Anthony Brancato
About Anthony Brancato
Anthony Brancato, 64, is President, Engine Services – Business Aviation, appointed January 2021. He joined StandardAero in February 2017, serving as President, Associated Air Center (Feb 2017–Dec 2018) and Senior Vice President, Integration (Jan 2019–Dec 2020). He previously led Honeywell Aerospace’s Global Business Aviation Aftermarket (>$1.4B revenue; ~300 service centers) and held VP/GM roles at Textron Lycoming, AlliedSignal, and Honeywell. He holds an MBA (University of New Haven), BA in Management (University of Phoenix), AS in Engineering, and FAA A&P certificate (Long Beach City College) . Company performance during 2024: revenue +14.8% YoY to $5,237.2M, Adjusted EBITDA +23.1% to $690.5M, Net Income $11.0M; Business Aviation end-market grew 8% YoY . Initial post‑IPO TSR from Oct 2–Dec 31, 2024: $100 → $75.60 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| StandardAero | President, Business Aviation | Jan 2021–present | Leads Business Aviation engine services; segment demand +8% YoY in 2024 . |
| StandardAero | SVP, Integration | Jan 2019–Dec 2020 | Integrated operations and programs . |
| StandardAero | President, Associated Air Center | Feb 2017–Dec 2018 | Executive leadership in VIP/completions business . |
| Honeywell Aerospace | VP, Global Business Aviation Aftermarket | Not disclosed | Led >$1.4B business; managed ~300 service centers; deep aftermarket scale . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Textron Lycoming | VP/GM roles | Not disclosed | P&L leadership in engine businesses . |
| AlliedSignal | VP/GM roles | Not disclosed | Commercial/government services leadership . |
| Honeywell | VP/GM roles | Not disclosed | Multi-segment executive operating experience . |
Fixed Compensation
No individual 2024 base salary or target bonus % disclosed for Brancato. Company NEO program reference (for context): CEO 125%, CFO/COO 80%, Presidents (CRS, Airlines & Fleets) 75% target bonus %; Brancato’s target not disclosed . Skip undisclosed items.
Performance Compensation
Company Annual Incentive Plan (AIP) metrics and 2024 outcomes applied to NEOs; program design likely guides executive incentives across segments.
| Metric | Weighting | FY 2024 Target | FY 2024 Actual | Element Payout vs Target | Notes |
|---|---|---|---|---|---|
| Revenue (non‑GAAP) | 10% | Not disclosed | $5,223.4M | 90% | Excludes Aero Turbine contributions . |
| Management EBITDA (non‑GAAP) | 50% | Not disclosed | $644.1M | 110% | Defined per CD&A; non‑GAAP . |
| Operating Cash Flow (non‑GAAP) | 40% | Not disclosed | $379.0M | 125% | Excludes interest, taxes, M&A/IPO costs; excludes Aero Turbine . |
| Total AIP Outcome | — | — | — | 114% of Target | Applies to NEOs; Brancato’s payout not disclosed . |
Equity awards and vesting framework (pre‑IPO → post‑IPO):
- Pre‑IPO Class B Units converted to restricted shares at IPO on value‑for‑value basis; retain original vesting and terms .
- Vesting Trigger: “Liquidity Event” (defined sale thresholds) – IPO did not constitute a Liquidity Event .
- Performance Units: five equal tranches; each tranche 50% based on annual Management EBITDA target and 50% based on annual cash flow target; catch‑up feature if cumulative performance subsequently exceptional; unearned tranches vest at Liquidity Event if Board determines 2.5x MOIC achieved .
- Change‑in‑control: equity does not accelerate unless it is also a Liquidity Event .
Equity Ownership & Alignment
- Stock Ownership Guidelines: Presidents must own stock equal to 1.5x annual base salary; five-year compliance period; 50% net‑settled share retention until threshold achieved. Time‑vested RSUs and restricted shares count; performance-based awards (unachieved) and options do not count .
