Udit Mehta
Simpson Manufacturing Co.About Udit Mehta
Udit Mehta is Chief Technology Officer at Simpson Manufacturing Co., Inc. (NYSE: SSD), appointed effective May 10, 2024. He oversees global technology strategy and operations, including customer-facing digital offerings and software solutions; he previously served as Chief Digital & Information Officer for Carrier’s Fire & Security segment (Apr 2020–Apr 2024) and held progressive technology leadership roles at Siemens Energy (2011–2020). He holds an MBA from Northwestern University’s Kellogg School of Management and a bachelor’s degree in Commerce, Accounting & Information Systems from Gujarat University, India .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Carrier Global Corporation (Fire & Security segment) | Chief Digital & Information Officer; GM Solutions | 2020–2024 | Led modernization of Digital Enterprise; launched B2B/B2C customer-facing digital offerings; enhanced cybersecurity and optimized IT spend . |
| Siemens Energy / Siemens Power Services | Progressive technology leadership roles; Head of Digital Business — Americas | 2011–2020 | Built new Digital P&L from the ground up; unlocked operational efficiencies; led strategic IT programs . |
Fixed Compensation
| Component | 2024 Amount | Notes |
|---|---|---|
| Base Salary ($) | 300,871 | Partial-year as CTO starting May 10, 2024 . |
| Target Bonus % (EOCPS annual) | 60% | Earn-out range 0–200% of target; threshold hurdle 70% of target qualified operating income . |
| Sign-on Bonus ($) | 300,000 | Paid in 2024 . |
| All Other Compensation ($) | 36,236 | Profit sharing trust contribution $9,026 and relocation allowance $27,210 . |
Performance Compensation
EOCPS (Executive Officer Cash Profit Sharing) – 2024
- Metric: Qualified Operating Income of Simpson Manufacturing Co., Inc.; quarterly and annual components with +/-20% MBO adjustment; payout cap 200% .
- Weighting: 100% qualified operating income (distinct from equity metrics) .
- Threshold/Target/Max: Threshold at 70% of target; payouts 0–200% of target .
- 2024 Actual and Payout: | Metric | Weighting | Target (Disclosure) | Actual 2024 | Payout ($) | Payout vs Target (%) | |---|---|---|---|---|---| | Qualified Operating Income (EOCPS) | 100% | Threshold 70% of target; 0–200% payout range | Company achieved levels supporting payout | 128,334 | 73.60% |
Long-Term Equity – 2024 Grants and Structure
- Equity Mix: 35% RSUs (time-based, three-year ratable vest), 65% PSUs (performance-based, 3-year) .
- Grant Timing & Valuation: Mehta received 2024 RSU/PSU awards on May 10, 2024; RSU fair value $174.34/share and PSU fair value $175.47/share (grant-date valuation methodology per ASC 718) .
- RSUs: 3,921 shares granted in 2024; vest in equal annual installments on 1st, 2nd, and 3rd anniversaries of vesting start date .
- PSUs (2024–2026 cycle): Performance metrics are annual Revenue Growth (50%) and ROIC (50%), with 3-year average determining vesting; vest range 0–200% of target; 2024 actual results: Revenue Growth 0.8%, ROIC 15.0%; shares earned for the 2024 performance period portion expected to vest in February 2027 (subject to full 3-year performance period) .
