Kenneth McMahon
About Kenneth McMahon
Kenneth J. McMahon is President (formerly Chief Executive Officer and President) of American Waste Management Services, Inc. (AWMS), a subsidiary of Avalon Holdings (AWX). He is 72 and has served in this leadership role since June 1998. McMahon holds a BBA in Finance and an MBA from Youngstown State University . During 2024, AWX’s net operating revenues increased to $83.8M from $80.9M in 2023 (+3.6%), with the waste management segment rising to $45.9M from $44.6M; AWX’s Pay-Versus-Performance table shows the value of a $100 shareholder investment at $159 in 2024 vs $90 in 2023, and net income improved to $1.318M in 2024 from a loss of $1.775M in 2023 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| American Waste Services, Inc. | Executive Vice President, Sales; Director | Sep 1996 – Jun 1998 | Preceded leadership of AWMS; sales experience aligned with AWX’s waste brokerage and management activities |
External Roles
- None disclosed in AWX filings for public company directorships or other boards .
Fixed Compensation
| Metric (USD) | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Base Salary | $130,000 | $130,000 | $130,000 | $130,000 |
| Bonus | $343,780 | $368,800 | $363,612 | $404,527 |
Bonus construct: McMahon’s bonus is formulaic at eight percent of the income before taxes of AWX’s waste management and brokerage company (AWMS) .
Performance Compensation
- Program structure: Cash-only; no RSUs/PSUs or options granted to NEOs in recent years; all options under the Long-Term Incentive Plan have expired (no outstanding options at fiscal year-end 2023 and 2024) .
- Discretionary bonuses for other executives are not tied to financial metrics; McMahon’s bonus uniquely tied to 8% of AWMS pre-tax income .
Detailed incentive design
| Metric | Weighting | Target/Formula | Actual (framework) | Payout Vehicle | Vesting |
|---|---|---|---|---|---|
| AWMS Income Before Taxes | 100% of McMahon’s variable pay | 8% of AWMS pre-tax income | Varies with AWMS profitability | Annual cash bonus | Cash, no equity vesting disclosed |
Multi-year bonus outcomes (USD)
| Year | Bonus Paid |
|---|---|
| 2021 | $343,780 |
| 2022 | $368,800 |
| 2023 | $363,612 |
| 2024 | $404,527 |
Company performance context (for alignment)
| Metric | 2023 | 2024 |
|---|---|---|
| Value of $100 Investment (PVP Table) | $90 | $159 |
| Net Income (USD) | $(1,775,000) | $1,318,000 |
| Net Operating Revenues (USD) | $80.9M | $83.8M |
| Waste Mgmt Segment Revenues (USD) | $44.6M | $45.9M |
Equity Ownership & Alignment
- Beneficial ownership: The 2024 year-end “Stock Ownership of Management” table lists several directors and certain named officers; McMahon is not individually listed with share counts. As of 12/31/2024, group totals show 170,816 Class A shares and 611,233 Class B shares for all executive officers, directors and nominees (8 persons), but no separate line item for McMahon is provided .
- Equity awards: No RSU/PSU grants; no options outstanding; all prior options expired; no stock vested in 2023–2024 .
- Hedging/pledging: AWX discloses it has not adopted hedging policies beyond its insider trading policy; no specific pledging policy disclosed .
- Section 16 compliance: No delinquent Section 16(a) filings reported for 2024 .
- Stock ownership guidelines: Not disclosed .
Ownership snapshot (as disclosed)
| Item | Status |
|---|---|
| Shares owned (McMahon) | Not disclosed in proxy’s management ownership table |
| Options (exercisable/unexercisable) | None; all expired |
| RSUs/PSUs (vested/unvested) | None disclosed |
| Pledging of company stock | Not disclosed |
| Hedging policy | No formal hedging policies adopted beyond insider trading policy |
Employment Terms
- Role and tenure: Chief Executive Officer and President of AWMS since June 1998; currently President of AWMS in 2024 filings .
- Employment agreements: No specific employment contract, severance, or change-of-control terms disclosed for McMahon in proxies or 10-Ks reviewed .
- Non-compete/Non-solicit/Garden leave: Not disclosed .
- Clawback provisions: Not disclosed .
- Compensation governance context: AWX is a “controlled company” with a Compensation Committee that is not fully independent and has no charter; compensation is largely cash-based and discretionary for executives other than McMahon’s formulaic bonus .
Performance & Track Record
- Segment leadership: McMahon leads AWMS, AWX’s primary waste management services segment covering hazardous and nonhazardous brokerage/management, captive landfill management, and salt water injection wells .
- Operating momentum: Waste management revenues increased from ~$44.6M (2023) to ~$45.9M (2024), with overall net operating revenues rising to $83.8M (2024) from $80.9M (2023) .
- Shareholder value context: PVP table shows $100 investment value rising to $159 (2024) from $90 (2023); net income improved to $1.318M (2024) from a $(1.775)M loss (2023) .
Compensation Committee Analysis
- Controlled company; over 50% voting power held by the CEO (Klingle). Compensation Committee members are not all independent, and the committee has no charter .
- Executive pay framework: Cash salary plus discretionary bonuses; McMahon’s variable pay formula directly tied to AWMS pre-tax income (8%) .
- Equity usage: No equity awards in recent years; options program has expired; no outstanding options .
Say-on-Pay & Shareholder Feedback
- Advisory say-on-pay vote presented; the Board unanimously recommends “FOR” approval; specific shareholder approval percentages not disclosed in the proxies reviewed .
Risk Indicators & Red Flags
- Governance: Controlled company with a non-independent Compensation Committee and no charter increases governance risk around pay-setting .
- Alignment: No equity awards or ownership disclosure for McMahon limits equity alignment signals; options program expired .
- Hedging policy: Company has not adopted formal hedging policies beyond the insider trading policy; pledging policy not disclosed .
- Pay design: Heavy reliance on cash and formulaic bonus tied to AWMS profitability—positive for operating discipline but may not align with long-term TSR without equity components .
Compensation Structure Analysis
- Cash vs Equity: Compensation is predominantly cash; no equity grants to NEOs in recent years; options expired—shifts mix away from long-term equity incentives .
- At-risk pay: McMahon’s bonus is formula-driven (8% of AWMS pre-tax income), directly linking variable pay to subsidiary profitability .
- Trend: Base salary flat at $130,000 from 2021–2024, bonus up 11% YoY in 2024 ($404,527 vs $363,612) alongside higher waste segment revenues .
Investment Implications
- The formulaic 8% bonus tied to AWMS pre-tax income creates strong near-term cash alignment with subsidiary profitability; however, absence of equity awards and lack of disclosed personal ownership limits long-term alignment with shareholder TSR .
- Governance structure as a controlled company with a non-independent Compensation Committee and no charter is a notable risk; investors should monitor pay outcomes and any future adoption of clawback/hedging policies or stock ownership guidelines .
- Operationally, AWMS revenue growth and company-wide profitability recovery in 2024 support McMahon’s incentive outcomes; continued momentum in waste management revenues would sustain variable pay while providing positive signals for AWX fundamentals .