Eric Walter
DMC GlobalAbout Eric Walter
Eric V. Walter, 55, has served as Chief Financial Officer of DMC Global Inc. (BOOM) since February 28, 2023; he joined as SVP Finance on January 23, 2023. He holds a B.A. in Accounting and Business Administration (Furman) and an M.B.A. (Duke) and maintains CPA (inactive), CFA, and CTP (inactive) designations . In 2024, DMC’s consolidated sales declined 11% to $642.9 million and adjusted EBITDA attributable to DMC fell 46% to $52.2 million; Pay-Versus-Performance shows severe TSR underperformance (value of initial $100 investment at $16.36 for 2024), contextualizing pay outcomes and program changes for 2025 . 2024 Say-on-Pay support exceeded 95%, and the Compensation Committee shifted 2025 incentives to focus on cumulative Adjusted EBITDA and Adjusted Free Cash Flow to strengthen pay-for-performance alignment .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Jacobs (NYSE: J) | CFO, People & Places Solutions; led treasury, shared services, FP&A (various roles over 6 years) | ~2017–2023 (past six years before BOOM) | Finance leadership of ~$9B division; enterprise treasury/operations leadership supporting scale and capital discipline |
| Veritiv (NYSE: VRTV) | Finance leadership roles | 13 years in industrial distribution (across Unisource/Veritiv) | Supported distribution-sector execution and integration initiatives |
| Unisource Worldwide | Finance leadership roles | Part of the 13-year tenure | Financial leadership in industrial distribution |
| Arthur Andersen | Early career | Not disclosed | Audit/assurance grounding |
| Accenture | Early career | Not disclosed | Consulting/process improvement experience |
| PE-owned software company | Finance role | Not disclosed | Private equity operating rigor exposure |
Fixed Compensation
| Item | 2024 Detail |
|---|---|
| Base salary | $455,000 (3.5% increase from 2023 rate) |
| Target annual bonus | 75% of base salary (target award opportunity) |
| Actual 2024 bonus paid | $170,625 (0% company component; 100% individual component) |
| Relocation/sign-on | $100,000 relocation bonus in 2024 |
| Tax gross-up | $77,778 gross-up for relocation per employment terms (red flag for some investors) |
| Perquisites (examples) | $18,000 auto/fuel allowance; $13,800 401(k) match; $11,063 commuting; $1,359 insurance premiums |
Performance Compensation
- 2024 annual bonus structure for DMC NEOs (including CFO): 50% company metrics, 50% individual performance; payout range 0–180% of target .
- Company metrics and outcomes (DMC Global Inc.):
| Metric (Weight) | Threshold | Target | Maximum | 2024 Actual | Payout on Company Component |
|---|---|---|---|---|---|
| Revenue (10%) | $695m | $753m | $821m | $642.9m | 0% |
| SG&A % of Revenue (10%) | 15.2% | 14.3% | 13.1% | 15.8% | 0% |
| Adjusted EBITDA % (15%) | 11.6% | 12.7% | 14.2% | 8.1% | 0% |
| Cash Conversion Days (15%) | 118 | 110 | 97 | Not specified for DMC; aggregate decision yielded 0% | 0% |
- Individual performance multiplier for Eric Walter: 100% for 2024; hence his total bonus equaled the individual-component portion only ($170,625) .
- 2024 segment performance context: Arcadia revenue $249.8m (down 16%); DynaEnergetics $287.7m (down 9%); NobelClad $105.4m (best in a decade) with 121% company component payout at segment level; consolidated adjusted EBITDA attributable to DMC $52.2m (down 46%) .
2025 design changes (alignment upgrade):
- PSUs: DMC, DynaEnergetics, NobelClad NEOs: 50% cumulative Adjusted EBITDA and 50% cumulative Adjusted Free Cash Flow over 3 years; Arcadia NEO PSUs: 2-year cumulative Adjusted EBITDA .
- Annual bonus: company component only (qualitative individual component removed); DMC/Dyna/NobelClad weighted 50% Adjusted EBITDA, 50% Adjusted Free Cash Flow; Arcadia based solely on Adjusted EBITDA .
Equity Ownership & Alignment
- Beneficial ownership: 111,630 BOOM common shares as of March 20, 2025; <1% of shares outstanding; excludes 73,936 PSUs from the ownership tally .
