~~CORPORATE GOVERNANCE~~

Corporate Governance

~~Meetings and Committees~~

BOARD COMMITTEE ROLES AND RESPONSIBILITIES

Set forth below is an overview of the ~~Board~~roles and responsibilities of each Committee of the Board:

Compensation
Committee

Audit

Committee

Nominating/Corporate

Governance Committee

The duties and responsibilities of the Committee include, among other things, to:

■Review and approve, at least annually, the goals and objectives relevant to CEO compensation and the structure of the Company’s plans for executive compensation, incentive compensation, equity-based compensation and its general compensation, and employee benefit plans, and make recommendations to the Board;

■Evaluate annual performance of the CEO in light of the goals of the Company’s executive compensation plans, and recommend his or her compensation based on this evaluation;

■In consultation with the CEO, review, evaluate and recommend to the Board the compensation of all executive officers and key managers;

■Evaluate and recommend to the Board compensation of directors for Board and Committee service;

■Review and recommend to the Board any severance agreement made with the CEO;

■Review and recommend to the Board the amount and terms of all individual equity awards, including stock options, restricted stock or performance based equity awards;

■Review executive officer and director compliance with stock ownership requirements; and

■Approve and issue the annual report on executive compensation required by the SEC for inclusion in the Company's Proxy Statement

The duties and responsibilities of the Committee include, among other things, to:

■Appoint, approve compensation, and oversee the work of the independent auditor;

■Review at least annually a report by the independent auditor describing the firm’s internal control procedures and any material issues raised by the most recent internal control review;

■Preapprove all audit services and associated fees by the independent auditors;

■Preapprove all permissible non-audit services to be provided by the independent auditor;

■Review the independence of the independent auditor;

■Review the scope of audit and resolve any difficulties or disagreements with management encountered during the audit or any interim periods;

■Review and discuss with management and the independent auditor the annual audit and quarterly financial statements of the Company;

■Recommend to the Board whether financial statements should be included in the Annual Report on Form 10-K and quarterly reports;

■Review the adequacy and effectiveness of the Company's internal controls;

■Periodically review and evaluate the Company's policies and programs for identifying cybersecurity risks;

■Review the adequacy and effectiveness of the the Company's disclosure controls; and

■Review financial risk assessment presented by management

The Committee has the responsibility, among other things, to:

■Evaluate director candidates and has sole authority to retain a search firm in that effort, approve its fees and scope of service;

■Recommend to the Board of Directors nominees for Board election by the stockholders based upon their qualifications, knowledge, skills, expertise, experience and diversity;

■Review Board composition to reflect the appropriate balance of knowledge, skills, expertise, experience and diversity;

■Review size of the Board and the frequency and structure of Board meetings;

■Recommend to the Board the establishment, elimination, size and composition of standing Committees;

■Review, at least annually, the Company's Code of Business Conduct & Ethics;

■To periodically (at least annually) review the goals and objectives of the Company relating to ESG matters including a review of the Company's annual sustainability reporting data and annual sustainability report;

■Oversee the Company's policies and practices regarding diversity and inclusion and climate and water risk;

■Oversee and establish procedures for the annual evaluation of the Board and management; and

■Develop, recommend to the Board, and review annually a set of corporate governance guidelines


Alamo Group Inc.			17			Proxy Statement


						CORPORATE GOVERNANCE

During the fiscal year ended December 31, ~~2020,~~2021, the Board held ~~six~~ten meetings. Each incumbent director attended in person or by phone 100% of the total number of meetings of the Board and Committees on which the director served during ~~2020.~~2021. It is a policy of the Board that all directors attend the Annual Meeting of Stockholders. All of our directors attended the Annual Meeting of Stockholders in May ~~2020~~2021 which was held as a virtual meeting due to concerns relating to the COVID-19 pandemic.

~~Board Leadership Structure~~

The Board does not have a policy on whether the same person should serve as both the CEO and Chairman of the Board or, if the roles are separate, whether the chairman should be selected from the non-employee directors or should be an employee. The Board believes that it should have the flexibility to make these determinations at any given point in time in the way that it believes best to provide appropriate leadership for the Company at that time.

Currently, Mr. Baty serves as Chairman of the Board and Mr. Robinson serves as the CEO. The CEO is responsible for setting the strategic direction for the Company and the day-to-day leadership and performance of the Company, while the Chairman of the Board sets the agenda for Board meetings and presides over meetings of the full Board. The Board believes that its current leadership structure is appropriate at this time.

~~The Board's Role in Strategic and Risk Oversight~~

Our Board takes an active role in overseeing management's development and implementation of its strategic plan. It receives a comprehensive overview of management's strategic plan for the Company's business at least annually and reviews periodic updates concerning the Company's execution of the plan, as well as updates from individual business units at regularly scheduled Board meetings during the course of the year. The Board provides insight and guidance to Company management and, if necessary, challenges management concerning the Company's overall strategic direction. The Board also monitors and analyzes the Company's financial results and approves all material acquisitions and significant capital expenditures.

The Board also has an active role in overseeing management of the Company’s risk. The Board regularly reviews information regarding the Company’s operational, financial, legal, cybersecurity, fraud and reputational risks which is usually conveyed to the Board by the senior management of the Company or by one of the Board’s Committees. The Board also continues to monitor risks posed to our European operations resulting from the UK's exit from the European Union. Because overseeing risk is an ongoing process and an inherent part of the Company’s strategic decisions, the Board discusses risk throughout the year at other meetings in relation to specific proposed actions.

The Board has delegated certain risk management oversight responsibility to the Board committees. The Audit Committee oversees risks related to the Company’s accounting, auditing, reporting, financial practices (including the integrity of the Company’s financial statements), cybersecurity, administration and financial controls, and compliance with legal and regulatory requirements. The Audit Committee also reviews and discusses the Company’s policies with respect to risk assessment and risk management. The Compensation Committee oversees risks relating to the Company’s compensation, incentive compensation, and equity-based compensation plans. The Nominating/Corporate Governance Committee oversees

~~risks relating to the composition and organization of the Board and the Company's governance practices, including environmental and social governance matters.~~

The Company believes that its leadership structure also enhances the risk oversight function of the Board. Our CEO regularly discusses material risks facing the Company with management and members of the Board. Our CEO, as a member of the Board, is also expected to report candidly to his fellow directors on his assessment of the material risks the Company faces, based upon the information he receives as part of his management responsibilities.

~~The Audit Committee~~

In January 2020, the Audit Committee of the Board of Directors consisted of Ms. Jokinen (Chair), Ms. Tekorius and Messrs. Bauer and Parod. The Committee met four times during fiscal 2020. All Committee members were present in person or by telephone at the meetings. The duties and responsibilities of the Committee include, among other things, to:


-			~~appoint, approve compensation, and oversee the work of the independent auditor;~~
-			~~review at least annually a report by the independent auditor describing the firm’s internal control procedures and any material issues raised by the most recent internal control review;~~
-			~~preapprove all audit services and associated fees by the independent auditors;~~
-			~~preapprove all permissible non-audit services to be provided by the independent auditor;~~
-			~~review the independence of the independent auditor;~~
-			~~review the scope of audit and resolve any difficulties or disagreements with management encountered during the audit or any interim periods;~~
-			~~review and discuss with management and the independent auditor the annual audit and quarterly financial statements of the Company;~~
-			~~recommend to the Board whether the financial statements should be included in the Annual Report on Form 10-K and in the quarterly reports on Form 10-Q, in both cases, as reviewed;~~
-			~~review the adequacy and effectiveness of the Company’s internal controls;~~
-			~~review the adequacy and effectiveness of the Company’s disclosure controls and management reports thereon;~~
-			~~approve the scope of the internal auditor’s audit plan;~~
-			~~review and approve earnings press releases, financial information and earnings guidance, if any;~~
-			~~review financial risk assessment presented by management;~~
-			~~oversee the Company’s compliance systems with respect to legal and regulatory requirements, review the Company’s Code of Business Conduct and Ethics and monitor compliance with such code;~~
-			~~review complaints regarding accounting, internal accounting controls and auditing matters, including a way to report anonymously;~~
-			~~review the Company’s adherence to regulations for the hiring of employees and former employees of the independent auditor;~~
-			~~periodically review and evaluate the Company's policies and programs for identifying cybersecurity risks; and~~
-			review and evaluate annually the qualifications, performance and independence of the independent auditor, including a review and evaluation of the lead partner of the independent auditor, and assure regular rotation of the lead audit partner as required by law.

~~The Audit Committee reports to the Board on its activities and findings.~~

The Board has determined that under current NYSE listing standards all members of the Audit Committee are financially literate, are “Audit Committee financial experts,” and are independent under the Company’s Corporate Governance Guidelines and NYSE listing requirements, and that each has accounting or related financial management expertise as required by the NYSE listing standards. ~~The Committee’s Charter and Corporate Governance Guidelines, which have been approved by the Board, are reviewed at least annually and may be viewed on the Company’s website~~ ~~www.alamo-group.com~~ ~~under the “Our Commitment” tab.~~

~~Report of the Audit Committee~~

The information contained in this report shall not be deemed to be “soliciting material” or “filed” with the Securities and Exchange Commission (the “SEC”) or subject to the liabilities of Section 18 of the Exchange Act, except to the extent that the Company specifically incorporates it by reference into a document filed under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.

The Audit Committee is currently comprised of four independent members of the Company’s Board of Directors. Each member of the Audit Committee is independent under applicable law and NYSE listing requirements. The duties and responsibilities of the Audit Committee are set forth in the Audit Committee Charter, which the Board of Directors reviews on an annual basis.

The Audit Committee oversees the Company’s financial reporting process on behalf of the Board of Directors. Management has the primary responsibility for the financial statements and the reporting process, including the system of internal control over financial reporting. In fulfilling its oversight responsibilities in fiscal 2020, the Committee reviewed and discussed with management the Quarterly Reports on Form 10-Q and the audited financial statements included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2020, including the quality, not just the acceptability, of the accounting principles, the reasonableness of significant adjustments, and the clarity of disclosures in the financial statements.

The Audit Committee has reviewed and discussed with management and with the independent auditors, who are responsible for expressing an opinion on the conformity of those audited financial statements with generally accepted accounting principles, their judgments as to the quality, not just the acceptability, of the Company’s accounting principles and the audited financial statements. The Audit Committee has discussed with the independent auditors the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board (the “PCAOB”) and the SEC. In addition, the Committee has received the written disclosures and the letter from the independent accountant required by the applicable requirements of the PCAOB regarding the independent accountant's communications with the Audit Committee concerning independence, and has discussed with the independent accountant the independent accountant's independence as described in Item 407(d)(3)(i) of Regulation S-K. The Committee has also considered the compatibility of non-audit services with the auditors’ independence.

The Audit Committee discussed with the independent auditors the overall scope and plans for their audit. They also discussed with management and the internal auditor the overall scope and plans for the Company’s assessment of internal control. The Committee meets with the independent auditors and the internal auditor, with and without management present, to discuss the results of their examinations, their evaluations of the Company’s internal controls over financial reporting, and the overall quality of the Company’s financial reporting. The Committee met four times during fiscal 2020. All Committee members were present at the meetings.

In reliance on the reviews and discussions referred to above, the Audit Committee recommended to the Board of Directors (and the Board approved) that the audited financial statements be included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2020, for filing with the SEC. The Audit Committee also recommended, subject to stockholder ratification, the appointment of KPMG LLP as the Company’s independent auditors for fiscal year 2021. Audit, audit-related and any permitted non-audit services provided to the Company by KPMG LLP are subject to preapproval by the Audit Committee.


~~AUDIT COMMITTEE~~

~~Tracy C. Jokinen, Chair~~
~~Robert P. Bauer, Member~~
~~Richard W. Parod, Member~~
~~Lorie L. Tekorius, Member~~

~~The Nominating/Corporate Governance Committee~~

In January 2020, the Nominating/Corporate Governance Committee consisted of Messrs. Etchart (Chair), Bauer and Parod and Ms. Tekorius. During 2020, the Committee held two meetings. All Committee members were present at the meetings. The Committee has the responsibility, among other things, to:


-			~~evaluate director candidates and has sole authority to retain a search firm in that effort, approve its fees and scope of service;~~
-			~~recommend to the Board of Directors nominees for Board election by the stockholders based upon their qualifications, knowledge, skills, expertise, experience and diversity;~~
-			~~review Board composition to reflect the appropriate balance of knowledge, skills, expertise, experience and diversity;~~
-			~~review size of the Board and the frequency and structure of Board meetings;~~
-			~~recommend to the Board the establishment, elimination, size and composition of standing Committees;~~
-			~~review, at least annually, the Company's Code of Business Conduct & Ethics;~~
-			~~review, at least annually, the Company's annual sustainability reporting data and annual sustainability report;~~
-			~~make recommendations to the Board concerning public company governance matters based on trends and best practices, including on matters relating to environmental and social governance;~~
-			~~oversee and establish procedures for the annual evaluation of the Board and management; and~~
-			~~develop, recommend to the Board, and review annually a set of corporate governance guidelines.~~

The Board of Directors has determined that the members of the Committee are independent under the Company’s Corporate Governance Guidelines and NYSE listing requirements. The Committee’s Charter and the Company’s Corporate Governance Guidelines are reviewed at least annually and may be viewed on the Company’s website ~~www.alamo-group.com~~ ~~under the “Our Commitment” tab.~~

The Nominating/Corporate Governance Committee will consider director candidates recommended by stockholders. The Committee’s Policy Regarding Director Candidates Recommended by Shareholders, the Company’s Corporate Governance Guidelines (including our standards of director independence), the charters of our Board Committees, and the Company’s Code of Business Conduct and Ethics are on our website ~~www.alamo-group.com~~ under the “Our Commitment” tab and are available in print at no charge to any stockholder who requests them by writing to Corporate Secretary, Alamo Group Inc., 1627 East Walnut Street, Seguin, Texas 78155.

Any stockholder of the Company who complies with the notice procedures set forth below and is a stockholder of record at the time such notice is delivered to the Company may make a director recommendation for consideration by the Nominating/Corporate Governance Committee. A stockholder may make recommendations at any time, but recommendations for consideration of a nominee at the Annual Meeting of Stockholders must be received not less than 120 days before the first anniversary of the date the proxy statement was released to stockholders in connection with the previous year’s annual meeting. Therefore, to submit a candidate for consideration for nomination at the 2022 Annual Meeting of Stockholders, a stockholder must submit the recommendation, in writing, by December 2, 2021. The written notice must demonstrate that it is being submitted by a stockholder of the Company and include information about each proposed director candidate, including name, age, business address, principal occupation, principal qualifications and other relevant biographical information. In addition, the stockholder must provide confirmation of each candidate’s consent to serve as a director. A stockholder must send recommendations to the Nominating/Corporate Governance Committee, Alamo Group Inc., 1627 East Walnut Street, Seguin, Texas 78155.

The Nominating/Corporate Governance Committee identifies, evaluates and recommends director candidates to the Board of Directors. In identifying and recommending nominees for positions on the Board of Directors, the Nominating/Corporate Governance Committee places primary emphasis on (i) judgment, character, expertise, skills and knowledge useful to the oversight of our business; (ii) diversity of viewpoints, backgrounds, experiences and other demographics; (iii) business or other relevant experience; and (iv) the extent to which the interplay of the nominee's expertise, skills, knowledge and experience with that of other members of the Board will build a board that is active, collegial and responsive to the needs of the Company. Although gender and diversity characteristics, such as race, ethnicity and nationality are important considerations in the Committee’s process, the Committee and the Board of Directors do not have a formal policy with regard to the

consideration of gender and/or diversity in identifying director nominees. Nominees are not discriminated against on the basis of gender, race, religion, national origin, sexual orientation, disability or any other basis prescribed by law.

Upon identifying a director candidate, or considering a director candidate recommended by a stockholder, the Committee initially determines the need for additional or replacement Board members and evaluates all the director candidates under the criteria described above, based on the information the Committee receives with the recommendation or otherwise possesses, which may be supplemented by certain inquiries. If the Committee determines, in consultation with other Board members including the Chair, that a more comprehensive evaluation is warranted, the Committee may then obtain additional information about the director candidate’s background and experience, including by means of interviews. The Committee will then evaluate the director candidate further, again using the evaluation criteria described above. The Committee receives input on such director candidates from other directors, and recommends director candidates to the full Board of Directors for nomination. The Committee may engage a third party to assist in the search for director candidates or to assist in gathering information regarding a director candidate’s background and experience. If the Committee engages a third party, the Committee approves the fee that the Company pays for such services.

~~The Compensation Committee~~

~~In January 2020, the Compensation Committee of the Board of Directors consisted of Messrs. Parod (Chair), Bauer and Etchart and Ms. Jokinen. The Committee held three meetings in 2020.~~ All ~~Committee members were present at the meetings. The duties and responsibilities of the Committee include, among other things, to:~~


-			review and approve, at least annually, the goals and objectives relevant to CEO compensation and the structure of the Company’s plans for executive compensation, incentive compensation, equity-based compensation and its general compensation, and employee benefit plans, and make recommendations to the Board;
-			~~evaluate annual performance of the CEO in light of the goals of the Company’s executive compensation plans, and recommend his or her compensation based on this evaluation;~~
-			~~in consultation with the CEO, review, evaluate and recommend to the Board the compensation of all executive officers and key managers;~~
-			~~evaluate and recommend to the Board compensation of directors for Board and Committee service;~~
-			~~review and recommend to the Board any severance agreement made with the CEO;~~
-			~~review and recommend to the Board the amount and terms of all individual equity awards, including stock options, restricted stock or performance based equity awards;~~
-			~~review executive officer and director compliance with stock ownership requirements;~~
-			~~review and recommend to the Board all equity-based and incentive compensation plans that are subject to stockholder approval; and~~
-			~~approve and issue the annual report on executive compensation required by the SEC for inclusion in the Company’s proxy statement.~~

~~The Compensation Committee may delegate its duties and responsibilities to subcommittees as it deems necessary and advisable. The role~~ of our ~~executive officers in determining compensation is discussed below under “Compensation Discussion~~Committee Charters and Analysis.” The Compensation Committee has the authority to retain, at the Company’s expense, compensation consultants and other advisers as it deems necessary to assist in the fulfillment of its duties. In 2020, the Compensation Committee engaged Pay Governance, LLC (the "Compensation Consultant") to provide consulting services regarding the Company's executive compensation program for 2020 and 2021. The Compensation Consultant provided (i) comparative market data and recommendations concerning potential compensation adjustments to 2020 annual cash incentive compensation for the Committee to consider in light of the impacts the COVID-19 pandemic had on the Company's business in 2020; (ii) recommendations concerning potential changes to PSU grants made in 2020 that were impacted by the COVID-19 pandemic; and (iii) market data information to assist with the setting of total executive compensation levels for 2021.

The Compensation Consultant provided no services to the Company other than the services provided to the Compensation Committee as outlined above. The Committee assessed the independence of the Compensation Consultant under both SEC and NYSE rules and determined that the Compensation Consultant is independent and the work of the Compensation Consultant did not raise any conflict of interest.

~~The Board of Directors has determined that the members of the Committee are independent under the Company’s~~our Corporate Governance Guidelines, which have been approved by the ~~NYSE listing requirements, the Exchange Act and the rules and regulations of the SEC.~~

~~The Committee’s Charter and the Company’s Corporate Governance Guidelines~~Board, are reviewed at least annually and may be viewed on the Company’s website ~~www.alamo-group.com~~ ~~under~~at https://www.alamo-group.com/our-company/corporate-governance/.

BOARD LEADERSHIP STRUCTURE

The Board does not have a policy on whether the ~~“Our Commitment” tab.~~ same person should serve as both the CEO and Chairman of the Board or, if the roles are separate, whether the chairman should be selected from the non-employee directors or should be an employee. The Board believes that it should have the flexibility to make these determinations at any given point in time in the way that it believes best to provide appropriate leadership for the Company at that time.

