David Montgomery
About David Montgomery
David Montgomery, 64, is Executive Vice President, Global Business Development at Somnigroup (SGI) since February 2025, after joining Tempur Sealy International in 2003 and leading international operations before transitioning to global strategy, development, and licensing in 2019; he holds a B.A. with honors from L’Ecole Supérieure de Commerce de Reims (France) and Middlesex Polytechnic (London) . Company performance context for incentive alignment: 2024 net sales were $4.9 billion, with adjusted EPS of $2.55 and adjusted EBITDA of $923.8 million, and SGI emphasizes an enterprise-wide pay-for-performance culture tied to profitability and strategic execution . SGI’s executive incentives are benchmarked and overseen by the Human Resources/Capital & Talent Committee using an independent consultant, with pay elements focused on adjusted EPS, adjusted EBITDA, and strategic initiatives (ESG, leadership development, capital allocation) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Somnigroup / Tempur Sealy International | Executive Vice President, Global Business Development | Feb 2025–present | Leads global business development and strategy, including global licensing |
| Tempur Sealy International | EVP & President, International Operations | 2003–2019 | Led international operations; scaled global footprint |
| Tempur Sealy International | EVP, Global Business Strategy & Development | 2019–Feb 2025 | Drove global business strategy, development, and licensing |
| Rubbermaid, Inc. | President, Rubbermaid Europe | 2001–Nov 2002 | Led European business operations |
| Black & Decker Corporation | Various management roles including VP, Europe/Middle East/Africa | 1988–2001 | Led EMEA strategy and operations |
External Roles
No external board or public-company director roles disclosed in the Executive Officers section of the proxy for David Montgomery .
Fixed Compensation
David Montgomery is not a Named Executive Officer (NEO) in 2024; his specific base salary and annual bonus targets are not disclosed in the proxy (compensation tables cover only NEOs) .
Performance Compensation
SGI’s executive incentive architecture applies company-wide and emphasizes profitability and strategic execution; below are 2024 LTIP PRSU results and mechanics for the program (participation details for non-NEOs like Montgomery are not individually disclosed) .
| Metric | Weighting (%) | Target (band description) | Actual | Payout (% of Target) | Vesting Terms |
|---|---|---|---|---|---|
| Adjusted EPS | 50% | 25–100% payout for EPS $2.15–$2.70; 101–300% for $3.01–$3.70; 0% below $2.15 | $2.55 | 80% | PRSUs subject to time vesting; for most executives, vest equally over 3 years beginning on the second anniversary of grant; CEO’s PRSUs vest in full on the second anniversary |
| Adjusted EBITDA | 30% | 25–100% payout for EBITDA $845M–<$980M; 101–300% for $1.061B–<$1.230B; 0% below $845M | $924M | 69% | Same as above |
| Strategic Initiatives (ESG, leadership development, capital allocation) | 20% | Qualitative assessment by Committee | Exceeded expectations | 300% | Same as above |
| Weighted Average Payout for 2024 PRSUs | — | — | — | 120.4% | Same as above |
2024 AIP framework (company-wide metric update and payout curve):
- SGI changed AIP’s primary metric from adjusted EBITDA to adjusted EPS to better align profitability and earnings quality across periods and peers .
- Payout schedule and actual result:
| Adjusted EPS | Payout (% of Target Award) |
|---|---|
| < $2.15 | 0% |
| $2.15 | 25% |
| $2.70–$3.00 (inclusive) | 100% |
| $3.70 | 300% |
| Actual 2024 Adjusted EPS = $2.55 | 82% of target payout (applied to NEOs; non-NEO individual payouts not disclosed) |
Compensation governance, guardrails, and design changes:
- Maximum LTIP opportunity reset to 300% of target (from 600%) starting in 2021 and retained in 2024 .
- 50/50 mix of PRSUs and RSUs maintained to balance performance alignment with retention .
- Clawback policy updated October 2, 2023 to comply with SEC Rule 10D‑1 and NYSE listing standards; applies to current and former executive officers and captures erroneously awarded incentive compensation over a three-year lookback on restatement .
Equity Ownership & Alignment
| Policy | Details |
|---|---|
| Stock ownership guideline (other executive officers) | 3x base salary |
| Time to comply | 5 years from becoming subject; until met, must retain 50% of net, after-tax shares from Company equity awards |
| 2024 compliance status | All executives and Directors maintained compliance with minimum stock ownership guidelines |
| Anti-hedging | Prohibits hedging or monetization transactions (e.g., prepaid variable forwards, swaps, collars, exchange funds) |
| Anti-pledging | Prohibits holding Company securities in margin accounts and pledging as collateral, with limited exceptions |
Employment Terms
- Specific employment agreement, severance multiples, and change-of-control terms for David Montgomery are not disclosed in the proxy (employment agreements and potential payments are detailed for NEOs only) .
- SGI maintains a clawback policy applicable to executive officers under SEC/NYSE rules, and ownership/insider trading policies described above .
Investment Implications
- Alignment and retention: Company-wide prohibition on hedging/pledging and mandatory ownership multiples with 50% net share retention until compliance indicate strong alignment and likely dampen near-term insider selling pressure for executives, including Montgomery .
- Incentive levers: Shift to adjusted EPS as the primary AIP and LTIP metric, alongside adjusted EBITDA and strategic initiatives, ties pay more directly to earnings quality and disciplined capital allocation; 2024 PRSU weighted payout of 120.4% reflects above-target performance on strategy metrics even amid industry headwinds .
- Retention risk: Multi-year PRSU vesting and ongoing RSU grants are retention-supportive; lack of disclosed individual severance or CoC terms for Montgomery limits precision on exit economics, but governance safeguards (ownership guidelines, clawback) reduce adverse pay-risk asymmetry .
- Governance signal: 98% 2024 say-on-pay support and use of independent consultant/peer benchmarking suggest investor acceptance of SGI’s pay program; monitoring future grants and any Form 4 activity would sharpen near-term trading signals around Montgomery’s equity exposure (not available in this proxy) .