- Outstanding unvested awards at 12/31/2024 (closing price $7.35 for valuation):
| Instrument | Shares Unvested | Vesting Mechanics | Market Value at 12/31/24 |
|---|---|---|---|
| Restricted Stock (granted 3/14/2023) | 10,387 | Vest equally on 2nd and 3rd anniversaries of grant, subject to continued employment | $76,344 |
| Restricted Stock (granted 2/28/2024) | 19,503 | Vest equally over 3 years from grant, subject to continued employment | $143,347 |
| Restricted Stock (retention; granted 11/13/2024) | 26,119 | Cliff vest at 18 months from grant, subject to continued employment | $191,975 |
| PSUs (granted 3/14/2023) | 15,581 | Vest on 3rd anniversary based on TSR vs disclosed peer group and Adjusted EBITDA goal | $114,520 |
| PSUs (granted 2/28/2024) | 19,503 | Vest on 3rd anniversary based on relative TSR vs S&P SmallCap 600 Industrials | $143,347 |
- 2024 equity grants to CFO: 2/28/2024 grant of 19,503 RS + 19,503 PSUs (grant-date value $815,811); 11/13/2024 retention grant of 26,119 restricted shares (grant-date value $227,496) .
- 2024 vested stock: 23,351 shares; value realized $407,839 .
- Stock ownership guidelines: rigorous NEO guideline (hold shares equal to aggregate awarded over prior 3 years, net of tax), with all NEOs in compliance or within phase-in; anti-hedging and anti-pledging policies prohibit hedging and pledging/margin use (alignment positive; reduces financial-risk signaling from collateralized holdings) .
- Options: Company does not currently grant options/SARs; none outstanding as of March 20, 2025 (limits option-driven selling pressure and repricing risk) .
Vesting schedules (key upcoming events):
- 2019–2024 RS grants generally vest in equal installments on first/second/third anniversaries; the 11/13/2024 retention grant vests on the 18-month anniversary of grant (i.e., mid-2026), subject to continued employment .
Employment Terms
| Provision | Detail |
|---|---|
| Employment start and role | SVP Finance (1/23/2023); CFO (2/28/2023) |
| Offer letter economics | Base salary; annual bonus target initially 60% of base; LTI target 1.5x salary (superseded by later changes; target bonus increased to 75% in 2024) |
| Severance (pre-March 2025) | Offer letter: 12 months’ base salary if terminated without cause or upon change of control (superseded) |
| Executive Severance Plan (effective 3/13/2025) | Without CIC: cash severance = 1x base salary + any earned but unpaid prior bonus; With CIC: 1x base salary + 1x target bonus + pro rata bonus + any earned prior bonus; COBRA benefits and equity acceleration provisions apply per plan |
| Equity acceleration (Severance Plan/Plans) | On CIC, awards generally vest only if not assumed or upon qualifying termination within 24 months (double-trigger); performance awards vest pro rata at actual or target as specified; plan mirrors change-in-control best practices (no single-trigger equity vesting) |
| Clawback | Company clawback policy applies to incentive compensation; covers current and future NEOs |
| Hedging/Pledging | Prohibited for directors/officers/employees (alignment positive) |
Compensation Structure Notes (signals)
- 2024 mix: Increased CFO target bonus opportunity to align with market; special 18‑month cash/stock retention grant awarded in November 2024 (one-times base salary value, 50% cash/50% stock)—supports continuity through leadership transitions but introduces a discrete vesting event in mid-2026 .
- 2025 shift from 100% relative TSR PSUs (2024 design) to EBITDA/FCF metrics for PSUs and bonuses strengthens line-of-sight and cash discipline alignment amid weak 2024 results (revenue and EBITDA shortfalls) .
- Governance: No option/SAR grants or repricing; minimum 1‑year vesting norms; no evergreen; independent compensation committee; >95% 2024 Say-on-Pay support .
Investment Implications
- Alignment: 2025 pivot toward EBITDA and FCF in both annual and long-term incentives improves pay-for-performance linkage and should emphasize deleveraging and cash discipline—constructive given 2024 shortfalls in revenue/EBITDA .
- Retention vs. supply overhang: The November 2024 18‑month retention RS grant (26,119 shares) vests mid‑2026, creating a concentrated selling window but also lowering near-term flight risk; additional time‑based RS tranches in 2025–2027 represent routine, staggered vesting events .
- Risk flags: One-time relocation tax gross-up is shareholder-unfriendly but limited in scope; hedging/pledging prohibitions and a robust clawback mitigate governance risk; no options outstanding reduces repricing/overhang risk .
- Track record/Execution: CFO oversaw financing flexibility (closed $300m 5‑year senior secured facility) during 2024 strategic reviews; nevertheless, 2024 DMC TSR performance was poor, reinforcing the rationale for the 2025 incentive redesign and for close monitoring of cash generation milestones under the new plan .
Key references: BOOM (DMC Global Inc.) DEF 14A filed 2025-04-01.
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