Anthony J. Harris
About Anthony J. Harris
Anthony J. Harris, age 41, is Executive Vice President, Chief Financial Officer and Principal Accounting Officer of BBSI. He joined BBSI in September 2016 as Controller, became Executive Director of Accounting and Finance in March 2018, and was promoted to CFO and Principal Accounting Officer in March 2020; he was named Executive Vice President in May 2020. Prior to BBSI, Harris served as Controller at Holland Partner Group (2015–2016) and spent nine years at PricewaterhouseCoopers LLP in the U.S. and Australia supporting public and large private companies. He is a certified public accountant and holds a BBA in finance and accounting from Washington State University .
2024 corporate performance outcomes driving annual incentives included net income of $52,993,307 vs. a $41,770,868 target (200% payout), gross billings growth of 7.92% vs. 8.20% target (91% payout), gross margin of 3.04% vs. 2.91% target (167% payout), and WSE adds of 19,435 vs. 20,636 target (71% payout), with equal weighting across the four metrics (80% corporate/20% individual in bonus mix) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Barrett Business Services, Inc. | Controller | Sep 2016–Mar 2018 | Built finance controls and reporting foundation during growth phase |
| Barrett Business Services, Inc. | Executive Director, Accounting & Finance | Mar 2018–Mar 2020 | Led accounting and finance modernization pre-CFO transition |
| Barrett Business Services, Inc. | CFO & Principal Accounting Officer; EVP | Mar 2020–present | Oversight of financial strategy, controls, capital allocation; elevated to EVP in May 2020 |
| Holland Partner Group | Controller | 2015–2016 | Led controllership for multi-asset real estate platform |
| PricewaterhouseCoopers LLP | Various roles (U.S. and Australia) | ~2006–2015 | Audited/consulted for public and large private companies, cross-border experience |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| PricewaterhouseCoopers LLP | Assurance/Advisory roles | ~9 years prior to 2015 | Supported public and large private clients; international exposure |
Fixed Compensation
| Metric (USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary | $393,365 | $436,538 | $475,577 |
| Discretionary Bonus (Individual) | $80,000 | $90,000 | $77,600 |
| Target Bonus % of Salary | — | — | 80% (Target $310,400) |
| All Other Compensation (401(k) match, etc.) | $12,200 | $26,149 | $13,800 |
Notes: Target annual cash incentive split 80% corporate metrics / 20% individual; equal weighting across four corporate metrics . 401(k) Company match program capped at $13,800; all executive officers participated in 2024 .
Performance Compensation
Annual Cash Incentive – Corporate Metrics (2024)
| Metric | Target | Actual | Minimum | Maximum | Payout % |
|---|---|---|---|---|---|
| Gross billings growth | 8.20% | 7.92% | 5.70% | 11.50% | 91% |
| Net income | $41,770,868 | $52,993,307 | $35,505,238 | $50,125,042 | 200% |
| Gross margin (% of gross billings) | 2.91% | 3.04% | 2.76% | 3.10% | 167% |
| WSE adds (new clients) | 20,636 | 19,435 | 17,541 | 24,763 | 71% |
- Payout structure: 25% at minimum achievement; capped at 200%; no payout below minimum .
- Harris’s target corporate bonus amount for 2024: $310,400; individual performance target $77,600; full individual target bonus approved in Feb 2025 .
- Actual non‑equity incentive paid to Harris (total corporate-driven cash incentive): $410,794 for 2024 .
Equity Incentives
- RSUs: Annual grants typically vest in four equal annual installments; July 1, 2024 grants fixed by dollar value (Harris: $388,000) converted to shares; matching RSUs under NDCP vest five years after grant and are awarded as 35% match on deferrals, up to $75,000 per year .
- PSUs (2024 grant): Target dollar value $315,250 tied 50/50 to cumulative gross billings and net income before taxes for 2024–2026; each metric adjusts ±2.5% per 1% deviation vs target; payout floor 80% (with 50% of target at 80% achievement) and max 200% .
- PSU (2022 cycle outcome): Achieved 117.1% for net income before taxes (payout 142.7% of target for that metric) and 100.7% for gross billings (payout 101.7%); overall payout ~122.2% of target; settled Feb 24, 2025 with 13,001 shares to Harris .
Grants of Plan‑Based Awards (2024 – Harris)
| Award Type | Grant Date | Terms | Quantity / Strike | Grant Date Fair Value |
|---|---|---|---|---|
| PSUs (Threshold) | 3/13/2024 | 3‑yr performance, 50/50 GB/NIBT, adj ±2.5% | 5,274 shares | — |
| PSUs (Target) | 3/13/2024 | Same as above | 10,549 shares | $315,250 target value |
| PSUs (Maximum) | 3/13/2024 | Cap 200% | 21,098 shares | — |
| RSUs | 7/1/2024 | Time‑vest, typical 4 tranches | 11,890 shares | $387,971 |
| RSUs (NDCP match) | 7/1/2024 | NDCP match RSUs | 2,114 shares | $68,980 |
| Stock Options (Retention) | 11/12/2024 | 4‑yr cliff vest; 2030 expiry | 12,500 @ $42.79 | $148,125 |
| Stock Options (Retention) | 12/4/2024 | 4‑yr cliff vest; 2030 expiry | 22,000 @ $44.34 | $271,260 |
Notes: CFO awarded 34,500 options in 2024 as equity retention bonus; 4‑year cliff vesting .
