William Sperry
HUBBELLAbout William Sperry
William R. Sperry has served as Executive Vice President and Chief Financial Officer (CFO) of Hubbell Incorporated since 2012 and announced his retirement effective December 31, 2025 after 17 years at the company and 14 years as CFO; he will continue as EVP into 2026 to support transition . He is age 62 and brings deep expertise in public company accounting, risk management, disclosure, M&A and strategic planning, with prior experience in investment banking, financial services and consulting . Under his senior leadership, Hubbell delivered 2024 results of net sales $5.6B, adjusted diluted EPS $16.57, and free cash flow $811M, alongside disciplined capital deployment (capex $180M, share repurchases $40M, 8% dividend increase) . Hubbell’s shareholder returns since 2020 (value of $100 rising to $311.89 vs peer group at $198.95) and top-quartile relative TSR performance in the 2022–2024 PSU cycle reflect strong value creation during his tenure .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Hubbell Incorporated | EVP & Chief Financial Officer | 2012–2025 (retiring), EVP to continue into 2026 | Led performance management, portfolio actions, capital deployment and shareholder value creation; 14 years as CFO, 17 years service |
| Hubbell Incorporated | Vice President, Corporate Strategy & Development; Head of Investor Relations | Prior to 2012 | Corporate strategy, investor relations leadership (foundation for CFO role) |
| Investment banking/financial services/consulting | Various leadership roles | Not disclosed | M&A, governance, risk management, strategic planning expertise |
External Roles
| Organization | Role | Years | Committees / Impact |
|---|---|---|---|
| MSA Safety Incorporated | Director | 2019–present | Audit Committee Chair; Finance Committee member; public company accounting, risk management and oversight |
Fixed Compensation
Multi-year CFO compensation (SEC SCT):
| Year | Salary ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive ($) | All Other Compensation ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2024 | 737,093 | 1,601,192 | 500,027 | 745,900 | 124,799 | 3,709,011 |
| 2023 | 716,154 | 1,484,994 | 487,474 | 1,198,800 | 121,995 | 4,009,417 |
| 2022 | 691,923 | 1,370,664 | 450,001 | 1,082,100 | 101,161 | 3,695,849 |
2024 “All Other Compensation” detail (perquisites, retirement contributions): $10,000 perquisites (financial planning/tax; CEO aircraft personal use not applicable); retirement contributions $114,799 (401(k) match, DC Plan, DC Restoration contributions) .
Performance Compensation
Short-Term Incentive (STI) – 2024 Design and Outcomes
- Design: 80% enterprise financials (Adjusted EPS, FCF) + 20% strategic objectives; CFO STI target 90% of base salary .
- Enterprise financial targets and payout: | Metric | Target | Performance vs Target | Payout % | |---|---|---|---:| | Adjusted EPS | $16.35 | 102% | 115% | | Free Cash Flow | $793M | 101% | 107% | | Blended Financial Payout | — | — | 112% |
- Strategic Objectives payout: 110% average across pillars (Serve Customers, Grow Enterprise, Operate with Discipline, Develop Our People) .
CFO STI outcome:
| Component | Value |
|---|---|
| STI Target ($) | 666,000 |
| Total Composite Payout (%) | 112% |
| STI Award ($) | 745,900 |
Long-Term Incentive (LTI) – Structure and 2024 Grants
- LTI mix: 75% performance-oriented; 50% PSUs (3 equally-weighted metrics), 25% SARs; 25% time-based Restricted Stock (RS); alignment-focused design .
- Performance Share metrics/weights: Relative Sales Growth (34%), Adjusted Operating Profit Margin (33%), Relative TSR (33%) .
- 2024 grants to CFO: | Award Type | Grant Date | Units (Threshold/Target/Max) | Base/Exercise | Grant-Date Fair Value ($) | Vesting | |---|---|---|---|---:|---| | RS | 2/6/2024 | 1,418 | — | 499,916 | 3-year cliff on grant anniversary | | SAR | 2/6/2024 | 5,680 | $352.55 | 500,027 | 1/3 per year over 3 years | | PS – RSG | 2/6/2024 | 482 / 964 / 1,928 | — | 328,907 | 3-year performance (2024–2026) | | PS – OPM | 2/6/2024 | 468 / 936 / 1,872 | — | 319,354 | 3-year performance (2024–2026) | | PS – TSR | 2/6/2024 | 468 / 936 / 1,872 | — | 453,015 | 3-year performance (2024–2026) |
PSU targets for Adjusted Operating Profit Margin (enterprise): Target 21.0% (2024–2026), Threshold 19.25%, Max 22.75%; Relative Sales Growth/TSR payout scales: 0% <25th, 100% at median, 200% >75th percentile .
Notable realized performance (2012 grant cycle ended 2024): 2022–2024 PSUs projected 200% payout across all three metrics; CFO projected shares: Target 4,842 → 9,684 projected (subject to final peer reports) .
Option/SAR exercises and vesting (2024):
- CFO had no SAR exercises in 2024 (—) .
- RS vested: 2,680 shares, value realized $965,952 .
- PS vested: 10,505 shares, value realized $3,804,786 .