~~Stock Ownership Guidelines~~


Alamo Group Inc.			18			Proxy Statement


CORPORATE GOVERNANCE

Currently, Mr. Baty serves as Chairman of the Board and Mr. Leonard serves as the CEO. The CEO is responsible for setting the strategic direction for the Company and the day-to-day leadership and performance of the Company, while the Chairman of the Board sets the agenda for Board meetings and presides over meetings of the full Board. The Board believes that its current leadership structure is appropriate at this time.

THE BOARD'S ROLE IN STRATEGIC AND RISK OVERSIGHT


The Board provides insight and guidance to Company management and, if necessary, challenges management concerning the Company's overall strategic direction.

The Board monitors and analyzes the Company's financial results and approves all material acquisitions and significant capital expenditures. The Board also has an active role in overseeing management of the Company’s risk. The Board regularly reviews information regarding the Company’s operational, financial, legal, cybersecurity, fraud and reputational risks which is usually conveyed to the Board by the senior management of the Company or by one of the Board’s Committees. Because overseeing risk is an ongoing process and an inherent part of the Company’s strategy, the Board discusses risk throughout the year at other meetings in relation to specific proposed actions.

The Board has delegated certain risk management oversight responsibility to the Board committees. The Audit Committee oversees risks related to the Company’s accounting, auditing, reporting, financial practices (including the integrity of the Company’s financial statements), administration and financial controls, and compliance with legal and regulatory requirements. The Audit Committee reviews and discusses the Company’s policies with respect to risk assessment and risk management. Information and cybersecurity risk is also a significant oversight focus area for the Audit Committee, as well as for the the entire Board. The Compensation Committee oversees risks relating to the Company’s compensation, incentive compensation, and equity-based compensation plans. The Nominating/Corporate Governance Committee oversees risks relating to the composition and organization of the Board and the Company's governance practices, including environmental and social governance matters.


Alamo Group Inc.			19			Proxy Statement


						CORPORATE GOVERNANCE

BOARD OVERSIGHT OF ESG MATTERS

Due to the significance of environmental and social governance ("ESG") as it relates to strategic and risk issues facing the Company, the Board as a whole maintains oversight of the Company’s ESG program, including initiatives, metrics and policies. This is intended to provide the Board timely visibility into the identification, reporting, assessment, and management of material ESG issues. The Nominating/Corporate Governance Committee is responsible for assisting the Board in its oversight of the Company’s ESG program, which includes the matters covered in the Company’s annual Sustainability Report. Our ESG program is focused on, among other things, the efficient use of energy and natural resources to help reduce the intensity of the Company’s greenhouse gas (GHG) emissions and water usage, as well as human capital management, including diversity, equity and inclusion initiatives.

CODE OF BUSINESS CONDUCT AND ETHICS

The Board has approved and adopted our Code of Business Conduct and Ethics (the "Code"). The Code applies to all of the Company's employees, directors, and officers and those of its subsidiary companies. The Code covers concepts such as confidential and proprietary information, inventions, conflicts of interest and fair dealing, corporate opportunities, insider trading and tipping, anti-corruption and anti-bribery, antitrust compliance, export controls, fraud, confidential reporting procedures, and non-retaliation measures. A copy of the Code is available on our website, at https://www.alamo-group.com/our-company/corporate-governance/. The Company intends to disclose any amendments to the Code on its website.

STOCK OWNERSHIP GUIDELINES

Consistent with our objective of aligning management's interests with the interests of our stockholders, the Company adopted formal stock ownership guidelines applicable to senior executives and non-employee directors of the Company. The guidelines require that the total value of the executive's or director's holdings of Company stock must equal or exceed the specified target values shown below:


Title			Target Ownership



Chief Executive Officer			5 times annual base salary
Division EVPs & CFO			2.5 times annual base salary
~~All other Section 16 Officers~~Other Company EVPs			2 times annual base salary
~~Other~~Company VPs and other Key Senior Executives			1 time annual base salary
Outside Directors			5 times annual cash retainer

Each senior executive and director is expected to meet the target ownership requirements within a period of five (5) years from the date of adoption of our guidelines (on or before May of 2023) or, for any newly hired/promoted executives or newly appointed directors, within five (5) years from the date of hire, promotion or appointment. Senior executives and directors are required to hold at least 50% of the net shares of Company stock obtained through the Company's equity compensation programs until the applicable ownership targets are achieved. Compliance with the stock ownership guidelines is measured annually and reported to the Compensation Committee. All of our ~~NEOs and~~ Directors, with the exception of our two newest Directors (Ms. Grooms and Ms. ~~Tekorius, who became a member of the Board in December 2019,~~ Tekorius),


Alamo Group Inc.			20			Proxy Statement


CORPORATE GOVERNANCE

have met share ownership requirements under our Stock Ownership Guidelines. All of our NEOs have met the share ownership requirements with the exception of Mr. Leonard who is new to his role as President and Chief Executive Officer. Prior to his appointment as President and Chief Executive Officer, Mr. Leonard had met the share ownership requirements in his previous position as the Executive Vice-President of the Company's Industrial Division.

For purposes of calculating ownership value, we count (i) all vested Company stock owned directly and indirectly (e.g., held by a spouse or trust) including vested restricted stock and restricted stock units, (ii) all shares of time-based unvested restricted stock and restricted stock units, and (iii) the in-the-money value of vested but unexercised stock options. We do not count unvested stock options or unvested performance-based equity awards. The failure by an executive or director to achieve or to show sustained progress towards achievement of the applicable ownership target within the recommended time period(s) may result in the reduction of future long term incentive grants and/or a requirement that the executive/director retain all Company stock obtained through the vesting or exercise of any equity grants or the taking of any other action as may be appropriate.

~~Prohibition on Hedging and Pledging~~PROHIBITION ON HEDGING AND PLEDGING

The Company has adopted a policy prohibiting directors and executive officers from pledging Company stock as collateral for any outstanding obligation or entering into any transactions intended to hedge or offset any decrease in the market value of Company stock. Prior to 2020, the activity prohibited by our policy did not apply to the amount of Company stock held by our directors and executives in excess of their applicable share ownership requirement under the Company's Stock Ownership Guidelines. In 2020, we revised our policy concerning the hedging and pledging of Company stock to completely prohibit the hedging of Company stock by directors and executive officers of the Company and to completely prohibit the pledging of Company stock by directors and executive officers unless such pledging is expressly approved in advance by the Company's Board on an exception basis and, in the event any such approval by the Board is granted, pledging is only permissible with respect to Company stock held in excess of the share ownership requirement under our Stock Ownership Guidelines. To date, there have been no approvals requested or provided by our Board with respect to pledging activity by any of our executive officers. Our policy concerning hedging and pledging of Company stock only applies to directors and executive officers of the Company and not to our general employee population.


Alamo Group Inc.			21			Proxy Statement


						CORPORATE GOVERNANCE

~~Sustainability & Environmental and Social Governance Priorities~~SUSTAINABILITY AND ENVIRONMENTAL AND SOCIAL GOVERNANCE

In 2019, we began an important initiative focused on increasing transparency regarding our ~~environmental, social~~ESG priorities. We take our ESG responsibilities seriously and ~~governance priorities.~~strive to effectively address the issues that matter most to our stockholders, employees, customers, suppliers, investors and the communities we serve. We believe sustainability is a critical consideration for all aspects of our business and we are committed to promoting a corporate culture that builds sustainability into our strategic planning while incorporating it into our day-to-day business operations. Our efforts in this area have led to the development of a sustainability framework focused on the following three key areas:

•~~ENVIRONMENT~~

•~~PEOPLE AND COMMUNITY~~

•~~GOVERNANCE AND ETHICS~~


Environment			People and Community			Governance and Ethics

More details concerning our ~~sustainability~~ESG program can be found in our ~~second annual~~2020 Sustainability Report ~~(published in March 2021)~~ which may be viewed on the Company's website ~~under the "Our Commitment" tab.~~at https://www.alamo-group.com/our-company/Environmental-and-Social/. Our Sustainability Reports are not incorporated by reference in, and do not form a part of this proxy statement. Because we are committed to making ongoing improvements in our sustainability practices over time, we felt it was important to measure certain key indicators on an annual basis as follows:


Focus Area			Metric



Energy Usage			~~Gigajoules~~/Gigajoules/metric tons ("MT") products shipped
Renewable Electric Energy			Renewable electric ~~energy~~/energy/total electric energy used
Emissions			Greenhouse gas emissions MT/MT/MT of products shipped
Water Usage			Water used (m3)(m3)/MT of products shipped
Waste Generation			Landfill waste (Kg)/MT of products shipped
Waste Recycling			Recycled waste (MT)/Landfill waste (MT)
Employee Safety			Number of recordable injuries/100 employees

We chose the above metrics based on the Sustainability Accounting Standards Board ("SASB") standard for the Industrial Machinery and Goods Industry category. We have established future goals for the above indicators against which we will measure our ongoing performance as outlined in greater detail in our annual Sustainability Reports.


Alamo Group Inc.			22			Proxy Statement


CORPORATE GOVERNANCE

2021 ESG INITIATIVES

In 2021, we took several steps that demonstrate our increasing commitment to environmental and social sustainability. In July of 2021 we announced the appointment of our first Chief Sustainability Officer ("CSO"), Dan E. Malone, who had previously been serving as the Company's Chief Financial Officer. In conjunction with Mr. Malone's appointment, we created a new organization to support our ESG objectives which includes a sustainability ~~report.~~

steering committee made up of key members of our executive management team, and a sustainability team comprised of qualified personnel who will assist, under Mr. Malone's direction and leadership, in the further development of our ESG program. In consultation with our Board of Directors we also set a goal of reducing our scope 1 and scope 2 greenhouse gas emissions by at least fifty percent by the year 2030.

Other ~~Corporate Governance Information~~key initiatives we completed or initiated in 2021 include the following:

■Tracking and disclosure in-line with the recommendations of the Task Force on Climate related Financial Disclosures ("TCFD")

■The creation of so-called "Green Teams" at each of our manufacturing facilities that are responsible for identifying and implementing changes aimed at achieving the Company sustainability goals

■The implementation of a cloud-based software system to assist in sustainability reporting across the organization

■Increased research and development investments to explore electrification and hybrid technology for several of our product lines

OTHER CORPORATE GOVERNANCE HIGHLIGHTS

We recognize that strong corporate governance contributes to long-term stockholder value. Accordingly, we are committed to sound governance practices including those described below.

•■~~all of our directors, except our CEO, are independent~~

•~~all~~All of the Committees of our Board are composed entirely of independent directors

•■~~independent~~Independent directors meet regularly in executive session without management present

•■~~the~~The Board regularly reviews with management the Company's overall strategic plan and risk assessment

•■33% of our continuing directors and director nominees are diverse

■Directors are limited to 3 public company directorships (including service on the Company's Board)

■The Board and its committees conduct annual performance evaluations

•■~~the~~The Board conducts peer reviews of individual independent directors

•■~~the~~The Board conducts annual training for its members on relevant governance topics

•■~~all~~All directors are elected annually ~~and~~ by majority vote

•■~~the Board is prioritizing diversity, equity and inclusion practices along with sustainability practices~~

•~~directors~~Directors and officers are subject to stock ownership requirements

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The Company or one of our subsidiaries may occasionally enter into transactions with certain “related persons.” Our Board has adopted a written Related Person Transactions Policy (the “Policy”) governing the approval or ratification of Related Person Transactions by the Audit Committee or all of the disinterested members of the Board, if necessary.


Alamo Group Inc.			23			Proxy Statement


						CORPORATE GOVERNANCE

For purposes of the Policy, a Related Person Transaction generally means any transaction outside the normal course of business and not arms-length involving an amount in excess of $120,000 cumulatively within a twelve month period in which the Company is a participant and in which a Related Person, as defined below, has a direct or indirect material interest. In addition, proposed charitable contributions, or pledges of charitable contributions in excess of $100,000 cumulatively within a twelve month period, by the Company to a charitable or nonprofit organization identified on the roster of Related Persons, are also subject to prior review and approval by the Audit Committee. A Related Person means (i) an executive officer or director of the Company or a nominee for director of the Company, (ii) a beneficial owner of more than 5% of any class of voting securities of the Company, (iii) an immediate family member of any of the persons identified in clauses (i) or (ii) hereof, or (iv) any firm, corporation or other entity in which any of the foregoing persons is employed or is a general partner or principal or in a similar position or in which such person has a 5% or greater beneficial ownership interest.

Prior to entering into the Related Person Transaction, (a) the Related Person, (b) the director, executive officer, nominee or beneficial owner who is an immediate family member of the Related Person, or (c) the relevant business manager responsible for the potential Related Person Transaction shall provide notice to the Company's General Counsel of the facts and circumstances of the proposed Related Person Transaction. The General Counsel shall advise the Chair of the Audit Committee of any Related Person Transaction of which he becomes aware.

Under the Policy, the Audit Committee shall consider each Related Person Transaction, unless the Audit Committee determines that the approval or ratification of such Related Person Transaction should be considered by all of the disinterested members of the Board of Directors.

In considering whether to approve or ratify any Related Person Transaction, the Audit Committee or the disinterested members of the Board of Directors, as the case may be, shall consider all factors that are relevant to the Related Person Transaction, including, without limitation, the following:

■The size of the transaction and the amount payable to a Related Person;


-			~~the size of the transaction and the amount payable to a Related Person;~~
-			~~the nature of the interest of the Related Person in the transaction;~~
-			~~whether the transaction may involve a conflict of interest; and~~
-			whether the transaction involves the provision of goods or services to the Company that are available from unaffiliated third parties and, if so, whether the transaction is on terms and made under circumstances that are at least as favorable to the Company as would be available in comparable transactions with or involving unaffiliated third parties.

■The nature of the interest of the Related Person in the transaction;

■Whether the transaction may involve a conflict of interest; and

■Whether the transaction involves the provision of goods or services to the Company that are available from unaffiliated third parties and, if so, whether the transaction is on terms and made under circumstances that are at least as favorable to the Company as would be available in comparable transactions with or involving unaffiliated third parties.

There were no Related Party Transactions during the fiscal year ending December 31, ~~2020.~~

2021.

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

All members of the Compensation Committee are independent directors, and none are present or past employees or officers of the Company or any of its subsidiaries. None of our executive officers has served on the Compensation Committee (or its equivalent) or board of directors of another company that, in turn, had an executive officer serving on our Compensation Committee.


Alamo Group Inc.			24			Proxy Statement


CORPORATE GOVERNANCE

REPORT OF THE AUDIT COMMITTEE

The Audit Committee is currently comprised of five independent members of the Company’s Board of Directors. Each member of the Audit Committee is independent under applicable law and NYSE listing requirements. The duties and responsibilities of the Audit Committee are set forth in the Audit Committee Charter, which the Board of Directors reviews on an annual basis.

The Audit Committee oversees the Company’s financial reporting process on behalf of the Board of Directors. Management has the primary responsibility for the financial statements and the reporting process, including the system of internal control over financial reporting. In fulfilling its oversight responsibilities in fiscal 2021, the Committee reviewed and discussed with management the Quarterly Reports on Form 10-Q and the audited financial statements included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021, including the quality, not just the acceptability, of the accounting principles, the reasonableness of significant adjustments, and the clarity of disclosures in the financial statements.

The Audit Committee discussed with the independent auditors the overall scope and plans for their audit. They also discussed with management and the internal auditor the overall scope and plans for the Company’s assessment of internal control. The Committee meets with the independent auditors and the Company's Vice-President of internal audit, with and without management present, to discuss the results of their examinations, their evaluations of the Company’s internal controls over financial reporting, and the overall quality of the Company’s financial reporting. The Committee met four times during fiscal 2021. All Committee members were present at the meetings.

In reliance on the reviews and discussions referred to above, the Audit Committee recommended to the Board of Directors (and the Board approved) that the audited financial statements be included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021, for filing with the SEC. The Audit Committee also recommended, subject to stockholder ratification, the appointment of KPMG LLP as the Company’s independent auditors for fiscal year 2022. Audit, audit-related and any permitted non-audit services provided to the Company by KPMG LLP are subject to preapproval by the Audit Committee.


AUDIT COMMITTEE

Tracy C. Jokinen, Chair			Richard W. Parod, Member
Robert P. Bauer, Member			Lorie L. Tekorius, Member
Nina C. Grooms, Member


Alamo Group Inc.			25			Proxy Statement

EXECUTIVE COMPENSATION

COMPENSATION DISCUSSION AND ANALYSIS

~~Introduction~~INTRODUCTION

This section provides information regarding the compensation program in place for the Company’s principal executive officer, principal financial officer, former principal executive officer, former principal financial officer, and the three most highly compensated executive officers other than the principal executive officer, principal financial officer, former principal executive officer, and former principal financial officer (“Named Executive Officers” or “NEOs”). All NEOs are listed in the ~~2020~~2021 Summary Compensation Table. This section also includes information regarding, among other things, the overall objectives of the Company’s executive compensation program and each element of compensation that we provide to our NEOs.

In ~~2020,~~2021, the Company made several important changes in the executive management team. After 22 years of exemplary leadership as the Company’s President and Chief Executive Officer, Mr. Ronald A. Robinson retired and was succeeded by Mr. Jeffery A. Leonard, who had been serving as the Executive Vice-President of the Company's former Industrial Division. In connection with the Company's realignment of its two operating divisions, Mr. Richard H. Raborn was appointed as Executive Vice-President to lead the Company's new Vegetation Management Division and Mr. Michael A. Haberman was appointed as Executive Vice-President to lead the Company's new Industrial Equipment Division. Our former Chief Financial Officer, Mr. Dan E. Malone, was appointed to the newly created position of Executive Vice-President and Chief Sustainability Officer and Mr. Richard J. Wehrle was appointed as the Company's Executive Vice-President and Chief Financial Officer, after serving for many years as the Company's Vice-President, Corporate Controller and Treasurer.

In 2021, our NEOs were:


~~NAME~~Name			~~TITLE~~Title
~~Ronald~~


Jeffery A. ~~Robinson~~Leonard			President & CEO
~~Dan E. Malone~~Richard J. Wehrle			EVP & CFO, Principal Financial Officer
~~Jeffery A. Leonard~~Edward T. Rizzuti			EVP, ~~Industrial Division~~General Counsel & Secretary
Dan E. Malone			EVP & CSO, Former Principal Financial Officer
Richard H. Raborn			EVP ~~Agricultural Division~~Vegetation Management
~~Edward T. Rizzuti~~Michael A. Haberman			~~VP, General Counsel~~EVP Industrial Equipment
Ronald A. Robinson			Former President & ~~Secretary~~CEO

~~2020 Company Performance~~


Alamo Group Inc.			26			Proxy Statement


EXECUTIVE COMPENSATION

~~We began~~2021 COMPANY PERFORMANCE

In 2021 we experienced strong demand in all of our markets with sustained growth in backlog levels which led to a record backlog of more than $800 million at year-end. However, our ability to efficiently execute during a year of such robust and sustained market demand was limited by the ~~year with strong results for the first two months of 2020, but the first quarter ended with the onset~~direct and indirect effects of the ongoing COVID-19 pandemic which ~~negatively affected our business and financial results in the last month~~created a number of the first quarter and throughout the remainder of the year. We achieved record net sales in 2020 due to contributions from our recently acquired Morbark and Dutch Power businesses but experienced a decline in net sales within our core business (after adjustingsignificant challenges for acquisitions) and a decline in net income for the year due to COVID-19 related impacts on our business. Our Industrial Division was impacted more severely than our Agricultural Division as a result of the pandemic. When adjusting for the contribution effects of our Morbark and Dutch Power businesses, our Industrial Division experienced a decline of more than fifteen percent in net sales on a year-over-year basis while net sales in our Agricultural Division remained relatively flat on a year-over-year basis. Both of our Company's Divisions faced an extremely challenging environment that included temporary plant closures,us including, among other things, supply chain ~~issues~~disruptions, input cost inflation, and other operational disruptions that persisted throughout the year. Despite these challenges, we performed relatively well. Our Industrial Division was able to maintain operating income at a healthy level with significantly lower revenue while our Agricultural Division was able to improve its operating income significantly on flat revenue, all of which is a result of decisive action by our management team and an ongoing focus on cost control and asset management over the course of the year. We also ended the year with record backlog levels which we believe will benefit us in 2021.

