Paulus Bucher
IPG PHOTONICSAbout Paulus Bucher
Dr. Paulus Bucher is Senior Vice President, Global Operations at IPG Photonics, appointed July 1, 2025; he is age 58 and initially located in Germany under a managing director service contract with IPG Photonics GmbH & Co. KG, with planned relocation to the U.S. once work permissions are obtained . Bucher’s background spans two decades in global manufacturing, supply chain, logistics, and quality operations across complex photonics and communications businesses, most recently serving as SVP Global Operations at Adtran where he led the operational integration of Adtran and ADVA and implemented major ERP and S&OP systems; earlier roles included senior operations posts at ADVA, CommScope, and Ericsson . During his initial tenure, IPG’s Q3 2025 results showed revenue growth of 8% year over year, gross margin improvement to 39.5%, and a return to profitability (GAAP EPS $0.18) as industrial demand stabilized and medical/advanced applications grew ; the prior year (2024) had net sales down 24% as headwinds weighed on materials processing, with cash from operations of $248 million and a strong year-end cash position of $930 million .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Adtran | Senior Vice President, Global Operations | Not disclosed | Led integration of Adtran and ADVA; implemented ERP and S&OP for scalability and efficiency |
| ADVA | Senior operations roles | Not disclosed | Managed global supply chains and large-scale transformation efforts |
| CommScope | Senior operations roles | Not disclosed | Led complex multi-site operations and supply chains |
| Ericsson | Senior operations roles | Not disclosed | Led transformation programs across global operations |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| None disclosed | — | — | — |
Fixed Compensation
| Component | Amount | Terms |
|---|---|---|
| Base Salary (U.S.) | $420,000 | Annual base salary payable by IPG Photonics Corporation; AIP participation deemed to start Jan 1, 2025 |
| Managing Director Fixed Remuneration (Germany) | €388,553 (gross) | Paid in 14 installments; includes an annual vacation bonus equal to one month’s salary (paid with July payroll) and a second annual bonus equal to one month’s salary; pro rata if partial year |
Performance Compensation
Annual Incentive Plan (AIP)
| Metric | Weighting | Target | Actual | Payout | Notes |
|---|---|---|---|---|---|
| Company financial results | 75% | Target AIP 65% of base salary | Not disclosed | Not disclosed | Participation deemed effective Jan 1, 2025; weightings set annually under the AIP |
| Individual performance | 25% | Included in 65% AIP target | Not disclosed | Not disclosed | AIP metrics reviewed and set each fiscal year |
Long-Term Incentives (LTI)
| Instrument | Weight | Grant Target Value | Vesting | Performance Metrics |
|---|---|---|---|---|
| RSUs | 50% | 150% of base salary (converted to USD) | 33% on Aug 8, 2026; 33% on Aug 8, 2027; 34% on Aug 8, 2028 | Time-based; dividend equivalents only if vested |
| PSUs | 50% | 150% of base salary (converted to USD) | Cliff vest on Aug 8, 2028 (if earned) | Same criteria and performance periods as PSUs granted to NEOs in Feb 2025 |
Performance criteria context: recent PSU designs at IPG have used organic revenue growth (25% weight) and adjusted operating margin (25% weight), with a 3-year performance period and payout range 0–200%; the company lowered the threshold payout to 25% in 2024 given challenging conditions . Historical PSU vesting outcomes show rigorous targets (2021 PSUs: relative TSR fell below threshold; OCF/Adjusted NI paid at 66.3%) .
Equity Ownership & Alignment
- Stock ownership guidelines require senior executive officers to hold at least 2x their annual salary in IPG equity; compliance expected within four years of appointment. Time-based RSUs count; stock options and unvested PSUs do not. Anti-hedging and anti-pledging policies apply to all officers and directors .
- As of Dec 31, 2024, NEOs exceeded or were within the phase-in period for ownership requirements; Bucher is a new appointee with a four-year compliance window .
- Beneficial ownership for Bucher was not disclosed in the 2025 proxy; no shares or options are enumerated for him in those tables (he was appointed in mid-2025) .
Employment Terms
| Term | Detail |
|---|---|
| Appointment | Appointed SVP, Global Operations on July 1, 2025; Managing Director of IPG Photonics GmbH & Co. KG effective July 1, 2025; reports to CEO |
| Relocation | Expected relocation to U.S. headquarters upon U.S. work permission; managing director service contract automatically terminates at that time |
| Severance Plan | Tier I Executive under IPG Executive Severance Plan; eligible for severance if terminated without cause or resigns for good reason (subject to release) |
| Severance Details (non-CIC) | Performance-based equity prorated based on actual full-period performance, with an additional 12 months of deemed service for vesting purposes |
| Severance Details (post-CIC) | Lump-sum cash severance includes bonus multiple (Tier I: 200% of target annual bonus) and pro-rated in-cycle bonus based on target; PSUs deemed earned at target |
| AIP Plan Condition | Amended AIP requires participant to be on payroll on payment date (with exceptions for death, disability, or involuntary termination); coordinates benefits with Severance Plan |
| Non-Compete / Garden Leave | Company may place Bucher on garden leave with continued pay; contractual non-compete and confidentiality obligations survive termination |
| Confidentiality & Penalties | Contract includes confidentiality obligations with a contractual penalty equal to one gross monthly salary per culpable breach (per month), including post-termination breaches |
| Consent for Extraordinary Actions | Prior consent required for transactions beyond ordinary course (e.g., founding/dissolving subsidiaries, branch changes, significant loans, real estate transactions, pension commitments) |
| Additional Duties | May be required to serve on boards/advisory bodies of affiliates without additional pay; must resign such roles upon contract termination |
| Clawback | IPG maintains clawback policies covering incentive-based compensation consistent with SEC/Dodd-Frank requirements |
Investment Implications
- Alignment: Ownership guidelines (2x salary) and anti-pledging/hedging policies reduce misalignment risk and discourage leveraged positions; 50% of LTI via PSUs ties value to multi-year operating performance .
- Retention risk and selling pressure: RSUs vest in three tranches (Aug 2026, Aug 2027, Aug 2028), creating potential scheduled supply; PSUs cliff vest Aug 8, 2028, concentrating performance-contingent supply at a single date .
- Incentive mix and rigor: AIP weighting (75% company financials, 25% individual) and PSU metrics historically centered on organic growth and operating margin signal pay-for-performance; prior PSU outcomes demonstrate challenging targets (e.g., 0% payout on TSR and 66.3% on OCF/Adj. NI) .
- Change-in-control economics: Tier I provisions (PSUs at target, 200% target bonus, lump-sum payments) provide downside protection but can inflate exit compensation; monitor M&A scenarios and governance responses .
- Execution signal: Bucher’s integration and operations track record (Adtran/ADVA ERP and S&OP deployments) aligns with IPG’s strategy to optimize manufacturing footprint and reduce product costs; early signs in Q3 2025 show revenue and gross margin improvements amid stable demand .