ALAMO GROUP INC (ALG)
Sector: Industrials
2026 Annual Meeting Analysis
ALAMO GROUP INC · Meeting: May 1, 2026
Directors FOR
9
Directors AGAINST
0
Say on Pay
FOR
Auditor
FOR
Director Elections
Election of Directors
Director since 2015 with relevant manufacturing and CEO experience; the 3-year TSR gap versus the company-disclosed peer group median is -10.9 percentage points, which does not breach the 20-point trigger required for a negative absolute TSR period, and the 5-year TSR shows ALG outperforming the peer median by +15.9 percentage points, further supporting a FOR vote.
Director since 2015 with extensive global manufacturing experience; holds two additional public company board seats (Graco and WD-40), which is within the policy limit of three total; the peer-group TSR trigger does not fire at the 20-point threshold, and the 5-year record is positive relative to peers.
Director since 2021 with CEO, AI, and digital transformation expertise; the peer-group 3-year TSR gap of -10.9 percentage points does not breach the 20-point trigger, and no other policy flags apply.
Director since December 2024 and therefore within the 24-month new-director exemption period, making her fully exempt from the TSR trigger regardless of performance; brings relevant global manufacturing and supply chain experience.
Director since February 2024 and therefore within the 24-month new-director exemption period; brings over 30 years of global manufacturing and operations experience relevant to Alamo's business.
CEO and director since September 2025, well within the 24-month new-director exemption period; as the newly appointed CEO he cannot be held accountable for prior-period stock performance and brings relevant executive leadership experience from industrial manufacturing companies.
Director since 2016 with extensive CFO and financial expertise; holds two additional public company board seats (Array Technologies and Vestis), within the three-board policy limit; the peer-group 3-year TSR gap of -10.9 percentage points does not breach the 20-point trigger, and no other policy flags apply.
Independent Board Chair since 2017 with deep irrigation and industrial manufacturing CEO experience; the peer-group 3-year TSR gap of -10.9 percentage points does not breach the 20-point trigger required for a negative absolute TSR environment, and the 5-year peer comparison is favorable at +15.9 percentage points above the peer median.
Director since 2019 and a sitting CEO of Greenbrier (one outside public board seat, within policy limits); brings CPA credentials and manufacturing CFO/CEO experience; the peer-group 3-year TSR gap of -10.9 percentage points does not breach the 20-point trigger, and the 5-year relative performance is positive versus peers.
All nine directors receive a FOR vote. The primary TSR benchmark is the company-disclosed peer group of 20 industrial companies. Alamo's 3-year price return of -7.8% is negative in absolute terms, which sets the peer underperformance trigger threshold at 20 percentage points; however, the actual gap versus the peer median is only -10.9 percentage points — well below the 20-point threshold needed to trigger an AGAINST vote. Additionally, the 5-year TSR shows ALG outperforming the peer median by +15.9 percentage points, reinforcing that recent underperformance appears transient. Two directors (Haley, Householder) joined in 2024 and one (Hureau) joined in 2025, all within the 24-month new-director exemption. No overboarding, attendance, independence, or familial relationship issues were identified. The board publishes a skills matrix and all audit committee members hold financial expertise credentials.
Say on Pay
✓ FORCEO
Robert P. Hureau
Total Comp
$4,526,676
Prior Support
98%%
The prior year say-on-pay vote received approximately 98% shareholder support, well above the 70% threshold that would require visible remediation. The new CEO Robert Hureau joined in September 2025 with total reported compensation of $4,526,676 for a partial year of service (approximately four months); his annualized compensation would be substantially higher, but much of the reported stock award value reflects a sign-on equity grant including 5,000 inducement restricted shares, which is a one-time joining cost rather than ongoing run-rate pay. The pay structure is well-designed: 50% of long-term equity is in performance stock awards tied to three-year operating income growth and return on invested capital, the remaining 50% is in time-vested restricted stock, annual cash incentives paid out at only 43% of target reflecting genuine performance shortfalls (organic revenue growth missed entirely, pre-tax income and cash conversion partially met), and the company maintains a meaningful clawback policy covering all named executive officers. Pay mix is heavily variable and performance-linked, and the 3-year peer TSR gap of -10.9 percentage points does not breach the 20-point threshold that would trigger a pay-for-performance concern on incentive compensation.
Auditor Ratification
✓ FORAuditor
KPMG LLP
Tenure
N/A
Audit Fees
N/A
Non-Audit Fees
N/A
KPMG LLP is a Big 4 firm appropriate for a $1.9 billion market cap company. The proxy filing does not provide the specific dollar amounts for audit fees and non-audit fees in the text provided, so the fee ratio trigger cannot be calculated; however, the absence of confirmed fee data means the trigger does not fire under policy (do not assume a No vote without confirmed data). No material restatements are disclosed, and auditor tenure is not explicitly stated in the available filing text, so the tenure trigger also does not fire. The audit committee is fully independent and has pre-approval procedures in place.
Overall Assessment
The 2026 Alamo Group annual meeting presents three standard proposals: election of nine directors, an advisory say-on-pay vote, and ratification of KPMG as auditor. All proposals receive a FOR vote determination — the director slate passes the TSR test using the company-disclosed peer group (3-year gap of -10.9 percentage points versus the 20-point trigger for negative absolute TSR), the compensation program is well-structured with genuine performance linkage and 98% prior-year shareholder support, and no auditor independence or fee ratio concerns can be confirmed from the available filing data. There are no stockholder proposals on this ballot.
Compensation Peer Group
20 companies disclosed in 2026 proxy filing