and competing organizations, reducing conflict risk .
- Engagement signals: Board/committee meeting cadence is robust; FY2024 attendance threshold of at least 75% was met by Directors overall, though Grillo’s appointment was after FY2024. No formal annual meeting attendance policy; no Directors attended the 2024 meeting (pre‑appointment) .
- Compliance: Section 16(a) reporting requirements were met in FY2024 according to the Fund’s review, indicating insider reporting discipline .
RED FLAGS (Investor confidence considerations):
- Zero HIO ownership (and no ownership across the fund family) may weaken perceived alignment for pay‑for‑performance or risk oversight; no ownership guidelines disclosed to offset this .
- Limited transparency on director compensation structure (no breakdown of retainer vs. committee chair fees; no equity/long‑term components) constrains assessment of incentive alignment .
Positive Signals:
- Comprehensive committee participation with independent chairs and defined charters; active Nominating Committee engagement (7 meetings) suggests strong governance hygiene in director selection and independence vetting .
- Audit Committee oversight includes financial reporting integrity, auditor independence, and pre‑approval of permissible non‑audit services; fees and independence safeguards are clearly disclosed .
Insider Trades
- Section 16(a)/30(h) compliance: The Fund believes all filing requirements were met for FY ended September 30, 2024 based on copies received and written representations; no specific Form 4 transaction details are disclosed in the proxy .