Anthony J. Salgado
About Anthony J. Salgado
Anthony J. Salgado, 54, is President and Chief Executive Officer of Hyster-Yale Materials Handling, Inc. (HYMH) effective January 1, 2025; he previously served as HYMH Chief Operating Officer through January 2025 and had his remit expanded in May 2023 to include supply chain and manufacturing . He holds a B.S. in Aerospace Engineering from the U.S. Naval Academy and earlier served six years as a U.S. Navy Lieutenant; prior roles include Six Sigma/Quality leadership at GE Appliances and GE Capital, and senior leadership at UniCarriers/Nissan Forklift (Americas Division President, Corporate Officer) . HY’s Pay-Versus-Performance shows net income improving from a loss in 2022 to $128.1M in 2023 and $144.2M in 2024, while Lift Truck Consolidated Operating Profit rose from $24.6M (2022) to $237.1M (2023) and $296.7M (2024); company TSR was -53.02 (2022), 18.81 (2023), and -0.54 (2024) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Hyster-Yale Materials Handling (HYMH) | President & CEO | 2025–present | Leads global lift truck operations post succession; increased incentive targets tied to higher salary midpoint . |
| Hyster-Yale Materials Handling (HYMH) | Chief Operating Officer | 2019–2024 | Global performance across Americas/EMEA/APIC; remit expanded May 2023 to supply chain/manufacturing . |
| Hyster-Yale Group | SVP, Japan/APIC/India/China | 2016–2019 | Regional growth/operations leadership . |
| UniCarriers/Nissan Forklift | President, Americas Division; VP & Corporate Officer | ~15 years (prior to 2016) | Led quality, manufacturing, aftermarket; industry board/executive committee roles . |
| GE Appliances; GE Capital | Six Sigma/Quality leadership | Prior to UniCarriers | Operational excellence and process improvement . |
| U.S. Navy | Lieutenant; SWO/Exec Officer | ~6 years | Leadership; operations discipline . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Industrial Truck Association | Board of Directors; Executive Committee | During UniCarriers tenure | Industry leadership and policy engagement . |
Fixed Compensation
- 2024 base salary (incl. fixed perquisite allowance): $701,713; base salary set at 84.2% of $797,500 salary midpoint (+9.0% vs 2023) .
- Cash in lieu of perquisites: $30,000 in 2024, increased to $35,000 effective Jan 1, 2025 .
- Effective Jan 1, 2025 promotion: base salary $768,439; short-term incentive target increased to 75% of new role salary midpoint ($871,200 → implied target $653,400); long-term equity target increased to 160% of new role salary midpoint .
Multi-year reported compensation:
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary (incl. perquisite allowance) ($) | $578,295 | $635,982 | $701,713 |
| Stock Awards ($) | $407,096 | $2,208,936 | $1,488,082 |
| Non-Equity Incentive Plan Comp ($) | $344,665 | $1,077,349 | $1,193,805 |
| Change in Pension Value & Nonqualified Earnings ($) | $7,359 | $17,207 | $22,271 |
| All Other Compensation ($) | $67,650 | $161,961 | $202,893 |
| Total ($) | $1,695,037 | $4,101,435 | $3,608,764 |
Performance Compensation
Short-Term Plan (2024):
- Target: 70% of $797,500 salary midpoint = $558,250; payout 89.7% = $500,750 (62.79% of midpoint) .
Detailed 2024 Short-Term criteria (Corporate Lift Truck; 100% of Salgado’s STP):
| Metric | Weight | Target | Result | Achievement | Weighted Payout |
|---|---|---|---|---|---|
| Lift Truck Consolidated Total Revenue ($) | 20% | $4,366,300,000 | $4,113,800,000 | 88.4% | 17.7% |
| New Units Bookings % of Target Revenue | 15% | 100.00% | 72.80% | 40.0% | 6.0% |
| New Units Bookings Adjusted Standard Margin % | 20% | 17.0% | 21.0% | 150.0% | 30.0% |
| Average Inventory as % of Adj Standard Cost | 25% | 23.5% | 27.7% | 40.0% | 10.0% |
| Lift Truck Consolidated Operating Profit ($) | 20% | $251,300,000 | $296,700,000 | 130.1% | 26.0% |
| Final Payout | 100% | — | — | — | 89.7% |
Long-Term Equity Plan (2024):
- Target (with 15% taxability uplift): 166.75% of midpoint → $1,329,831 .
