Tamer K. Abuaita
STANLEY BLACK & DECKERAbout Tamer K. Abuaita
Global Chief Supply Chain Officer and President, Industrial at Stanley Black & Decker, transitioning to Senior Advisor effective May 1, 2025 through April 30, 2026 as part of a broader realignment of the Global Supply Chain function . Joined SWK’s executive team in January 2022, leading the supply chain transformation that has already created close to $1B of value and targets $1.5B by the end of 2025, with fill-rate improvements and margin expansion . Company performance context: 2024 revenue $15.4B, adjusted gross margin 30.0%, free cash flow $753M, and $1.1B debt reduction; 2023 TSR 35% exceeded the S&P 500 (+26%) and S&P 500 Capital Goods (+19%) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Stanley Black & Decker | Global Chief Supply Chain Officer & President, Industrial; Senior Advisor (from 5/1/2025) | 2022–2025 (exec); 2025–2026 (advisor) | Architect and executor of supply chain transformation delivering ~$1B value to date, with $1.5B target by end-2025 and improved fill rates |
External Roles
- Not disclosed in company filings; no external board or public company roles mentioned for Abuaita. (Skip)
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $615,000 | $750,000 (effective 7/1/2024 after $50,000 merit increase on 4/1/2024) |
| Target Bonus (% of Base) | 85% (raised from 75% in Feb 2023) | 100% (effective 7/1/2024) |
| Annual Bonus Payout ($) | $856,265 (163.8% payout) | $1,141,637 (173.6% payout) |
Performance Compensation
Annual Incentive (MICP) – Corporate metrics and results
| Metric | Weight | Threshold | Target | Maximum | 2024 Actual | Payout mechanics |
|---|---|---|---|---|---|---|
| Adjusted EPS ($) | 30% | 3.50 | 4.00 | 4.50 | 4.36 | Linear 50%–200% of target per metric; weighted average determines payout |
| Free Cash Flow ($M) | 40% | 550 | 650 | 750 | 753 | As above; Committee set 2024 FCF goals below 2023 given one-time inventory reductions in 2023 |
| Adjusted Gross Margin Rate (%) | 30% | 29.3 | 29.8 | 30.3 | 30.0 | Added Gross Margin modifier (0–10%) based on rate above threshold/target/maximum |
| Adjusted Gross Margin Modifier (%) | + up to 10% | 30.3 | 30.55 | 30.8 | 30.0 | Modifier did not increase payout in 2024 given actual |
| Executive | Weighted Payout (% of Target) | Abuaita Bonus ($) |
|---|---|---|
| Tamer K. Abuaita | 173.6% | $1,141,637 |
Long-Term Incentives (LTIP PSUs, RSUs, Options)
| Program | Cycle | Metric mix | Key results | Abuaita specific |
|---|---|---|---|---|
| LTIP PSUs | 2022–2024 | CFROI (40%), Adjusted EPS (35%), Relative TSR (25%) | Below threshold for all metrics; zero payout | LTIP payout = 0 shares |
| LTIP PSUs | 2023–2025 | CFROI (40%), Relative Organic Sales Growth vs Market (35%), Relative TSR (25%) | 2023 CFROI 9.44% (above target); 2024 CFROI 8.8% (below threshold) | Target award: 6,978 PSUs (2023 grants) |
| RSUs | 2023 | $1.0M retention RSUs (time-vest) | Vests ratably over 3 years (anniversaries of 2/15/2023) | 11,072 + 5,049 RSUs granted in 2023 (time-vest 3-year) |
| Stock Options | 2023 | 17,405 options @ $90.32 exercise | Vest in 3 equal annual installments | Grant and vest terms as noted |
2024 regular LTI grants (approved 2/26/2024, granted 3/1/2024): $850,029 LTIP PSUs (5,257 target PSUs), $424,990 RSUs (4,757 RSUs), and $425,008 options (16,832 options; exercise price ~$89.34/$89.57) .
Equity Ownership & Alignment
| Metric | As of 2/26/2024 | As of 2/28/2025 |
|---|---|---|
| Shares of Common Stock Owned (#) | 22,026 | 49,131 |
| Options exercisable by cutoff date (#) | 12,696 (by 4/26/2024) | 31,001 (by 4/29/2025) |
| RSUs vesting by cutoff date (#) | — | 1,586 (would vest by 4/29/2025) |
| Pledged/Hedged Shares | Prohibited for all officers; no pledging allowed | Prohibited |
| Stock Ownership Guideline | 3x base salary for executive officers | 3x base salary |
Outstanding equity detail at 12/30/2023: options unexercisable 17,405 (2023 grant), RSUs unvested include 7,912 (2/16/2022), 3,906 (12/6/2022), 5,049 (2/15/2023), 11,072 (2/15/2023), and PSUs unearned 7,036 (2023–2025) .
