Eric Seip
IngredionAbout Eric Seip
Eric Seip is Senior Vice President, Global Operations and Chief Supply Chain Officer at Ingredion, serving since January 2021; he is 57 years old . Prior to Ingredion, he was Senior Vice President, Global Supply Chain at ChampionX Holding Inc. (formerly Ecolab) from January 2020 to January 2021 . Company performance context relevant to his operations remit: 2024 net sales were $7.4B (down 9% year over year) while gross margin expanded ~270 bps, driven by operational excellence—network optimization, procurement savings, and improved forecast accuracy/service levels; adjusted diluted EPS rose to $10.65 (from $9.42) and TSR ranked top quartile versus the performance peer group . His 2024 annual incentive plan (AIP) was tied to Adjusted EBITDA, working capital efficiency, and cost/productivity, contributing to an aggregate payout of 139.7% of target .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ChampionX Holding Inc. (formerly Ecolab) | Senior Vice President, Global Supply Chain | Jan 2020 – Jan 2021 | Global supply chain leadership at an oil and gas equipment and services company |
External Roles
- No external public company directorships or committee roles were disclosed for Seip in the executive officer bios reviewed .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | 502,875 | 523,292 | 541,844 |
| Base Salary (set for year) ($) | — | — | 543,375 |
| Target Bonus (% of Salary) | 70% | 70% | 70% |
| Non-Equity Incentive (AIP) ($) | 399,713 | 481,058 | 531,504 |
| Perquisites ($) | 116,393 | 103,800 | 18,670 |
| All Other Compensation ($) | 116,393 | 103,800 | 111,907 |
| Total Compensation ($) | 1,751,817 | 1,889,929 | 2,070,882 |
Perquisites provided: choice of car allowance/lease, financial planning/tax prep, and executive physical; the company does not provide tax gross-ups on perquisites .
Performance Compensation
2024 Annual Incentive Plan – Metrics, Targets, Results
| Metric | Weight | Threshold | Target | Maximum | Actual | Payout % |
|---|---|---|---|---|---|---|
| Adjusted EBITDA ($MM) | 70% | 1,014.9 | 1,194.0 | 1,313.4 | 1,228.3 | 128.7% |
| Working Capital as % of Net Sales | 15% | 26.2% | 22.8% | 19.4% | 20.1% | 180.5% |
| Cost/Productivity ($MM) | 15% | 15.3 | 18.0 | 24.0 | 23.5 | 191.7% |
| Personal Objectives | 20% | — | — | — | — | 115.0% |
| Aggregate AIP Payout | — | — | — | — | — | 139.7% |
Seip’s 2024 AIP payout: Target $380,363; financial component paid 145.9% ($444,021); personal objectives paid 115.0% ($87,483); aggregate payout 139.7% ($531,504) .
2024 Equity Grants
| Instrument | Grant Date | Target Shares | Max Shares | Exercise/Price | Grant Date Fair Value ($) | Vesting |
|---|---|---|---|---|---|---|
| Stock Options | 2/13/2024 | — | — | $108.38 | 200,003 | 33% on 2/13/2025; 33% on 2/13/2026; 34% on 2/13/2027; 10-year term |
| PSUs (2024–2026) | 2/13/2024 | 3,658 | 7,316 | — | 468,114 | Vest based on performance; distribution no later than 3/15/2027 |
| RSUs | 2/13/2024 | 1,829 | — | — | 198,227 | 3-year cliff vest on 2/13/2027 |
PSU Design (2024–2026 performance cycle)
| Metric | Weight | Threshold | Target | Maximum |
|---|---|---|---|---|
| Adjusted ROIC | 50% | <8% | 10.0% | ≥12% |
| Relative TSR (percentile) | 50% | <25th | 50th | ≥75th |
PSU Results (2022–2024 performance cycle)
| Metric | Weight | Threshold | Target | Maximum | Actual | Payout % |
|---|---|---|---|---|---|---|
| Adjusted ROIC | 50% | <8% | 10.0% | ≥11.5% | 13.0% | 200% |
| Relative TSR (percentile) | 50% | <25th | Median | ≥75th | 95th | 200% |
| Final PSU Payout | — | — | — | — | — | 200% |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Shares Owned (Common) | 49,903 |
| Shares Outstanding | 64,299,712 |
| Ownership as % of Shares Outstanding | ~0.08% (49,903 ÷ 64,299,712) |
| Phantom Stock Units + RSUs (Deferred/Unvested) | 14,243 |
| Stock Options – Exercisable (within 60 days of 3/24/2025) | 29,172 |
| Unexercisable Options Outstanding by Grant | 3,463 (2/16/2022); 5,076 (2/15/2023); 7,596 (2/13/2024) |
| Unvested RSUs (Count, Market Value at $137.56) | 1,852 ($254,817) – 2/16/2022; 1,883 ($258,959) – 2/15/2023; 1,865 ($256,508) – 2/13/2024 |
| Unearned PSUs at Target (Count, Payout Value at $137.56) | 3,588 ($493,565) – 2/15/2023; 3,658 ($503,194) – 2/13/2024 |
| Stock Ownership Guideline | 3× salary for NEOs; 5-year compliance window; counts common, unvested RSUs, 401(k) shares, phantom units (excludes options/PSUs) |
| Guideline Compliance | All NEOs exceeded or were within the compliance window as of 12/31/2024 |