- Hedging/Hedging‑like Transactions: Prohibited (e.g., prepaid variable forwards, swaps, collars, exchange funds) for all covered persons; policy filed with 10‑K .
- Pledging: No specific disclosure for Brancato; proxy prohibits hedging but does not explicitly detail pledging practices in the cited section .
- Beneficial Ownership Context (control): Carlyle affiliates 54.1% and GIC 12.2% of outstanding shares as of April 17, 2025; underscores controlled-company dynamics and potential governance influence on compensation programs and liquidity events .
Employment Terms
- Individual employment agreement/offer letter terms for Brancato not disclosed. Company disclosures for certain executives note: severance for termination without cause (e.g., 6 months base salary for specified executives), and CEO terms (18 months base, pro‑rata bonus, 18 months benefits) . Change‑in‑control does not automatically accelerate equity unless it also qualifies as a Liquidity Event .
- Clawback: Post‑IPO mandatory recovery policy per SEC Rule 10D‑1—three-year lookback for erroneously received incentive compensation due to restatement .
- Non‑compete/Non‑solicit: CEO agreement includes 24‑month non‑compete and non‑solicit; other executives have 12–24 months for non‑solicit/non‑compete as applicable; Brancato’s specific covenants not disclosed .
Company Performance Benchmarks (Context)
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Revenue ($M) | 4,563.3 | 5,237.2 |
| Adjusted EBITDA ($M) | 561.1 | 690.5 |
| Net Income ($M) | (35.1) | 11.0 |
| Engine Services Segment Rev ($M) | 4,049.9 | 4,644.8 |
| Component Repair Services Rev ($M) | 513.4 | 592.4 |
TSR (post-IPO initial period):
| Period | TSR Value of $100 |
|---|---|
| Oct 2–Dec 31, 2024 | $75.60 |
Compensation Structure Analysis
- Alignment: AIP weighted 90% toward profitability/cash metrics (50% Management EBITDA; 40% operating cash flow) with modest revenue weight (10%), reinforcing focus on cash generation and margin execution—consistent with deleveraging objectives and capital structure improvements .
- Equity Risk/Signal: Liquidity Event-based vesting and MOIC override can create concentrated vesting and potential selling pressure if/when a qualifying sale occurs; IPO did not trigger vesting .
- Governance/Control: Controlled-company status (Carlyle >50%) allows for potential exemptions from NYSE independence requirements (not currently used, but could be in future). Compensation decisions influenced by Compensation Committee with Korn Ferry support and a broad Reference Group .
Risk Indicators & Red Flags
- Material weaknesses in internal control over financial reporting identified; remediation underway—raises execution risk for clawback recoveries and financial metric integrity used in incentive plans .
- Liquidity Event vesting mechanics (single trigger on defined sale) can accelerate significant equity—potential misalignment if payout occurs regardless of post‑transaction performance; mitigated by MOIC hurdle design .
- Controlled company dynamics with significant shareholder sales (e.g., secondary offering by Carlyle/GIC) may influence trading dynamics and overhang; company confirmed 2025 guidance post-offering announcement .
Investment Implications
- Compensation alignment: Heavy weighting to EBITDA and operating cash flow supports discipline in margin/cash conversion; positive for deleveraging narrative and FCF guidance ($155–$175M in 2025) .
- Retention risk: Presidents must meet 1.5x ownership multiples; Liquidity Event-based vesting may retain executives through potential strategic transactions but can create concentrated sell pressure at vesting; Brancato-specific grants/payouts not disclosed .
- Trading signals: Expect episodic supply from sponsor secondaries and potential equity vesting on Liquidity Events; near-term operational momentum in Business Aviation (+8% YoY) supports segment results, while broader risks (material weaknesses; controlled-company governance) warrant monitoring .
Notes: Where Brancato-specific compensation, ownership, or contract data are not disclosed in filings, items are omitted per instruction. All figures cited from SEC filings.