Richard J. Simoncic
APPLIED INDUSTRIAL TECHNOLOGIESAbout Richard J. Simoncic
Richard J. Simoncic, 62, is an independent director of Applied Industrial Technologies (AIT) serving since 2024. He is Chief Operating Officer of Microchip Technology Inc. (MCHP) and holds a B.S. in Electrical Engineering Technology from DeVry Institute of Technology. His background is in global operations, distribution and supply chain management, and manufacturing, with over two decades leading Microchip’s Analog Power and Interface businesses .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Microchip Technology Inc. | Chief Operating Officer | Apr 1, 2024 – present | Executive leadership of global operations; relevant experience for AIT’s Engineered Solutions expansion |
| Microchip Technology Inc. | EVP, Analog Power & Interface BU | Apr 2023 – Apr 2024 | Led major product lines; deep operations and manufacturing oversight |
| Microchip Technology Inc. | SVP, Analog Power & Interface BUs | Feb 2019 – Apr 2023 | Scaling analog power/interface portfolio and distribution |
| Microchip Technology Inc. | VP, Analog Power & Interface BUs | Sep 1999 – Feb 2019 | Long-term leadership across product and supply chain functions |
External Roles
| Organization | Role | Public Company Board? | Tenure | Notes |
|---|---|---|---|---|
| Microchip Technology Inc. (NASDAQ: MCHP) | Chief Operating Officer | No disclosure of board seat | Apr 2024 – present | Active public-company executive; not designated as Audit Committee “financial expert” at AIT |
Board Governance
- Committees: Audit; Corporate Governance & Sustainability. Not a chair; Audit Chair is Vincent K. Petrella; Corporate Governance & Sustainability Chair is Peter C. Wallace .
- Independence: Board determined all directors except the CEO are independent; Simoncic is listed as independent in the nominee slate .
- Attendance: Board met six times in FY2025; each director attended ≥75% of Board and committee meetings; all directors attended last year’s annual meeting .
- Executive sessions and leadership: Independent Chairman (Peter C. Wallace) presides over non-management executive sessions; Board maintains separate Chair and CEO roles .
- Committee activity: Audit (4 meetings); Corporate Governance & Sustainability (4 meetings); Executive Org & Compensation (5 meetings, Simoncic not a member) .
- Other boards policy: Directors who are named executive officers at a public company may serve on up to two public company boards (including AIT); others up to four .
Fixed Compensation
| Component (FY2025) | Amount | Details |
|---|---|---|
| Annual cash retainer | $105,000 | Non-employee director retainer; earned quarterly; no meeting fees |
| Committee chair fees | $0 | Not a chair; Audit Chair +$25k; Exec Org & Comp Chair +$17.5k; CG&S Chair retainer discontinued |
| Other cash/benefits | $0 | Travel reimbursements customary; no special perquisites for Simoncic disclosed |
Performance Compensation
| Equity Award | Grant Date | Shares/Units | Grant-date Fair Value | Vesting | Notes |
|---|---|---|---|---|---|
| Restricted Shares | Jan 2025 | 562 | $138,000 | One year (Jan 2026) | Dividends accrue and are paid at vesting; voting rights held during vesting |
- Director equity grants are time-based (restricted shares), not performance-based; no options were granted to directors in FY2025 .
- Valuation uses 90-trading-day average share price to mitigate volatility, aligned with executive award methodology .
Other Directorships & Interlocks
| Company | Role | Committee Positions | Potential Interlocks/Conflicts |
|---|---|---|---|
| None disclosed | — | — | No other public company directorships disclosed for Simoncic; Board Matrix does not indicate other public company board experience for him . |
- Related-party transactions: Proxy discloses leases involving an executive officer (Hoffner) reviewed and ratified; no related-party transactions disclosed involving Simoncic .
- Competitive conflicts: Microchip is a semiconductor company; AIT is an industrial distributor. No supplier/customer conflicts disclosed for Simoncic .
Expertise & Qualifications
- Operations, supply chain, and manufacturing leadership; strategic planning and execution; risk management; technology; M&A experience (Board Matrix) .
- Not designated as an AIT Audit Committee “financial expert” (designations are Chadwick, Hall, Pagano, Petrella) .
- Background aligns with AIT’s Engineered Solutions growth emphasis .
Equity Ownership
| Holder | Beneficial Ownership (Aug 25, 2025) | % of Class | Details |
|---|---|---|---|
| Richard J. Simoncic | 918 shares | <1% | Includes 562 restricted shares (voting rights; vest Jan 2026) |
- Stock ownership guideline: Non-employee directors must own shares valued at least 5x annual retainer ($525,000) within five years of joining the Board; directors may hold directly or indirectly .
- Compliance status: On June 30, 2025, all directors exceeded guideline value except Simoncic (joined Aug 2024); he is within the five-year accumulation period .
- Hedging/pledging: Company Insider Trading Policy prohibits hedging and pledging; short sales and derivatives on company stock are prohibited .
- Director ownership levels: Average non-employee director ownership value was 26x annual retainer as of June 30, 2025 .
Governance Assessment
- Board effectiveness: Independent chair; robust executive sessions; all committees solely independent; strong risk oversight including cybersecurity briefings and ISO27001-aligned framework updates .
- Independence and engagement: Simoncic is independent; serves on two governance-intensive committees (Audit; Corporate Governance & Sustainability), supporting oversight quality .
- Compensation alignment: Director pay mix is balanced (cash retainer + modest restricted shares), no meeting fees, equity value determined via 90-day price average; annual director compensation capped at $750k under plan limits .
- Ownership alignment: Clear 5x retainer guideline with five-year compliance window; Simoncic is in year one post-appointment and not yet at guideline—appropriate given tenure .
- Conflicts and red flags: No related-party transactions involving Simoncic; hedging/pledging prohibited; no tax gross-ups; double-trigger change-in-control standards applied broadly to executives (director equity is time-based); no Section 16(a) delinquency reported .
- Watch items: Time-commitment risk as an active COO at a large-cap public company; AIT policy caps outside public boards for public-company named executive officers at two (including AIT), which helps mitigate overboarding risk .
Overall signal: Strong independence and committee placement, conservative director pay structure, and explicit ownership expectations support investor confidence; no material conflicts or governance red flags identified for Simoncic in FY2025 .