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Joe Wong

Chief Technology Officer at Arq
Executive

About Joe Wong

Joe M. Wong (age 64) is Chief Technology Officer at Arq, Inc., with 37+ years in specialty materials R&D and product development, and has served as Arq’s CTO since 2018; he holds a PhD in Chemical Engineering from the University of Texas . Company performance context: cumulative TSR improved to 114.35 in 2024 from 45.02 in 2023, while net loss narrowed to $(5.1) million in 2024 from $(12.2) million in 2023 . He is one of the company’s named executive officers for 2024 .

Past Roles

OrganizationRoleYearsStrategic impact
Arq, Inc.Chief Technology Officer2018–presentLeads R&D and product development in specialty materials; key to commercializing PFAS and other contaminant remediation solutions .
ADA Carbon SolutionsChief Technology Officer2012–2018Directed technology strategy and development in activated carbon and emissions control .
ADA Carbon SolutionsVP of Technology2011–2012Oversaw technology programs and scale-up .
Private consultingTechnology consultant~3 years prior to 2011Provided advisory services in specialty chemicals/materials .
MeadWestvaco CorporationSenior leadership, Specialty Chemicals and R&D21 years (prior to consulting)Led specialty chemicals/R&D initiatives in a diversified chemicals platform .

External Roles

  • No external board or public company directorships disclosed for Mr. Wong in the 2025 proxy .

Fixed Compensation

YearBase salary ($)Target bonus (% of salary)Notes
2024350,000 50% (STIP target set March 2024) Target opportunities approved by Compensation Committee; CEO target set at 100%, NEOs (incl. Wong) at 50% .
2023329,459 Not disclosedN/A

Performance Compensation

Summary Compensation (multi-year)

Component2024 ($)2023 ($)
Salary350,000 329,459
Bonus143,820 (retention/sign-on context in narrative)
Stock awards (RSAs/PSUs grant-date fair value)396,723 634,501
Option awards
Non-equity incentive plan comp (STIP)239,539
All other compensation39,572 18,972
Total786,295 1,366,291

Short-Term Incentive Plan (STIP) – Design and 2024 Outcomes

  • 2024 STIP metrics: Adjusted EBITDA, gross margin, SG&A as % of revenue, overall equipment efficiency, commissioning milestones, and TRIR .
  • 2024 targets/outcomes: Committee determined approx. 75% of STIP performance targets were achieved and approved STIP payouts in early 2025 (aggregate determination; individual payout amounts for Mr. Wong not itemized in SCT) .
MetricWeightingTargetActualPayout
Adjusted EBITDANot disclosed Not disclosed Not disclosed Part of ≈75% aggregate outcome
Gross marginNot disclosed Not disclosed Not disclosed Part of ≈75% aggregate outcome
SG&A % of revenueNot disclosed Not disclosed Not disclosed Part of ≈75% aggregate outcome
Overall equipment efficiencyNot disclosed Not disclosed Not disclosed Part of ≈75% aggregate outcome
Commissioning milestonesNot disclosed Not disclosed Not disclosed Part of ≈75% aggregate outcome
TRIRNot disclosed Not disclosed Not disclosed Part of ≈75% aggregate outcome

Long-Term Incentive Plan (LTIP) – Grants, Metrics, Vesting

  • 2024 equity mix: 50% RSAs, 50% PSUs; PSUs cliff-vest after 3 years based on relative TSR vs Peer Group .
  • PSU payout curve (2024 grants): 50% at 30th percentile (threshold), 100% at 50th (target), 125% at 65th, 200% at ≥90th percentile (max) .
  • 2022 PSUs: vested at 88.14% on Feb 12, 2025 based on relative TSR to peer group (performance period ended Dec 31, 2024) .
Award (effective Aug 1, 2024 unless noted)TypeSizeVesting/Performance
2024 RSATime-based21,667 shares Vests one-third on Aug 1, 2025; Mar 23, 2026; Mar 23, 2027 .
2024 PSURelative TSR21,667 target units 3-year cliff; payout 50%/100%/125%/200% at 30th/50th/65th/≥90th percentile TSR vs Peer Group; vests Mar 10, 2027 at target reporting convention in table
2023 RSAsTime-based20,150 shares (outstanding 12/31/24) Vests ratably on Mar 23, 2025 and Mar 23, 2026 .
2022 PSUsRelative TSR14,728 earned units (as of 12/31/24) Vested Mar 10, 2025 at 88% of target (3-year period to 12/31/24) .
2023 PSUsRelative TSR30,225 target units (as of 12/31/24) 3-year period to 12/31/25; scheduled vest Mar 10, 2026 at “target” reporting convention .
Legacy RSAsTime-based5,570 shares (as of 12/31/24) Vested Mar 23, 2025 .