As a result of sustained operational discipline combined with the execution of various Company-wide cost control and asset management initiatives that were implemented in early 2020 in response to the pandemic, we were successful in achieving strong cash flow which allowed us to reduce our total debt outstanding by $158.6 million for the full year. We also continued to work towards the successful integration of our recently acquired businesses and were successful in making meaningful improvements to our corporate sustainability program. In 2020, our leadership adapted to the changed environment brought on by the pandemic and delivered admirable results in the face of significant adversity.skilled labor constraints. Despite the many challenges ~~faced~~we encountered in ~~2020, among other things, we:~~2021, we delivered favorable results and completed several significant objectives including:

•■~~achieved~~Achieved record net sales for the full year of ~~$1.16 billion;~~$1.3 billion

•■~~achieved operating cash flow for the full year~~Achieved fully diluted earnings per share ("EPS") of ~~$184.3 million, also~~$6.75, a record for the Company

•■~~finished the year with~~Achieved record ~~backlog levels at $354 million;~~EBITDA of $162 million*

•■~~continued~~Completed a successful transition of leadership with ~~the successful integration of~~Jeffery A. Leonard being named as our ~~recently acquired Morbark and Dutch Power companies;~~new CEO;

•■~~began operations at our newly constructed Super Products facility~~Completed the acquisition of Timberwolf Ltd. in ~~Mukwonago, Wisconsin;~~

•~~continued to execute on our goal of fewer, bigger and more efficient manufacturing plants;~~

•~~improved our sustainability program and published our 2nd annual corporate sustainability report;~~the U.K.; and

•■~~enhanced safety measures across~~Created the ~~Company for protection of~~new Chief Sustainability Officer role, further developing our ~~employees in response to COVID-19~~ESG organization and capabilities.

*EBITDA is a non-GAAP financial measure defined for this purpose as income from operations plus depreciation and amortization. For more information relating to this measure, including a reconciliation of the non-GAAP financial measure to the comparable GAAP financial measure, refer to "Non-GAAP Financial Measures Reconciliation" in Appendix I hereto.

~~Stockholder Returns~~

STOCKHOLDER RETURNS

Our continued strong financial performance is reflected in the growth of our stock and the returns we have provided to our stockholders. We have maintained consistent annual increases in the dividends paid to our stockholders and our stock has achieved a ~~greater than 270%~~very favorable return over the five year period ~~beginning on December 31, 2015 and ending on December 31, 2020~~from 2016 through 2021, well in excess of the return associated with relevant index benchmarks as shown in the following graph:

$100 invested on December 31, 2016 in stock or index, including reinvestment of dividends.

Fiscal year ending December 31.


Alamo Group Inc.			27			Proxy Statement

*$100 invested on December 31, 2015 in stock or index, including reinvestment of dividends.

~~Fiscal year ending December 31.~~

EXECUTIVE COMPENSATION


	12/16	12/17	12/18	12/19	12/20	12/21



Alamo Group Inc.	100.00	149.01	102.53	167.31	184.72	197.82
S&P SmallCap 600	100.00	113.23	103.63	127.24	141.60	179.58
Russell 2000	100.00	114.65	102.02	128.06	153.62	176.39

12/15 12/16 12/17 12/18 12/19 12/20
Alamo Group Inc. 100.00 146.97 218.99 150.69 245.89 271.48
S&P SmallCap 600 100.00 126.56 143.30 131.15 161.03 179.20
Russell 2000 100.00 121.31 139.08 123.76 155.35 186.36
EXECUTIVE COMPENSATION PHILOSOPHY AND OBJECTIVES

~~Response to COVID-19~~

With the onset of the pandemic and throughout its duration, our primary focus has been on the well-being of our employees, and we have taken various steps to protect their ongoing health and safety including, among other measures, regular facility sanitizations, wide distribution of hand sanitizer, daily temperature checks, reconfiguration of factory and office work stations to allow for appropriate distancing, cancellation of all unnecessary business travel, implementation of third party visitor restrictions, and modification of work schedules to include remote work.

We also quickly implemented various cost management and cash generation measures in order to mitigate the negative impacts to our financial health stemming from the pandemic. These measures included a reduction in inventory levels to match demand, limitations on capital expenditures, compensation freezes or reductions for salaried employees, the restriction of

~~business travel, the temporary suspension of our stock repurchase program, and the adjustment of staffing levels, among other items.~~

~~In terms of our compensation program, we took the following actions in response to COVID-19:~~

•~~Base Salaries~~. In April 2020, we reversed annual base salary increases for all NEOs and other executives and froze annual base salaries for most of our other salaried employees. Given improving conditions, in October 2020, we restored base salary increases for all of our NEOs and implemented base salary increases for salaried employees who were subject to salary freezes.

•~~Annual Cash Incentive Compensation.~~ For our NEOs, our Compensation Committee awarded payouts for the objective portion of our annual cash incentive plan to corporate participants (including Mr. Robinson) by maintaining the incentive plan payout formula but extending the payout curve to below the prior threshold level, which resulted in a 31% formulaic payout for those participants. For Mr. Leonard and some of the Company's other Industrial Division EIP participants, whose objective performance is measured on the basis of EBIT and return on assets for the Industrial Division, the Committee approved a discretionary payout of 20% for the EBIT portion of the objective target in light of the operating income levels achieved in the Division for the year despite COVID impacts. No adjustment for the return on assets portion of the objective target was made for Mr. Leonard or the other Industrial Division EIP participants who did not reach the threshold payout level, and therefore no payout was made with respect to this portion of the objective target. There were also no adjustments made for Mr. Raborn given the relatively strong Agricultural Division results for the year. We did not issue any special bonus awards to any of our NEOs. The above annual cash incentive adjustments and payouts are described in more detail below in the Section entitled "2020 Annual Cash Incentive Compensation Outcomes."

•~~Long Term Equity Incentive Compensation~~. We did not make any changes to any of our outstanding performance share unit ("PSU") awards or time-based restricted stock ("RSA") awards, and we did not issue special equity awards to any of our NEOs in response to the COVID-19 pandemic.

~~Executive Compensation Philosophy and Objectives~~

The compensation program for NEOs is designed to attract, retain and reward talented executives who have the experience and ability to contribute materially to the Company’s long-term success and thereby build value for our stockholders. The program is intended to provide competitive base salaries as well as short-term and long-term incentives designed to align management and stockholder objectives and provide the opportunity for NEOs to participate in the success of the Company and its individual business units. In setting management pay levels, the Committee considers the Company’s historical practices, the past pay levels of the CEO and other NEOs, and Company and individual performance. The program’s annual cash incentive and its longer term equity incentive compensation provide potential upside for exceeding financial targets with downside risk for missing performance targets. This design balances retention with reward for delivering increased stockholder value and ~~provides~~is intended to closely ~~aligned objectives for~~align the interests of stockholders and Company ~~management and stockholders.~~management. The Company’s success in retaining key employees is evidenced by the fact that the CEO and NEOs of the Company have an average tenure with the ~~Company~~Company of approximately 1014 years.

~~Changes in Long-Term Equity Compensation Program in 2020~~

~~While our overall compensation philosophy and objectives have not changed, the~~The Compensation Committee ~~remains~~is focused on closely aligning executive compensation with overall Company performance. Accordingly, in 2020 we implemented changes to our long-term compensation program by adding a performance-based equity element, so that our long-term compensation program now consists of both (i) RSAs with time-based three-year vesting and (ii) PSU awards, which are tied to the Company's financial performance over a three-year period, as more fully described below in the section entitled "Long-Term Equity Incentive Compensation." The Compensation Committee believes that performance-based equity awards should comprise a significant portion of total long-term incentive compensation and therefore determined that fifty percent (50%) of the value of total long-term incentive compensation for the Company's NEOs should be in the form of PSUs while the remaining fifty percent (50%) of value should consist of RSAs. In 2019, and in years prior to 2019, our long term compensation program consisted exclusively of time-based RSAs.

Upon the Compensation Committee's recommendations, in 2020 the Company's Board also approved: (i) double-trigger change of control agreements for NEOs and other Section 16 officers of the Company which provide severance compensation to executives under certain circumstances following a change in control of the Company; and (ii) the adoption of a recoupment (clawback) policy to allow for the recovery of performance-based compensation in connection with an accounting restatement by the Company.


Alamo Group Inc.			28			Proxy Statement


EXECUTIVE COMPENSATION

The table below provides a summary of the elements of 2021 pay for our ~~NEOs, following implementation of the changes to our compensation program in 2020:~~

NEOs:


Compensation Element	Type	Purpose



Base Salary (Cash)	Fixed	Attract and retain executive talent
Annual Cash Incentive (Cash)	Performance-based	Align pay with the Company's and ~~Division's~~Divisions' annual financial performance
Time-Based RSAs (Equity)	Time-based	Retain executive talent while driving long- term shareholder value
Performance-Based PSUs (Equity)	Performance-based	Align compensation with the Company's long-term financial performance and stockholder interests

~~Compensation and Governance Practices~~COMPENSATION AND GOVERNANCE PRACTICES

The Compensation Committee periodically reviews what it considers to be best practices in governance and executive compensation.

~~WHAT WE DO~~

~~WHAT WE DON'T DO~~

›

What We Do

What We Don't Do

Pay for performance, aligning executive pay with Company results and with annual "say-on-pay" voting by Company stockholders

›

No single-trigger change in control severance

›

Maintain appropriate mix of fixed and performance-based pay to balance retention with Company goals

›

No employment contracts with executive officers

›

Use representative peer group for the development of appropriate market-based compensation levels

›

No hedging and pledging of Company stock by executive officers with limited exceptions for pledging

›

Retain independent compensation consultant for benchmarking purposes

›

No excise tax gross-ups on change of control

›

Require significant stock ownership by Company executives

›

No excessive perquisites for executive officers

›

Allow for recovery of performance-based compensation under our Clawback Policy

›

No share repricing

~~Compensation Committee Responsibilities and Consultant Independence~~COMPENSATION COMMITTEE RESPONSIBILITIES AND CONSULTANT INDEPENDENCE

The Compensation Committee of the Board has responsibility for establishing, implementing, monitoring and approving the compensation program for NEOs and other selected key executives and managers of the Company. The Committee reviews and recommends proposed compensation program changes, salaries, annual cash incentive compensation amounts and equity compensation for the NEOs and key managers to the Board for approval. The Committee acts pursuant to its charter that has been approved by the Board.


Alamo Group Inc.			29			Proxy Statement


						EXECUTIVE COMPENSATION

The Compensation Committee has the ~~sole responsibility for retaining~~authority to retain, at the Company’s expense, compensation consultants and other advisers as it deems necessary to assist in the fulfillment of its duties. In 2021, the Compensation Committee engaged Pay Governance, LLC (the "Compensation Consultant") to provide consulting services regarding the Company's executive compensation program for ~~determining~~2021. The Compensation Consultant provided market data information to assist with the ~~terms and conditions~~setting of ~~their engagement, including fees.~~total executive compensation levels for 2021.

The Compensation Consultant provided no services to the Company other than the services provided to the Compensation Committee as outlined above. The Committee ~~also evaluates and recommends compensation for directors. In 2020,~~assessed the ~~Committee engaged~~independence of the Compensation Consultant ~~(Pay Governance, LLC) to provide executive compensation consulting services in connection with~~under both SEC and NYSE rules and determined that the ~~Committee's review~~Compensation Consultant is independent and ~~consideration of potential compensation changes that may be appropriate in light~~the work of the ~~negative business impacts resulting from the COVID-19 pandemic. The~~ Compensation Consultant also provided current market information concerning NEO and executive level compensation for the Committee to consider in determining overall compensation levels in both 2020 and 2021 for our executive officers.

~~The Committee assessed Pay Governance’s independence, consistent with the NYSE listing standards and SEC rules.~~did not raise any conflict of interest. Based on this ~~review, it was determined that no conflicts of interest exist with respect to the work performed by Pay Governance and~~assessment, the Committee considers ~~their advice~~the Compensation Consultant to be independent.

~~Market Alignment of Executive Compensation~~MARKET ALIGNMENT OF EXECUTIVE COMPENSATION

The Committee aims to set NEO compensation at sufficiently competitive levels within the ~~agricultural~~vegetation management and industrial equipment manufacturing industry, as well as within a broader group of companies of comparable size and complexity, in order to attract, retain and motivate its executive officers. For 2021, the Compensation Committee considered market pay practices when setting executive compensation, and used market data to assess the overall competitiveness and reasonableness of the Company's executive compensation program. For compensation benchmarking purposes, the Committee developed a peer group of companies based on the following criteria: (i) industry commonality; (ii) annual revenues in line with the Company's annual revenues; (iii) comparable total assets; (iv) comparable market capitalization; (v) similar enterprise value; and (vi) operational footprint similarities. Periodically, the Committee reviews and updates the Company's peer group in light of the above-stated evaluation criteria.

For ~~2020, with input from Pay Governance, we updated~~2021, our peer group as compared to 2019 to include a larger pool of peer companies with the intent of positioning the Company closer to a peer group median more reflective of our Company's growth in terms of revenue and profitability over the last several years. Our peer group for 2020 consisted of the ~~following companies:~~


~~2020 PEER GROUP COMPANIES~~
~~EnPro Industries, Inc.~~			~~Mueller Water Products, Inc.~~
~~Astec Industries, Inc.~~			~~Federal Signal Corp.~~
~~Altra Industrial Motion Corp.~~			~~Tennant Company~~
~~Lindsay Corporation~~			~~Columbus McKinnon Corporation~~
~~Titan International Inc.~~			~~Briggs & Stratton Corporation~~
~~Wabash National Corporation~~			~~John Bean Technologies Corporation~~
~~The Manitowoc Company, Inc.~~			~~Hillenbrand, Inc.~~
~~Titan Machinery Inc.~~			~~Spartan Motors, Inc.~~
~~Douglas Dynamics, Inc.~~

~~For 2021,~~ the ~~Committee re-evaluated~~companies set forth below. This is the ~~Company's peer~~same group ~~and determined it would remain unchanged as compared~~of companies used to evaluate 2020 compensation decisions with the exception of the removal of Briggs and Stratton, which was removed due to their ~~2020~~ bankruptcy ~~sale.~~sale:

2021 Peer Group Companies

EnPro Industries, Inc.

The Manitowoc Company, Inc.

Columbus McKinnon Corporation

Astec Industries, Inc.

Titan Machinery Inc.

Tennant Company

Altra Industrial Motion Corp.

Douglas Dynamics, Inc.

John Bean Technologies Corporation

Lindsay Corporation

Mueller Water Products, Inc.

Hillenbrand, Inc.

Titan International Inc.

Federal Signal Corp.

The Shyft Group Inc., formerly
Spartan Motors, Inc.

Wabash National Corporation

~~Role of the~~


Alamo Group Inc.			30			Proxy Statement


EXECUTIVE COMPENSATION

ROLE OF THE CEO ~~and the Compensation Committee in Compensation Decisions~~

AND THE COMPENSATION COMMITTEE IN COMPENSATION DECISIONS

The Compensation Committee reviews and recommends all compensation for the CEO to the Board of Directors for its approval. The Committee reviews recommendations by the CEO for the compensation of the other NEOs as well as other senior managers and designated key employees. The CEO annually reviews the performance of each NEO (other than the CEO, whose performance is reviewed by the Compensation Committee). The recommendations based on these reviews, including salary adjustments, annual cash incentive awards and equity awards, are presented to the Compensation Committee. The Committee reviews these recommendations and can exercise its discretion in modifying and recommending adjustments as deemed appropriate. The decision is then recommended by the Compensation Committee to the Board for its approval. Decisions regarding compensation for other key managers participating in the Company's Executive Incentive Plan (as described below) are made by the CEO and other NEOs ~~of the Company~~ and are reviewed by the Compensation Committee.

In its compensation decision-making process, the Compensation Committee considers whether the Company's executive compensation and benefits program serves the best interests of the Company's stockholders. In that respect, as part of its ongoing review of the Company's executive compensation program, the Compensation Committee considered our last advisory vote on NEO compensation which occurred at our ~~2020~~2021 Annual Meeting, pursuant to which our stockholders approved the non-binding "say-on-pay" resolution by a vote in excess of ~~97%~~98% of the votes cast at the ~~annual meeting,~~Annual Meeting, and determined that the Company's executive compensation philosophy, compensation objectives and compensation elements continue to be appropriate and aligned with the interests of our stockholders.

~~Recoupment (Clawback) Policy~~

The Compensation Committee believes that compensation provided to executives on the basis of Company financial performance should be adjusted under certain circumstances in the event of a restatement of the Company's financial results. Accordingly, in 2020, the Company adopted a policy that allows recoupment or repayment of annual cash incentive and performance-based long-term incentive compensation payments made to executive officers during the three years preceding the restatement of Company financial statements to the extent such payments exceeded the amounts that would have been payable based on the restated financial results.

~~Components of Executive Compensation~~

COMPONENTS OF EXECUTIVE COMPENSATION

The principal components of the Company's executive compensation program include:

•■Annual base salary;

•■Annual cash incentive compensation; and

•■Long-term equity incentive compensation.

We also provide our executive officers with certain perquisites as well as other benefits, including contributions to the Company's Supplemental Executive Retirement Plan and employee benefits that are generally available to non-executive employees of the Company.

~~Annual Base Salary~~

ANNUAL BASE SALARY

The Company provides NEOs and other key managers with competitive annual base salaries to compensate them appropriately for services rendered during the fiscal year. The Committee primarily considers the following for each of the NEOs as well as other executive officers and designated key employees:

•■Professional experience and experience in the position;

•■The Company’s and Division's performance and individual contributions to that performance;

•■Market competitiveness;

•■Other factors deemed relevant by the Committee; and

•■Recommendations of executive officers for key employees.


Alamo Group Inc.			31			Proxy Statement


						EXECUTIVE COMPENSATION

The annual base salary level for ~~Ronald A. Robinson,~~our President and Chief Executive Officer is recommended by the Compensation Committee and approved by the Board of Directors in February of each year. The base salary levels for all of our NEOs, other executive officers, and designated key employees are also ~~determined~~recommended by the Committee based on those factors described in the preceding paragraph and are approved by the Board and generally reset on the same date as for the CEO.

~~For 2020,~~ Annual base salaries for all of our NEOs were adjusted in February 2021 as part of our annual base salary review and adjustment process. Base salaries for most of our NEOs were further adjusted in 2021 to reflect changes in roles and responsibilities that occurred during the ~~Committee recommended~~year and the changes made were reflective of compensation benchmarking and market data information provided by the Compensation Consultant. Jeffery A. Leonard was appointed to the ~~Board for approval~~role of President and the Board approved an increase in salaries for the CEO other NEOs and designated key employees effective March 1, 2020. Mr. Robinson’s salary for 2020 increased from $755,000 to $785,000. The salary increases for the remaining NEOs were as follows: Mr. Leonard from $392,000 to $440,000; Mr. Raborn from $353,000 to $385,000; Mr. Malone from $340,000 to $354,000; and Mr. Rizzuti from $290,000 to $310,000. Increases in base salaries were subject to criteria such as cost of living increase, performanceChief Executive Officer of the Company ~~performance of the Division, asset management, cash flow,~~on May 31, 2021 and responsiveness to market conditions. The 2020 base salary increases for Mr. Leonard and Mr. Raborn were higher than a normal market-based increase in recognition of their increased responsibilities resulting from the integration of our European Division into our Industrial and Agricultural Divisions which occurred in the fourth quarter of 2019. Mr. Leonard's 2020 base salary increase also took into account the significantly increased size of the Industrial Division resulting from the acquisition of Morbark and Dutch Power in 2019.