- Payout: 148.9% of target; dollar-denominated payout $1,980,118; reported cash portion $693,055; stock portion grant-date fair value $1,488,082 (35% cash / 65% stock structure) .
- Performance drivers: ROTCE 50% weighting at 200% achievement (38.6% result vs 32.8% target), Strategic Objectives List 50% weighting at 97.7% achievement → total 148.9% .
2024 Long-Term criteria:
| Metric | Weight | Target | Result | Achievement | Weighted Payout |
|---|---|---|---|---|---|
| Adjusted Consolidated ROTCE – Global | 50% | 32.80% | 38.60% | 200.0% | 100.0% |
| Strategic Objectives List | 50% | 100.0% | 97.7% | 97.7% | 48.9% |
| Total Payout | 100% | — | — | — | 148.9% |
Vesting, grant mechanics, and holding:
- 2024 award grant date Feb 14, 2025; shares issued before net settlement: 28,201; shares acquired on vesting (post net settlement): 23,204; value realized on vesting $1,224,405; grant date fair value calculated at $52.767; formula share price used for share count $45.639 .
- Award shares fully vested at grant but subject to 10-year transfer restrictions from the last day of the performance period; early release only for limited hardships (home purchase, medical, education), rarely granted .
Nonqualified deferred compensation (2024):
| Plan | Executive Contributions ($) | Employer Contributions ($) | Earnings ($) | Distributions ($) | Year-end Balance ($) |
|---|---|---|---|---|---|
| Excess Plan (Salgado) | $50,461 | $145,182 | $30,907 | $178,148 | $226,550 |
Equity Ownership & Alignment
Policies and alignment:
- Hedging prohibited for officers/directors; pledging of non-restricted stock permitted only with prior approval of SVP, General Counsel & Secretary .
- No formal executive stock ownership guidelines; however, NEO equity awards carry a 10-year holding requirement, creating substantial long-term exposure .
Beneficial ownership progression:
| Year | Class A Shares Owned | % of Class |
|---|---|---|
| 2022 | 25,658 | 0.19% |
| 2023 | 47,535 | 0.34% |
| 2024 (record for 2025 proxy) | 70,739 | <1% (*) |
2024 vesting activity (context):
| Shares Issued Before Net Settlement | Shares Acquired on Vesting | Value Realized ($) |
|---|---|---|
| 28,201 | 23,204 | $1,224,405 |
Pledging/hedging status: No pledging or hedging by Salgado disclosed in the proxy beneficial ownership tables; company policy requires prior approval for any pledging .
Employment Terms
- No individual employment or change-in-control agreements; severance provided under broad-based plan only (earned but unpaid salary/vacation; qualified/excess plan benefits) .
- Limited change-in-control protections in incentive/deferred compensation plans: pro-rated target award for year of change in control; no excise tax gross-ups; multiple “change in control” definitions aligned with 409A .
- Clawbacks: NYSE-compliant Compensation Clawback Policy applies to incentive-based compensation received on/after Oct 2, 2023 in case of accounting restatement; supplemental clawback allows discretionary recovery for improperly paid bonuses .
- Insider trading, hedging, pledging, and trading windows policy disclosed in proxy .
- Promotion terms (Dec 13, 2024 approval, effective Jan 1, 2025): base salary to $768,439; ST target from 70% of $797,500 to 75% of $871,200; LT equity target from 145% to 160% of salary midpoint; perquisite allowance from $30,000 to $35,000 .
