Erik Aldag
MINERALS TECHNOLOGIESAbout Erik Aldag
Erik C. Aldag is Senior Vice President, Finance & Treasury and Chief Financial Officer of Minerals Technologies Inc. (MTX), serving as CFO since November 2022; he joined MTX in 2017 and previously led Investor Relations in 2020. He is 40 years old (as disclosed in MTX’s FY2024 10-K) and has prior finance leadership experience at The Chia Co. and Alcoa Inc. . Company performance under the compensation framework used for Aldag includes 2021–2023 performance units tied to Return on Capital (target 9.0%, actual 8.3%) and relative TSR versus the Russell 2000, S&P MidCap 400, and a peer index (component achievements 104%, 87%, and 85%, respectively; total payout 83.95 of $100 target) ; MTX delivered record sales and improved operating margin by 100 bps in 2023, reached net leverage of 1.9x EBITDA, and generated $140 million of free cash flow, with 2024 sales of $2.1B disclosed in investor materials .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Minerals Technologies Inc. | Director, Financial Analysis & Planning | 2017–2020 | Built FP&A capabilities; subsequently took on Investor Relations leadership . |
| Minerals Technologies Inc. | Investor Relations lead | 2020–2022 | Led IR communications and investor engagement . |
| Minerals Technologies Inc. | SVP, Finance & Treasury; Chief Financial Officer | Nov 2022–present | Oversees finance, treasury, controls; certifying officer on SEC filings . |
| The Chia Co. | Finance Director | Not disclosed | Led finance teams in consumer markets (disclosed in MTX 10-K) . |
| Alcoa Inc. | Various finance positions | Not disclosed | International finance experience in industrial markets (disclosed in MTX 10-K) . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $288,498 | $450,000 | $512,862 |
| Target Bonus % of Base | 42% pre-appointment, increased to 75% upon CFO appointment (pro‑rated) | 75% | 75% |
| Actual Annual Incentive Bonus ($) | $140,526 | $406,113 | $570,289 |
| Base Used for AIP ($) | $299,200 | $450,000 | $522,000 |
| Performance Factor (AIP) | 112.3% | 120.3% | 145.7% |
Performance Compensation
Annual Incentive Plan (AIP) Outcomes
| Year | Target Bonus % of Base | Performance Factor Achieved | Earned Bonus ($) |
|---|---|---|---|
| 2022 | 42% pre-appointment, pro-rated to 75% upon appointment | 112.3% | $140,526 |
| 2023 | 75% | 120.3% | $406,113 |
| 2024 | 75% | 145.7% | $570,289 |
AIP metrics emphasize Operating Income and Return on Capital, plus personal objectives; segment financial metrics also apply to segment leaders. Payouts scale up to 200% based on composite performance; for 2023 Aldag’s target and factor are shown above .
Long‑Term Incentives (Performance Units and Equity)
- 2021–2023 Performance Units were keyed to ROC and TSR vs indices/peer set; component weights: ROC 33.33%; Russell 2000 TSR 16.67%; S&P MidCap 400 TSR 16.67%; Peer Index TSR 33.33%; actual achievements produced a total payout of 83.95 (of $100 target). Aldag received $41,975 from these 2021 PUs at vest in January 2024 .
- 2024 Long‑Term Incentive payout for Aldag totaled $64,962 (cash-based LTIP) .
- Equity grants are typically approved in January during a scheduled Compensation Committee meeting; at least 50% of long-term compensation is performance-based starting in 2024; awards vest over three years; the plan uses double-trigger vesting on change in control .
| LTIP Component (2021–2023 cycle) | Weight | Target | Actual | Payout |
|---|---|---|---|---|
| Return on Capital | 33.33 | 9.0% | 8.3% | 29.45 |
| TSR vs Russell 2000 | 16.67 | Relative percentile | 104% | 20.00 |
| TSR vs S&P MidCap 400 | 16.67 | Relative percentile | 87% | 14.50 |
| TSR vs Peer Company Index | 33.33 | Relative percentile | 85% | 20.00 |
| Total (of $100 target) | 100.00 | — | — | 83.95 |
Equity Ownership & Alignment
Beneficial Ownership and Guidelines
- Beneficial ownership: 14,544 MTX shares as of March 5, 2024 (less than 1% of shares outstanding); 48 share equivalent units in supplemental plans .