~~As a result of COVID-19 related impacts on our business, and as one of the measures used by the Company to control ongoing expenses, in April of 2020 the Company eliminated the~~his annual base salary ~~increases~~was increased at that ~~were approved by~~time to account for his new role with the ~~Board as outlined~~Company. In addition, on July 19, 2021, we announced additional changes to our executive team which resulted in ~~the above paragraph, and each NEO's base salary level reverted to the 2019 base salary level. At the end of October of 2020, given improving overall business conditions, the Company restored the 2020~~ annual base salary increases for ~~all~~several of our NEOs ~~and other impacted employees.~~as outlined in the table below:


NEO Name	FY 2020 Annual Base Salary ($)	FY 2021 Annual Base Salary ($)



Jeffery A. Leonard(1)	440,000	750,000
Richard J. Wehrle(2)	264,000	368,000
Edward T. Rizzuti(3)	310,000	410,000
Dan E. Malone	354,000	368,000
Richard H. Raborn(4)	385,000	450,000
Michael A. Haberman(5)	334,000	390,000
Ronald A. Robinson	785,000	835,000

For 2021, the Committee recommended to the Board for approval and the Board approved an increase in salaries for the CEO and NEOs and designated key employees on February 27, 2021, effective March 1, 2021. Mr. ~~Robinson’s~~Leonard's annual base salary ~~for 2021~~ increased from ~~$785,000~~$440,000 to ~~$835,000. The salary increases for~~$466,000 in February of 2021 and then increased to $750,000 in May of 2021 as a result of his appointment as President and Chief Executive Officer of the ~~other NEOs were as follows: Mr. Leonard from~~

Company which was effective on May 31, 2021.

~~$440,000 to $466,000;~~ 2.Mr. ~~Raborn~~Wehrle's annual base salary increased from $264,000 to $280,000 in February of 2021, and then increased to $368,000 in July of 2021 as a result of his appointment as Chief Financial Officer of the Company.

3.Mr. Rizzuti's annual base salary increased from $310,000 to $327,000 in February of 2021, and then increased to $410,000 in November of 2021 as a result of his promotion to Executive Vice-President.

4.Mr. Raborn's annual base salary increased from $385,000 to ~~$408,000; Mr. Malone from $354,000~~$408,000 in February of 2021, and then increased to ~~$368,000; and Mr. Rizzuti from $310,000 to $327,000.~~$450,000 in July of 2021 as a result of his appointment as Executive Vice-President of the Company's new Vegetation Management Division.

5.Mr. Haberman's annual base salary increased from $334,000 to $344,000 in February of 2021, and then increased to $390,000 in July of 2021 as a result of his appointment as Executive Vice-President of the Company's new Industrial Equipment Division .

~~Annual Cash Incentive Compensation~~

ANNUAL CASH INCENTIVE COMPENSATION

The Board of Directors has adopted the Company's Executive Incentive Plan (the “EIP”), which is an annual cash incentive plan that allows the Company to reward its NEOs and key managers based upon three factors:

▪■The overall performance of the Company;

▪■The performance of the segment of the Company or Division and/or business unit in which the employee is expected to contribute; and

▪■The individual performance of the employee.


Alamo Group Inc.			32			Proxy Statement


EXECUTIVE COMPENSATION

In February of each year, the Compensation Committee reviews proposed changes, if any, to the EIP, and then adopts incentive targets for the current year. The Compensation Committee, in its sole discretion, is entitled to interpret the EIP. Amounts under the EIP program are not deemed fully earned until paid.

EIP incentives for our CEO and other NEOs include a 75% objective component and 25% subjective component. All estimated incentives under the EIP are accrued and expensed monthly during each fiscal year and paid by March 15th following the conclusion of the fiscal year.

Performance measures for any given year are subject to possible revisions or adjustments by the Compensation Committee if the Committee deems it appropriate to adjust for the effects of items such as extraordinary additions to or reversals of reserves, gains on bargain purchase, goodwill impairment, acquisitions and divestitures, restructuring costs, gains or losses from the sale of assets, and operating income and expenses of discontinued operations. ~~Consistent with the 2019 design,~~For 2021 EIP compensation purposes, the Committee continued to use adjusted pre-tax income as the objective criteria for corporate participants (including Mr. ~~Robinson)~~Leonard) and adjusted EBIT and return on assets ("ROA") for Division leaders Mr. ~~Leonard~~Haberman, Mr. Raborn and, for the period from January 1, 2021 to May 30, 2021, Mr. ~~Raborn's Divisions for 2020 EIP compensation purposes.~~

Leonard.

Target earnings for the Company and its Divisions, subsidiaries and business units are approved at the beginning of each plan year by the Board of Directors based on management’s proposed financial plan for the year considering previous earning trends, anticipated market conditions and appropriate goals for earnings growth. These targets were set in February of ~~2020, prior to the time when the Company could have anticipated or known the impact of the impending COVID-19 pandemic.~~

2021.

Actual payments under the objective ~~components~~component of the ~~2020~~2021 EIP could range from 0% to 200% of established target payments on the basis of performance against the pre-established targets, while actual payments under the subjective ~~components~~component of the ~~2020~~2021 EIP could range from 0% to 150% of established target payments on the basis of a qualitative assessment of performance against stated goals.

For ~~2020,~~2021, the Compensation Committee recommended, and the Board of Directors approved, the weighting and criteria for the objective and subjective components of the plan relating to Mr. ~~Robinson~~Leonard and the other corporate-level participants. The objective component and subjective component represented 75% and 25%, respectively, of the total potential EIP award payout. ~~The~~Since Mr. Leonard was appointed as President and Chief Executive Officer on May 31, 2021, his objective ~~component~~EIP incentive metric(s) and the related payout(s) were pro-rated to account for his change in position with the Company. For the period from January 1, 2021 to May 30, 2021, Mr. ~~Robinson~~Leonard's performance was measured against the EBIT and ROA metrics applicable to the Industrial Division where he had been presiding as the Division's Executive Vice-President. For the period from May 31, 2021 to December 31, 2021, Mr. Leonard's performance was measured against the adjusted pre-tax income criteria for the Company set by the Compensation Committee for corporate participants subject to adjustments for any extraordinary ~~items (such as~~items. Mr. Robinson's participation in the ~~case~~objective portion of the EIP incentive program for 2021 was pro-rated based on his partial year of service as the Company's President and Chief Executive Officer from January 1, 2021 to the date of his retirement which was May 31, 2021. The objective component for the other corporate participants, namely, Messrs. Wehrle, Malone and Rizzuti, was also adjusted pre-tax income ~~goodwill impairment, acquisitions, and certain one-time operating expenses)~~ as determined by the Committee and is consistent with the objective component for other corporate-level NEOs (Mr. Malone and Mr. Rizzuti). This metric was designed to further align the interests of management with the interests of our stockholders.Committee. The Committee set the pre-tax income target at ~~$121,543,000~~$103,063,000 for Mr. ~~Robinson~~Leonard and the other ~~corporate-level NEOs.~~

corporate participants.


Alamo Group Inc.			33			Proxy Statement

~~For 2020, payouts for the objective component under the EIP for Messrs. Robinson, Malone and Rizzuti were based on the following:~~

~~2020 Objective EIP Component (75% Weight)~~


						EXECUTIVE COMPENSATION

For 2021, payouts relating to the pre-tax income objective component under the EIP for Messrs. Leonard, Wehrle, Malone, Rizzuti, and Robinson were based on the following:


2021 Objective EIP Component (75% Weight)
	Pre-Tax Income	Payout % of Target



Maximum	$~~140.73~~119.33 million	200%
Target	$~~121.54~~103.06 million	100%
Mid-Threshold	$~~108.74~~92.21 million	75%
Threshold	$ ~~95.96~~81.37 million	50%
Below Threshold	< $ ~~95.96~~81.37 million	0%

Mr. ~~Robinson's 2020 Subjective Criteria (25% Weight)~~Leonard's subjective goals for 2021 as set by the Compensation Committee for the period from May 31, 2021 (the date Mr. Leonard was appointed as CEO) to December 31, 2021 were as follows:


5%Mr. Leonard's 2021 Subjective Criteria			~~Implement adequate processes to achieve or exceed planned cash flow targets~~25% Weight
5%			~~Implement acceptable development process for~~


Achieve an orderly, successful transition at the CEO position and ~~next level~~maintain progress of succession planning
5%			~~Maintain continuous improvement at under-performing business units~~
~~10%~~Ensure that the current year’s succession plan addresses anticipated strategic opportunities/threats and key organization gaps			~~Successfully integrate~~5%
In support of the ~~recent acquisitions, most notably Morbark~~Company’s expansion, enhance the organization-wide strategic planning process			5%
Prioritize ESG focus initiatives across the Company, accelerate progress and provide appropriate board briefings			10%

In the case of Messrs. ~~Leonard~~Haberman and Raborn, the criteria and weighting for the objective and subjective components of the plan ~~are~~were as follows:


Objective Component			Criteria



50% Weight			Actual EBIT for the relevant business unit vs. target EBIT for the relevant business unit

25% Weight			Actual ROA for the relevant business unit vs. target ROA

Subjective Component			Criteria



25% Weight			Based on individual subjective criteria

Since the specific quantitative targets for the business units are confidential, we do not publicly disclose these targets for several reasons, including our belief that disclosure would cause us competitive harm. We believe disclosing the quantitative targets would provide competitors and other third parties with insights into the Company’s internal confidential strategic and planning processes


Alamo Group Inc.			34			Proxy Statement


EXECUTIVE COMPENSATION

and other confidential matters, which might allow our competitors to predict certain business strategies. The intent is to set the targets at challenging but achievable levels, which normally require performance improvements year over ~~year.~~

~~The~~year.The chart below reflects each NEO’s total incentive opportunity as a percentage of base salary at 100% of target performance.


NEO	% of Base Salary Incentive at Target Performance
~~Ronald~~


Jeffery A. ~~Robinson~~Leonard	~~100~~ 100%
Richard J. Wehrle	%50%
Edward T. Rizzuti	40%
Dan E. Malone	40%
Richard H. Raborn	60 60%
Michael A. Haberman	%	60%

Mr. Leonard's total annual cash incentive opportunity was increased from 60% to 100% of annual base salary when Mr. Leonard assumed the role of President and Chief Executive Officer on May 31, 2021. Prior to his appointment as the Company's President and Chief Executive Officer, Mr. Leonard's total incentive opportunity was set at 60% of his base salary. His EIP bonus for 2021 was pro-rated based on a target incentive opportunity of 60% for the period from January 1, 2021 to May 30, 2021 and 100% for the period from May 31, 2021 to December 31, 2021.

2021 EIP Incentive Compensation Outcomes

Based on the actual EBIT and ROA results of the Industrial Division for the pro-rated period of January 1, 2021 to May 30, 2021, Mr. Leonard achieved a formulaic payout of 83% in respect of the target EBIT objective and 111% in respect of the target ROA objective. Based on actual 2021 consolidated financial results of the Company for the pro-rated period of May 31, 2021 to December 31, 2021, Mr. Leonard achieved a formulaic payout of 139% in respect of the pre-tax income target objective. Mr. Leonard's EIP incentive outcome for 2021 is set out in more detail in the table below:


NEO NAME	January 1 - May 30 Industrial Division EBIT Payout %	January 1 - May 30 Industrial Division ROA Payout %	May 31 - December 31 Company Adjusted Pre-Tax Income Payout %	EIP Objective Payout Amount ($)



Jeffery A. Leonard	83%	111%	139%	$537,986


~~Jeffery A. Leonard~~Alamo Group Inc.	60 35		%
~~Dan E. Malone~~	40	%
~~Edward T. Rizzuti~~	40	%	Proxy Statement

The annual cash incentive opportunity levels were increased in 2020 for all of our NEOs, with the exception of Mr. Robinson. The incentive opportunity for Messrs. Leonard and Raborn was increased from 40% to 60% of base salary while the incentive opportunity for Messrs. Malone and Rizzuti was increased from 35% to 40% of base salary. Following a review of market compensation data along with input from Pay Governance, the Committee determined that such increases were appropriate and required in order to maintain competitive cash compensation levels for our executives. In the case of Messrs. Leonard and Raborn, the adjustments also took into account their increased responsibilities resulting from the integration of our European Division into our Industrial and Agricultural Divisions which occurred in the fourth quarter of 2019.

~~2020 Annual Cash Incentive Compensation Outcomes~~

As noted above, our financial performance in 2020 was adversely impacted by the COVID-19 pandemic, which resulted in a significant decline in annual revenues and profitability for our business. Based on actual 2020 results and the original design of our EIP program, none of our NEOs, with the exception of Mr. Raborn, would have received a payout for the objective component of our EIP program. Our Compensation Committee discussed with management and Pay Governance the use of discretion and how other companies were adjusting incentive plans to reflect the pandemic's impact on performance within their incentive plans. The Committee reviewed the many challenges experienced by the Company during the year as a result of the pandemic, which included temporary plant closures, significant supply chain disruptions, the implementation and maintenance of new plant safety protocols, weakening customer demand (primarily in the Industrial Division) and employee absenteeism, among other things. The Committee also reviewed the Company's performance taking into account COVID-19 related impacts, noting the Company's resiliency and its executive team's ability to quickly and successfully implement targeted cost reduction initiatives, cash generation measures, and safety and other operational modifications which helped protect the Company's workforce and led to the achievement of solid financial results and positive shareholder outcomes.

Following these considerations and the general consensus among the Board that the executive team did an exemplary job leading the organization in the midst of the pandemic, the Committee determined that it was appropriate to extend the payout curve by adjusting the threshold performance and payout levels for the adjusted pre-tax income performance metric for corporate-level participants including Mr. Robinson. In February 2021, the Committee approved a revised “Covid-Adjusted” threshold and reduced the threshold payout opportunity to 25% of target as follows:


	~~Pre-Tax Income~~	~~Payout % of Target~~
~~Initial Threshold~~	~~$95.96 million~~	~~50%~~
~~Covid-Adjusted Threshold~~	~~$83.15 million~~	~~25%~~
~~Below Threshold~~	~~< $ 83.15 million~~	0%EXECUTIVE COMPENSATION

Based on actual ~~2020~~2021 consolidated financial results, the Company achieved adjusted pre-tax income of ~~$86,398,000 of adjusted pre-tax income~~$109,498,000 which resulted in an objective formulaic payout of ~~31%~~139% for Messrs. ~~Robinson,~~Wehrle, Rizzuti, Malone, and ~~Rizzuti under~~Robinson in accordance with the ~~revised~~table below:


NEO NAME	Adjusted Pre-Tax Income Payout %	EIP Objective Payout Amount ($)



Richard J. Wehrle	139%	$150,371
Edward T. Rizzuti	139%	$141,390
Dan E. Malone	139%	$153,456
Ronald A. Robinson	139%	$357,735

Based on the actual EBIT and ROA results for his Division in 2021, Mr. Raborn achieved a formulaic payout ~~schedule.~~

~~As discussed previously,~~of 200% in respect of the EBIT target objective and 200% of the ROA target objective, as set out in the table below. Based on the actual EBIT and ROA results for his Division in 2021, Mr. Haberman achieved a prorated formulaic payout of 0% in respect of the EBIT target objective and 0% in respect of the ROA target objective. Prior to his appointment as the Executive Vice-President of the Industrial Equipment Division in July of 2021, Mr. Haberman was the Vice-President responsible for the Company's ~~Industrial Division was much more severely impacted by~~Excavator and Vacuum Truck Group, and for the ~~pandemic as compared to our Agricultural Division. Accordingly, for Mr. Leonard and some~~period during which he managed this group in 2021, he achieved a prorated formulaic payout of 131% in respect of the ~~other Industrial Division EIP participants, the Committee determined that a discretionary payout~~EBIT target objective and 158% in respect of 20% for the objective target based on EBIT was reasonable given the Division's strong performance in achieving respectable operating income levels despite the negative COVID-19 impacts experienced during the year.~~No adjustment for~~ the ROA ~~portion of~~target objective, as set forth in the objective target was made for Mr. Leonard and for other Industrial Division EIP participants who did not reach the threshold payout level, and therefore no payout was made for this portion of the objective target.table below:


NEO NAME	EBIT Payout %	ROA Payout %	EIP Objective Payout Amount



Richard H. Raborn	200%	200%	$382,660
Michael A. Haberman	131%	158%	$81,146

The Committee determined subjective payout percentages for EIP participants that ~~no annual cash incentive adjustments~~ were ~~necessary for Mr. Raborn given~~based on individual performance over the ~~performance~~course of 2021. These subjective payout percentages resulted in formulaic payouts that, when combined with the ~~Agricultural Division. Mr. Raborn achieved 96% of the target EBIT~~ objective ~~resulting~~payouts set forth above, resulted in a ~~93% payout, and a 127%~~total EIP payout for ~~return on assets objective.~~

each NEO as set forth below:


Alamo Group Inc.			36			Proxy Statement

~~In March 2021, the Committee approved total non-equity incentive bonus payments of $4,724,501 for 2020 performance to participating employees.~~


EXECUTIVE COMPENSATION

Included in these totals was a payment to Ronald A. Robinson, President and Chief Executive Officer, of $476,888 ($182,513 related to the objective component of the EIP and $294,375 related to the individual subjective component of the EIP). The primary factors affecting Mr. Robinson’s compensation include, among other things, his overall leadership of the Company and his response to the COVID pandemic, the growth of the Company, the management of the Company, succession planning, risk assessment, corporate strategy, return on assets, and his efforts contributing to the continued long-term success of the Company.

Mr. Leonard’s EIP incentive compensation was $125,400 ($0 related to the objective component of the EIP, $99,000 related to the individual subjective component of the EIP, and $26,400 for a discretionary bonus equal to 20% of the Industrial Division's EBIT target). The primary factors affecting Mr. Leonard’s compensation include, among other things, leadership of the Industrial Division, productivity, efficiency, consistent profitability in all industrial units, adherence to annual budgets, and his efforts contributing to the continued long-term success of the Company.

Mr. Raborn’s EIP incentive compensation was $267,383 ($180,758 related to the objective component of the EIP and $86,625 related to the individual subjective component of the EIP). The primary factors affecting Mr. Raborn’s compensation include, among other things, leadership of the Agricultural Division, productivity, efficiency, consistent profitability in all agricultural units, adherence to annual budgets, succession planning, development of new international markets, and his efforts contributing to the continued long-term success of the Company.

Mr. Malone’s EIP incentive compensation was $86,022 ($32,922 related to the objective component of the EIP and $53,100 related to the individual subjective component of the EIP). The primary factors affecting Mr. Malone’s compensation include, among other things, his involvement in cost control initiatives, developing corporate benchmarking standards, expanding international procurement capabilities, expense management, his contribution to the Company’s achievement of its objective goals and to the enhancement of stockholder return, and his efforts contributing to the continued long-term success of the Company.

Mr. Rizzuti's EIP incentive compensation was $75,330 ($28,830 related to the objective component of the EIP and $46,500 related to the individual subjective component of the EIP). The primary factors affecting Mr. Rizzuti’s compensation include, among other things, his involvement in ongoing acquisition activities and integration, overseeing the Company's legal compliance programs and policies, managing legal risk and exposures, legal expense management, and his other efforts contributing to the continued long-term success of the Company.


NEO NAME	2021 EIP Incentive Objective Payout ($)	2021 EIP Incentive Subjective Payout ($)	2021 Total EIP Incentive Compensation Payout ($)



Jeffery A. Leonard	537,986	193,623	731,609
Richard J. Wehrle	150,371	36,060	186,431
Edward T. Rizzuti	141,390	33,907	175,297
Dan E. Malone	153,456	36,800	190,256
Richard H. Raborn	382,660	73,343	456,003
Michael A. Haberman	81,146	62,376	143,522
Ronald A. Robinson	357,735	85,788	443,523

Awards made to the NEOs under the EIP for performance in ~~2020~~2021 are reflected in the “Non-Equity Incentive Compensation Plan” column of the 2021 Summary Compensation Table ~~on page 29.~~below.

~~Long-Term Equity Incentive Compensation~~

LONG-TERM EQUITY INCENTIVE COMPENSATION

The Company’s equity award programs are designed to align stockholder value and long-term compensation. These programs provide an opportunity for increased equity ownership by our executives while maintaining competitive levels of total compensation. Equity awards are granted to a limited number of key employees who the Compensation Committee believes have a level of responsibility that can impact the overall performance of the Company or a major segment thereof. Equity awards may also be issued to non-employees who are members of the Board of Directors. The amount of the grants and frequency are at the complete discretion of the Board of Directors, based on recommendations from the Compensation Committee. These awards are used to provide a longer-term incentive than annual cash bonuses and are viewed as encouraging key employee retention.

