Anthony Grillo
About Anthony Grillo
Anthony Grillo (born 1955) is an independent Class I Director of Western Asset High Yield Opportunity Fund Inc. (HYI), serving since November 15, 2024; he sits on the Audit, Nominating, Compensation, and Pricing & Valuation Committees . He is a retired private equity and credit investor, previously Founder/Managing Director/Partner of American Securities Opportunity Funds (2006–2018) and senior managing director roles at Evercore (2001–2004), Joseph Littlejohn & Levy (1999–2001), and The Blackstone Group (1991–1999) . As of December 31, 2024, his beneficial ownership in HYI is “A” (None), with aggregate ownership across the Franklin Templeton family also “A” (None) . The Board is majority independent (7 of 8) and chaired by Independent Director Eileen A. Kamerick .
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
- Classification and term: Class I Director serving until the 2027 Annual Meeting .
- Independence: Serves on all four standing committees composed entirely of Independent Directors (Audit, Nominating, Compensation, Pricing & Valuation) .
- Committee chairs: Audit—Nisha Kumar (audit committee financial expert); Nominating—Hillary A. Sale; Compensation—Peter Mason; Pricing & Valuation—Carol L. Colman .
- Attendance and engagement: In FY ended May 31, 2025, the Board held 4 regular and 3 special meetings; each Director attended at least 75% of aggregate Board and eligible committee meetings. Committee meetings: Audit (6), Nominating (5), Pricing & Valuation (4), Compensation (3) .
- Governance processes: Independent Directors meet outside management; advised by independent legal counsel; charters available on fund website .
Fixed Compensation
| Metric | Amount | Notes |
|---|---|---|
| Aggregate compensation from HYI (FY ended 05/31/25) | $8,057 | Paid for Board/committee service; HYI provides no pension/retirement benefits to Directors |
| Total compensation from HYI + Fund Complex (CY 2024) | $32,989 | Across 21 fund directorships in complex |
The Fund does not provide pension or retirement benefits to Directors; remuneration is not paid to the “interested” Director by HYI .
Performance Compensation
| Element | Disclosure Status |
|---|---|
| Performance metrics tied to director compensation (e.g., TSR, revenue, EBITDA) | Not disclosed in proxy |
| Stock awards (RSUs/PSUs), option awards | Not disclosed in proxy |
| Severance/change-of-control, clawbacks, tax gross-ups | Not disclosed in proxy |
Other Directorships & Interlocks
| Company | Sector/Type | Potential Interlock/Conflict |
|---|---|---|
| Littelfuse, Inc. | Electronics manufacturing | No related-party interest with adviser/affiliates as of 12/31/24, per proxy |
| Oaktree Acquisition Corp.; Oaktree Acquisition Corp. II | SPACs | Prior roles; no current related-party interest disclosed |
Expertise & Qualifications
- Private equity/credit and investment banking experience (American Securities Opportunity Funds, Blackstone, Evercore, JLL) .
- Board’s listed attributes include his private equity/credit and investment banking background; SEC-required qualifications statement not implying special expertise beyond oversight .
Equity Ownership
| Holder | HYI Beneficial Ownership Dollar Range | Aggregate Dollar Range in Family |
|---|---|---|
| Anthony Grillo | A = None (as of 12/31/24) | A = None (as of 12/31/24) |
- Group holdings: Directors/officers as a group beneficially owned less than 1% of HYI shares as of August 29, 2025 .
Governance Assessment
- Committee breadth and independence: Grillo serves on Audit, Nominating, Compensation, and Pricing & Valuation—key oversight roles that shape controls, board composition, pay policy, and valuation; all committees are fully independent, enhancing governance credibility .
- Engagement: Board and committee cadence was robust in FY2025; attendance ≥75% for all Directors suggests acceptable engagement; Audit met 6x indicating active financial oversight .
- Alignment: Beneficial ownership is “None” for Grillo, and group ownership <1%; while common in fund boards, low personal stake can be perceived as weaker alignment—monitor for any future purchases or ownership guideline disclosures (none provided) .
- Conflicts: Proxy indicates no non-interested Director nor immediate family had interests in the adviser or affiliates; Nominating Charter factors include independence and conflicts screening, and Board uses independent counsel—mitigating related-party risks .
- Leadership: Independent Chair structure with executive sessions and independent counsel support strengthens oversight and investor confidence .
Red Flags
- Low direct ownership (None) may be viewed as limited “skin-in-the-game” for alignment, though typical for closed-end fund boards .
- No disclosure of performance-linked director pay or equity-based awards; structure appears fixed-fee for service, which aligns with fund governance norms but offers limited performance sensitivity .
Overall Implication: Grillo’s extensive PE/credit and banking background, broad committee participation, and the Board’s independent structure indicate solid governance coverage in audit/valuation/compensation. Key monitoring items for investors are ownership alignment (currently none) and any future disclosures on director pay structure changes or related-party transactions (none disclosed) .