Cezary Monko
About Cezary Monko
Cezary L. Monko is Executive Vice President and President, International at ACCO Brands (since 2024), previously EVP & President, EMEA (2017–2023); he joined ACCO in 1992 and served as President & CEO of Esselte from 2014–2017. He is 63 years old (as of 12/31/2024). Company performance during his recent tenure included 2024 TSR value of $70.60 on an initial $100, adjusted operating income of $189.7M, and a net loss of $101.6M; 2023 TSR value was $77.31, adjusted operating income $204.8M, and net loss $21.8M .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ACCO Brands | EVP & President, International | 2024–present | Leads International segment following the 2024 reorganization into two operating segments and companywide cost savings execution . |
| ACCO Brands | EVP & President, EMEA | 2017–2023 | Led EMEA operations through multi-year transformation in regional leadership role . |
| Esselte | President & CEO | 2014–2017 | Led Esselte as CEO before/around integration under ACCO leadership roles . |
| ACCO Brands | Various roles | 1992–2014 | Joined ACCO in 1992; progressed through leadership positions . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Esselte | President & CEO | 2014–2017 | External CEO role prior to ACCO International/EMEA leadership . |
Fixed Compensation
- 2024 base salary and AIP target: Base salary $648,278; target AIP 75% of salary; maximum AIP 138.8% of salary .
- 2024 salary adjustment: Prior base $619,473; new base $657,880 effective April 1, 2024 (+6.2%) (amounts shown in USD, converted from PLN) .
Three-year Summary Compensation (NEO disclosure)
| Year | Salary ($) | Bonus ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive Plan ($) | Change in Pension Value ($) | All Other Comp ($) | Total ($) |
|---|---|---|---|---|---|---|---|---|
| 2024 | 648,278 | — | 911,837 | — | 405,571 | 8,000 | 47,300 | 2,020,985 |
| 2023 | 638,870 | 9,960 | 637,264 | — | 420,935 | 32,000 | 32,775 | 1,771,805 |
| 2022 | 534,658 | — | 677,134 | 218,973 | 67,166 | — | 32,566 | 1,530,498 |
Performance Compensation
Annual Incentive Plan (AIP) structure and 2024 outcomes
| Metric (2024 AIP) | Weight | Annual Target Performance (as disclosed) | % of Target Achieved | Notes |
|---|---|---|---|---|
| ACCO Adjusted Operating Income | 20% | $182.46 ($ in 000s) | 78.5% | Company measure at budgeted FX . |
| International Adjusted Operating Income | 20% | $76.90 ($ in 000s) | 85.4% | Segment measure. |
| International Net Sales | 20% | $700.90 ($ in 000s) | 49.2% | Segment measure. |
| International Working Capital Efficiency | 20% | 17.3% | 137.2% | Segment metric. |
| Strategic Measures | 20% | 100% | 66.7% | Board/Committee assessment; reorg and cost savings exceeded, NPD below target . |
| Resulting AIP Payout | — | Target award $486,249 | — | Actual payout $405,571 (83.4% of target) . |
AIP opportunity levels
| Target AIP as % of Salary | Maximum AIP as % of Salary | Target AIP $ Award (2024) |
|---|---|---|
| 75.0% | 138.8% | $486,249 |
Long-Term Incentive Plan (LTIP) design and grants
- Mix and policy: In 2024, executive LTIP awards comprised 60% PSUs and 40% RSUs; ACCO ceased granting stock options in 2023 and does not intend to issue options going forward .
- RSUs: 3-year cliff vesting on 3rd anniversary of grant; dividend equivalents accrue and are paid only upon vesting .
- PSUs (2024–2026 cycle): Earned over three one-year performance periods using adjusted EPS, adjusted free cash flow, and adjusted gross margin%; a three-year cumulative TSR modifier can adjust results ±20% (cap 200% of target); vest/share settlement upon achievement .
- 2023 grants (reference): 80,615 RSUs (grant-date FV $420,004) and 2023–2025 PSUs at target 40,308 (FV $217,260); PSU thresholds at 50% and maximum at 200% subject to TSR modifier (±20%, cap 200%) .
Equity Ownership & Alignment
Beneficial ownership and outstanding awards (as of March 1, 2025; equity positions within 60 days)
| Category | Shares/Units |
|---|---|
| Shares owned | 238,474 |
| Options exercisable (within 60 days) | 319,317 |
| RSUs vesting within 60 days | 31,153 |
| Total beneficial ownership | 588,944 (<1% outstanding) |
Outstanding equity awards (as of 12/31/2024)
| Award Type | Grant Date | Unvested/Unearned Units | Reported Value |
|---|---|---|---|
| RSUs | 3/12/2024 | 86,675 | $455,046 |
| RSUs | 3/14/2023 | 88,784 | $466,118 |
| PSUs (uneared, 2024 cycle) | 2024 | 130,013 | $682,569 |
| PSUs (uneared, 2023 cycle) | 2023 | 133,176 | $699,174 |
| Stock Options (exercisable/unexercisable; $8.29–$12.82 exercise; 2018–2022 grants) | 2018–2022 | e.g., 59,102/29,551 (3/2/2022); plus fully exercisable prior grants with expirations 2025–2032 | — |
Stock ownership policy, hedging/pledging
- Ownership guideline for Segment Presidents: 3.0x base salary or 125,000 shares, whichever is lower; 5-year compliance window; executives must retain at least 50% of net shares until compliant; unearned PSUs and unexercised options do not count .
