Allan Smith
STEELCASEAbout Allan Smith
Allan W. Smith Jr. is Senior Vice President; President, Americas; and Chief Product Officer at Steelcase Inc., with 30+ years at the company and a Bachelor of Arts from the University of Virginia . Company performance during FY2025 included net income of $120.7 million and diluted EPS of $1.02, flat revenue with a 110 bps gross margin improvement, +4% adjusted order growth, and liquidity of $558.3 million; operating income improved to $158.1 million . Steelcase’s TSR value for a $100 investment stood at $89 vs a peer group at $93 for FY2025 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Steelcase | President, Americas & Chief Product Officer | Feb 2024–Present | Regional P&L leadership in Americas; product strategy and lifecycle; innovation focus |
| Steelcase | Sr. VP, Chief Revenue Officer | Oct 2021–Feb 2024 | Led global revenue functions across Marketing, Sales, Product Engineering, Communications; drove portfolio and growth |
| Steelcase | VP, Global Marketing | Oct 2013–Nov 2021 | Global marketing, portfolio strategy, product development and launch, lifecycle management |
| Steelcase | GM, Architecture, Furniture & Technology (NA) | Jul 2009–Oct 2013 | Oversaw NA product categories; marketing and profitability accountability |
| Steelcase Europe | VP, Marketing | Jul 2006–Jul 2009 | Led cross-functional teams in research, product development, engineering, design, and marketing |
| Steelcase | Director, Environmental Strategy | Jul 2003–Jul 2006 | Advanced global environmental strategy and programs |
| Steelcase | Director, Marketing Communications/IR/PR | Feb 1999–Jul 2003 | Led knowledge/service marketing, advanced marketing, early product development phases |
| Designtex (Steelcase) | Director of Marketing | Feb 1991–Feb 1999 | Brand and product marketing leadership at Designtex |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Mannington Mills | Director (Board) | Current | Industry board service |
| Leelanau Conservancy | Board/Contributor | N/A | Conservation engagement |
| Grand Rapids Public Museum | Board/Contributor | N/A | Community/cultural engagement |
Fixed Compensation
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Salary ($) | $575,000 | $628,942 | $668,587 |
| Base Salary Rate ($) | $575,000 | $635,000 | $663,500 |
| MIP Target (% of Base) | — | — | 80% |
| Long-Term Incentive Target (% of Base) | — | — | 205% |
| All Other Compensation ($) | $41,777 | $99,649 | $156,558 |
| Total Compensation ($) | $1,883,124 | $2,461,491 | $3,725,840 |
Performance Compensation
| Component | Metric | Weighting | Target | Actual/Payout | Vesting/Settlement |
|---|---|---|---|---|---|
| Annual MIP (Cash) | ROIC | 30% of base (Allan) | 8.25% | 12.00% → 137% of target | Paid in cash after FY25 |
| Annual MIP (Cash) | Net Income | 50% of base (Allan) | 95–105% of plan ($94.2m) | 120% of plan → 200%; +5% DEI modifier → 210% | Paid in cash after FY25 |
| FY2025–FY2027 Performance Units | Average ROIC | 60% | 8.25% (target) | Earned over 3 years; 0–200% payout band | Settled in Class A shares at end of FY2027; dividends on earned shares |
| FY2025–FY2027 Performance Units | Organic Revenue Growth | 20% | +5% target, +8% max | 0–200% payout; one-third earned each year | As above |
| FY2025–FY2027 Performance Units | rTSR vs S&P MidCap 400 | 20% | 50th percentile target | 25th–75th percentile range yields 50%–200% | As above; Monte Carlo valued at grant |
| Legacy Performance Units (FY2023 award) | Operating Income (75%), Revenue (25%), rTSR modifier | — | FY plan targets | Three-year payout 112.1% (82%, 165%, 92%; rTSR ×99.2%) | Settled in shares |
| Earned MIP (FY2025) | Cash payout | — | Target $524,777 | $958,375 (183% of target) | Paid in cash |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 102,910 Class A shares; <1% of class |
| Stock Ownership Guidelines | 3× base salary requirement for Allan; 5-year compliance window; all NEOs in compliance |
| Pledging/Hedging | Exec officers prohibited from pledging, hedging, speculative transactions; no pledging approvals granted |
| Options | None outstanding for Allan; equity awards are RSUs and performance units |