Multi‑Year Total Compensation
| Component (USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary | $393,365 | $436,538 | $475,577 |
| Bonus (Discretionary) | $80,000 | $90,000 | $77,600 |
| Stock Awards (RSUs/PSUs, grant‑date FV) | $564,715 | $569,951 | $614,590 |
| Stock Options (grant‑date FV) | $— | $— | $419,385 |
| Non‑Equity Incentive Plan Compensation | $467,604 | $321,662 | $410,794 |
| All Other Compensation | $12,200 | $26,149 | $13,800 |
| Total Compensation | $1,517,884 | $1,444,300 | $2,011,746 |
Vesting/Realization during 2024: Harris had 38,152 shares acquired on vesting of stock awards with $1,255,444 value realized; no option exercises .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 80,503 shares as of April 7, 2025; less than 1% of outstanding |
| Shares outstanding reference | 25,680,212 shares as of record date April 7, 2025 |
| Options exercisable within 60 days | Not listed for Harris (group total includes 185,000; Harris not specified) |
| Pledging / Hedging | Anti‑hedging policy; pledging prohibited without advance approval; no pledges by any director or executive as of proxy date |
| Ownership guidelines | Executives must hold ≥3× base salary; comply within five years; retain ≥50% of shares until compliant; all executive officers have met or are on track |
Outstanding Equity Awards (12/31/2024 – Harris)
| Award Type | Quantity | Key Terms | Expiration / Vesting | Market Value reference |
|---|---|---|---|---|
| Stock Options | 12,500 | Strike $42.79 | Expires 11/12/2030; 4‑yr cliff vest | — |
| Stock Options | 22,000 | Strike $44.34 | Expires 11/12/2030; 4‑yr cliff vest | — |
| RSUs | 40 | Vested 1/1/2025 | 1/1/2025 | $1,738 market value |
| RSUs | 352 | Vest 7/1/2025 | 7/1/2025 | $15,291 |
| RSUs | 4,088 | Vest 7/1/2025 | 7/1/2025 | $177,583 |
| RSUs | 456 | Vest 7/1/2026 | 7/1/2026 | $19,809 |
| RSUs | 568 | Vest 1/1/2027 | 1/1/2027 | $24,674 |
| RSUs | 8,700 | Vest in two equal annual installments beginning 7/1/2025 | 7/1/2025 start | $377,928 |
| RSUs | 4,076 | Vest 7/1/2027 | 7/1/2027 | $177,061 |
| RSUs | 12,384 | Vest in three equal annual installments beginning 7/1/2025 | 7/1/2025 start | $537,961 |
| RSUs | 3,440 | Vest 7/1/2028 | 7/1/2028 | $149,434 |
| RSUs (NDCP match) | 11,890 | Time‑vest installments per footnote (12) | Beginning 7/1/2025 | $516,502 |
| RSUs (NDCP match) | 2,114 | Time‑vest installments per footnote (13) | Beginning 7/1/2025/1/1 cycles | $91,832 |
Notes: Market values reference $43.44 closing price on last trading day of 2024 used in tables .
Employment Terms
| Term | Summary |
|---|---|
| Employment Agreement | Effective March 5, 2020; term ends July 1, 2025 with annual one‑year auto‑renewals unless 90‑day advance nonrenewal notice |
| Severance (No CIC) | Lump sum equals base salary + target cash incentive; Harris $873,000; plus acceleration of RSUs scheduled within one year (value $691,956) |
| Severance (CIC window) | If terminated within 3 months before to 24 months after a CIC: lump sum 3× (salary + target bonus); Harris $2,619,000 |
| Equity (CIC) | All outstanding stock options and RSUs vest in full upon CIC, regardless of termination (“single‑trigger” acceleration for equity) |
| 280G Cutback | Benefits reduced to avoid excise tax under IRC §4999 if deemed excess parachute payments under §280G |
| Non‑compete / Non‑solicit | Non‑compete and non‑solicit apply during employment and for 12 months post‑termination for Harris |
| Death Benefit | Lump sum $1,000,000 to designated beneficiary under Death Benefit Agreement |
Clawback: Nasdaq‑compliant policy adopted Oct 2023 to recover incentive compensation upon restatement due to material noncompliance; applies to prior three years .
Governance, Policies, and Shareholder Feedback
- Anti‑hedging and insider trading policies in place; no 10b5‑1 or non‑10b5‑1 trading plans entered by directors/executives during 2024; no pledged shares as of proxy date .
- Stock ownership guidelines: ≥3× base salary for executives; retention of ≥50% of shares until compliant; executives met or are on track .
- Say‑on‑pay approval: At the 2024 annual meeting, more than 93% of votes cast approved NEO compensation .
- Compensation Committee: Vincent P. Price (Chair), Thomas B. Cusick, Joseph S. Clabby; Mercer engaged for trends and peer group updates for 2025 .
Investment Implications
- Strong pay‑for‑performance alignment: 2024 corporate bonus outcomes were heavily driven by net income outperformance (200% payout) and gross margin improvement (167%), indicating CFO’s execution on profitability levers; bonus target set at 80% of salary reinforces performance‑linked cash compensation .
- Retention risk mitigated near‑term: 34,500 retention stock options granted in late 2024 have four‑year cliff vesting and 2030 expirations, deferring potential option‑related selling pressure until ~2028; however, multiple RSU tranches vesting on January 1 and July 1 create periodic liquidity events that could add modest selling pressure near vest dates .
- Alignment safeguards: No hedging or pledging, mandatory ownership guidelines (≥3× salary) with share retention requirements, and a robust clawback policy reduce agency risk and signal governance quality .
- Change‑of‑control economics: Equity accelerates on single‑trigger CIC while cash severance is double‑trigger within the CIC window; Harris’s illustrative CIC package totals $4.72M including equity value, subject to 280G cutback, which could influence behavior in strategic transactions .
- Execution track record: PSU cycle for 2022–2024 paid out at ~122.2%, reflecting consistent achievement on multi‑year profitability and billing growth metrics; 2024 vesting realizations ($1.26M) demonstrate meaningful equity monetization aligned with results .