- Hedging, shorting, options trading, and pledging are prohibited for directors and executive officers under ACCO’s insider trading policy (no exceptions/waivers) .
Insider selling pressure and vesting overhang
- RSU cliffs: 3/14/2023 RSUs cliff-vest on 3/14/2026; 3/12/2024 RSUs vest on 3/12/2027, creating scheduled equity delivery events; 2024–2026 PSUs depend on annual targets with a 3-year TSR modifier before settlement .
- Options overhang exists from 2018–2022 awards with exercise prices of ~$8.29–$12.82 and expirations through 2032; no new option grants since 2023 .
Employment Terms
Executive Severance Plan (ESP) and contract
- Contract jurisdiction: Mr. Monko has an individual employment contract governed by Polish law; severance economics are determined by ACCO’s ESP .
- Involuntary termination (no cause): 21 months of base salary + one year of target bonus (for Monko) .
- Change-in-control termination (double trigger): 2.25x base salary + 2.25x target bonus (for Monko); equity vests upon CIC termination; no tax gross-ups .
- Clawback: Company policy to recoup incentive comp upon financial restatements or willful/intentional misconduct; compliant with Dodd-Frank and broader in scope .
Potential payments (illustrative values disclosed; fiscal 2024 basis)
| Scenario | Cash Severance | Annual Incentive | Benefits/Other | RSU Acceleration | PSU Acceleration | Total |
|---|---|---|---|---|---|---|
| Termination without cause | $1,644,700 | $405,571 | $4,306 benefits; $60,000 outplacement | $629,675 | $501,306 | $3,245,557 |
| CIC + qualifying termination | $2,590,403 | $405,571 | $5,536 benefits; $35,410 PPK; $60,000 outplacement | $1,084,724 | $1,434,190 | $5,615,833 |
| Retirement | $0 | $405,571 | — | $629,675 | $501,306 | $1,536,551 |
Retirement and pension (Poland)
- Defined benefit: One-time lump-sum equal to three months’ average base salary at retirement (age ≥65), must be employed at retirement; actuarial present value reported at $153,000 (years of credited service: 32.75) .
- PPK defined contribution: Employer contributions under Poland’s PPK; included in “All Other Compensation” .
Compensation Structure Analysis
- Cash vs equity mix: 2024 mix shows significant equity value via PSUs and RSUs ($911,837), with AIP payout at 83.4% of target tied to a balanced scorecard (segment AOP, sales, working capital, strategic goals) .
- Shift away from options: Company ceased granting stock options starting 2023; long-term mix in 2024 is 60% PSUs/40% RSUs for NEOs, indicating greater focus on performance- and retention-aligned full-value shares .
- Performance target rigor: AIP maximums capped (financial measures 200%, strategic measures 125%), with threshold and caps disclosed; PSU cycles include multi-metric design and a three-year relative TSR modifier (±20% cap to 200%) .
- Governance features: Double-trigger CIC for cash and equity; no excise/income tax gross-ups; anti-hedging/pledging; option repricing prohibited without stockholder approval .
Say-on-Pay & Shareholder Feedback
| Year | Say-on-Pay Approval |
|---|---|
| 2024 | 97.8% approval on 2023 NEO compensation |
| 2023 | 95.0% approval on 2022 NEO compensation |
Performance & Track Record
- Company performance snapshots during Monko’s recent tenure:
- 2024: TSR value of initial $100 = $70.60; adjusted operating income $189.7M; net loss $(101.6)M .
- 2023: TSR value $77.31; adjusted operating income $204.8M; net loss $(21.8)M .
- 2024 strategic execution: Board/Committee assessment awarded 67% on strategic measures based on successful reorganization into two operating segments and exceeding cost savings targets (although new product development results were below target) .
Equity Ownership & Alignment (Compliance)
- Guideline: 3.0x salary or 125,000 shares (Segment President level); retention of 50% net shares until compliant; Board states all executive officers have attained or are on track within policy timelines .
- No hedging/pledging: Strict prohibitions for executives with no waivers permitted .
Employment Terms (Additional Details)
- Double-trigger CIC and severance framework as per ESP; equity acceleration requires CIC plus qualifying termination (no automatic vesting on CIC alone) .
- U.S. deferred comp plan exists for eligible U.S. executives; Mr. Monko is Poland-based; the plan is described for context (voluntary deferral of salary/AIP, subject to creditor claims) .
Investment Implications
- Pay-performance linkage: Material PSU weighting (60%) plus multi-metric PSU design and TSR modifier align long-term incentives with shareholder value creation; AIP outcomes for Monko (83.4% of target) reflect mixed 2024 operating results with notable outperformance on working capital efficiency but underperformance on sales growth .
- Vesting overhang and liquidity: Three-year RSU cliffs in 2026 and 2027 and ongoing PSU cycles may create periodic supply; option overhang from legacy grants remains until expirations (2025–2032), though no new options are being issued, limiting future overhang growth .
- Governance risk mitigants: Double-trigger CIC, no tax gross-ups, robust clawback, and anti-hedging/pledging reduce governance and behavioral risk; stock ownership guidelines support alignment and retention .
- Company performance context: 2024 TSR and earnings profile were challenged at the enterprise level, which could influence future PSU vesting outcomes and AIP results; however, strategic measures credited the leadership team for executing the segment reorganization and cost savings .