~~2020 Changes to Long Term Incentive Compensation Program~~ ~~In 2020, the Company's Board of Directors approved recommendations made by the Compensation Committee concerning certain changes to our long-term incentive compensation plan.~~ The most significant change was the implementation of new performance-based equity grants in the form of PSU awards. PSU award vesting and payout amounts are tied to the Company's achievement of certain targeted financial metrics relating to a three-year performance period with the goal of more closely aligning executive compensation with long-term Company performance. The Compensation Committee believes that performance-based equity compensation should comprise a significant portion of our total long-term compensation program. Accordingly, the target long-term incentive compensation mix ~~established~~ for our NEOs ~~in 2020~~ consists of ~~RSAs~~Restricted Stock Awards (RSAs) and ~~PSUs,~~Performance Share Unit Awards (PSUs), each representing fifty percent (50%) of the total long-term incentive compensation target value ~~as compared to the 2019 mix of 100% RSAs. Further modifications~~provided to our ~~long-term incentive compensation program in 2020 included a modification of the vesting schedule of our RSAs as outlined~~

~~below, shortening the ratable vesting period from four years to three years to align the RSA vesting period with the PSU vesting cycle and to align more closely with market practices.~~NEOs.

~~Performance Share Unit Awards (PSUs)~~ PSU awards represent a right to receive a certain number of shares of the Company’s common stock at the end of a three-year performance period (the "Performance Period") if certain pre-established financial or other performance targets have been met, as determined by the Compensation Committee at the end of the Performance Period. Shares of stock are only payable if the recipient of the award remains employed with the Company until payout occurs after the end of the Performance Period (or under certain circumstances involving a change in control, death or disability of the recipient). The number of shares issued to a PSU recipient at the end of the Performance Period can range from between a threshold payout of 50% of target up to a maximum of 200% of target, depending upon the Company's actual performance over the applicable Performance Period relative to the stated financial or other performance targets established by the Compensation Committee and the Board of Directors. In the event that threshold metrics are not achieved for the Performance Period, no payouts will be made pursuant to the PSU award.

~~PSU Metrics~~ Each of the PSUs awarded to our NEOs in 2020 relates to the three-year Performance Period beginning on January 1, 2020 and ending on December 31, 2022 and is based on two equally-weighted financial performance targets, namely: (i) cumulative operating income growth; and (ii) average return on invested capital ("ROIC"). The Compensation Committee believes the use of these two equally-weighted targets creates an appropriate balance between earnings growth and the Company's efficient use of assets and capital. These performance targets were set in February 2020, prior to the time when the Company could have anticipated or known the impact of the impending COVID-19 pandemic. These performance targets were designed to be challenging, but achievable with strong management performance. There have been no adjustments to the 2020 PSU performance metrics in consideration of the COVID-19 pandemic impact on the Company and its results.

•~~Operating Income Growth~~- this metric will be based on cumulative operating income growth. For purposes of measuring performance, the target annual operating income growth rate will be converted into a cumulative operating income amount computed as the sum of all operating income generated during the Performance Period assuming the target annual growth rate. Actual performance will be calculated as the sum of the Company’s actual consolidated operating income during the Performance Period in comparison to the target amount of cumulative operating income.

•~~ROIC~~ ~~- this metric will be calculated using the following formula:~~

~~EBIT + Amortization Expense~~

~~Total Debt + Total Equity~~

~~PSU Acceleration Upon a Change in Control~~ In the event of a change in control during the applicable Performance Period, a portion of the unvested PSU will vest on the date of such change in control in a pro rata amount calculated by multiplying the amount of the award (which amount will be determined by the Compensation Committee in its reasonable discretion based on the Company’s expected performance or, if such amount cannot be reasonably determined by the Compensation Committee, then the target award amount) by a fraction, the numerator of which equals the number of days that the award recipient was a Company employee during the Performance Period up to the date of the change of control and the denominator of which equals the total number of days in the Performance Period.

~~Restricted Stock Awards (RSAs)~~RSAs RSAs are grants of restricted common stock of the Company that remain subject to forfeiture prior to vesting. These awards are designed to create long-term shareholder value and retain key executives of the Company, as vesting only occurs (ratably over time) if the grantee remains employed by the Company. RSAs are not conditioned on any specific performance objectives. Awards made in 2019, and prior to 2019, vest ratably in equal annual installments over a four-year period commencing on the first anniversary of the date of grant of the award, provided that the grantee is employed by the Company on each such anniversary date. In order to align RSA vesting with our three-year PSU vesting cycle, awards of RSAs granted in 2020 and thereafter will vest ratably in equal annual installments over a three-year period commencing on the first anniversary of the date of grant of the award, provided that the grantee is employed by the Company on each such anniversary date. RSA awards are also subject to vesting upon a change in control, unless the award is either assumed or equitable substitution is made therefor. In accordance with the terms of the change in control agreements entered into between the Company and each ~~NEO in 2020,~~of our NEOs, accelerated vesting of RSAs held by each NEO will occur in the event that a NEO's employment is terminated within six months preceding or twenty-four months after a change in control of our Company (unless such termination is because of death, disability, for cause, or by the officer other than for "good reason," as defined in the change in control agreements).


Alamo Group Inc.			37			Proxy Statement


						EXECUTIVE COMPENSATION

PSUs PSU awards represent a right to receive a certain number of shares of the Company’s common stock at the end of a three-year performance period (the "Performance Period") if certain pre-established financial or other performance targets have been met, as determined by the Compensation Committee at the end of the Performance Period. Shares of stock are only payable if the recipient of the award remains employed with the Company until payout occurs after the end of the Performance Period (or under certain circumstances involving a change in control, death or disability of the recipient). The number of shares issued to a PSU recipient at the end of the Performance Period can range from between a threshold payout of 50% of target up to a maximum of 200% of target, depending upon the Company's actual performance over the applicable Performance Period relative to the stated financial or other performance targets established by the Compensation Committee and the Board of Directors. In the event that threshold metrics are not achieved for the Performance Period, no payouts will be made pursuant to the PSU award.

PSU Metrics Each of the PSUs awarded to our NEOs relates to a three-year Performance Period beginning on January 1 of the year of grant (e.g., January 1, 2022) and ending on December 31 of the third year of the Performance Period (e.g., (December 31, 2024) and is based on two equally-weighted financial performance targets, namely: (i) cumulative operating income growth; and (ii) average return on invested capital ("ROIC"). The Compensation Committee believes the use of these two equally-weighted targets creates an appropriate balance between earnings growth and the Company's efficient use of assets and capital.

■Operating Income Growth - this metric is based on cumulative operating income growth. For purposes of measuring performance, the target annual operating income growth rate will be converted into a cumulative operating income amount computed as the sum of all operating income generated during the Performance Period assuming the target annual growth rate. Actual performance will be calculated as the sum of the Company’s actual consolidated operating income during the Performance Period in comparison to the target amount of cumulative operating income.

■ROIC - this metric is calculated using the following formula:


EBIT	+	Amortization Expense


Total Debt	+	Equity

PSU Acceleration Upon a Change in Control In the event of a change in control during the applicable Performance Period, a portion of the unvested PSU will vest on the date of such change in control in a pro rata amount calculated by multiplying the amount of the award (which amount will be determined by the Compensation Committee in its reasonable discretion based on the Company’s expected performance or, if such amount cannot be reasonably determined by the Compensation Committee, then the target award amount) by a fraction, the numerator of which equals the number of days that the award recipient was a Company employee during the Performance Period up to the date of the change in control and the denominator of which equals the total number of days in the Performance Period.


Alamo Group Inc.			38			Proxy Statement


EXECUTIVE COMPENSATION

~~2020~~2021 Equity Incentive Target Values and AwardsFollowing a review of relevant peer company market data with input from Pay Governance, the Compensation Committee established the following target long-term incentive compensation values for our NEOs in ~~2020:~~

2021:


Name			~~2020~~2021 Target Value



Jeffery A. Leonard			$1,081,830
Richard J. Wehrle			$310,570
Edward T. Rizzuti			$310,570
Dan E. Malone			$310,570
Richard H. Raborn			$370,620
Michael A. Haberman			$112,594
Ronald A. Robinson			$~~1,500,114~~
~~Dan E. Malone~~			~~$250,134~~
~~Jeffery A. Leonard~~			~~$360,082~~
~~Richard H. Raborn~~			~~$300,298~~
~~Edward T. Rizzuti~~			~~$250,134~~500,104

The 2020 long-term incentive target values increased from 2019 levels for most of our NEOs as a result of the Committee's market data review (which took into account the Company's rapid growth) and its determination that long term incentive compensation needed to be increased in order to maintain competitive long-term incentive compensation levels for our executive officers. In the case of Messrs. Leonard and Raborn, the Committee also took into account their increased responsibilities resulting from the integration of our European Division into our Industrial and Agricultural Divisions. Based on the above target values, our NEOs were awarded the following RSAs and PSUs in ~~2020,~~2021, with the number of shares determined by using the Company's closing stock price on the date of grant for each ~~award:~~award. Mr. Leonard received an equity award in February of 2021 consisting of 1,407 RSAs and 1,407 PSUs and, in connection with his appointment as President and Chief Executive Officer, in June of 2021 Mr. Leonard received an additional equity award consisting of 2055 RSAs and 2055 PSUs. Mr.Haberman did not receive a PSU award in 2021 since, at the time equity grants were awarded, Mr. Haberman was in a different role with the Company serving as the Vice-President responsible for the Company's Excavator and Vacuum Truck Group.


Name	2021 RSA Award (shares)	2021 PSU Award (target shares)



Jeffery A. Leonard	3,462	3,462
Richard J. Wehrle	993	993
Edward T. Rizzuti	993	993
Dan E. Malone	993	993
Richard H. Raborn	1,185	1,185
Michael A. Haberman	720	—
Ronald A. Robinson	1,599	1,599

Name RSA Award (shares) PSU Award (target shares)
Ronald A. Robinson 6,549 6,549
Dan E. Malone 1,092 1,092
Jeffery A. Leonard 1,572 1,572
Richard H. Raborn 1,311 1,311
Edward T. Rizzuti 1,092 1,092


Alamo Group Inc.			39			Proxy Statement


						EXECUTIVE COMPENSATION

~~Other Compensation Elements~~

OTHER COMPENSATION ELEMENTS

Supplemental Retirement Plan

The Board of Directors of the Company adopted the Alamo Group Inc. Supplemental Executive Retirement Plan (the “SERP”), effective as of January 3, 2011. The SERP benefits certain key management or other highly compensated employees of the Company and/or certain subsidiaries who are selected by the Compensation Committee and approved by the Board to participate. Participants include each of the NEOs.

The SERP is intended to provide a benefit from the Company upon retirement, death or disability, or a change in control of the Company. Accordingly, the SERP obligates the Company to pay to a participant a Retirement Benefit (as defined in the SERP) upon the occurrence of certain payment events to the extent a participant has a vested right thereto. A participant’s right to his or her Retirement Benefit becomes vested in the Company’s contributions upon 10 years of Credited Service (as defined in the SERP) or a change in control of the Company. For all of our NEOs the Retirement Benefit is based on 20% of the final three year average salary of each participant ~~on or after~~at the time of his or her ~~Normal Retirement Age (65 years of age).~~retirement from the Company. In the event of the participant’s death or a change in control, the participant’s vested Retirement Benefit will be paid in a lump sum to the participant or his or her estate, as applicable, within 90 days after the participant’s death or a change in control, as applicable. In the event the participant is entitled to a benefit from the SERP due to disability, retirement or other termination of employment, the benefit will be paid in monthly installments over a period of fifteen years.

Change in Control Severance Arrangements

In March 2020, we entered into change in control agreements with our NEOs and certain of our other senior executive officers. The intent of these agreements is to provide executive officers with financial security in the event of a change in control to facilitate a transaction which may benefit shareholders but result in job loss to executives. Generally, each of the NEOs is entitled to receive, upon termination of employment within six months preceding or twenty-four months after a change

in control of our Company (unless such termination is because of death, disability, for cause, or by the officer other than for ‘‘good reason,’’ as defined in the change in control agreements): (a) a lump sum severance payment equal to (i) the NEO's annual base salary in effect immediately prior to the change in control or the date of the executive's termination (whichever is greater) plus (ii) an amount equal to the executive’s target bonus opportunity for the calendar year in which the change in control or the date of the executive's termination occurs (whichever is greater) multiplied by a benefit factor which varies by position as described in the table below (the "Severance Factor"); (b) acceleration of vesting of all time-based equity awards including RSAs and stock options; and (c) reimbursement of health care insurance costs for a period of eighteen (18) months following the executive's termination of employment, if COBRA is elected by the executive under the Company's group health plan. The Severance Factor for each NEO is set out in the table immediately ~~below:~~below. Mr. Leonard's severance factor was increased from 2 to 3 upon his appointment as President and CEO. Mr. Robinson is no longer an executive officer and is no longer subject to a change in control agreement with the Company.


Alamo Group Inc.			40			Proxy Statement


EXECUTIVE COMPENSATION


~~NAME~~Name			~~SEVERANCE FACTOR~~Severance Factor
~~Ronald~~


Jeffery A. ~~Robinson~~Leonard			3
Richard J. Wehrle			1.5
Edward T. Rizzuti			1.5
Dan E. Malone			1.5
~~Jeffery A. Leonard~~			2
Richard H. Raborn			2
~~Edward T. Rizzuti~~Michael A. Haberman			~~1.5~~2

The events that trigger a change in control under these agreements include (i) the acquisition of 50% or more of our outstanding common stock by certain persons, (ii) certain changes in the membership of our Board of Directors, (iii) certain mergers or consolidations, and (iv) a sale or transfer of all or substantially all of our assets. The receipt of any and all severance payments pursuant to the NEO change in control agreements is expressly conditioned on each executive's execution (and non-revocation) of a release of claims agreement. The change in control agreements do not apply to performance-based equity awards including our PSU awards.

Perquisites

The Company’s NEOs and key managers receive various perquisites provided by or paid for by the Company. These perquisites can include:

■Club memberships - reimbursement for dues and business expenses, usually negotiated at the start of employment or as a result of a change in position or a promotion;


-			~~Club memberships - reimbursement for dues and business expenses, usually negotiated at the start of employment or as a result of a change in position or a promotion;~~
-			Car allowances/company vehicles - an allowance is paid monthly for usage of a personal vehicle or a company vehicle is provided where required, also usually negotiated at the start of employment or as a result of a change in position or a promotion;
-			401(k) restoration plan - provides a supplemental compensation benefit to a select group of executive officers and highly compensated employees who cannot participate at the same level as other employees of the Company;
-			~~Gross-up payments equal to the taxes payable on certain perquisites - provided in certain limited situations, such as commuting and relocation expenses, that are taxable events; and~~
-			~~Reimbursement of certain commercial airfare, hotel and vehicle expenses in connection with Mr. Robinson’s commuting that was approved by the Committee.~~

■Car allowances/company vehicles - an allowance is paid monthly for usage of a personal vehicle or a company vehicle is provided where required, also usually negotiated at the start of employment or as a result of a change in position or a promotion;

■401(k) restoration plan - provides a supplemental compensation benefit to a select group of executive officers and highly compensated employees who cannot participate at the same level as other employees of the Company;

■Gross-up payments equal to the taxes payable on certain perquisites - provided in certain limited situations, such as commuting and relocation expenses, that are taxable events; and

■Reimbursement of certain commercial airfare, hotel and vehicle expenses in connection with Mr. Robinson’s commuting that was approved by the Committee when Mr. Robinson was serving as President and Chief Executive Officer.

We provide these perquisites because, in many cases, such as membership in social and professional clubs, the perquisites are often used by the executives for business-related activities and entertainment, and these perquisites are provided by many companies to their similarly situated executives and are therefore necessary to enable the Company to retain and recruit capable managers. With respect to the last item listed above, the Board agreed to reimburse certain expenses in connection with Mr. Robinson’s commuting from his home in Colorado Springs, Colorado, to the Company’s corporate office in Seguin, Texas, including commercial airfare, hotel and car rental.


Alamo Group Inc.			41			Proxy Statement


						EXECUTIVE COMPENSATION

The Committee reviews the perquisites provided to the NEOs on an annual basis, in an attempt to ensure that they continue to be appropriate in light of the Committee’s overall goal of designing an appropriate compensation program for NEOs.

Other Benefits

NEOs and other key executives participate in all other employee benefits generally offered to Company employees.

~~Compensation Committee Report~~COMPENSATION COMMITTEE REPORT

The Compensation Committee of the Board of Directors oversees the Company’s compensation program on behalf of the Board. In fulfilling its oversight responsibilities, the Compensation Committee reviewed and discussed with management the Compensation Discussion and Analysis set forth in this Proxy Statement.

In reliance on the review and discussions referred to above, the Compensation Committee recommended to the Board that the Compensation Discussion and Analysis be included in the Company’s Proxy Statement and the Company's Annual Report on Form 10-K for the year ended December 31, ~~2020.~~

2021.


COMPENSATION COMMITTEE

Richard W. Parod, Chair			Eric P. Etchart, Member
Robert P. Bauer, Member
~~Eric P. Etchart, Member~~
Tracy C. Jokinen, Member


Alamo Group Inc.			42			Proxy Statement


EXECUTIVE COMPENSATION

~~EXECUTIVE COMPENSATION~~

2021 SUMMARY COMPENSATION TABLE

The following table describes the annual compensation for our NEOs for the fiscal ~~years~~year 2021 and. to the extent required by SEC disclosure rules, 2020 ~~2019~~ and ~~2018.~~2019:

Name and Principal Position Year
Salary
($)(1)
Bonus
Payments
($)(2)
Stock
Awards
($)(3)
Option
Awards
($)(3)
Non-Equity
Incentive
Plan
Compensation
($)(4)
Change
of Pension
Value
($)(5)
All Other
Compensation
($)(6)
Total
($)
Ronald A. Robinson
President & CEO
2020 793,269 — 1,500,114 — 476,888 211,109 123,559 3,104,939
2019 739,423 200,000 1,161,160 — 736,125 212,247 151,941 3,200,896
2018 695,254 — 1,017,500 — 912,350 12,758 132,947 2,770,809
Jeffery A. Leonard
EVP Industrial Division
2020 445,287 — 360,082 — 125,400 244,474 31,596 1,206,839
2019 388,215 125,000 232,232 — 217,560 190,639 30,310 1,183,956
2018 368,846 — 203,500 — 252,816 61,081 24,283 910,526
Richard H. Raborn
EVP Agricultural Division
2020 389,761 — 300,298 — 267,383 150,305 22,198 1,129,945
2019 353,211 25,000 232,232 — 52,950 110,292 25,890 799,575
2018 329,115 — 203,500 — 97,485 38,313 26,470 694,883
Dan E. Malone
EVP & CFO,
Principal Financial Officer
2020 357,385 — 250,134 — 86,022 132,770 16,775 843,086
2019 333,423 25,000 190,008 — 108,588 130,105 15,833 802,957
2018 314,077 — 166,500 — 149,987 (2,584) 16,491 644,471
Edward T. Rizzuti
VP, General Counsel & Secretary 2020 307,308 — 250,134 — 75,330 114,952 12,358 760,082
2019 284,462 150,000 179,452 — 98,963 82,357 13,959 809,193
2018 268,462 — 148,000 — 128,027 23,794 9,776 578,059


Name and Principal Position	Year	Salary ($)(1)	Bonus Payments ($)(2)	Stock Awards ($)(3)	Option Awards ($)(3)	Non-Equity Incentive Plan Compensation ($)(4)	Change of Pension Value ($)(5)	All Other Compensation ($)(6)	Total ($)



Jeffery A. Leonard President & CEO	2021	624,846	—	1,081,830	—	731,609	342,199	35,775	2,816,259
	2020	445,287	—	360,082	—	125,400	244,474	31,596	1,206,839
	2019	388,215	125,000	232,232	—	217,560	190,639	30,310	1,183,956
Richard J. Wehrle EVP & CFO, Principal Financial Officer	2021	319,815	—	310,570	—	186,431	103,002	17,284	937,102
	2020	275,065	—	250,134	—	64,152	92,550	11,701	693,602
	2019	245,808	110,000	179,452	—	85,654	92,730	13,323	726,967
Edward T. Rizzuti EVP, General Counsel & Secretary	2021	336,500	—	310,570	—	175,297	84,682	16,516	923,565
	2020	307,308	—	250,134	—	75,330	114,952	12,358	760,082
	2019	284,462	150,000	179,452	—	98,963	82,357	13,959	809,193
Dan E. Malone EVP & CSO, Former Principal Financial Officer	2021	365,308	—	310,570	—	190,256	13,324	16,380	895,838
	2020	357,385	—	250,134	—	86,022	132,770	16,775	843,086
	2019	333,423	25,000	190,008	—	108,588	130,105	15,833	802,957
Richard H. Raborn EVP Vegetation Management	2021	429,192	—	370,620	—	456,003	100,914	24,497	1,381,226
	2020	389,761	—	300,298	—	267,383	150,305	22,198	1,129,945
	2019	353,211	25,000	232,232	—	52,950	110,292	25,890	799,575
Michael A. Haberman EVP Industrial Equipment	2021	361,538	—	112,594	—	143,522	51,438	26,037	695,129
	2020	326,416	—	103,077	—	63,460	73,185	23,060	589,198
	2019	250,582	—	63,336	—	164,465	45,846	11,210	535,439
Ronald A. Robinson Former President & CEO	2021	607,000	—	2,351,754	—	443,523	—	175,079	3,577,356
	2020	793,269	—	1,500,114	—	476,888	211,109	123,559	3,104,939
	2019	739,423	200,000	1,161,160	—	736,125	212,247	151,941	3,200,896

1.The Company pays NEOs on a bi-weekly basis. In ~~2018,~~ 2019, 2020 and ~~2020,~~2021, the salaries represent 26 normal pay periods.

