James Schladen
DMC GlobalAbout James Schladen
James H. Schladen, age 66, is President of Arcadia Products, LLC (DMC Global’s building products segment), effective February 3, 2025, and previously served as Arcadia’s President from 2000 until his retirement on January 2, 2023; he holds a B.S. in Business Economics from UCLA . He co‑founded Wilson Partitions (commercial interiors) before Arcadia acquired it in 1998; at Arcadia he led sales for Commercial Exteriors and served as President of Commercial Interiors prior to becoming President . Since his return, Arcadia showed improved execution: Q3 2025 sales rose 7% year-over-year to $61.7M and adjusted EBITDA more than doubled to $5.1M; Arcadia’s Q3 2025 adjusted EBITDA margin improved to 13.8% vs 5.8% a year earlier, reflecting operational stabilization under Schladen’s leadership . CEO Jim O’Leary credited Schladen with restoring customer service focus, reducing headcount in residential amid depleted backlogs, and resetting operations across divisions in 2025 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Arcadia Products, LLC | President | 2000–2023; returned 2025 | Led Arcadia across multiple cycles; post‑2025 return focused on customer service, lead‑time reduction, quality, and cost actions; headcount reductions executed to align with volume |
| Arcadia (Commercial Exteriors) | Head of Sales | Pre‑2000 | Drove commercial exterior sales leadership before elevation to President |
| Arcadia (Commercial Interiors) | President | Pre‑2000 | Led interiors franchise post Wilson Partitions acquisition |
| Wilson Partitions (acquired by Arcadia in 1998) | Co‑founder | Pre‑1998 | Built commercial interior products business later integrated into Arcadia |
Fixed Compensation
| Component | 2021 Employment Agreement | 2025 Offer Letter (current) |
|---|---|---|
| Base salary | $550,000; subject to annual review (no decreases) | $550,000; subject to annual review (no decreases) |
| Target annual bonus | 100% of base salary (2022 guaranteed minimum $550,000) | 100% of base salary; payout 0–200% based on Arcadia Adjusted EBITDA vs target |
| Long‑term incentive | Target value 2× base salary under DMC plan | Target $1.1M: 1/3 time‑based RSAs; 2/3 PSUs tied to Arcadia cumulative Adjusted EBITDA (2025–2026) |
Performance Compensation
| Incentive | Metric(s) | Weighting | Target/Thresholds | Payout mechanics | Vesting |
|---|---|---|---|---|---|
| Annual bonus (2025–2026) | Arcadia Adjusted EBITDA vs Committee‑set target | 100% | Example schedule: 85% of target EBITDA → 50% payout; 100% → 100%; 120% → 200% | Linear interpolation between points; 2025 not prorated; 2026 bonus earned 12/31/2026, contingent on continued employment | Paid within 74 days post year‑end |
| PSUs (grant with Feb 3, 2025 start) | Arcadia cumulative Adjusted EBITDA for 2025–2026 | 100% of PSUs tranche | Targets established at grant; performance period 2 years | PSUs earned based on cumulative EBITDA; remain outstanding and vest even if terminated without cause/for Good Reason per offer terms | Cliff vest at second employment anniversary (Feb 3, 2027) |
| RSAs (time‑based) | Continued employment | 100% of RSAs tranche | n/a | n/a | 50% vest at first anniversary (Feb 3, 2026); 50% at second anniversary (Feb 3, 2027) |
Notes on broader PSU framework: In 2025 DMC shifted PSU design to focus on cumulative Adjusted EBITDA and Adjusted Free Cash Flow for corporate and other segments, while Arcadia’s NEO PSU metrics are solely cumulative Adjusted EBITDA over a two‑year horizon .
Equity Ownership & Alignment
- Beneficial ownership: Schladen is not listed among DMC’s named executive officers in the 2025 proxy ownership table; no DMC share count was disclosed for him in that table .
- Hedging/pledging: DMC prohibits directors, officers and employees from hedging DMC stock or holding/pledging DMC securities in margin accounts .
- Stock ownership guidelines: Rigorous guidelines apply to DMC’s CEO, NEOs and non‑employee directors; compliance noted for those groups, though Schladen is not included as a DMC NEO in the 2025 table .