| Hedging/Pledging | Hedging prohibited; pledging generally prohibited for directors/executives (limited exceptions with demonstrated capacity to repay without recourse) |
| Nonqualified Deferred Compensation (2024) | Executive contributions $294,560; company contributions $54,980; aggregate earnings $209,721; year-end balance $1,441,158 |
Vesting Schedules (Key Grants)
| Grant Date | Instrument | Vesting |
|---|---|---|
| 2/16/2022 | PSUs | Vested upon PCC approval; shares distributed 2/18/2025 |
| 2/16/2022 | RSUs | 100% vested on 2/16/2025 |
| 2/16/2022 | Options | 33% on 2/16/2023; 33% on 2/16/2024; 34% on 2/16/2025 |
| 2/15/2023 | PSUs | Vests upon PCC approval; distribution no later than 3/15/2026 |
| 2/15/2023 | RSUs | 100% vest on 2/15/2026 |
| 2/15/2023 | Options | 33% on 2/15/2024; 33% on 2/15/2025; 34% on 2/15/2026 |
| 5/02/2023 | RSUs | 100% vest on 5/02/2026 |
| 2/13/2024 | PSUs | Vests upon PCC approval; distribution no later than 3/15/2027 |
| 2/13/2024 | RSUs | 100% vest on 2/13/2027 |
| 2/13/2024 | Options | 33% on 2/13/2025; 33% on 2/13/2026; 34% on 2/13/2027 |
Employment Terms
| Provision | Detail |
|---|---|
| Employment Start Date | Joined Ingredion in January 2021 as SVP, Global Operations & Chief Supply Chain Officer |
| Executive Severance (Change-in-Control) | Two times the sum of highest base salary in any consecutive 12-month period within prior 36 months plus target AIP; 24 months continued health/welfare benefits; 12 months outplacement; 3 months personal allowances equivalent; 3 months car lease payments |
| Non-Compete / Non-Solicit (CIC) | Two-year non-compete and non-solicit upon termination within two years of a CIC |
| AIP/Equity Treatment (CIC, Double-Trigger) | Target AIP pro-rated; all stock options/SARs become exercisable; all other awards vest; performance periods lapse and are deemed satisfied at target, contingent on termination without Cause or for Good Reason within two years of CIC |
| “Good Reason” (CIC Plan) | Material reduction in base salary; relocation >50 miles with substantially increased commute; material reduction in duties/responsibilities (excluding title changes); other specified actions |
| Clawback | Revised in Oct 2023 to meet NYSE/SEC standards; mandatory recovery of excess incentive comp over a 3-year lookback upon financial restatement; discretionary recovery in cases of misconduct |
| Hedging/Pledging | Hedging prohibited; pledging generally prohibited with limited exceptions |
| Tax Gross-Ups | No tax gross-ups for perquisites or in the event of a change in control |
Estimated Potential Payments (as of 12/31/2024)
| Scenario | Severance Payments ($) | AIP Award ($) | Stock Options ($) | RSUs ($) | PSUs ($) | Health & Welfare ($) | Retirement ($) | Perquisites ($) | Outplacement ($) | Total ($) |
|---|---|---|---|---|---|---|---|---|---|---|
| Death/Disability | — | 531,504 | 418,955 | 470,166 | 496,775 | — | — | — | — | 1,917,400 |
| Involuntary Termination Without Cause | 543,375 | — | — | — | — | — | — | — | — | 543,375 |
| Change in Control | 1,847,475 | 380,363 | 588,296 | 770,284 | 996,760 | 36,246 | 169,138 | 3,594 | 15,000 | 4,807,156 |
Investment Implications
- Pay-for-performance alignment appears robust: 2024 AIP tied to EBITDA, working capital, and cost/productivity delivered a 139.7% payout, while PSUs emphasize Adjusted ROIC and rTSR with the 2022–2024 cycle paying out at 200% due to superior ROIC and TSR performance .
- Retention risk looks manageable: sizable unvested RSUs/PSUs and staggered option vesting through 2027, combined with ownership guidelines (3× salary) and two-year non-compete/non-solicit under CIC, create strong retention hooks; double-trigger equity vesting requires termination around a CIC event .
- Insider selling pressure: upcoming RSU vest dates (2026–2027) and option tranches (2025–2027) could add supply; however, hedging is prohibited and pledging is tightly restricted, mitigating misalignment risks .
- Governance signals: five late Form 4s in 2024 are a minor red flag, but company-wide say-on-pay support was ~93% in 2024 and clawback policy was strengthened in Oct 2023, indicating constructive governance posture .
- Operational execution contributes to value: 2024 gross margin expansion (~270 bps) amid lower net sales reflects functional improvements (network optimization, procurement savings, forecast accuracy/service), consistent with Seip’s scope in global operations and supply chain .