2.The amounts in this column represent extra performance bonus amounts made for efforts related to acquisition activities and other special projects during the applicable year shown.


Alamo Group Inc.			43			Proxy Statement


						EXECUTIVE COMPENSATION

3.The amounts shown in these columns constitute RSAs, PSUs and options, as applicable, granted under the Company’s equity incentive programs. The amounts are valued based on the aggregate grant date fair value of the award in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 718. See Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 for a discussion of the relevant assumptions used in calculating grant date fair value pursuant to FASB ASC 718. The grant date fair value for the RSAs, determined in accordance with FASB ASC 718, was $156.38 for 2021 (which was the market price on the day of grant, February 25, 2021), $114.53 for 2020 (which was the market price on the day of grant, February 27, 2020), and $105.56 for 2019 (which was the market price on the day of grant, May 6, 2019)~~, and $92.50 for 2018 (which was the market price on the day of grant, May 9, 2018)~~. The grant date fair value for the PSUs, determined in accordance with FASB ASC 718, was $156.38 for 2021 (which was the market price on the day of grant, February 25, 2021) and $114.53 for 2020 (which was the market price on the day of grant, February 27, 2020). The amounts included in the Stock Awards column for the PSUs granted during 2021 are calculated based on the probable satisfaction of the performance conditions for such awards as of the date of grant. Assuming the highest level of performance is achieved for the 2021 PSUs, the maximum value of the 2021 PSUs would be as follows: Mr Leonard - $1,081,830; Mr. Wehrle - $310,570; Mr. Rizzuti - $310,570; Mr. Malone - $310,570; Mr Raborn - $370,620; and Mr. Robinson - $500,104.

4.EIP incentives approved and paid in ~~2019,~~ 2020, 2021 and ~~2021.~~2022.

5.The amount reflects the increase in present value of accumulated benefits under the Supplemental Executive Retirement Plan (SERP).

6.All other compensation for ~~2020~~2021 consists of (i) for each NEO, the Company's contribution under the Alamo Group (USA) Inc. tax-qualified 401(k) plan (the “401(k) Plan”), group term life insurance premiums and cash restoration payments pursuant to the Alamo Group Inc. 401(k) Restoration Plan (Mr. Robinson, ~~$42,138,~~$42,725, Mr. Leonard, ~~$10,328)~~$14,065), (ii) for Messrs. ~~Robinson,~~ Leonard, Raborn, Haberman and ~~Raborn,~~Robinson, automobile allowances, (iii) for ~~Messrs.~~Mr. Robinson, ~~and Malone,~~ club dues, and (iv) for Mr. Robinson, reimbursement of commuting expenses ($~~49,297)~~108,780). The 401(k) restoration payments are lump sum cash payments equivalent to matching contributions that would have been or would be made under the Company's 401(k) plan but were forgone due to certain limitations on contributions to 401(k) plans in the Internal Revenue Code of 1986.

The value of the commuting expenses reported for Mr. Robinson were valued on the basis of the aggregate incremental cost to the Company and represent the amount accrued for payment or paid directly to the third-party vendor or to Mr. Robinson as reimbursement.

~~Employment Agreements~~

EMPLOYMENT AGREEMENTS

All NEOs of the Company serve at the discretion of the Board of Directors. The NEOs are appointed to their positions by the Board until the next annual meeting of directors or until their successors have been duly qualified and appointed. There are currently no employment agreements with any NEOs of the Company.

~~2020~~2021 GRANTS OF PLAN-BASED AWARDS


		Estimated Possible Payouts Under Non-Equity Incentive Plan Awards(1)			Estimated Future Payouts Under Equity Incentive Plan Awards(2)			All Other Stock Awards: Number of Shares of Stock or Units (#)(3)	All Other Option Awards: Number of Securities Underlying Options (#)	Exercise or Base Price of Option Awards ($/Sh)	Grant-Date Fair Value of Stock and Option Awards ($)(4)
Name	Grant Date	Threshold ($)	Target ($)	Maximum ($)	Threshold (#)	Target (#)	Maximum (#)



Jeffery A. Leonard	—	—	554,630	1,039,932	—	—	—	—	—	—	—
	6/1/2021	—	—	—	1,028	2,055	4,110	—	—	—	320,888
	6/1/2021	—	—	—	—	—	—	2,055	—	—	320,888
	2/25/2021	—	—	—	704	1,407	2,814	—	—	—	220,027
	2/25/2021	—	—	—	—	—	—	1,407	—	—	220,027
Richard J. Wehrle	—	—	144,241	270,452	—	—	—	—	—	—	—
	2/25/2021	—	—	—	497	993	1,986	—	—	—	155,285
	2/25/2021	—	—	—	—	—	—	993	—	—	155,285
Edward T. Rizzuti	—	—	135,626	254,299	—	—	—	—	—	—	—
	2/25/2021	—	—	—	497	993	1,986	—	—	—	155,285
	2/25/2021	—	—	—	—	—	—	993	—	—	155,285

Name
Grant
Date
Estimated Possible Payouts Under
Non-Equity Incentive Plan Awards(1)
Estimated Future Payouts Under
Equity Incentive Plan Awards(2)
All Other
Stock
Awards:
Number of
Shares of Stock
or Units
(#)(3)
All Other
Option Awards:
Number
of Securities
Underlying Options
(#)
Exercise
or Base
Price of Option Awards
($/Sh)
Grant-Date
Fair Value
of Stock and
Option Awards
($) (4)

Threshold
($)
Target
($)
Maximum
($)
Threshold
(#)
Target
(#)
Maximum
(#)
Ronald A. Robinson — — 785,000 1,471,875 — — — — — — —
2/27/2020 — — — 3,275 6,549 13,098 — — — 750,057
2/27/2020 — — — — — — 6,549 — — 750,057
Jeffery A. Leonard — — 264,000 495,000 — — — — — — —
2/27/2020 — — — 786 1,572 3,144 — — — 180,041
2/27/2020 — — — — — — 1,572 — — 180,041
Richard H. Raborn — — 231,000 433,125 — — — — — — —
2/27/2020 — — — 656 1,311 2,622 — — — 150,149
2/27/2020 — — — — — — 1,311 — — 150,149
Dan E. Malone — — 141,600 265,500 — — — — — — —
2/27/2020 — — — 546 1,092 2,184 — — — 125,067
2/27/2020 — — — — — — 1,092 — — 125,067
Edward T. Rizzuti — — 124,000 232,500 — — — — — — —
2/27/2020 — — — 546 1,092 2,184 — — — 125,067
2/27/2020 — — — — — — 1,092 — — 125,067


Alamo Group Inc.			44			Proxy Statement


EXECUTIVE COMPENSATION


		Estimated Possible Payouts Under Non-Equity Incentive Plan Awards(1)			Estimated Future Payouts Under Equity Incentive Plan Awards(2)			All Other Stock Awards: Number of Shares of Stock or Units (#)(3)	All Other Option Awards: Number of Securities Underlying Options (#)	Exercise or Base Price of Option Awards ($/Sh)	Grant-Date Fair Value of Stock and Option Awards ($)(4)
Name	Grant Date	Threshold ($)	Target ($)	Maximum ($)	Threshold (#)	Target (#)	Maximum (#)



Dan E. Malone	—	—	147,200	276,000	—	—	—	—	—	—	—
	2/25/2021	—	—	—	497	993	1,986	—	—	—	155,285
	2/25/2021	—	—	—	—	—	—	993	—	—	155,285
Richard H. Raborn	—	—	255,107	478,325	—	—	—	—	—	—	—
	2/25/2021	—	—	—	593	1,185	2,370	—	—	—	185,310
	2/25/2021	—	—	—	—	—	—	1,185	—	—	185,310
Michael A. Haberman	—	—	179,216	336,031	—	—	—	—	—	—	—

	2/25/2021	—	—	—	—	—	—	720	—	—	112,594
Ronald A. Robinson	—	—	343,151	643,408	—	—	—	—	—	—	—
	2/25/2021	—	—	—	800	1,599	3,198	—	—	—	250,052
	2/25/2021	—	—	—	—	—	—	1,599	—	—	250,052

1.Amounts shown are estimated possible payouts for fiscal ~~2020~~2021 under the Company’s Executive Incentive Plan. These amounts are based on the individual’s fiscal ~~2020~~2021 base salary and position. The maximum amounts shown are 200% of the objective target and 150% of the subjective target. Actual incentives received by the NEOs for fiscal ~~2020~~2021 are reported in the ~~2020~~2021 Summary Compensation Table under the column entitled “Non-Equity Incentive Plan Compensation.”

2.These columns include information regarding PSUs. The “Threshold” column represents the minimum PSUs payable when threshold performance is met (50% of PSUs are earned at threshold). If performance is below the threshold performance, no units are earned. The “Target” column represents the PSUs payable if actual performance is equal to target (100% of PSUs earned at target). The “Maximum” column represents the full payout potential under the plan if actual performance is equal to or greater than maximum (200% of PSUs are earned at maximum). For ~~2020~~2021 PSU grants, the PSUs vest based on equally weighted performance metrics of cumulative operating income growth and ROIC over the three-year performance period and the NEO’s continued service through December 31, ~~2022.~~2023.

3.Represents the number of shares of restricted stock awarded to the NEO under the 2019 Equity Incentive Plan. These awards vest in one-third annual increments.

4.The amounts awarded to the NEOs represent the value of RSA and PSU awards based on the aggregate grant date fair values of the awards determined pursuant to FASB ASC 718 and, in the case of the PSUs, the probable achievement of the underlying performance goals at the time of grant. See ~~Note~~Notes 1 and 16 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 for a discussion of the relevant assumptions used in calculating grant date fair value pursuant to FASB ASC 718. The grant date fair value for the RSA and PSU awards was determined to be ~~$114.53~~$156.38 (which was the market price on the day of grant, February ~~27, 2020)~~25, 2021) and $156.15 (which was the market price on the day of grant, June 1, 2021).


Alamo Group Inc.			45			Proxy Statement


						EXECUTIVE COMPENSATION

OUTSTANDING EQUITY AWARDS AT ~~2020~~2021 FISCAL YEAR-END

The following table lists all outstanding equity awards held by our NEOs as of December 31, ~~2020.~~2021. The market value of shares or units of stock that have not vested reflects the closing stock price of ~~$137.95~~$147.18 per share on December 31, ~~2020.~~2021.


	Option Awards					Stock Awards
	Number of Securities Underlying Unexercised Options		Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)	Option Exercise Price ($)	Option Expiration Date	Number of Shares or Units of Stock that have Not Vested (#)	Market Value of Shares or Units of Stock that have Not Vested ($)	Equity Incentive Plan Awards: Number of Unearned Shares, Units, or Shares, Rights that have Not Vested (#)	Equity Incentive Plan Awards: Market Value or Payout Value of Unearned Shares, Units, or other Rights that have Not Vested ($)
Name	Exercisable (#)	Unexercisable (#)



Jeffery A. Leonard	—	—	—	—	—	550(1)	80,949	—	—
	—	—	—	—	—	1,100(2)	161,898	—	—
	—	—	—	—	—	1,048(3)	154,245	1,572(6)	231,367
	—	—	—	—	—	1,407(4)	207,082	1,407(7)	207,082
	—	—	—	—	—	2,055(5)	302,455	2,055(8)	302,455
	2,000	—	—	53.51	05/12/2024	—	—	—	—
Richard J. Wehrle	—	—	—	—	—	400(1)	58,872	—	—
	—	—	—	—	—	850(2)	125,103	—	—
	—	—	—	—	—	728(3)	107,147	1,092(6)	160,721
	—	—	—	—	—	993(4)	146,150	993(7)	146,150
	2,500	—	—	53.51	05/12/2024	—	—	—	—
Edward T. Rizzuti	—	—	—	—	—	400(1)	58,872	—	—
	—	—	—	—	—	850(2)	125,103	—	—
	—	—	—	—	—	728(3)	107,147	1,092(6)	160,721
	—	—	—	—	—	993(4)	146,150	993(7)	146,150
	4,100	—	—	52.51	08/10/2025	—	—	—	—
Dan E. Malone	—	—	—	—	—	450(1)	66,231	—	—
	—	—	—	—	—	900(2)	132,462	—	—
	—	—	—	—	—	728(3)	107,147	1,092(6)	160,721
	—	—	—	—	—	993(4)	146,150	993(7)	146,150

Name Option Awards Stock Awards
Number of Securities
Underlying Unexercised
Options
Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)
Option
Exercise
Price
($)
Option
Expiration
Date
Number
of Shares
or Units
of Stock
that have
Not Vested
(#)
Market Value
of Shares
or Units
of Stock
that have
Not Vested ($)
Equity
Incentive
Plan Awards:
Number of
Unearned
Shares,
Units, or
Shares,
Rights
that have
Not Vested (#)
Equity
Incentive
Plan Awards:
Market Value or Payout
Value of
Unearned
Shares, Units, or
other Rights
that have
Not Vested ($)
Exercisable
(#)
Unexercisable
(#)
Ronald A. Robinson — — — — —
2,500(1)
344,875 — —
— — — — —
5,500(2)
758,725 — —
— — — — —
8,250(3)
1,138,088 — —
— — — — —
6,549(4)
903,435
6,549(5)
903,435
Jeffery A. Leonard — — — — —
    500(1)
68,975 — —
— — — — —
  1,100(2)
151,745 — —
— — — — —
1,650(3)
227,618 — —
— — — — —
  1,572(4)
216,857
1,572(5)
216,857
3,000 — — 53.51 05/12/2024 — — — —
Richard H. Raborn — — — — —
   500(1)
68,975 — —
— — — — —
  1,100(2)
151,745 — —
— — — — —
  1,650(3)
227,618 — —
— — — — —
  1,311(4)
180,852
1,311(5)
180,852
1,500 — — 54.24 05/11/2025 — — — —
Dan E. Malone — — — — —
      375(1)
51,731 — —
— — — — —
    900(2)
124,155 — —
— — — — —
  1,350(3)
186,233 — —
— — — — —
  1,092(4)
150,641
1,092(5)
150,641
Edward T. Rizzuti — — — — —
      375(1)
51,731 — —
— — — — —
    800(2)
110,360 — —
— — — — —
1,275(3)
175,886 — —
— — — — —
1,092(4)
150,641
1,092(5)
150,641
4,100 — — 52.51 08/10/2025 — — — —


Alamo Group Inc.			46			Proxy Statement


EXECUTIVE COMPENSATION


	Option Awards					Stock Awards
	Number of Securities Underlying Unexercised Options		Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)	Option Exercise Price ($)	Option Expiration Date	Number of Shares or Units of Stock that have Not Vested (#)	Market Value of Shares or Units of Stock that have Not Vested ($)	Equity Incentive Plan Awards: Number of Unearned Shares, Units, or Shares, Rights that have Not Vested (#)	Equity Incentive Plan Awards: Market Value or Payout Value of Unearned Shares, Units, or other Rights that have Not Vested ($)
Name	Exercisable (#)	Unexercisable (#)



Richard H. Raborn	—	—	—	—	—	550(1)	80,949	—	—
	—	—	—	—	—	1,100(2)	161,898	—	—
	—	—	—	—	—	874(3)	128,635	1,311(6)	192,953
	—	—	—	—	—	1,185(4)	174,408	1,185(7)	174,408
	1,500	—	—	54.24	05/11/2025	—	—	—	—
Michael A. Haberman	—	—	—	—	—	150(1)	22,077	—	—
	—	—	—	—	—	300(2)	44,154	—	—
	—	—	—	—	—	600(3)	88,308	—	—
	—	—	—	—	—	720(4)	105,970	—	—
	700	—	—	54.24	05/11/2025	—	—	—	—
	1,000	—	—	54.87	05/09/2026	—	—	—	—
Ronald A. Robinson	—	—	—	—	—	—	—	6,549(6)	963,882
	—	—	—	—	—	1,599(4)	235,341	1,599(7)	235,341

1.Remaining balance of restricted stock grant awarded in May ~~2017~~2018 that vests annually in four equal installments.

2.Remaining balance of restricted stock grant awarded in May ~~2018~~2019 that vests annually in four equal installments.

3.Remaining balance of restricted stock grant awarded in ~~May 2019~~February 2020 that vests annually in ~~four~~three equal installments.

4.Restricted stock grant awarded in February ~~2020~~2021 that vests annually in three equal installments.

5.Restricted stock grant awarded in June 2021 that vests annually in three equal installments.

6.This amount represents PSU awards granted in 2020. The PSU award represents the right to receive a certain number of shares of the Company's common stock at the end of a three year performance period (January 1, 2020 through December 31, 2022) if certain performance targets have been achieved. The amounts reported are based on achieving the target performance goals.

7.This amount represents PSU awards granted in February 2021. The PSU award represents the right to receive a certain number of shares of the Company's common stock at the end of a three year performance period (January 1, 2021 through December 31, 2023) if certain performance targets have been achieved. The amounts reported are based on achieving the target performance goals.

This amount represents PSU awards granted in June 2021. The PSU award represents the right to receive a certain number of shares of the Company's common stock at the end of a three year performance period (January 1, 2021 through December 31, 2023) if certain performance targets have been achieved. The amounts reported are based on achieving the target performance goals.


Alamo Group Inc.			47			Proxy Statement


						EXECUTIVE COMPENSATION

OPTION EXERCISES AND STOCK VESTED IN ~~2020~~2021


		Option Awards				Stock Awards					Option Awards		Stock Awards
Name	Name	Number of Shares Acquired on Exercise (#)		Value Realized Upon Exercise ($)		Number of Shares Acquired on Vesting (#)		Value Realized on Vesting ($)		Name	Number of Shares Acquired on Exercise (#)	Value Realized Upon Exercise ($)	Number of Shares Acquired on Vesting (#)	Value Realized on Vesting ($)

Jeffery A. Leonard										Jeffery A. Leonard	1,000	103,690	2,124	341,782
Richard J. Wehrle										Richard J. Wehrle	—	—	1,564	251,867
Edward T. Rizzuti										Edward T. Rizzuti	—	—	1,564	251,867
Dan E. Malone										Dan E. Malone	—	—	1,639	264,142
Richard H. Raborn										Richard H. Raborn	—	—	2,037	328,503
Michael A. Haberman										Michael A. Haberman	1,800	158,091	725	115,317
Ronald A. Robinson	Ronald A. Robinson		—		—		10,500		1,020,453	Ronald A. Robinson	—	—	22,799	3,493,862
Jeffery A. Leonard			1,000		44,240		2,100		204,091
Richard H. Raborn			500		23,160		2,100		204,091
Dan E. Malone			2,800		199,271		1,525		147,926
Edward T. Rizzuti			900		54,522		1,450		140,667


Alamo Group Inc.			48			Proxy Statement


EXECUTIVE COMPENSATION

2021 PENSION BENEFITS

The following table quantifies the "deferred benefit" pension benefits expected to be paid from the SERP.

