Sign in

    Sanjay Chowbey

    President and CEO at Kennametal Inc
    Since June 1, 2024
    Age
    56 years
    Education
    Holds an MBA from the Kellogg School of Management at Northwestern University, a Master of Science degree in mechanical engineering from Tennessee Tech University, and a Bachelor of Science degree in mechanical engineering from B.I.T. in Sindri, India.
    Tenure
    Joined Kennametal Inc. in June 2021 as Vice President and President of the Metal Cutting segment and was promoted to President and CEO on June 1, 2024.

    Also at Kennametal Inc

    CRR
    Carlonda R. Reilly
    Vice President and Chief Technology Officer
    FH
    Faisal Hamadi
    Vice President and President of Infrastructure Business Segment
    JLB
    Judith L. Bacchus
    Vice President and Chief Administrative Officer

    About

    Sanjay Chowbey possesses a robust academic background with an MBA and advanced engineering degrees that provide the foundation for his strategic leadership and technical acumen.

    With over two decades of experience, he has held prominent positions at notable firms including Flowserve Corporation, TE SubCom, and Danaher/Fortive Corporation, where he consistently delivered operational excellence and business growth.

    His tenure at Kennametal Inc. began in June 2021 when he served as Vice President and President of the Metal Cutting segment, a role in which he expanded the customer base and improved operating margins; his promotion to President and CEO on June 1, 2024 allowed him to further drive transformative initiatives such as launching new products and optimizing the business portfolio.

    Beyond his executive responsibilities, he has actively engaged with industry stakeholders across sectors like electric vehicles, aerospace, and medical devices, underscoring his commitment to innovation and continuous improvement.

    $KMT Performance Under Sanjay Chowbey

    Past Roles

    Organization Role Date Range Details
    Kennametal Inc. Vice President, Kennametal Inc. and President, Metal Cutting Segment June 2021 - June 1, 2024 Global responsibility for advancing the business segment’s strategy, driving operational excellence, and delivering profitable growth
    Flowserve Corporation President, Services & Solutions business July 2019 - June 2021 Revenues of $1.2 billion
    TE SubCom (a division of TE Connectivity) Senior Vice President and President 2017 - 2018 N/A
    Danaher / Fortive Corporation Various roles; most recent: President of Thomson Industries 2006 - 2017 Over 11 years of service with increasing responsibilities
    Arvin Meritor Inc. Experience in an unspecified role N/A No specific details provided

    Fixed Compensation

    Data from  FY 2024
    Component NameAmountPayment ScheduleAdditional Details
    Base Salary $527,3042024Fixed annual base salary
    Kennametal Restoration Plan Contribution $31,0642024Fixed contribution as part of the restoration plan
    Thrift Plus Plan Contribution $21,9692024Fixed annual contribution under the Thrift Plus Plan
    Life Insurance $3,5452024Fixed annual premium coverage

    Performance Compensation

    Data from  FY 2024

    Annual Incentive Plan (AIP)

    MetricWeight (%)ThresholdTargetMaximumPayout StructureEvaluation PeriodAdditional Details
    Kennametal Revenue20%N/AN/AN/A0% at below, 50% at threshold, 100% at target, 200% at maxTwo six-month periodsFor Segment Presidents. Performance measured by revenue achievement.
    Adjusted EBITDA25%<75%100%125%Same as aboveTwo six-month periodsPerformance based on corporate adjusted EBITDA.
    PWCPS30%>111%100%90%Same as aboveTwo six-month periodsPerformance metric for cost per share metrics.
    Segment Revenue20%92% (Threshold)100% (Target)108% (Max)Same as aboveTwo six-month periodsMeasured for segment-specific goals.
    Segment Adjusted EBIT25%<56% (Threshold)100% (Target)144% (Max)Same as aboveTwo six-month periodsFinancial performance at the segment level.
    ESG GoalsModifierN/AN/A+/- 10%Modifier appliedFull fiscal yearESG performance adjustments.

    Target AIP Amount: 75% of base salary for the first eleven months and 110% for one month as President and CEO.

    Note: No vesting schedule is applicable as the AIP is cash-based.

    Long-Term Incentive Program (LTIP)

    MetricWeight (%)Threshold/UnitsTarget/UnitsMaximum/UnitsVesting ScheduleEvaluation PeriodAdditional Details
    Adjusted ROIC66.66%N/AN/AN/APSUs: Cliff vest after 3 yearsMeasured annually each fiscal yearFirst tranche achieved 67.3% of target; performance measured annually.
    Average Adjusted EBITDA Margin33.34%N/AN/AN/AN/A (performance still being calculated)Over three-year period ending June 30, 2026No payout yet for this component.

    | Grant Details | | | | | | | Grant Date: August 15, 2023; PSUs Fair Value: $302,887; RSUs Fair Value: $363,444. | | RSUs | N/A | N/A | N/A | N/A | Vest over 3 years (one-third each anniversary) | Over three-year period | Total RSUs granted: 13,984 units. | | Adjusted ROIC (PSUs specific) | N/A | 5,827 units (Threshold) | 11,654 units (Target) | 23,308 units (Max) | PSUs: Cliff vest after 3 years | Measured annually each fiscal year | Performance conditions apply; continuous service required. |

    LTIP Target Grant Value for Fiscal 2024: $908,628 which is 185% of base salary.

    Overall, the performance compensation for 2024 comprises both a cash-based AIP and a share-based LTIP. The AIP is evaluated over two six-month periods with multiple financial performance metrics, while the LTIP includes performance stock units (PSUs) and restricted stock units (RSUs) with vesting based on both performance and time.