Kim Garcia
Quanex Building ProductsAbout Kim Garcia
Kimberley N. (“Kim”) Garcia, age 46, is Vice President and Chief Human Resources Officer at Quanex Building Products (NYSE: NX), serving in the role since November 1, 2021 after joining Quanex in 2020 as VP–Human Resources . She holds a B.A. from Rice University, an MBA from the University of Houston, and a Doctor of Education from Creighton University . Company performance during the most recent fiscal year highlights alignment to shareholder value: three-year absolute TSR was 48.3%, Adjusted EBITDA grew 14.3% year-over-year, and Adjusted EBITDA margin expanded by 20 bps, with AIA goals adjusted to exclude late-year acquisition effects to preserve line-of-sight on pre-set targets . The annual incentive scorecard emphasized revenue, EBITDA and margin, with 2024 executive AIA payouts at 90% of target, supporting pay-for-performance linkage (Garcia’s AIA payout equaled 54% of salary) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Quanex Building Products | VP–Chief Human Resources Officer | 2021–present | Leads global HR strategy, talent management, engagement, and benefits across a transforming portfolio; liaison to Compensation/Governance committees |
| Quanex Building Products | VP–Human Resources | 2020–2021 | Built HR frameworks and policies; prepared for CHRO transition |
| Memorial Hermann Health System | VP HR; Director HR | 2015–2020 | Drove talent management, change management, and employee engagement at a major healthcare system |
| Direct Energy | Director, Human Resources | 2014–2015 | HR leadership in energy services; policy interpretation and engagement |
| Air Liquide America | Sr. Director, U.S. Human Resources | 2010–2014 | Led HR for industrial gases employer; multi-site operations HR |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Not disclosed in reviewed filings | — | — | Quanex filings do not list external public-company directorships for Garcia |
Fixed Compensation
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Base Salary ($) | 340,000 | 380,000 |
| Target Annual Bonus (% of Salary) | 60% | 60% |
| Actual Annual Incentive Paid ($) | 155,910 | 203,993 |
Notes:
- AIA payout mechanics: threshold 30%, target 60%, max 120% of salary for CHRO .
- FY2024 executive AIA achievement was 90% of target; Garcia’s achieved payout equaled 54% of salary (i.e., 90% × 60%) .
Performance Compensation
Annual Incentive Award (AIA) Structure and Outcome (FY2024)
| Component | Metric | Weight | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| AIA Scorecard | Revenue | 20% | $1,128–$1,146 mm (target range) | $1.1 bn (AIA basis) | Contributes to 90% of target achievement | Cash, paid Dec 2024 |
| AIA Scorecard | Adjusted EBITDA | 35% | $157–$159 mm (target range) | $145.2 mm (AIA basis) | Contributes to 90% of target achievement | Cash, paid Dec 2024 |
| AIA Scorecard | Adjusted EBITDA Margin | 35% | 13.8%–14.1% | 13.5% (AIA basis) | Contributes to 90% of target achievement | Cash, paid Dec 2024 |
| AIA Scorecard | Working Capital as % of Sales | 10% | 12.28% | 11.50% | Contributes to 90% of target achievement | Cash, paid Dec 2024 |
| Garcia AIA Result | CHRO | — | Target 60% of salary | Achieved 54% of salary | $203,993 | Paid Dec 2024 |
Design updates: FY2025 AIA equal weighting across Revenue, EBITDA, Adjusted EBITDA Margin, and Run-Rate Synergy targets (25% each), reflecting Tyman integration priorities .
Long-Term Incentives and Measured Outcomes
| Vehicle | Metric | Weight in LTI Mix | Performance Period | Targets | Actual | Payout/Units |
|---|---|---|---|---|---|---|
| Performance Restricted Stock Units (PRSUs) | Absolute TSR | 30% of LTI | FY2022–FY2024 | Threshold −20%→50%; Target +20%→100%; Max ≥+50%→150% | +48.3% Absolute TSR | 147% of target; Garcia vested 4,116 shares; dividends paid $4,281 |
| Performance Shares (cash-settled) | RONA | 40% of LTI | FY2022–FY2024 | Threshold 14.6%→75%; Target 17.4%→100%; Max 20.2%→200% | 17.5% RONA | 103% of target; Garcia payout $82,878 |
| Time-based Restricted Stock | Time vesting | 30% of LTI | 3-year cliff | Vests at 3 years | — | Unvested positions shown below |
FY2024 Grants (Dec 7, 2023):
- Garcia received performance shares (4,900 units), PRSUs and restricted stock totaling 7,000 shares; grant-date fair value $219,110 .
- FY2024 LTI target values by role: CHRO $330,000 (structure set by Committee; allocations 30% RS, 30% PRSU, 40% PS) .