Name Plan Name
Number of
Years Credited Service (#)
Present Value
of Accumulated Benefit ($)(1)
Payments
During Last
Fiscal Year ($)
Ronald A. Robinson SERP 22 1,941,455 —
Jeffery A. Leonard(2)
SERP 9 864,306 —
Richard H. Raborn(2)
SERP 6 417,829 —
Dan E. Malone SERP 14 796,605 —
Edward T. Rizzuti(2)
SERP 5 300,840 —


Name	Plan Name	Number of Years Credited Service (#)	Present Value of Accumulated Benefit ($)(1)	Payments During Last Fiscal Year ($)



Jeffery A. Leonard	SERP	10	1,206,505	—
Richard J. Wehrle	SERP	34	738,683	—
Edward T. Rizzuti(2)	SERP	6	385,522	—
Dan E. Malone	SERP	15	809,929	—
Richard H. Raborn(2)	SERP	7	518,743	—
Michael A. Haberman	SERP	35	390,426	—
Ronald A. Robinson	SERP	23	1,941,455	—

1.The estimated present value of accumulated benefits under the SERP is based on a discount rate of ~~2.05%~~2.5% as of December 31, ~~2020.~~2021. The Pri-2012 Mortality Table is used for the SERP calculation projected to ~~2020~~2021 for the participants. Participants are assumed to retire at the latest of current age and the plan’s earliest retirement date (age 65) with unreduced benefits. No pre-retirement mortality, retirement, or terminating has been assumed for the present value factors.

2.As of the end of the measurement period (December 31, ~~2020)~~2021), Messrs. ~~Leonard,~~ Raborn and Rizzuti are not yet vested in the SERP, and have no benefit payable under the SERP.

POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL

This section describes the benefits and payments to which each NEO would have been entitled under the Company’s existing plans and arrangements if his employment had terminated or if the Company had undergone a change in control, in each case, on December 31, ~~2020.~~2021. For purposes of valuing any outstanding equity awards, we have assumed a per share value of ~~$137.95,~~$147.18, the closing market price of the Company’s common stock on December 31, ~~2020.~~

~~General Policies~~

2021.

Prior to the effective date of the SERP on January 3, 2011, the applicable NEOs were not entitled to cash severance payments upon any termination of employment or upon a change in control of the Company. Upon termination, the NEOs receive health and welfare benefits under COBRA that are generally available to all U.S.-based employees who participate in our health benefit plans and accrued vacation pay. There are no special or enhanced termination benefits under the Company’s stock option plans for the NEOs as compared to non-named executive officer participants. For information with respect to potential payments under the SERP, see "SERP" below.

Change in Control Agreements

~~In March 2020, we~~We have entered into change in control agreements with our NEOs and certain of our other senior executive officers. Generally, each of the NEOs is entitled to receive, upon termination of employment within six months preceding or twenty-four months after a change in control of our Company (unless such termination is because of death, disability, for cause, or by the officer other than for "good reason," as defined in the change in control agreements): (a) a lump sum severance

payment equal to (i) the NEO's annual base salary in effect immediately prior to the change in control or the date of the executive's termination (whichever is greater) plus (ii) an amount equal to the executive’s target bonus opportunity for the calendar year in which the change in control or the date of the executive's termination occurs (whichever is greater) multiplied by a severance factor which varies by executive position as previously described; (b) acceleration of vesting of all time-based equity awards including RSAs and stock options that vest ratably


Alamo Group Inc.			49			Proxy Statement


						EXECUTIVE COMPENSATION

over time; and (c) reimbursement of health care insurance costs for a period of eighteen (18) months following the executive's termination of employment, if COBRA is elected by the executive under the Company's group health plan. The events that trigger a change in control under these agreements include: (i) the acquisition of 50% or more of our outstanding common stock by certain persons, (ii) certain changes in the membership of our Board of Directors, (iii) certain mergers or consolidations, and (iv) a sale or transfer of all or substantially all of our assets. The receipt of any and all severance payments pursuant to the change in control agreements in place with each of our NEOs is expressly conditioned on each executive's execution (and non-revocation) of a release of claims agreement. The change in control agreements do not apply to performance based equity awards including our PSU awards.

In connection with Mr. Robinson's retirement as the Company's President and Chief Executive Officer, and in consideration of his high level of achievement for the Company over his more than 22 years of service, upon recommendation of the Compensation Committee, the Board approved the acceleration of 12,616 shares of restricted stock previously issued by the Company to Mr. Robinson under various restricted stock award award agreements. The acceleration of vesting of the stock occurred on the date of Mr. Robinson's retirement as President and Chief Executive Officer, which was August 1, 2021.

POTENTIAL PAYMENTS UPON AN INVOLUNTARY TERMINATION OF

EMPLOYMENT FOLLOWING A CHANGE IN CONTROL(1)

Name
Severance
Payment
($)(2)
Value of Accelerated Equity Awards ($)(3)
Health
Benefits
($)(4)
Aggregate
Payments
($)
Ronald A. Robinson 4,710,000 3,443,255 14,453 8,167,708
Jeffery A. Leonard 1,408,000 736,758 14,453 2,159,211
Richard H. Raborn 1,232,000 688,871 — 1,920,871
Dan E. Malone 743,400 562,472 22,045 1,327,917
Edward T. Rizzuti 651,000 538,331 19,900 1,209,231


Name	Severance Payment ($)(2)	Value of Accelerated Equity Awards ($)(3)	Health Benefits ($)(4)	Aggregate Payments ($)



Jeffery A. Leonard	3,913,890	1,229,021	8,815	5,151,726
Richard J. Wehrle	768,362	592,648	6,670	1,367,680
Edward T. Rizzuti	818,439	592,648	14,757	1,425,844
Dan E. Malone	772,800	607,366	14,757	1,394,923
Richard H. Raborn	1,410,214	732,081	—	2,142,295
Michael A. Haberman	1,138,432	260,509	8,815	1,407,756
Ronald A. Robinson	—	—	—	—

1.An involuntary termination means termination of the NEO's employment following a change in control (1) by the Company other than for “cause,” or (2) by the Named Executive Officer for “good reason.” Under the terms of the Change in Control Agreement, if the payments and benefits to a NEO under the Change in Control Agreement or another plan, arrangement or agreement would subject the NEO to the excise tax imposed by Section 4999 of the Internal Revenue Code, then such payments will be reduced by the minimum amount necessary to avoid such excise tax, if such reduction would result in the NEO receiving a higher net after-tax amount. The amounts reflected in this table do not reflect the application of any reduction in compensation or benefits pursuant to the terms of the Change in Control Agreement.

2.Amounts reported in this column represent the sum of (i) the NEO's base salary multiplied by a severance factor, which for Mr. ~~Robinson~~Leonard is 3, for Messrs. ~~Leonard~~Raborn and ~~Raborn~~Haberman is 2, and for Messrs. ~~Malone~~Wehrle, Rizzuti, and ~~Rizzuti~~Malone is 1.5 (the "Severance Factor"), and (ii) the NEO's target annual cash incentive opportunity (for the year in which termination or change in control occurs) multiplied by the applicable Severance Factor.

3.Represents the value of equity awards that would become vested upon an involuntary termination of employment within two years following a change in control. The value of the accelerated vesting of the equity awards reported in this table is based upon our closing stock price of ~~$137.95~~$147.18 on December 31, ~~2020.~~2021.

4.Represents the estimated value of continued health care benefits that all NEOs would be entitled to receive upon an involuntary termination of employment under the Change in Control Agreement.

~~Termination of Employment / Changes in Control - Equity~~

A detailed list of the equity awards held by each NEO as of December 31, ~~2020~~2021 is set forth in the “Outstanding Equity Awards at ~~2020~~2021 Fiscal Year-End” table above. The NEOs do not hold any equity awards other than the stock options and the equity awards listed in the table. Other than as provided in the following sentence, each NEO may exercise only vested options within 30 days of


Alamo Group Inc.			50			Proxy Statement


EXECUTIVE COMPENSATION

termination of employment (not for cause), 30 days of retirement, or 1 year of death. If the NEO is at least 62 years of age and has at least 5 years of service with the Company, the options become fully vested and may be exercised upon termination of the NEO’s employment (not for cause), retirement or death in accordance with their terms.

Stock options granted by the Company include provisions applicable upon a change in control, as defined in the applicable equity incentive plan and/or the applicable option agreement. Upon a change of control, all incentive stock options issued under our 2015 Incentive Stock Option Plan immediately vest while all non-qualified options issued under our 2009 Equity Incentive Plan immediately vest unless the award is assumed or an equitable substitution is made therefor.

The Company's outstanding restricted stock awards provide that if a NEO ceases to be a service provider for any reason before the restricted stock awards have vested, the NEO's right to the shares of restricted stock will be cancelled. In the event of a change in control, all restricted stock awards immediately vest, unless the award is assumed or an equitable substitution is made therefor.

The Company's outstanding PSU awards provide that if a NEO ceases to be a service provider for any reason before the awards have vested, the NEO's right to any PSU shares will be forfeited. In the event that a change in control occurs during the applicable PSU Performance Period, a portion of the unvested PSU will vest on the date of such change in control in a pro rata amount calculated by multiplying the amount of the award (which amount will be determined by the Compensation Committee in its reasonable discretion based on the Company’s expected performance or, if such amount cannot be reasonably determined by the Compensation Committee, then the target award amount) by a fraction, the numerator of which equals the number of days that the award recipient was a Company employee during the Performance Period up to the date of the change of control and the denominator of which equals the total number of days in the Performance Period.

The following chart shows the value of RSAs ~~stock option awards~~ and PSUs (assuming target payout) that would have become vested or forfeited for a termination of employment as of December 31, ~~2020.~~2021. For this purpose, RSAs and PSUs were valued at our closing stock price as of December 31, ~~2020 and stock options were valued as the difference between our closing price as of that date and the applicable exercise price of the stock options.~~ 2021.


									Termination For Cause	Death or Disability		Change in Control	Any Other Involuntary/Voluntary Termination Without Cause
Name	Name	Termination For Cause	Death or Disability		Change in Control	Any Other Involuntary/Voluntary Termination Without Cause		Name	Forfeit ($)	Vesting ($)	Forfeit ($)	Immediate Vesting ($)	Vesting ($)	Forfeit ($)
		Forfeit($)	Vesting($)	Forfeit($)	Immediate Vesting($)	Vesting($)	Forfeit($)

Jeffery A. Leonard								Jeffery A. Leonard	1,647,533	987,872	659,661	1,229,021	—	1,647,533
Richard J. Wehrle								Richard J. Wehrle	744,142	409,160	334,982	592,648	—	744,142
Edward T. Rizzuti								Edward T. Rizzuti	744,142	409,160	334,982	592,648	—	744,142
Dan E. Malone								Dan E. Malone	758,860	409,160	349,700	607,366	—	758,860
Richard H. Raborn								Richard H. Raborn	913,252	489,815	423,437	732,081	—	913,252
Michael A. Haberman								Michael A. Haberman	260,509	194,278	66,231	260,509	—	260,509
Ronald A. Robinson	Ronald A. Robinson	4,048,557	1,204,579	2,843,977	3,443,255	—	4,048,557	Ronald A. Robinson	—	—	—	—	—	—
Jeffery A. Leonard		882,052	289,143	592,909	736,758	—	882,052
Richard H. Raborn		810,042	241,137	568,906	688,871	—	810,042
Dan E. Malone		663,402	200,855	462,546	562,472	—	663,402
Edward T. Rizzuti		639,260	200,855	438,405	538,331	—	639,260


o			Preliminary Proxy Statement
o			Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
x			Definitive Proxy Statement
o			Definitive Additional Materials
o			Soliciting Material Pursuant to §240.14a-12


			By Internet Go to www.proxyvote.com for voting instructions or scan the QR code on your Notice Regarding the Availability of Proxy Materials or proxy card with your smartphone.
			By Telephone You may call 1-800-690-6903 on a touch-tone telephone and follow the instructions provided by the recorded message to vote your shares by telephone.
			By Mail You may promptly mail your completed and executed proxy card in the postage-paid envelope, which is included with your proxy materials if you requested to receive paper copies of our proxy materials.
			By Virtual Meeting www.virtualshareholdermeeting.com/ALG2022


Proposals		Recommendation



PROPOSAL 1	The election of the nine (9) directors named in the proxy materials to the Board of Directors to serve until the next Annual Meeting of Stockholders or until their successors are elected and qualified	"FOR"
PROPOSAL 2	The approval of the compensation of the Company’s named executive officers (“NEOs”) on an advisory basis	"FOR"
PROPOSAL 3	The ratification of the Audit Committee’s appointment of KPMG LLP as the Company’s independent auditors for the fiscal year ending December 31, 2022	"FOR"


Tenure			Independence			Gender			Ethnicity


Net Sales of $1.3 Billion	Fully Diluted EPS of $6.75	EBITDA of $162 Million*
Annual Increase of 15%	Annual Increase of 38%	Annual Increase of 16%
Record Annual Net Sales	Record EPS	Record EBITDA


ALAMO GROUP INC.
(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)


x			No fee required.
o			Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.


(1)			Title of each class of securities to which transaction applies:

(2)			Aggregate number of securities to which transaction applies:

(3)			Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):

(4)			Proposed maximum aggregate value of transaction:

(5)			Total fee paid:


o			Fee paid previously with preliminary materials.
o			Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.


(1)			Amount Previously Paid:

(2)			Form, Schedule or Registration Statement No.:

(3)			Filing Party:

(4)			Date Filed:


									Alamo Group Inc. 1627 East Walnut Street Seguin, Texas 78155


A complete list of stockholders entitled to vote at the meeting, showing the address of each stockholder and the number of shares registered in the name of each stockholder, shall be open to examination by any stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period of at least ten business days prior to the meeting, commencing April 20, 2022, at the offices of the Company’s Counsel, which is Clark Hill PLC, The Bakery Building, 2301 Broadway Street, San Antonio, Texas 78215-1157. By Order of the Board of Directors,
			/s/ Edward T. Rizzuti Secretary Dated: March 17, 2022
			~~Edward T. Rizzuti~~
			~~Secretary~~


PROXY SUMMARY			1
GENERAL INFORMATION			5
Voting and Proxies			5
Votes Required to Approve a Proposal			6
Beneficial Ownership of Our Common Stock			6
PROPOSAL 1 - ELECTION OF DIRECTORS			9
Nominees for Election to the Board of Directors			10
Information Concerning Directors			15
CORPORATE GOVERNANCE			17
Board Committees, Meetings and Charters			17
Board Leadership Structure			18
The Board's Role in Strategic and Risk Oversight			19
Board Oversight of ESG Matters & Cybersecurity Risk			20
Stock Ownership Guidelines			20
Prohibition on Hedging and Pledging			21
Sustainability and Environmental and Social Governance			22
Other Corporate Governance Information			23
Certain Relationships and Related Transactions			23
Compensation Committee Interlocks and Insider Participation			24
Report of the Audit Committee			25


			EXECUTIVE COMPENSATION			26
			Compensation Discussion and Analysis			26
			Introduction			26
			2021 Company Performance			27
			Executive Compensation Philosophy and Objectives			28
			Compensation and Governance Practices			29
			Compensation Committee Responsibilities and Consultant Independence			30
			Market Alignment of Executive Compensation			30
			Role of the CEO and the Compensation Committee in Compensation Decisions			31
			Components of Executive Compensation			31
			Other Compensation Elements			40
			Compensation Committee Report			42
			2021 Summary Compensation Table			43
			Potential Payments Upon Termination or Change in Control			49
			CEO Pay Ratio Disclosure			52
			Director Compensation During 2021			54
			PROPOSAL 2 - ADVISORY VOTE ON EXECUTIVE COMPENSATION			55
			PROPOSAL 3 - RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS			57
			APPENDIX I			61


Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting To Be Held on May 5, 2022:Our Proxy Statement and our Annual Report, which includes our Form 10-K for the fiscal year ended December 31, 2021, are available free of charge on our website at: https://www.alamo-group.com/investor-relations/financial-reports/


LETTER TO STOCKHOLDERS


Beneficial Owner of Common Stock	Amount and Nature of Beneficial Ownership(1)		Percent of Class(2)
Henry Crown and Company c/o Brian Gilbert Gould & Ratner LLP 222 N. LaSalle Street, Suite 800 Chicago, IL 60601	1,700,000	(3)	14.29%
BlackRock Inc. 55 East 52nd Street New York, NY 10055	1,506,128	(4)	12.66%
The Vanguard Group 100 Vanguard Blvd. Malvern, PA 19355	657,050	(5)	5.52%
Victory Capital Management Inc. 4900 Tiedeman Rd, 4th Floor Brooklyn, OH 44144	655,246	(6)	5.51%
Dimensional Fund Advisors LP Building One 6300 Bee Cave Road Austin, TX 78746	650,992	(7)	5.47%
Ronald A. Robinson	238,648	(8)	2.01%
Roderick R. Baty	20,000	(9)	*
Eric P. Etchart	7,555	(9)	*
Robert P. Bauer	6,648	(9)	*
Tracy C. Jokinen	4,536	(9)	*
Richard W. Parod	5,116	(9)	*
Lorie L. Tekorius	1,356	(9)	*
Dan E. Malone	13,484	(10)	*
Jeffery A. Leonard	17,964	(8)(10)	*
Richard H. Raborn	9,327	(8)(10)	*
Edward T. Rizzuti	9,339	(8)(10)	*
All Directors and Executive Officers (14 Persons)	364,137	(8)(10)	3.06%


Beneficial Owner of Common Stock	Amount and Nature of Beneficial Ownership ($)(1)		Percent of Class(2)



Henry Crown and Company c/o Brian Gilbert Gould & Ratner LLP 222 N. LaSalle Street, Suite 800 Chicago, IL 60601	1,700,000	(3)	14.24
BlackRock Inc. 55 East 52nd Street New York, NY 10055	1,509,504	(4)	12.65
T. Rowe Price Associates, Inc. 100 E. Pratt Street Baltimore, MD 21202	764,041	(5)	6.40
The Vanguard Group 100 Vanguard Blvd. Malvern, PA 19355	706,226	(6)	5.92
Victory Capital Management Inc. 4900 Tiedeman Rd, 4th Floor Brooklyn, OH 44144	602,679	(7)	5.05
Dimensional Fund Advisors LP Building One 6300 Bee Cave Road Austin, TX 78746	593,785	(8)	4.98
Ronald A. Robinson	131,722	(10)	1.10
Roderick R. Baty	20,645	(10)	*
Eric P. Etchart	8,200	(10)	*
Robert P. Bauer	7,293	(10)	*
Richard W. Parod	5,761	(10)	*
Tracy C. Jokinen	5,181	(10)	*
Lorie L. Tekorius	2,001	(10)	*
Nina C. Grooms	286	(10)	*
Jeffery A. Leonard	20,384	(9)(11)	*
Richard J. Wehrle	26,933	(9)(11)	*
Edward T. Rizzuti	8,706	(9)(11)	*
Dan E. Malone	7,356	(9)	*
Richard H. Raborn	9,306	(9)(11)	*
Michael A. Haberman	16,576	(9)(11)	*
All Directors and Executive Officers (16 Persons)	274,906	(9)(11)	2.30


			Each director elected at the Annual Meeting will serve until the next Annual Meeting of Stockholders or until a successor is elected and qualified.


