Alan Haughie
LOUISIANA-PACIFICAbout Alan Haughie
Alan J.M. Haughie is Executive Vice President and Chief Financial Officer of Louisiana-Pacific (LPX), serving since January 2019; previously he was CFO at ServiceMaster Global Holdings (2013–2017), a Fortune 1000 residential and commercial services company, and CFO at Federal-Mogul (2010–2013) . Age 59 as of March 1, 2023, he has overseen a period of strong operating recovery: in 2024 net sales rose 14% to $2.9B, Adjusted EBITDA reached $688M, and net income totaled $420M; company TSR value per $100 was 375.07 vs peer group 214.80 . LP’s annual cash incentive metrics are tied to Adjusted EBITDA and Economic Profit, and long-term incentives are PSUs based on 3-year ROIC with a TSR modifier, supporting pay-for-performance alignment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ServiceMaster Global Holdings, Inc. | Senior Vice President & CFO | 2013–2017 | Fortune 1000 public company providing residential/commercial services; CFO experience in scaled services platform |
| Federal-Mogul Corporation | Senior Vice President & CFO | 2010–2013 | CFO experience at major components manufacturer |
| Louisiana-Pacific Corporation | EVP & CFO | 2019–present | Corporate finance leadership during growth and margin recovery |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $636,724 | $643,198 | $690,696 |
| All Other Compensation ($) | $91,394 | $70,367 | $52,314 |
| Perquisites Detail (2024) | – | – | Employer contributions $49,054; Life insurance $2,952; Special recognition $308; Total $52,314 |
Performance Compensation
| Metric | Weighting (EVP/CFO) | Target | Actual | Payout | Vesting/Notes |
|---|---|---|---|---|---|
| Adjusted EBITDA (Corp) | 35% (within 70% corporate total) | $527M | $688M | Corporate attainment 200% | Annual cash incentive paid in Q1 2025 |
| Economic Profit (Corp) | 35% (within 70% corporate total) | $119M | $239M | Corporate attainment 200% | Annual cash incentive paid in Q1 2025 |
| Business Unit Goals | 30% total (OSB 10%, Siding 10%, South America 10%) | Not disclosed | Mixed; South America > target, others > max | Business attainment 172% (CFO) | Annual cash incentive paid in Q1 2025 |
2024 bonus mechanics for Alan Haughie:
- Target bonus: 80% of base salary; target $535,141 .
- Actual annual incentive payout: $1,025,553 based on corporate 200% and business 172% attainment .
Long-Term Equity Awards (2024 grants)
| Award Type | Grant Date | Target Shares (#) | Fair Value ($) | Vesting |
|---|---|---|---|---|
| PSUs (2024) | Feb 8, 2024 | 9,585 | $690,679 | Vest at 3 years based on ROIC with TSR ±20% modifier; settled in stock |
| RSUs (2024) | Feb 8, 2024 | 9,585 | $662,500 | 3 equal annual tranches beginning first anniversary; settled in stock |
Option Exercises and Stock Vested (2024)
| Name | Options Exercised (#) | Value on Exercise ($) | Shares Vested (#) | Value on Vesting ($) |
|---|---|---|---|---|
| Alan J.M. Haughie | — | — | 20,367 | $1,437,009 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 90,105 shares as of Mar 10, 2025; <1% of common stock (asterisk indicates less than 1%) |
| Ownership Guidelines | EVP multiple = 3x base salary; all NEOs met guidelines in 2024 |
| Hedging/Pledging | Hedging and pledging of LP securities prohibited by Insider Trading Policy |
| Deferred Compensation (2024) | Registrant contributions $25,204; Aggregate earnings $13,328; Year-end balance $183,956 |
PSU Vesting Schedule (Outstanding as of 12/31/2024, reported at threshold 50%; subsequent outcome noted)
| Vest Date | Shares (Alan Haughie) |
|---|---|
| 02/10/2025 | 3,894 |
| 02/10/2026 | 4,598 |
| 02/08/2027 | 4,846 |
| Total | 13,338 |
- The Compensation Committee determined on Feb 13, 2025 that 2022 PSUs paid 0% (threshold not achieved) .