- Officer stock ownership guideline: CFO required to hold MTX stock equal to 4x base salary within five years of election; all NEOs were in compliance as of March 18, 2025 and March 19, 2024 .
- Hedging, short-term trading, derivatives, margin accounts, and pledging are prohibited under MTX’s trading policy; trades require preclearance by General Counsel and are limited to open windows .
- Post‑vesting holding requirements: executives must retain at least 50% of after‑tax shares from DRSU vesting and 50% of after‑tax option exercise appreciation for five years .
Outstanding Equity (as of year‑end)
| Metric | Dec 31, 2023 | Dec 31, 2024 |
|---|---|---|
| Unvested DRSUs (#) | 6,348; MV $452,676 | 10,696; MV $815,142 |
| Options exercisable (#) | 1,439 @ $76.38 (1/23/2028); 2,777 @ $54.44 (1/22/2029); 1,907 @ $57.67 (1/21/2030); 434 @ $66.00 (1/26/2031) | 1,439 @ $76.38 (1/23/2028); 2,777 @ $54.44 (1/22/2029); 2,860 @ $57.67 (1/21/2030); 1,301 @ $66.00 (1/26/2031); 984 @ $69.81 (1/25/2032); 3,163 @ $66.08 (1/24/2033) |
| Options unexercisable (#) | 953 @ $57.67 (1/21/2030); 867 @ $66.00 (1/26/2031); 1,476 @ $69.81 (1/25/2032) | 492 @ $69.81 (1/25/2032); 6,325 @ $66.08 (1/24/2033); 5,778 @ $66.72 (1/23/2034) |
| 2024 exercises/vesting | Options: 0 exercised; Stock awards vested: 2,380 shares; value $157,417 | — |
Employment Terms
| Scenario | Severance Payment ($) | Benefits ($) | Acceleration on Equity/Units (DRSUs/Options/Performance Units) |
|---|---|---|---|
| Termination Without Cause or Resignation for Good Reason (pre‑CIC) | $1,370,250 | $71,589 | None (no acceleration) |
| On or After Change‑in‑Control (no termination) | $0 | $0 | Double‑trigger only; no acceleration without termination |
| Termination Without Cause or Resignation for Good Reason (post‑CIC) | $2,740,500 | $95,198 | DRSUs: $815,142; Options: $122,086; Performance Units: $986,200 |
- Employment agreements: evergreen term initially 18 months (24 months for CEO) extended monthly unless notice; non‑compete and non‑solicit covenants apply during employment and, subject to continued pay, for two years post‑termination; severance (pre‑CIC) equals 1.5x base salary plus a bonus amount not greater than the average of the prior two years .
- Change‑in‑control protections: three times base salary and target bonus; double‑trigger vesting only; no excise tax gross‑ups .
- Clawback policy: if MTX must restate financials, the Company will seek to recoup any incentive‑based compensation received in the prior three years in excess of amounts payable under the restated results (applies to current/former executive officers) .
- Equity grant practices: regular annual grants approved in January; no off‑cycle awards to NEOs in 2024; grants not timed around MNPI .
Investment Implications
- Alignment strong: 4x salary ownership guideline compliance, five‑year holding requirements on vested equity, and strict prohibitions on hedging/pledging reduce short‑term selling pressure and promote long‑term alignment .
- Retention risk contained: evergreen contracts, pre‑CIC severance of ~1.5x salary plus bonus average, and robust double‑trigger CIC coverage (3x salary+target) support management continuity; post‑CIC acceleration values for Aldag total ~$2.0M across DRSUs/options/PUs, indicating competitive protection .
- Pay‑for‑performance credible: AIP factors and ROC/TSR‑based PUs tie payouts to operating returns and shareholder outcomes; 2024 AIP paid 145.7% of target on strong corporate execution (record sales, margin gains, FCF) .
- Governance quality: independent Compensation Committee, no excise tax gross‑ups, double‑trigger equity, and a restatement‑based clawback are shareholder‑friendly signals; 2022 Say‑on‑Pay approval was 93% .
- Trading signals: absence of 2024 option exercises by Aldag and five‑year post‑vesting retention requirements suggest limited near‑term selling; monitor future vesting dates and windows for potential liquidity events, but preclearance and policy restrictions moderate risk .