Agustin Izquierdo
LyondellBasell IndustriesAbout Agustin Izquierdo
Executive Vice President & Chief Financial Officer of LyondellBasell (effective March 1, 2025); age 47. Joined LYB in November 2022 as VP, Strategy & Finance (Intermediates & Derivatives); promoted to SVP, Olefins & Polyolefins Americas & Refining in April 2024; appointed CFO in November 2024 effective March 2025. Education: MBA, University of Chicago Booth; Master’s in Engineering and Bachelor’s in Actuarial Science, UNAM; prior roles at BASF (2009–2022) and Morgan Stanley Investment Banking (from 2000) . Company performance context for incentive alignment: 2024 STI payout at 104% driven by strong Safety and Value Creation despite negative TSR; PSUs for the 2022–2024 cycle paid 79% due to TSR in upper-half of peers but FCF per share below target . As CFO, Izquierdo emphasized cash conversion and disciplined capital allocation, including deferrals of projects and capex reductions; LYB reported $3.8B CFO and $1.9B returned to shareholders in 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| LyondellBasell | EVP & CFO | Mar 2025–present | Emphasized 75% TTM cash conversion, target 80%; reduced/ deferred capex (FLEX II, MoReTec II); focus on maintaining investment-grade rating and cash generation . |
| LyondellBasell | SVP, O&P Americas & Refining | Apr 2024–Feb 2025 | Operational improvements post-turnarounds; portfolio management progress in Americas . |
| LyondellBasell | VP, Strategy & Finance, Intermediates & Derivatives | Nov 2022–Apr 2024 | Supported transformation and value enhancement initiatives . |
| BASF | General Manager; Business Director, Americas; VP Planning, Finance & Digital | 2009–2022 | Finance and operational leadership across Americas; digital & planning roles . |
| Morgan Stanley | Investment Banking Division | 2000–2009 (nearly a decade) | Corporate finance and transactions foundation . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| — | — | — | No other public company boards disclosed in appointment filing reviewed . |
Fixed Compensation
| Component | Value/Structure | Effective Date | Notes |
|---|---|---|---|
| Base Salary | $650,000 | Mar 1, 2025 | Per Appointment Letter . |
| Target STI Bonus | 90% of base salary | Mar 1, 2025 | Short-Term Incentive (cash); subject to Board approval . |
| Target LTI Award | 250% of base salary | Mar 1, 2025 | Award mix: 60% PSUs, 40% RSUs; subject to Board approval . |
| Share Ownership Guideline | 4x base salary | Mar 1, 2025 | Executive Committee guideline level . |
Performance Compensation
Annual STI Structure and 2024 Company Results
| Metric | Weight | Target Framework | 2024 Actual Outcome | Payout | Vesting |
|---|---|---|---|---|---|
| Business Results | 60% | Multi-factor business score | Company component payout 62% | 62% | Cash paid annually . |
| Value Creation | 10% | Recurring annual EBITDA target; 2024 target $600mm | Target set to advance ~$1B recurring EBITDA by 2025 | 200% | Cash paid annually . |
| Safety (TRIR/PSIR) | 20% | TRIR and PSIR, with discretion for incidents | TRIR 0.127; PSIR 0.021 | 153% | Cash paid annually . |
| Sustainability | 10% | PPAs, energy efficiency, recycled/renewable polymers | PPAs 2042 GW (200%); efficiency +1.5% (151%); 203kt polymers (139%) | 163% | Cash paid annually . |
| Overall Company STI Payout | — | Weighted composite of above | — | 104% | Cash paid annually . |
Long-Term Incentives (LTI) – PSUs and RSUs
| Instrument | Weight in LTI | Performance Metrics | Period | Payout Mechanics | Vesting Schedule |
|---|---|---|---|---|---|
| PSUs | 60% of LTI target | Relative TSR and FCF per share; TSR capped at 100% if negative | 3-year | 0–200% of target; 2022–2024 PSU payout 79% | Shares issued in first quarter after original performance period . |
| RSUs | 40% of LTI target | Time-based | 3-year | Value realized with stock price | RSUs granted in 2024+ vest ratably over 3 years; 2023 and earlier award RSUs cliff vest after 3 years . |
Equity Ownership & Alignment
| Policy/Guideline | Detail |
|---|---|
| Ownership Guidelines | 4x base salary for Executive Committee; PSUs/options do not count toward compliance . |
| Hedging/Pledging | Prohibited for officers and directors; 10b5-1 preclearance required; insider trading policy enforced . |
| Clawbacks | Robust clawback policy allows recovery of performance-based compensation in specified circumstances . |
| Beneficial Ownership | Not detailed for Izquierdo in excerpts reviewed; refer to future proxy/Forms 4 for holdings updates . |
Employment Terms
| Term | Provision | Source |
|---|---|---|
| Employment Type | At-will (may terminate at any time with/without cause or notice) | |
| Severance Eligibility | Eligible to participate in Executive Severance Plan | |
| Severance (No CIC) | Lump sum: prior-year base salary + target annual bonus; plus ~18 months subsidized COBRA premiums; subsidized life insurance for 18 months; outplacement | |
| Change-in-Control | Double-trigger; if termination within 2 years of CIC: cash severance equal to 2x base salary + target bonus (CEO 3x); equity awards accelerated/pro-rated per plan; no excise tax gross-ups | |
| LTI Treatment Timing | PSUs shares issued in first quarter after original performance period end | |
| Ownership Restrictions | Cannot sell unless guidelines met; PSUs/options excluded from guideline calculation |
Compensation Committee and Governance
- Compensation & Talent Development Committee membership: Chair Albert Manifold; members Anthony Chase, Rita Griffin, Virginia Kamsky .
- Independent compensation consultant engaged; annual say-on-pay; no repricing of underwater options; no guaranteed bonuses; hedging/pledging prohibited .
Performance & Track Record Highlights
- CFO remarks: 75% EBITDA-to-cash conversion over past 12 months vs long-term 80% target; $1.7B cash balance; continued dividends and buybacks; disciplined capex reductions and project deferrals (FLEX II, MoReTec II) to align with market conditions .
- Company operational/cash outcomes: 3Q25 cash conversion 135%; CFO reiterated commitment to investment-grade rating and strong second-half cash conversion .
- 2024 results context supporting incentive outcomes: $3.8B cash from operating activities; $1.9B returned to shareholders; STI payout at 104% on strong Safety and Sustainability; PSUs at 79% for 2022–2024 cycle due to negative TSR but relative outperformance vs peers .
Investment Implications
- Alignment: High at-risk pay mix (STI 90% of salary; LTI 250% with 60% PSUs) and 4x salary ownership guideline, combined with hedging/pledging prohibitions and robust clawbacks, indicate strong pay-for-performance alignment and reduced misalignment risk .
- Retention risk: Participation in Executive Severance Plan with double-trigger CIC terms and defined no-CIC severance lowers immediate retention risk; at-will status persists, but ownership guidelines and multi-year vesting (RSUs ratable; PSUs 3-year) create ongoing retention hooks .
- Trading signals: RSUs vest ratably over three years beginning with 2024+ grants, introducing predictable vesting cadence that could create periodic selling pressure; however, preclearance and 10b5-1 plan requirements plus ownership guidelines mitigate opportunistic trading .
- Execution focus: CFO’s cash conversion targets, capex deferrals, and disciplined capital allocation suggest near-term emphasis on FCF resilience; Value Creation metric set at $600mm in 2024 underpins STI leverage to EBITDA improvements, making earnings/cash flow delivery pivotal to Izquierdo’s payout trajectory .