Employment Terms
| Scenario (Alan Haughie) | Payments Earned but Unpaid ($) | Severance ($) | Equity Awards ($) | Other Benefits ($) | Total ($) |
|---|---|---|---|---|---|
| For Cause / Without Good Reason | $64,320 | — | — | $183,956 | $248,276 |
| Without Cause / Good Reason | $599,461 | $1,857,787 | $2,805,245 | $193,956 | $5,456,449 |
| Death or Disability | $599,461 | — | $4,609,802 | $183,956 | $5,393,219 |
| Termination Following Change of Control | $599,461 | $3,741,171 | $4,669,531 | $250,849 | $9,261,012 |
| Change of Control Not Resulting in Termination | — | — | $4,669,531 | — | $4,669,531 |
| Retirement | $64,320 | — | — | $183,956 | $248,276 |
Key terms:
- Severance (non-COC): 1.5x salary + target bonus for other NEOs; COBRA reimbursements up to 18 months; outplacement up to $10,000; RSUs vest in full; PSUs vest pro-rata based on actual performance .
- Change-of-control: Lump sum equal to 3x salary + target bonus plus 36 months’ welfare benefits cash value; double-trigger vesting applies if awards are assumed; detailed RSU/PSU acceleration rules specified .
- Restrictive covenants: Non-compete and non-solicit obligations for 18 months for NEOs under severance agreements .
- Clawbacks/recoupment: Dodd-Frank clawback policy; additional Recoupment Policy effective Dec 1, 2023 for fraud or misconduct causing restatement, enabling recovery/cancellation of cash and equity gains .
Performance & Track Record (Company-level)
| Year | Company TSR ($100 initial) | Net Income ($MM) | Adjusted EBITDA ($MM) |
|---|---|---|---|
| 2020 | 127.73 | 497 | 757 |
| 2021 | 272.24 | 1,373 | 1,877 |
| 2022 | 208.61 | 1,083 | 1,389 |
| 2023 | 253.70 | 178 | 478 |
| 2024 | 375.07 | 420 | 688 |
- 2024 business highlights: net sales +14% to $2.9B; Siding net sales +17% to $1.6B; OSB net sales +15% to $1.2B; net income $420M; Adjusted EBITDA $688M; operating cash flow $605M .
Compensation Governance and Peer Group
- 2024 say-on-pay approval: over 95% “FOR” .
- Peer group used for 2025 benchmarking includes Allegion, American Woodmark, A.O. Smith, Armstrong World Industries, Apogee, Boise Cascade, Fortune Brands, Gibraltar, Griffon, JELD-WEN, Lennox, Masco, Owens Corning, Simpson Manufacturing, Trex, UFP Industries .
- 2025 adjustments: base salary increased to $699,697 for Haughie; 2025 annual incentive split 70% corporate/30% business unit for CFO; LTI mix PSUs 50% / RSUs 50%, PSU performance = 3-year ROIC with TSR modifier .
Compensation Structure Analysis
- Cash vs equity mix: 2024 target total compensation for Haughie = $2.53M (base $668,926; annual incentive target $535,141; LTI $1.325M), reflecting ~52% equity and 46% performance-based overall for other NEOs .
- Strong pay-for-performance: 2024 annual incentive paid at an average 194% across NEOs; Haughie’s payout reflects corporate max and high business attainment .
- Equity risk posture: Shift toward PSUs with ROIC and TSR modifier; 2024 PSU terms emphasize long-term value creation .
- Award modifications: 2021 PSUs modified in Oct 2023, creating incremental fair value reported in 2023—monitor for precedent risk even though 2022 modifications had no incremental value .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited—reduces misalignment risk .
- 2022 PSU outcome: 0% payout at threshold—limits near-term selling pressure from that tranche .
- Say-on-pay support: 95% approval reduces governance overhang risk .
- Executive severance/COC multiples: 1.5x non-COC and 3x COC are market-based; double-trigger vesting mitigates windfall risk .
Investment Implications
- Alignment: Strong linkage to Adjusted EBITDA/Economic Profit in annual plan and ROIC/TSR in PSUs aligns Haughie’s incentives with margin expansion and capital efficiency .
- Retention: Competitive base and bonus with substantial equity awards and market-standard severance/COC economics support retention; non-compete/non-solicit (18 months) adds protection .
- Trading signals: Upcoming RSU/PSU vesting dates (2026–2027) and 2024 vesting volumes (20,367 shares, $1.44M value) may create periodic supply; hedging/pledging prohibitions limit adverse signals .
- Governance: High say-on-pay approval and formal clawback/recoupment policies reduce compensation-related risk, though prior PSU modification in 2023 warrants monitoring for precedent .