Miguel Alvarez
STEEL DYNAMICSAbout Miguel Alvarez
Senior Vice President, Aluminum Group at Steel Dynamics (effective October 1, 2025), previously led Metals Recycling and earlier served as Senior Vice President for the Southwest U.S. & Mexico region after joining STLD in 2019; he held senior leadership roles in the steel industry since 2004 . Under STLD’s broader performance context, 2024 net sales were $17.5 billion with operating income of $1.9 billion and net income of $1.5 billion, and the company achieved a three-year after-tax ROIC of 23% through December 31, 2024 . STLD successfully produced and sold its first aluminum coils in late Q2 2025, with volume expected to ramp during commissioning—an area now under Alvarez’s leadership . The company’s capital allocation and cash generation remain robust, with 2024 cash flow from operations of $1.8 billion and $2.2 billion of liquidity .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Steel Dynamics | Senior Vice President, Aluminum Group | Oct 2025–present | Leads aluminum operations, including strategic investments in a 650,000 MT recycled aluminum flat rolled mill and ancillary deox-rod facility; responsible for ramp/commissioning |
| Steel Dynamics | Senior Vice President, Metals Recycling | Mar 2022–Oct 2025 | Led transformation and growth of metals recycling platform; elevated service, efficiency, and supply-chain solutions |
| Steel Dynamics | Senior Vice President, Southwest U.S. & Mexico | 2019–2022 | Supported steel and metals recycling growth strategy in the region; leveraged flat rolled steel operations know-how |
| Steel Industry (prior) | Senior leadership roles (various) | 2004–2019 | Accumulated extensive industry experience in flat rolled operations; prepared for STLD senior leadership |
External Roles
- Not disclosed.
Fixed Compensation
- Executive compensation structure emphasizes pay-for-performance with highly levered, formula-based annual incentives and significant equity at risk; no repricing/backdating of options; no guaranteed bonuses; double-trigger change-in-control for NEOs; no excise tax gross-ups .
- Annual Incentive Plan (AIP): awards accrue only after exceeding a 10% threshold return on average stockholders’ equity; bonus pool set at 5.5% of adjusted net income; divisional executives may also earn based on divisional ROA targets by unit (minimum 0–6%, maximum 20–30%) .
- Alvarez’s specific base salary, bonus target, and individual AIP weights are not disclosed (he was not listed among NEOs in the 2025 proxy’s compensation tables) .
Performance Compensation
- Long-Term Incentive Plan (LTIP) design uses four objective, equally weighted metrics over three years, benchmarking STLD against Cleveland-Cliffs, Commercial Metals, Nucor, Metallus (TimkenSteel), and U.S. Steel; earned shares vest at determination after the period .
| LTIP Metric | Weight | Definition |
|---|---|---|
| Revenue Growth | 25% | Year-over-year total revenue growth over the performance period |
| Operating Margin | 25% | Operating income / total revenue (performance period) |
| Cash from Operations as % of Revenue | 25% | Cash flow from operations / total revenue (performance period) |
| After-Tax ROIC | 25% | Net income / (avg equity + debt) |
- RSU programs: company-wide RSUs granted annually on November 21 with two-year time-based vesting; senior leadership also receives RSUs vesting 1/3 at two, three, and four years .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Most recent insider transaction | On Oct 29, 2025, Alvarez sold 8,251 shares at weighted average prices $162.61–$163.22; post-transaction direct ownership was 117,068 shares |
| Proceeds (approximation from news) | Roughly $1.34 million based on reported weighted averages and share count |
| Ownership guidelines | Executive officers must meet stock ownership multiples; Senior Vice Presidents: ≥3x base salary |
| Hedging/pledging | Company prohibits hedging and severely limits pledging; no directors or executive officers have hedged or pledged STLD shares (as disclosed) |
| Clawback policy | Dodd-Frank compliant recoupment of excess incentive-based compensation upon restatement (applies to executive officers) |
Employment Terms
| Term | Disclosure |
|---|---|
| Employment start at STLD | Joined 2019 as SVP, Southwest U.S. & Mexico |
| Role tenure | SVP Metals Recycling from March 2022; SVP Aluminum Group effective Oct 1, 2025 |
| Contract details | No specific employment agreement disclosure for Alvarez in filings reviewed |
| Change-in-control | STLD maintains a double-trigger CIC plan for designated NEOs; Alvarez’s inclusion is not disclosed |
| Non-compete / non-solicit | Not disclosed |
| Ownership guidelines compliance timing | Policy requires compliance within five years for executive officers; Alvarez’s specific status not disclosed |
Performance & Track Record
- Metals recycling leadership: Alvarez “led the transformation and growth” of STLD’s recycling platform; drove higher service, efficiency, and supply-chain solutions .
- Aluminum operations: STLD produced and sold its first aluminum coils in late Q2 2025 and expects steady volume increases through commissioning; Alvarez now leads this platform .
- Company performance context: 2024 net sales $17.5B; operating income $1.9B; net income $1.5B; three-year after-tax ROIC 23% to year-end 2024—supporting pay-for-performance alignment .
Compensation Committee Analysis
- Committee composition and independence: Compensation Committee comprises independent directors; responsibilities include setting goals/objectives, approving executive compensation plans, and engaging independent consultants .
- Consultant: Pearl Meyer engaged as independent compensation consultant; peer benchmarking used across steel and industrial comparators (e.g., AGCO, Alcoa, Cleveland-Cliffs, CMC, Nucor, PACCAR, Parker-Hannifin, Reliance, U.S. Steel, etc.) .
- Best practices: Double-trigger CIC for NEOs, clawback policy, prohibition on hedging and pledging, no excise tax gross-ups, caps on payouts, no repricing/backdating, no guaranteed bonuses .
Say-on-Pay & Shareholder Feedback
- Strong support: 92% of votes cast approved NEO compensation at the 2024 annual meeting, indicating shareholder endorsement of STLD’s pay-for-performance program .
Investment Implications
- Alignment: Significant personal shareholding (117,068 shares post-transaction) combined with company policies on ownership multiples, clawbacks, and hedging/pledging restrictions suggest meaningful alignment with shareholders .
- Insider selling pressure: The Oct 2025 sale (~$1.34M) indicates periodic monetization; no evidence of pledging or hedging; continued material ownership mitigates near-term selling overhang .
- Execution risk and opportunity: Transition to lead aluminum operations aligns Alvarez’s remit with a nascent but strategic platform; successful ramp of aluminum coils and commissioning is a key operational lever for value creation under his leadership .
- Data gaps: Lack of disclosed personal compensation metrics (salary, bonus targets, severance/CIC specifics) limits granular pay-for-performance analysis; monitor future proxies and 8-Ks for compensatory arrangements .