Employment Terms
| Term | 2025 Offer Letter | 2021 Employment Agreement (legacy) |
|---|---|---|
| Start date / role | President, Arcadia; effective Feb 3, 2025 | President, Arcadia; agreement executed at Arcadia closing (Dec 23, 2021) |
| Term | At‑will via offer letter (not expressly fixed term) | Initial 3‑year term with auto‑renewal |
| Severance (no cause / Good Reason) | Lump sum equal to 3 months base salary; prorated target bonus for year of termination; full vesting of RSAs; PSUs remain outstanding and vest on schedule; subject to release | Lump sum equal to 2 years salary + 100% average bonus (preceding two years or prior year); prorated current‑year bonus; full vesting of time‑vested equity; subject to release |
| Other provisions | Confidentiality & Inventions Agreement; indemnification agreement for senior execs | Restrictive covenant agreement (non‑compete among other covenants) |
| Change‑in‑control (plan terms) | Under DMC’s 2025 Omnibus Plan, awards generally vest upon change in control only if not assumed/substituted, or upon qualifying termination within 24 months (double‑trigger); performance awards pro‑rated based on actual/target where determinable – | |
| Clawback | Company clawback policy applies to incentive compensation (annual and long‑term) |
Performance & Track Record
| Arcadia metric | FY 2024 | Q3 2025 |
|---|---|---|
| Sales ($M) | $249.8 (down 16% y/y amid weak residential and operational disruptions) | $61.7 (+7% y/y; -1% seq) |
| Adjusted EBITDA attributable to DMC ($M) | $15.3 (down 49% y/y) | $5.1 (more than doubled y/y; +27% seq) |
| Adjusted EBITDA margin (%) | n/a | 13.8% vs 5.8% prior year |
| Operating focus (qualitative) | ERP rollout challenges and market weakness weighed on 2024 | O’Leary cited Schladen’s stabilization: customer service, reduced headcount in residential, cost controls; repairing supplier/customer relationships |
Related Party Transactions (Governance risk)
Arcadia entered eight leases with Alpine Universal, Inc., of which Schladen owns 13%; the following table summarizes the outstanding obligations and Schladen’s approximate interest through term end as disclosed:
| Lease Location | Current Term Expiration | Aggregate Payments (from FY 2024 through term end) | Approximate Dollar Value of Schladen’s 13% interest |
|---|---|---|---|
| Hayward, CA | Dec 22, 2027 | $1,609,769 | $209,270 |
| Vernon, CA | Dec 22, 2026 | $3,010,463 | $391,360 |
| Vernon, CA | Dec 22, 2026 | $2,441,448 | $317,388 |
| Sacramento, CA | Dec 22, 2027 | $423,623 | $55,071 |
| Stamford, CT | Dec 22, 2025 | $702,227 | $91,290 |
| Phoenix, AZ | Dec 22, 2026 | $972,641 | $126,443 |
| Tucson, AZ | Dec 22, 2026 | $2,193,365 | $285,137 |
| Las Vegas, NV | Dec 22, 2026 | $2,362,691 | $307,150 |
Additional disclosure: His son, Michael Schladen, serves as Vice President, Arcadia Residential (rehired Feb 4, 2025) with base salary $255,000, target bonus $76,500 (30%), LTI $51,000 (20%) .
Risk Indicators & Red Flags
- Related party leases with Alpine Universal where Schladen owns 13% create conflict‑of‑interest optics; amounts and his approximate interest are disclosed above .
- 2025 severance terms are modest (3 months salary + prorated bonus) relative to 2021 agreement (2 years salary + bonus) but include accelerated RSAs and continued PSU vesting, which can be viewed as protective in termination scenarios .
- Arcadia and DMC face tariff volatility and macro headwinds; tariffs materially pressured DMC segments in 2025 (e.g., DynaEnergetics ~$3M impact in Q3), affecting company cash generation and potentially incentive outcomes .
- DMC prohibits pledging/hedging, and maintains clawbacks—alignment positive—but Schladen’s personal DMC share ownership is not disclosed in NEO tables, limiting transparency on “skin‑in‑the‑game” at the parent level .
Investment Implications
- Pay‑for‑performance alignment: Schladen’s current incentive design is tightly linked to Arcadia cumulative Adjusted EBITDA over 2025–2026, and annual bonus payouts scale from 50% to 200% based on EBITDA attainment—providing high leverage to operational turnaround and cash discipline at Arcadia .
- Retention vs. selling pressure: Time‑based RSAs vest 50%/50% at 1/2 years; PSUs cliff vest at 2 years—creating concentrated vesting in 2026–2027. This can produce periodic selling pressure around vest dates but also supports near‑term retention and continuity during the reset .
- Governance: Alpine related‑party leases merit monitoring; while disclosed, recurring payments tied to an entity with executive ownership can be a governance overhang if renegotiated or expanded without robust independent oversight .
- Execution: Evidence of improved margin and stability since Schladen’s return (Q3 2025 Arcadia margin 13.8%) supports confidence in near‑term operational initiatives, though broader market recovery (rates, permitting) remains a gating factor for sustained growth .