Equity Ownership & Alignment
| Category | Detail |
|---|---|
| Beneficial Ownership (CFO) | 66,958 total (43,315 common + 23,643 SARs exercisable) |
| Shares Outstanding | 53,573,359 (as of March 7, 2025) |
| Ownership % | ~0.125% of shares outstanding (computed from and ) |
| Unvested RS | 1,418 shares; market value $593,986 (12/31/2024 price $418.89) |
| Unearned PS (unvested) | 2,836 shares; market/payout value $1,187,972 (12/31/2024 price $418.89) |
| Unexercisable SARs (key grants) | 5,680 granted 2/6/2024 @ $352.55; expiration 2/6/2034 |
| Ownership Policy | NEOs must maintain significant ownership multiples; all NEOs compliant as of 12/31/2024 |
| Hedging/Pledging | Prohibited for officers/directors; no pledging or hedging permitted |
Outstanding equity awards detail (select CFO entries):
- SARs: 2/10/2021 (4,956 exercisable; $163.26; exp. 2/10/2031), 2/8/2022 (7,643 exercisable; 3,822 unexercisable; $185.87; exp. 2/8/2032), 2/7/2023 (2,664 exercisable; 5,330 unexercisable; $241.17; exp. 2/7/2033), 2/6/2024 (— exercisable; 5,680 unexercisable; $352.55; exp. 2/6/2034) .
- RS unvested: 1,418 (market value $593,986 at $418.89 close on 12/31/2024) .
Employment Terms
| Term | Provision |
|---|---|
| Employment agreement | None for NEOs; compensation governed by policies and plan documents |
| Severance (Senior Severance Policy) | 4 weeks base salary per year of service (min 26 weeks, max 78), continued benefits during salary continuation, pro-rated target STI, up to 12 months outplacement |
| Change-in-Control (CIC) | Double-trigger required; CFO multiple 2.5x base salary and 2.5x target STI, continued benefits 2.5 years; pro-rated target STI; incremental supplemental plan credits; up to $50,000 outplacement; no tax gross-up (safe harbor reduction may apply) |
| Equity in CIC | Unvested RS/SARs assumed/continue; full vest on termination without cause within 12 months post-CIC; PS treatment at Compensation Committee’s discretion |
| Clawback | 2023 Compensation Recovery Policy covering incentive-based comp for 3 preceding fiscal years in case of material restatement |
| Hedging/Pledging | Prohibited; includes short sales, derivatives, margin accounts, pledges (with narrow exceptions) |
Scenario values (CFO at 12/31/2024):
| Scenario | Severance ($) | Equity Acceleration ($) | Welfare Benefits ($) | Total ($) |
|---|---|---|---|---|
| Death | — | 9,579,167 | — | 9,579,167 |
| Disability | — | 9,579,167 | — | 9,579,167 |
| Involuntary Termination | 1,576,784 | 2,454,696 | 60,816 | 4,092,296 |
| Retirement | — | 2,454,696 | — | 2,454,696 |
| CIC + Involuntary Termination | 2,536,133 | 9,579,167 | 75,673 | 12,190,973 |
Performance & Track Record
| Metric | 2024 Result |
|---|---|
| Net Sales | $5.6B |
| Adjusted Diluted EPS | $16.57 |
| Free Cash Flow | $811M |
| Capital Deployment | Capex $180M; Share Repurchases $40M; Dividend +8% |
| TSR (2020–2024) | $100 → $311.89 (Hubbell); peer group $198.95 |
| 2022–2024 PSU Outcomes | Relative Sales Growth 76th percentile (proj. 200% payout); Adjusted OPM 21.9% (200% payout); Relative TSR 124.5% (200% payout) |
Compensation Structure and Governance
- Program emphasizes pay-for-performance (significant at-risk compensation) and robust performance goals; independent consultant (Exequity) supports committee; annual benchmarking; clawback policy; no repricing or cash buyouts; no tax gross-ups; prohibitions on hedging/pledging .
- Peer group revised for 2024 to maintain comparability (added Ingersoll Rand, Lennox International, Vertiv; removed Fastenal, Roper Technologies, Wesco International) .
- Say-on-Pay: 95.1% approval in 2024; ~92.5% average over 10 years .
Additional Signals: Vesting Cycles and Insider Selling Pressure
- 2024 vesting events: CFO had RS vest (2,680 shares) and PS vest (10,505 shares) in early 2024, which typically creates tax-withholding transactions and potential sale activity around vest dates; CFO had no SAR exercises in 2024 (—), reducing option-exercise related selling pressure in that year .
- Insider trading policy applies strict controls on timing/trading and prohibits hedging/pledging, mitigating misalignment risks .
Investment Implications
- Alignment: High performance orientation (75% of LTI performance-based) and ownership policy compliance indicate strong pay-shareholder alignment; prohibited hedging/pledging and clawbacks further reduce governance risk .
- Retention/Transition: CFO retirement announced with planned succession and transitional support through 2026 reduces transition risk; successor’s compensation terms and CIC protections appear standard for role .
- Incentive Levers: STI tied to Adjusted EPS and FCF incentivizes disciplined P&L and cash generation; PS metrics (relative sales growth, OPM, relative TSR) drive sustainable growth and margin expansion; historical 200% PSU payouts reflect execution strength but may embed high expectations going forward .
- Trading Signals: Anticipate periodic selling around annual PSU/RS vest dates for tax/withholding; absence of option exercises in 2024 suggests limited exercise-driven supply in near term; monitor Form 4s around February and May vest windows .
- Governance/Say-on-Pay: Strong shareholder support (95.1%) and conservative practices (no gross-ups, no repricing) reduce compensation-related headline risk .