Vesting Schedules (Selected Outstanding Awards)
| Grant Date | Instrument | Units | Vest/Measurement | Notes |
|---|---|---|---|---|
| 12/7/2023 | Restricted Stock | 3,700 | Time-based; expected vest 12/7/2026 | Part of FY2024 RS tranche |
| 12/7/2023 | PRSUs | 3,300 | Absolute TSR measured to 10/31/2026 | Stock-settled upon performance certification |
| 12/7/2022 | Restricted Stock | 4,400 | Time-based; expected vest 12/7/2025 | FY2023 RS tranche |
| 12/7/2022 | PRSUs | 3,900 | Absolute TSR measured to 10/31/2025 | Stock-settled upon performance certification |
| 12/9/2021 | Restricted Stock | 2,900 | Time-based; vested 12/9/2024 | FY2022 RS tranche |
| 12/9/2021 | PRSUs | 2,800 | Absolute TSR measured to 10/31/2024 | Vested Dec 2024 at 147% of target |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Stock Ownership Guidelines | VP level must hold 1× base salary in company stock; all named executive officers are in compliance . |
| Hedging/Pledging | Prohibited; no margin accounts or derivatives; insider trading policy enforced . |
| Unvested Equity (as of 10/31/2024) | 7,000 RS and PRSUs (3,300) from 2023; 8,300 RS and PRSUs (3,900) from 2022; 5,700 RS and PRSUs (2,800) from 2021; market values $203,420, $241,198, and $165,642, respectively . |
| Options | No options outstanding for Garcia; company did not grant options in FY2022–FY2024 . |
| Deferred Compensation | Executives may defer up to 100% of AIA and long-term incentive cash; Garcia showed no deferrals in FY2024 . |
Employment Terms
| Provision | Terms |
|---|---|
| Severance Policy Tier | Tier 2 (applies to Garcia) . |
| Severance (no CIC) | 1.5× base salary + 1.5× target annual bonus; pro-rata actual bonus; 18 months health & welfare benefits . |
| Change-in-Control (double trigger) | 2× base salary + 2× target annual bonus (higher of termination or CIC date); pro-rata target bonus; 18 months health & welfare benefits . |
| Equity treatment on CIC | Options become fully exercisable; if not assumed, RS restrictions lift; performance shares paid at target, pro-rated to nearest full year; PRSUs vest in full with TSR determined by CIC price . |
| Clawbacks | Board may recover incentive pay upon material restatement; NYSE-compliant 3-year mandatory clawback adopted Oct 2023 . |
| Tax Gross-ups | No excise tax gross-ups for executives (policy) . |
| Restrictive Covenants | Severance conditioned on signed release and compliance with restrictive covenants; violations cease/repay benefits . |
| Perquisites (FY2024) | Life insurance $821; 401(k) match $6,720; cell phone stipend $1,200; total other comp $25,991 . |
Compensation Structure vs Performance Metrics
- Program design targets the market median, with >70% of LTI performance-based; FY2024 AIA metrics: Revenue (20%), Adjusted EBITDA (35%), Adjusted EBITDA Margin (35%), Working Capital as % of Sales (10%) .
- FY2025 AIA adds 25% weighting to run-rate synergy achievement post-Tyman integration, strengthening operational alignment to merger execution .
- LTI mix: 30% Restricted Stock (3-year vest), 30% PRSUs (Absolute TSR), 40% Performance Shares (RONA), each with 3-year performance cycles; FY2022 cycles paid 147% (PRSUs) and 103% (Performance Shares), respectively .
Say-on-Pay, Peer Group, and Governance
- Say-on-Pay support: 94.4% approval in 2024, indicating shareholder endorsement of pay practices .
- Peer Group: FY2024 benchmarking across 16 industry peers; FY2025 updated to 19 peers reflecting combined-company scale post-Tyman (e.g., Fortune Brands, JELD-WEN, MasterBrand) .
- Independent oversight: Compensation & Management Development Committee uses FW Cook as independent consultant; robust policies (no single-trigger CIC, no hedging/pledging, clawbacks) .
Investment Implications
- Pay-for-performance discipline: Strong linkage to EBITDA, margin, TSR, and returns (RONA), with AIA outcomes moderated to 90% of target in FY2024 after excluding acquisition impact, reinforcing target rigor .
- Retention risk appears contained: Multi-year PRSU and RS vesting through 2025–2026, plus Tier 2 double-trigger CIC severance (2× base+bonus) and benefits, reduces near-term turnover risk for Garcia .
- Trading signal—vesting supply: Potential stock issuance from PRSUs and settlement of RS over the next 12–24 months (e.g., 3,300 PRSUs and 3,700 RS from 2023 grants) could modestly add to float upon vesting; cash-settled performance shares mitigate dilution .
- Alignment safeguards: Prohibition on hedging/pledging and compliance with ownership guidelines support shareholder alignment; updated FY2025 AIA synergy metric is a near-term execution KPI for integration value realization .