Equity Ownership & Alignment

ItemDetail
Total beneficial ownership354,790 shares owned by Joe M. Wong as of April 7, 2025 .
Ownership % of outstanding≈0.84% (354,790 ÷ 42,214,253 shares outstanding) .
Unvested RSAs (12/31/24)5,570; 20,150; 21,667 (see vesting schedules above) .
Unvested PSUs (12/31/24)14,728 (earned at 88% for 2022 PSUs); 30,225 (2023 PSUs at target convention); 21,667 (2024 PSUs at target convention) .
OptionsNo option awards reported for Mr. Wong in 2023–2024 ; none shown outstanding in year-end table .
Pledging/HedgingHedging prohibited by Insider Trading Policy; policy silent on pledging in disclosed text .
Ownership guidelinesExecutives encouraged to hold stock ≥1x salary; all NEOs (incl. Wong) met guidelines as of 12/31/24 .

Employment Terms

ProvisionSummary
AgreementEmployment agreement effective Feb 14, 2011; amended Aug 18, 2021 (the “Wong Agreement”) .
Term/renewalNot specified in proxy .
Non-compete / non-solicitCovenants addressing non-competition, non-solicitation, and non-divergence included .
Severance (without Cause / for Good Reason)12 months base salary; STIP cash bonus for year of termination based on actual performance; accelerated vesting of all unvested RSAs; accelerated vesting of all unvested PSUs based on actual performance as of termination; 12 months COBRA premiums (or until new employer coverage) .
Death/DisabilitySTIP bonus for year of termination at target (50% if termination in first six months); accelerated vesting of all RSAs; accelerated vesting of PSUs based on actual performance as of termination .
Change in control definitionAligned to CEO agreement (ownership change >50%, board replacement not endorsed by incumbents, or substantial asset sale) .
Single vs double triggerNot expressly specified beyond termination-based triggers described above .
ClawbackDodd-Frank/Nasdaq-compliant policy to recover incentive compensation if accounting restatement due to material noncompliance; lookback 3 completed fiscal years .

Compensation Structure Analysis

  • Mix shift and equity weighting: 2024 total comp ($786,295) included $396,723 in equity awards with no STIP payout reflected in the SCT for 2024; 2023 included higher equity ($634,501) and $239,539 STIP, showing variability aligned to equity and performance structures .
  • STIP rigor and transparency: 2024 STIP used multi-factor operational/financial/ESG-adjacent metrics; committee determined ~75% achievement and approved payouts, but metric weightings and individual payout amounts for Mr. Wong were not disclosed, limiting transparency into pay-for-performance calibration .
  • PSU design: Relative TSR-based PSUs with a 3-year horizon and a broad peer group, with up to 200% payout, align management to shareholder returns; 2022 PSUs vested at 88.14%, indicating below-target but positive relative performance over that period .

Related Party Transactions and Governance Context

  • No related party transactions disclosed involving Mr. Wong; company-level related party arrangements involve a director-affiliated lender (CF Global) and CEO participation in a 2024 equity offering (not related to Wong) .
  • Say-on-Pay support: 84% approval at 2024 annual meeting, indicating generally favorable shareholder view of executive pay program .
  • Peer group and consultant: Lyons, Benenson & Company advised; a 15-company peer set spans environmental services, specialty chemicals, energy equipment/services, and related adjacencies, used for 2024 benchmarking and PSU TSR comparisons .

Risk Indicators & Red Flags

  • Hedging: Prohibited, which supports alignment; pledging not addressed in policy text disclosed; no pledging by Mr. Wong disclosed .
  • Clawback: Adopted per SEC/Nasdaq rules—mitigates financial reporting risk misalignment .
  • Option repricing: Company has not granted broad-based options since 2016 (aside from CEO inducement grants); no option awards to Mr. Wong reported in 2023–2024 .

Investment Implications

  • Alignment and retention: Wong’s package is meaningfully equity-heavy with multi-year, relative TSR PSUs and staggered RSA vesting into 2025–2027, aligning to long-term value creation and suggesting moderate ongoing vest-driven supply in 2025–2027 (Aug 1 and Mar 23 vesting cycles) .
  • Potential selling pressure windows: Multiple RSA tranches vesting in 2025 (Mar 23; Aug 1) and 2026/2027, though insider hedging is prohibited and executives are encouraged to hold ≥1x salary in stock; all NEOs met guidelines as of year-end 2024 .
  • Downside protection in severance: If terminated without Cause/for Good Reason, full acceleration of unvested RSAs and performance-based acceleration of PSUs could crystallize value, which can be shareholder-friendly if paired with robust performance conditions but may front-load realized pay upon separation .
  • Pay-for-performance signal: 2022 PSUs paid at 88.14% and 2024 STIP at ~75% aggregate achievement reflect performance contingency; however, lack of disclosed STIP weightings by metric and individual payout detail limits precision in assessing calibration stringency .
  • Governance backdrop: Solid say-on-pay support (84%) and clawback adoption support alignment; no pledging disclosed, and hedging is prohibited, reducing misalignment risk .