Katherine Flouton
About Katherine Flouton
Katherine Flouton leads Purshe Kaplan Sterling Investments, Inc. (PKSI), a key broker-dealer subsidiary of Binah Capital Group, Inc. (BCG): her PKSI employment agreement is effective June 1, 2021 and identifies her as Chief Executive Officer; other filings refer to her as PKSI’s President . She is a 2024 Named Executive Officer (NEO) of BCG; reported pay was base salary $400,000 with $12,037 of other compensation in 2024, and $400,000 salary with a $50,000 bonus in 2023 . Company performance context: BCG reported revenue of $169.0M in 2024 vs $168.0M in 2023, EBITDA of $1.9M vs $6.8M, and total advisory + brokerage assets of $27.0B at 12/31/24 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Purshe Kaplan Sterling Investments, Inc. (PKSI) | Chief Executive Officer (also referenced as President) | 2021–present (agreement effective 6/1/2021) | Leads PKSI within BCG’s multi-broker-dealer platform |
External Roles
(No public company board or external roles are disclosed for Ms. Flouton in the cited filings.)
Fixed Compensation
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Base Salary (USD) | $400,000 | $400,000 |
| Target Bonus % | Not disclosed | Not disclosed |
| Actual Cash Bonus (USD) | $50,000 | $0 (no bonus reported) |
| All Other Compensation (USD) | $0 | $12,037 (401k match $11,083; life insurance $954) |
Performance Compensation
| Incentive Type | Metric(s) | Weighting | Target | Actual Payout | Vesting |
|---|---|---|---|---|---|
| Annual Bonus (PKSI) | Discretionary (metrics not specified) | N/A | Not disclosed | $50,000 (2023); $0 (2024) | Cash (immediate) |
| Equity Awards (BCG) | N/A | N/A | N/A | None granted to NEOs as of 12/31/2024 | N/A |
Notes:
- BCG states it intends to grant a mix of stock options and RSUs to NEOs in future periods, but none were granted as of 12/31/2024 .
Equity Ownership & Alignment
| Item | Status |
|---|---|
| Beneficial Ownership of BCG Common Stock | Not disclosed for Ms. Flouton in the parent-level beneficial ownership table (executive officers/directors listed do not include her) . |
| Vested vs. Unvested Shares | No outstanding equity awards as of 12/31/2024 . |
| Options (Exercisable/Unexercisable) | None as of 12/31/2024 . |
| Shares Pledged | Company insider trading policy prohibits pledging and hedging by employees, officers, and directors . |
| Ownership Guidelines | Not disclosed. |
| Insider Ownership Context (Parent-level) | All directors and executive officers as a group: 309,235 shares, 1.86% of outstanding as of 6/2/2025 . |
Employment Terms
| Term | Detail |
|---|---|
| Employer/Role | PKSI; Chief Executive Officer (also referenced as President) |
| Agreement Effective Date | June 1, 2021 |
| Term | Indefinite; continues until notice of intent to terminate by either party or termination per agreement |
| Base Salary | $400,000 annually (initial) |
| Bonus | Discretionary |
| Severance (PKSI, without Cause or long-term disability) | One year of base salary, paid in equal bi-weekly installments, plus accrued compensation/benefits/reimbursements through termination date |
| Cause Definition | Includes failure to comply after 30-day cure, felony/gross misdemeanor involving money or moral turpitude, fraud/misappropriation, unjustified insubordination, impairment due to substances, prolonged unexcused absence, misappropriation/fraud/embezzlement |
| Restrictive Covenants | 1-year post-termination non-solicit (employees/contractors/clients) and confidentiality; importantly, covenants do not prevent accepting employment with a competitor |
| Non-Compete | None (explicitly allowed to join competitors) |
| Clawback | Company-level clawback policy applies to “Affected Officers” as defined; applicability to Ms. Flouton not specifically enumerated in filings |
Performance & Track Record
Company-level context during/around tenure:
-
Fiscal years | Metric | FY 2023 | FY 2024 | |---|---:|---:| | Revenue (USD millions) | 168.0 | 169.0 | | EBITDA (USD millions) | 6.8 | 1.9 | | Total Advisory + Brokerage Assets (USD billions, year-end) | 23.9 | 27.0 |
-
Recent interim results | Metric | Q2 2024 | Q2 2025 | H1 2024 | H1 2025 | |---|---:|---:|---:|---:| | Total Revenue (USD millions) | 40.6 | 41.5 | 82.1 | 90.4 | | Net Income (Loss) (USD millions) | (0.7) | (0.7) | (2.3) | 0.4 | | Gross Profit (Non-GAAP, USD millions) | 7.3 | 8.8 | 15.1 | 17.4 | | Total Advisory + Brokerage Assets (USD billions, quarter-end) | 25.1 | 27.8 | — | — |
Notes:
- Non-GAAP definitions and reconciliations are provided in the filings; Gross Profit and EBITDA are non-GAAP measures .
Compensation Committee Analysis (Governance)
- Compensation Committee members: David Crane (chair) and Daniel Hynes; both independent under Nasdaq rules . The committee oversees executive compensation, performance goals, employment/severance and equity plans .
- Anti-hedging/pledging policy applies broadly to employees, officers, and directors .
- Emerging Growth Company status: the company is exempt from say‑on‑pay and certain expanded compensation disclosures; no CD&A is provided .
Investment Implications
- Alignment: Ms. Flouton’s compensation is mostly fixed cash with discretionary bonus; no equity awards were outstanding as of 12/31/2024, limiting direct stock-alignment signals for her specifically . Company policy allows future grants (options/RSUs) to NEOs, which could enhance alignment if implemented .
- Retention risk: Her contract has no non-compete (she can join competitors), mitigated by a 1‑year non‑solicit and confidentiality; severance is one year of salary if terminated without cause—moderate protection but less “golden handcuffs” vs peers with equity vesting/CIC terms .
- Trading overhang: A September 2025 post-effective S-1 registers up to 21.84M resale shares (128.48% of current outstanding) and up to 14.44M shares issuable upon warrant exercise; filings caution that sales could significantly pressure the stock price . This overhang is a company-level dynamic independent of Ms. Flouton but relevant for near-term trading.
- Insider ownership: Parent-level insider group ownership is low (1.86% for directors and executive officers as a group as of 6/2/2025), which can temper insider-alignment optics at the parent; Ms. Flouton is not listed among parent executive officers/directors in that table .
- Governance safeguards: Anti-pledging/hedging and clawback policies reduce risk of misaligned incentives and support compensation recoupment in a restatement scenario .