Performance & Track Record
Pay-Versus-Performance (key financial outcomes):
| Year | Net Income (GAAP, $M) | Lift Truck Consolidated Operating Profit (GAAP, $M) | Company TSR ($100 init) | Peer Group TSR – Russell 2000 Industrials ($100 init) |
|---|---|---|---|---|
| 2022 | -71.6 | 24.6 | -53.02 | 19.45 |
| 2023 | 128.1 | 237.1 | 18.81 | 54.34 |
| 2024 | 144.2 | 296.7 | -0.54 | 80.95 |
Short-term execution (2024 Lift Truck metrics):
- Revenue: $4.114B vs $4.366B target (88.4% achievement) .
- Operating profit: $296.7M vs $251.3M target (130.1% achievement) .
- Working capital discipline: average inventory at 27.7% vs 23.5% target (40% achievement); margin quality strong (21.0% adjusted standard margin vs 17.0% target, 150% achievement) .
Say-on-pay support and governance:
- 2024 say-on-pay support: over 99% approval .
- 2023 say-on-pay support: over 97% approval .
- Independent Compensation Committee; Korn Ferry as independent consultant; target compensation generally at 50th percentile of General Industrial survey .
Compensation Structure Analysis
| Aspect | Observation |
|---|---|
| Cash vs equity mix (Salgado) | 2024 compensation: stock awards $1.49M and non-equity incentive cash $1.19M; equity long-term plan paid ~65% in restricted stock with 10-year transfer restrictions and ~35% cash . |
| Shift from options to RSUs | HY does not grant stock options; long-term equity delivered in fully vested but transfer-restricted Class A shares . |
| Guaranteed vs at-risk pay | Incentives dominate total target comp; STP and LTEP targets are large vs base; payouts vary with performance; operating profit “phase-in” can adjust payouts . |
| Metric calibration | 2024 LTEP uses ROTCE and strategic objectives; STP uses revenue, bookings, margin, inventory, operating profit; payouts reflect mix of beats/misses . |
| Tax gross-ups | None for change-in-control benefits; clawbacks in force; no excise gross-ups . |
| Repricing/modification | No stock options; no repricings disclosed . |
Related Party Transactions & Red Flags
- Hedging prohibited; pledging requires prior approval; 10-year hold on NEO award shares mitigates hedging/pledging risk .
- No individual employment agreements or golden parachute tax gross-ups .
- Audit Review Committee oversees related-party transactions; policy described .
Compensation Peer Group (Benchmarking)
- Uses Korn Ferry General Industrial survey (participants ~665 parents, revenues $2.5–$4.99B) to set salary midpoints and total target compensation; HY targets 50th percentile .
Expertise & Qualifications
- B.S. Aerospace Engineering (U.S. Naval Academy) .
- Deep materials handling/industrial operations experience across global regions; leadership in quality/manufacturing/aftermarket; industry association service .
Equity Ownership & Alignment – Compliance
- Formal executive ownership guidelines are not adopted; long 10-year holding requirement effectively enforces substantial long-term stock exposure .
Employment Terms – Non-Compete/Non-Solicit
- No individual employment arrangement terms (e.g., non-compete/non-solicit, garden leave) disclosed for Salgado in the proxy; promotion 8‑K focused on compensation adjustments only .
Investment Implications
- Strong pay-for-performance alignment: 2024 LTEP tied to ROTCE and strategic objectives (148.9% payout), STP driven by Lift Truck revenue/margin/OP with disciplined working capital, yielding balanced cash/stock payouts and long holding periods that curb short-term selling pressure .
- Retention risk appears low near-term: promotion to HYMH CEO with higher salary midpoint and incentive targets, plus 10-year transfer restrictions on equity reduce liquidity of awards and incentivize long-term value creation .
- Alignment safeguards: hedging ban, pledging approval requirement, NYSE-compliant clawback, no excise gross-ups or option repricing; say-on-pay support suggests shareholder endorsement of pay design .
- Execution track record: marked improvement in Lift Truck operating profit (from $24.6M in 2022 to $296.7M in 2024) and net income recovery supports confidence in operational leadership; watch TSR relative underperformance vs Russell 2000 Industrials despite improved fundamentals .