| Equity Component | Grant Date | Shares / Target | Metric Weighting | 2024 Actual | Vesting Terms |
|---|---|---|---|---|---|
| RSUs | May 10, 2024 | 3,921 | Time-based (n/a) | n/a | 3-year ratable: equal annual installments on 1st/2nd/3rd anniversaries . |
| PSUs (2024–2026) | May 10, 2024 | Target 1,850; Max 3,700 | 50% Revenue Growth; 50% ROIC | Rev Growth 0.8%; ROIC 15.0 | Earned shares vest after full 3-year performance; 2024 portion expected Feb 2027 . |
| Target Equity Award ($) | 2024 | 390,000 | Mix: 65% PSUs / 35% RSUs | n/a | Subject to plan terms . |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 3,921 shares as of Jan 31, 2025; includes shares acquirable within 60 days upon RSU vesting (3,921) . |
| Ownership as % of Outstanding | Each listed individual owned <1% of outstanding shares; group (18 persons) owned ~0.39% . |
| Ownership Guidelines (CTO) | 2x base salary; NEOs must hold at least 50% of Eligible Shares (common + unvested RSUs) until guideline met; compliance achieved or within allotted time as of Dec 31, 2024 . |
| Hedging/Pledging | Prohibited for directors and executive officers . |
| Pledging Disclosure | No pledges disclosed for Mehta in stock ownership table . |
Employment Terms
| Item | Detail |
|---|---|
| Employment Start Date | Effective May 10, 2024 (CTO appointment) . |
| Status | At-will employment; no general employment agreement for NEOs . |
| Severance Plan | Executive Severance Plan adopted May 2024; benefits for involuntary termination without cause or resignation for good reason; includes cash severance and continuation of health benefits . |
| Change-in-Control | Double-trigger for cash severance and long-term awards; equity awards subject to double-trigger requirements . |
| Clawback | Robust compensation recovery policy covering performance-based cash and equity compensation . |
Potential payments (assumes event on 12/31/2024 at stock price $165.83):
| Scenario | Udit Mehta ($) |
|---|---|
| Death | 752,537 |
| Disability | 752,537 |
| Involuntary Termination Without Cause | 512,828 |
| Termination Without Cause or For Good Reason Following a Change in Control | 2,740,981 |
Compensation Peer Group (Benchmarking context)
Peer companies used by the CLDC to inform 2024 NEO compensation decisions (19-company set): A.O. Smith, AAON, Advanced Drainage Systems, Allegion, American Woodmark, Apogee Enterprises, Armstrong World Industries, Atkore, Eagle Materials, Gibraltar Industries, James Hardie, Louisiana-Pacific, Masonite, Patrick Industries, PGT Innovations, Quanex Building Products, Summit Materials, The AZEK Company, Trex Company .
Performance & Track Record
- Prior successes: Led modernization of digital enterprise and launched B2B/B2C digital offerings at Carrier; built a new Digital P&L and executed strategic IT programs at Siemens .
- Company performance metrics underpinning 2024 PSUs: Revenue Growth 0.8% and ROIC 15.0% (first year in 3-year PSU cycle) .
Governance & Shareholder Feedback (context)
- Key policies: Executive stock ownership guidelines; prohibition on hedging/pledging; double-trigger CIC; caps on incentive awards; annual risk assessment .
- Say-on-Pay: At the 2024 annual meeting, >99.5% of votes cast approved NEO compensation (advisory) .
Investment Implications
- Pay-for-performance alignment: Cash incentives tied to qualified operating income with caps and MBO adjustments; long-term equity mostly performance-based PSUs tied to revenue growth and ROIC, which aligns technology initiatives to financial outcomes over a 3-year horizon .
- Retention and selling pressure: RSUs vest annually over three years from the May 2024 grant, creating potential liquidity events on anniversary dates; PSUs vest post 3-year cycle (2024 portion expected Feb 2027), which supports medium-term retention .
- Ownership alignment and risk controls: CTO guideline at 2x base salary with hold requirements until met; strong anti-hedging/pledging and clawback policies reduce misalignment risk; Mehta’s beneficial ownership is modest (<1% individually) but consistent with policy for a new NEO .
- Change-in-control economics: Double-trigger structure and quantified CIC payout ($2.74m) provide clarity on potential outcomes; not excessive relative to peers and governed by established plan terms .
Net takeaway: Mehta’s compensation architecture emphasizes performance-tied PSUs and disciplined cash incentives, with governance safeguards and ownership guidelines that support alignment. The vesting cadence suggests structured retention through 2027; investors should monitor annual RSU vesting dates and PSU goal-setting for 2025–2026 to gauge incentive momentum and any evolving selling patterns under 10b5-1 plans.