						Roderick R. Baty\| Age: 68 \| Director Since: 2011 \| Position: Chairman of the Board

						Roderick R. Baty has been a director of the Company since August 2011 and was appointed Chairman of the Board on May 3, 2018. Mr. Baty served as Chairman and Chief Executive Officer of NN, Inc., from May 2001 until his retirement in May 2013. NN, Inc. is a publicly owned global manufacturer of industrial rubber and plastic products and precision metal components serving a variety of markets, including the automotive industry, original equipment manufacturers, HVAC, heavy equipment and many other industrial end markets. Mr. Baty joined NN, Inc. in 1995 as Vice President of Sales and Marketing/Chief Financial Officer and was elected to the Board of Directors. In 1997, he was named President and Chief Executive Officer, and was elected Chairman of the Board in 2001. Prior to joining NN, Inc., Mr. Baty served as President and Chief Operating Officer of Hoover Precision Products from 1990 to 1995. Hoover Precision Products is a North American specialist manufacturer of precision balls serving various industries, including automotive, aerospace, anti-friction bearings, pumps, medical, pen, and furniture applications.

						Mr. Baty brings to the Board senior executive leadership experience in the areas of public company governance, operational, financial and strategic management within industrial and international manufacturing companies.


						Robert P. Bauer\| Age: 63 \| Director Since: 2015 \| Position: Independent Director

						Robert P. Bauer has been a director of the Company since August 2011 and was appointed Chairman of the Board on May 3, 2018. Mr. Baty served as Chairman and Chief Executive Officer of NN, Inc., from May 2001 until his retirement in May 2013. NN, Inc. is a publicly owned global manufacturer of industrial rubber and plastic products and precision metal components serving a variety of markets, including the automotive industry, original equipment manufacturers, HVAC, heavy equipment and many other industrial end markets. Mr. Baty joined NN, Inc. in 1995 as Vice President of Sales and Marketing/Chief Financial Officer and was elected to the Board of Directors. In 1997, he was named President and Chief Executive Officer, and was elected Chairman of the Board in 2001. Prior to joining NN, Inc., Mr. Baty served as President and Chief Operating Officer of Hoover Precision Products from 1990 to 1995. Hoover Precision Products is a North American specialist manufacturer of precision balls serving various industries, including automotive, aerospace, anti-friction bearings, pumps, medical, pen, and furniture applications. Mr. Baty brings to the Board senior executive leadership experience in the areas of public company governance, operational, financial and strategic management within industrial and international manufacturing companies. Robert P. Bauer, age 62, has been a director of the Company since August 2015. Mr. Bauer serves as President and Chief Executive Officer and as a director of the L.B. Foster Company ("L.B. Foster"), a manufacturer, fabricator and distributor of products and services for transportation and energy infrastructure. L.B. Foster specializes in infrastructure maintenance material for freight and transit rail systems; construction products for highway bridges and ports; tubular products and services for pipeline and drilling applications; and precision metering solutions for pipelines. Mr. Bauer joined L.B. Foster in February of 2012. Prior to joining L.B. Foster, Mr. Bauer was President of the Refrigeration Business for Emerson Climate Technologies, a subsidiary of Emerson Electric Company, and served in various executive positions at Emerson Electric Company from 1994 until he was recruited to L.B. Foster. Mr. Bauer brings to the Board many years of experience in the global manufacturing environment, with valuable and extensive knowledge concerning global product marketing, new product development, strategic planning, corporate governance, and mergers and acquisitions. Eric P. Etchart, age 64, has been a director of the Company since August 2015. From 2007 until his retirement in January 2016, Mr. Etchart served as Senior Vice President for the Manitowoc Company, Inc., a global manufacturer of cranes and food service equipment serving both residential and non-residential markets as well as infrastructure and power industries. Mr. Etchart was the President of the Manitowoc Crane Group from 2007 until 2015 and Senior Vice President of Business Development from 2015 until his retirement. Prior to joining Manitowoc, Mr. Etchart held various management positions for Potain S.A., a global manufacturer of tower cranes, until it was acquired by Manitowoc in 2001. Mr. Etchart is a National Association of Corporate Directors (NACD) fellow. Mr. Etchart brings to the Board over thirty years of the Company since August 2015. Mr. Bauer served as President and Chief Executive Officer and as a director of the L.B. Foster Company ("L.B. Foster"), a manufacturer, fabricator and distributor of products and services for transportation and energy infrastructure, from 2012 until his retirement in 2021. L.B. Foster specializes in infrastructure solutions for freight and transit rail systems; construction products for highway bridges and ports; tubular products and services for pipeline applications; and precision metering solutions for energy pipelines. Mr. Bauer served as President of Emerson Climate Technologies, Refrigeration Division, a business segment of Emerson Electric Co., a diversified global manufacturing and technology company, ("Emerson") from June 2011 to February 2012. He also served as President of Emerson Network Power, Liebert Division, from January 2002 through May 2011. Mr. Bauer spent 18 years with Emerson in various senior management positions, and became a Group Vice President, Emerson in 2004. Prior to Emerson, he held management positions with Rockwell Automation and Westinghouse Electric.

						Mr. Bauer brings to the Board many years of experience in the global manufacturing environment, with valuable and extensive knowledge concerning global product marketing, new product development, strategic planning, corporate governance, and mergers and acquisitions.


						Eric P. Etchart\| Age: 65 \| Director Since: 2015 \| Position: Independent Director

						Eric P. Etchart has been a director of the Company since August 2015. From 2007 until his retirement in January 2016, Mr. Etchart served as Senior Vice President for the Manitowoc Company, Inc., a global manufacturer of cranes and food service equipment serving both residential and non-residential markets as well as infrastructure and power industries. Mr. Etchart was the President of the Manitowoc Crane Group from 2007 until 2015 and Senior Vice President of Business Development from 2015 until his retirement. Prior to joining Manitowoc, Mr. Etchart held various management positions for Potain S.A., a global manufacturer of tower cranes, until it was acquired by Manitowoc in 2001. Mr. Etchart is a National Association of Corporate Directors (NACD) fellow.

						Mr. Etchart brings to the Board over thirty years of global manufacturing experience, extensive knowledge of and expertise in finance and marketing, and is a French national with over twenty years of management experience outside the U.S., which provides the Company with a meaningful international perspective on global markets.


						Nina C. Grooms\| Age: 53 \| Director Since: 2021 \| Position: Independent Director

						Nina C. Grooms has been a director of the Company since December 2021. Ms. Grooms is currently Chief Product Officer of May Mobility in Ann Arbor, Michigan. May Mobility is a leader in autonomous vehicle technology with a mission to transform communities through the development and deployment of safe and accessible autonomous vehicles. Ms. Grooms joined May Mobility in 2020. Prior to joining May Mobility, Ms. Grooms served in various management roles with Ford Motor Company, most recently as Chief Product Owner for Ford's Autonomous Vehicle Software Solutions Group. Prior to her service with Ford, Ms. Grooms held various managerial positions with the General Electric Company from 2012 to 2017, including as Vice President, Global Customer & Services Marketing, IoT Software at GE Digital. Ms. Grooms holds a degree in Mechanical Engineering from the University of California, Berkeley, and an MBA from Harvard University.

						Ms. Grooms brings extensive experience in many areas relevant to the Company, including sales and marketing, IoT, electric and autonomous vehicles, new product development, and strategic planning.


						Tracy C. Jokinen\| Age: 53 \| Director Since: 2016 \| Position: Independent Director

						Tracy C. Jokinen has been a director of the Company since August 2016. From March 2020 until her retirement in January 2022, she was the Executive Vice-President and Chief Financial Officer of Vyaire Medical, a global respiratory care company. Before joining Vyaire, Ms. Jokinen was the Executive Vice President and Chief Financial Officer of Acelity L.P. Inc. ("Acelity"), a leading global medical technology company, from June 2017 until October 2019 when Acelity was acquired by the 3M Company. Before joining Acelity in June of 2017, Ms. Jokinen served as the Chief Financial Officer of G&K Services, Inc. (“G&K”), a service-focused provider of branded uniform and facility services programs, from 2014 to 2017. Prior to her service as Chief Financial Officer of G&K, Ms. Jokinen spent 22 years with Valspar Corporation (“Valspar”), a global manufacturer of paints and coatings, in various positions of increasing responsibility. Most recently, she served as Valspar’s Vice President, Corporate Finance, where she led Valspar’s tax, treasury, investor relations, internal audit, operations, finance, and corporate accounting functions. Her previous positions at Valspar included Vice President, Finance & Strategy, and Vice President, Corporate Controller and Chief Accounting Officer.

						Ms. Jokinen's extensive and varied management experience, a significant portion of which was within the manufacturing sector, provides the Company with meaningful financial and accounting expertise and mergers and acquisitions and related integration experience, as well as useful problem solving skills relevant to a large multinational manufacturing company.


						Jeffery A. Leonard\| Age: 62 \| Director Since: 2021 \| Position: President & CEO

						Jeffery A. Leonard has been President and Chief Executive Officer of the Company since May 31, 2021, and a director of the Company since June 1, 2021. Mr. Leonard joined the Company in 2011, and previously served as Executive Vice President of the Company's former Industrial Division. Prior to joining the Company, from 1997 to 2011 Mr. Leonard served in various management roles with Metso Minerals Industries Inc. ("Metso"), a subsidiary of Metso Corporation of Helsinki, Finland, a supplier of technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. Metso Corporation was created through the merger of Valmet Corporation and Rauma Corporation in 1999. Valmet was a paper and board machine supplier, while Rauma's operations were focused on fiber technology, rock crushing and flow control solutions. Most recently, Mr. Leonard served as Senior Vice President, Comminution Business Unit & Global Manufacturing for Metso. His prior positions at Metso included Senior Vice President, Comminution Business Unit; President, Grinding & Process Equipment Product Lines; and President, Grinding Division.

						Mr. Leonard brings decades of management experience in the manufacturing sector to the Board. Mr. Leonard also brings direct knowledge and understanding of the Company's operations from serving as an Executive Vice President with the Company for many years prior to becoming President and Chief Executive Officer. Mr. Leonard brings expertise in manufacturing operations, strategic planning, sales and marketing, corporate governance, and mergers and acquisitions to the Board.


						Richard W. Parod\| Age: 68 \| Director Since: 2017 \| Position: Independent Director

						Richard W. Parod has been a director of the Company since December 2017. Mr. Parod is currently Chief Executive Officer of AdeptAg, a private company serving the controlled environment agriculture market. Mr. Parod was the President and Chief Executive Officer and a director of the Lindsay Corporation ("Lindsay") from April 2000 until December of 2017. Lindsay is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology. Prior to Lindsay, Mr. Parod served as the Vice President and General Manager of the Toro Company's Irrigation Division from 1997 to 2000. Toro is a leading worldwide provider of outdoor turf, landscape, underground utility construction, irrigation and related equipment.

						In his role as President and CEO with Lindsay, Mr. Parod gained valuable executive leadership experience and he brings meaningful expertise in many areas relevant to the Company, including strategic planning, manufacturing operations, product development, sales and marketing, accounting and public company governance.


						Ronald A. Robinson\| Age: 69 \| Director Since: 1999 \| Position: Director

						Ronald A. Robinson was President and Chief Executive Officer of the Company from 1999 until his retirement in 2021. Mr. Robinson has also been a director of the Company since 1999. Mr. Robinson previously was President of Svedala Industries, Inc. ("Svedala"), the U.S. subsidiary of Svedala Industries AB of Malmo, Sweden, a leading manufacturer of equipment and systems for the worldwide construction, mineral processing and materials handling industries. Mr. Robinson joined Svedala in 1992 when it acquired Denver Equipment Company of which he was Chairman and Chief Executive Officer.

						Mr. Robinson's extended service as President and CEO and as a director of the Company provide valuable insight to the Company and Board of Directors. Mr. Robinson has a deep knowledge and understanding of our Company and our lines of business. Mr. Robinson brings extensive and valuable knowledge and experience to the Board in the areas of manufacturing operations, strategic planning, mergers and acquisitions, new product development, and corporate governance.


						Lorie L. Tekorius\| Age: 54 \| Director Since: 2019 \| Position: Independent Director

						Lorie L. Tekorius has been a director of the Company since December 2019. Ms. Tekorius is the President and Chief Executive Officer of The Greenbrier Companies, Inc. ("Greenbrier"), a position she assumed on March 1, 2022. Greenbrier is a leading designer, manufacturer and marketer of freight railcar equipment in North America, Europe and South America. The company also manufactures marine barges and provides freight railcar wheel, parts, maintenance, and refurbishment services in North America. Ms. Tekorius has served in various management positions for Greenbrier since 1995, most recently as President and Chief Operating Officer and, prior to that, as Executive Vice President and Chief Financial Officer.

						Ms. Tekorius provides the Company with highly relevant experience in finance, accounting, public company governance, strategic planning, and global manufacturing operations.


"FOR"			THE BOARD OF DIRECTORS HAS APPROVED THE SLATE OF DIRECTORS AND RECOMMENDS A VOTE “FOR” THE ELECTION OF ALL NINE NOMINEES, WHICH IS DESIGNATED AS PROPOSAL NO. 1. PROXIES SOLICITED BY THE BOARD WILL BE VOTED "FOR" EACH NOMINEE UNLESS OTHERWISE INSTRUCTED.


	12/15	12/16	12/17	12/18	12/19	12/20
Alamo Group Inc.	100.00	146.97	218.99	150.69	245.89	271.48
S&P SmallCap 600	100.00	126.56	143.30	131.15	161.03	179.20
Russell 2000	100.00	121.31	139.08	123.76	155.35	186.36


Name	RSA Award (shares)	PSU Award (target shares)
Ronald A. Robinson	6,549	6,549
Dan E. Malone	1,092	1,092
Jeffery A. Leonard	1,572	1,572
Richard H. Raborn	1,311	1,311
Edward T. Rizzuti	1,092	1,092


Name and Principal Position	Year	Salary ($)(1)	Bonus Payments ($)(2)	Stock Awards ($)(3)	Option Awards ($)(3)	Non-Equity Incentive Plan Compensation ($)(4)	Change of Pension Value ($)(5)	All Other Compensation ($)(6)	Total ($)
Ronald A. Robinson President & CEO	2020	793,269	—	1,500,114	—	476,888	211,109	123,559	3,104,939
	2019	739,423	200,000	1,161,160	—	736,125	212,247	151,941	3,200,896
	2018	695,254	—	1,017,500	—	912,350	12,758	132,947	2,770,809

Jeffery A. Leonard EVP Industrial Division	2020	445,287	—	360,082	—	125,400	244,474	31,596	1,206,839
	2019	388,215	125,000	232,232	—	217,560	190,639	30,310	1,183,956
	2018	368,846	—	203,500	—	252,816	61,081	24,283	910,526

Richard H. Raborn EVP Agricultural Division	2020	389,761	—	300,298	—	267,383	150,305	22,198	1,129,945
	2019	353,211	25,000	232,232	—	52,950	110,292	25,890	799,575
	2018	329,115	—	203,500	—	97,485	38,313	26,470	694,883

Dan E. Malone EVP & CFO, Principal Financial Officer	2020	357,385	—	250,134	—	86,022	132,770	16,775	843,086
	2019	333,423	25,000	190,008	—	108,588	130,105	15,833	802,957
	2018	314,077	—	166,500	—	149,987	(2,584)	16,491	644,471

Edward T. Rizzuti VP, General Counsel & Secretary	2020	307,308	—	250,134	—	75,330	114,952	12,358	760,082
	2019	284,462	150,000	179,452	—	98,963	82,357	13,959	809,193
	2018	268,462	—	148,000	—	128,027	23,794	9,776	578,059


Name	Grant Date	Estimated Possible Payouts Under Non-Equity Incentive Plan Awards(1)			Estimated Future Payouts Under Equity Incentive Plan Awards(2)			All Other Stock Awards: Number of Shares of Stock or Units (#)(3)	All Other Option Awards: Number of Securities Underlying Options (#)	Exercise or Base Price of Option Awards ($/Sh)	Grant-Date Fair Value of Stock and Option Awards ($) (4)
		Threshold ($)	Target ($)	Maximum ($)	Threshold (#)	Target (#)	Maximum (#)
Ronald A. Robinson	—	—	785,000	1,471,875	—	—	—	—	—	—	—
	2/27/2020	—	—	—	3,275	6,549	13,098	—	—	—	750,057
	2/27/2020	—	—	—	—	—	—	6,549	—	—	750,057
Jeffery A. Leonard	—	—	264,000	495,000	—	—	—	—	—	—	—
	2/27/2020	—	—	—	786	1,572	3,144	—	—	—	180,041
	2/27/2020	—	—	—	—	—	—	1,572	—	—	180,041
Richard H. Raborn	—	—	231,000	433,125	—	—	—	—	—	—	—
	2/27/2020	—	—	—	656	1,311	2,622	—	—	—	150,149
	2/27/2020	—	—	—	—	—	—	1,311	—	—	150,149
Dan E. Malone	—	—	141,600	265,500	—	—	—	—	—	—	—
	2/27/2020	—	—	—	546	1,092	2,184	—	—	—	125,067
	2/27/2020	—	—	—	—	—	—	1,092	—	—	125,067
Edward T. Rizzuti	—	—	124,000	232,500	—	—	—	—	—	—	—
	2/27/2020	—	—	—	546	1,092	2,184	—	—	—	125,067
	2/27/2020	—	—	—	—	—	—	1,092	—	—	125,067


Name	Plan Name	Number of Years Credited Service (#)	Present Value of Accumulated Benefit ($)(1)		Payments During Last Fiscal Year ($)
Ronald A. Robinson	SERP	22		1,941,455	—
Jeffery A. Leonard(2)	SERP	9		864,306	—
Richard H. Raborn(2)	SERP	6		417,829	—
Dan E. Malone	SERP	14		796,605	—
Edward T. Rizzuti(2)	SERP	5		300,840	—


Name	Severance Payment ($)(2)		Value of Accelerated Equity Awards ($)(3)		Health Benefits ($)(4)		Aggregate Payments ($)
Ronald A. Robinson		4,710,000		3,443,255		14,453		8,167,708
Jeffery A. Leonard		1,408,000		736,758		14,453		2,159,211
Richard H. Raborn		1,232,000		688,871		—		1,920,871
Dan E. Malone		743,400		562,472		22,045		1,327,917
Edward T. Rizzuti		651,000		538,331		19,900		1,209,231


Name	Termination For Cause	Death or Disability (1)		Change in Control	Any Other Involuntary/Voluntary Termination Without Cause (1)
	Forfeit($)	Vesting($)	Forfeit($)	Immediate Vesting($)	Vesting($)	Forfeit($)
Ronald A. Robinson	1,941,455	1,941,455	—	2,250,000	1,941,455	—
Jeffery A. Leonard	864,306	—	864,306	1,112,400	—	864,306
Richard H. Raborn	417,829	—	417,829	616,976	—	417,829
Dan E. Malone	796,605	796,605	—	1,014,999	796,605	—
Edward T. Rizzuti	300,840	—	300,840	478,077	—	300,840


	Termination For Cause	Death or Disability(1)		Change in Control	Any Other Involuntary/Voluntary Termination Without Cause(1)
Name	Forfeit ($)	Vesting ($)	Forfeit ($)	Immediate Vesting ($)	Vesting ($)	Forfeit ($)



Jeffery A. Leonard	1,206,505	1,206,505	—	1,581,999	1,206,505	—
Richard J. Wehrle	738,683	738,683	—	882,999	738,683	—
Edward T. Rizzuti	385,522	—	385,522	653,471	—	385,522
Dan E. Malone	809,929	809,929	—	1,062,000	809,929	—
Richard H. Raborn	518,743	—	518,743	801,900	—	518,743
Michael A. Haberman	390,426	390,426	—	489,000	390,426	—
Ronald A. Robinson	—	—	—	—	—	—


Name	Fees Earned or Paid in Cash ($)(1)	Option Awards ($)(2)	Stock Awards ($)(3)	All Other Compensation ($)	Total ($)
Roderick R. Baty	97,600	—	95,048	—		192,648
Robert P. Bauer	79,100	—	95,048	—		174,148
Eric P. Etchart	80,100	—	95,048	—		175,148
Tracy C. Jokinen	89,100	—	95,048	—		184,148
Richard W. Parod	87,100	—	95,048	—		182,148
Lorie L. Tekorius	74,600	—	95,048	—		169,648