| Vested in FY2025 | 101,090 shares vested; $1,161,486 value realized |
| Unvested RSUs (FY-end 2025) | 61,500 RSUs vest end FY2026 ($747,840); 40,800 RSUs vest end FY2027 ($496,128) |
| Unearned Performance Units (FY-end 2025) | 147,518 (2024–2026 cycle, shown at max), $1,793,819; 122,400 (2025–2027 cycle, shown at max), $1,488,384 |
Employment Terms
| Provision | Key Terms | Economics/Notes |
|---|---|---|
| Employment Contract | None (no NEO employment contracts) | — |
| Severance (No Cause) | One-times (base salary + target MIP) for NEOs | Allan: $1,194,300 cash; RSUs vest; PUs continue if retirement-eligible |
| Change-in-Control (CIC) | CIC triggers LTI acceleration if awards not assumed; performance units payable at greater of target or actual | Allan LTI value at CIC: $3,679,532 |
| Termination After CIC (Double Trigger) | Two-times (base salary + target MIP) for NEOs; RSUs/PUs as per plan | Allan: $2,388,600 cash; LTI $3,679,532; other benefits $41,144; no excise tax gross-up |
| SERP (Supplemental Pension) | Vested after 7 years; early retirement when age+service ≥80 | Allan SERP PV: $1,787,804; eligible for early retirement |
| Clawback | SEC/NYSE-compliant clawback for financial restatements; additional clawbacks in MIP/ICP/Severance plans | Forfeiture/repayment of erroneously awarded compensation |
| Non-Compete | Existing non-competition agreements with forfeiture/return provisions upon competition post-termination | Duration/scope not disclosed |
Multi‑Year Compensation Detail (NEO Summary)
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Salary ($) | $575,000 | $628,942 | $668,587 |
| Stock Awards ($) | $854,466 | $934,801 | $1,920,961 |
| Non‑Equity Incentive Plan ($) | $411,881 | $792,854 | $958,375 |
| Change in Pension Value ($) | — | $5,245 | $21,359 |
| All Other Compensation ($) | $41,777 | $99,649 | $156,558 |
| Total ($) | $1,883,124 | $2,461,491 | $3,725,840 |
Additional Context: Incentive Design and Governance
- FY2025 changes strengthened alignment: net income modifier tied to DEI progress; removed CEO discretion to adjust ROIC for NEOs other than CEO .
- Long-term incentive mix maintained at 60% performance units and 40% RSUs; performance shift to 3-year goals with ROIC, organic revenue growth, and rTSR .
- Independent consultant (CAP) engaged; market benchmarking via Willis Towers Watson survey of ~870 companies at ~$3.2B revenue .
- Say-on-pay support: 97.5% approval at 2024 meeting .
Investment Implications
- Pay-for-performance alignment: Allan’s incentives heavily tied to ROIC (annual and multi-year) and net income, with rTSR overlay; FY2025 MIP paid at 183% of Allan’s target, reflecting strong net income vs plan and positive strategic modifier . Multi-year performance units emphasize capital efficiency and growth, which could align with margin and cash discipline into FY2026–FY2027 .
- Retention risk and selling pressure: Allan is early‑retirement eligible under SERP and holds significant unvested equity (RSUs 102,300 total; PUs 269,918 shown at maximum as of FY‑end 2025), creating retention hooks but potential future share deliveries and attendant selling pressure as tranches vest (FY2026/FY2027) . FY2025 vesting realized $1.16 million, indicating ongoing liquidity events .
- Alignment and red flags: Executive pledging and hedging are prohibited, and ownership guidelines (3× salary) are met, supporting alignment; no employment contracts and robust clawback reduce governance risk. No excise tax gross‑up for Allan; CIC is effectively double‑trigger for severance, with LTI acceleration if awards are not assumed, which is standard but can be value‑accretive at deal close .
- Company performance context: FY2025 operating income improved and gross margin expanded, but TSR lagged peers (company $89 vs peer $93 on a $100 basis), suggesting equity‑linked outcomes may depend on sustaining ROIC and organic growth targets through FY2027 .
Education and credentials: BA, University of Virginia; long‑tenured operator across product, marketing, revenue leadership; current board role at Mannington Mills .
Notes:
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