Employment Terms
| Topic | Terms |
|---|---|
| Transition Agreement (3/31/2025) | Senior Advisor from 5/1/2025 to 4/30/2026; employment ends 4/30/2026 (Separation Date) |
| Compensation during Advisor term | Monthly salary $62,500; continue eligibility for medical, dental, vision, life and AD&D; retirement plan eligibility under RAP through Separation Date |
| Annual & LTI eligibility | No new MICP or LTIP grants after 5/1/2025; eligible for 4/12th pro-rated 2025 MICP (excluding AGM kicker), paid in 2026; outstanding stock options, RSUs, PSUs continue to vest through Separation Date subject to agreements |
| Severance (post-Advisor service) | One year of continued base salary and six months of Company-subsidized continued group health coverage, subject to execution/non-revocation of release; six months outplacement services |
| Restrictive covenants | Non-competition and non-solicitation obligations; continued compliance required for benefits |
| Termination/CIC economics (Proxy framework) | Job Loss Event (no CIC): Severance $615,000; pro rata bonus $856,265; health & welfare $119,526; outplacement $50,000; equity vesting values noted (options $414,867; RSUs $2,740,791; LTIP PSUs $1,003,857) |
| Change in Control (double-trigger) | Involuntary w/out Cause or Good Reason upon CIC: Severance $2,607,831; pro rata bonus $522,750; Supplemental RAP acceleration $130,922; health & welfare $298,815; outplacement $50,000; equity vesting values noted |
| Clawbacks | Legacy recoupment policy for misconduct leading to restatement; SEC/NYSE-compliant 2023 clawback for incentive-based compensation |
| Hedging/Pledging | Prohibited for all officers and employees |
Performance Compensation – Detailed Tables
2023 Executive Incentive Compensation Payouts
| Element | Alignment/Outcome |
|---|---|
| Annual Incentive (MICP) | 132.5–163.8% payout based on corporate and/or division goals; Abuaita received 163.8% (see Fixed Compensation) |
| 2021–2023 LTIP PSUs | Weighted average achievement = 20.4% of target (above-target 2021 EPS; below threshold for other metrics) |
| Shares earned (2021–2023) | Abuaita did not have 2021–2023 PSUs; zero payout applicable to 2022–2024 cycle later |
2024 Executive Incentive Compensation Payouts
| Element | Alignment/Outcome |
|---|---|
| Annual Incentive (MICP) | Above target, payout range 156.1–173.6%; Abuaita received 173.6% |
| 2022–2024 LTIP PSUs | Below threshold for all metrics; zero payout |
Compensation Structure Analysis
- Pay-for-performance alignment: Annual incentives tied to Adjusted EPS, Free Cash Flow, and Adjusted Gross Margin rate delivered above-target payouts in 2023 and 2024; long-term PSUs for 2022–2024 paid zero, reinforcing risk balance between short and long horizons .
- Shift in LTIP metrics reduces reliance on EPS, prioritizing CFROI, relative organic sales growth, and relative TSR; 2025–2027 LTIP increases Adjusted EBITDA weighting to 45% and reduces CFROI to 30%, aligning with investor focus areas .
- No tax gross-ups in severance/CIC; double-trigger vesting; robust clawbacks and anti-pledging policies support shareholder-aligned governance .
Equity Ownership & Insider Selling Pressure
- Abuaita’s beneficial ownership increased from 22,026 shares (2/26/2024) to 49,131 shares (2/28/2025), with 31,001 options exercisable by 4/29/2025 and 1,586 RSUs vesting by that date; vesting continues during the Advisor term, but no new grants post 5/1/2025, moderating incremental supply risk from new equity awards .
- Company policy prohibits hedging/pledging, reducing forced selling or secured-position risks .
Employment Terms – Retention Risk and Change-of-Control Economics
- Transition to Senior Advisor with salary continuation and vesting preservation reduces immediate departure risk while formalizing exit timing (4/30/2026); severance (one-year salary) and COBRA subsidy contingent on release and covenant compliance .
- CIC protection is double-trigger; severance multiples and accelerated vesting provide competitive but controlled protections, minimizing windfall risk given clawback and governance overlays .
Investment Implications
- Strong short-term incentive execution (above-target MICP payouts) coupled with zero payout on 2022–2024 PSUs underscores management’s emphasis on near-term cash and margin goals while keeping longer-term hurdles rigorous; this supports confidence in supply chain-driven margin expansion but tempers equity windfalls unless multi-year metrics inflect .
- Abuaita’s advisor transition and vesting continuation through April 2026, with no new grant eligibility after May 2025, points to diminishing incremental equity award overhang; anti-pledging policies limit collateral-driven selling risk .
- The supply chain program he led is central to SWK’s margin recovery and cash generation targets (gross margin to >35%, CFROI mid-teens, FCF≥net income); sustained delivery on these will be pivotal for LTIP outcomes and equity alignment across the team .