Adam B. Sefchick
About Adam B. Sefchick
Adam B. Sefchick is Vice President and Chief Financial Officer of Butler National (appointed May 14, 2025). He is 47, a Certified Public Accountant, and holds a B.S. in Business Administration/Accounting and an M.S. in Business and Information Systems from the University of Kansas, with 20+ years in accounting, financial reporting, and information systems across public and private companies . During FY2025, Butler National’s net income was roughly flat year over year (+0.3%), while cumulative TSR (as defined in the company’s Pay vs. Performance disclosure) rose materially; Sefchick’s tenure began after FY2025 year-end, but these metrics frame the recent operating and market backdrop .
| Company Performance Context | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Net Income ($) | $4,516,000 | $12,512,000 | $12,551,000 |
| Value of $100 Investment (TSR framework) | $74.19 | $90.32 | $160.22 |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Jack Cooper Investments, Inc. | Chief Accounting Officer | 2015–2025 | Managed SEC reporting, financial reporting, debt issuances, and complex transactions; implemented metrics and information systems |
| SmartVet Holdings, Inc. | Controller | 2014–2015 | Corporate controllership and reporting |
| Grant Thornton | Audit Senior Manager | 2002–2014 | Led audits and advisory for public/private clients |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Missouri Society of CPAs | Audit & Assurance Committee Member | n/a | Professional committee role |
Fixed Compensation
| Item | Detail |
|---|---|
| Employment type | At-will |
| Base salary | $290,000 for FY ending April 30, 2026 |
| Benefits/perquisites | Standard employee benefits, including healthcare |
| Related-party / arrangements | None disclosed; no related-person transactions requiring Item 404(a) disclosure |
Performance Compensation
- Cash Bonus Plan
- Target: $60,000 for current fiscal year
- Metrics: Company revenue, Company operating income, and other non-financial components (weighting not disclosed)
| Metric | Target | Weighting | Payout (Most Recent FY) | Notes |
|---|---|---|---|---|
| Company revenue | Included | Not disclosed | Not disclosed | Applies to FY ending 4/30/2026 |
| Company operating income | Included | Not disclosed | Not disclosed | Applies to FY ending 4/30/2026 |
| Other non-financial components | Included | Not disclosed | Not disclosed | Applies to FY ending 4/30/2026 |
- Equity Awards (Time-Based)
- Restricted stock award fair value: $75,000, approved at appointment; vests in equal installments on May 1, 2026; May 1, 2027; and May 1, 2028, subject to continued employment
| Grant Type | Grant/Approval Date | Grant Value ($) | Vesting Schedule | Notes |
|---|---|---|---|---|
| Restricted Stock | May 2025 (appointment) | $75,000 | 1/3 on 5/1/2026; 1/3 on 5/1/2027; 1/3 on 5/1/2028 | Time-based vesting; share count not disclosed |
The company disclosed no option awards for executives in FY2025; Sefchick’s disclosed equity is restricted stock (no options) .
Equity Ownership & Alignment
| Topic | Detail |
|---|---|
| Beneficial ownership | Not disclosed individually; included within “All Directors and Executive Officers as a Group (6 persons)” holding 11,402,256 shares (17.6%) as of Aug 5, 2025 |
| Vested vs. unvested | Unvested time-based RS: $75,000 with tranches vesting 5/1/2026, 5/1/2027, 5/1/2028 |
| Options outstanding | None disclosed for Sefchick |
| Hedging/shorts/derivatives | Prohibited (no short sales, hedging, puts/calls, collars, forwards) |
| Pledging/margin | Prohibited (no pledging; no holding in margin accounts) |
| Ownership guidelines (executives) | Must reach holdings equal to 2x base salary within 3 years of becoming subject to guidelines |
| Implication for CFO | Based on $290,000 base salary, guideline value ≈ $580,000; 3-year compliance window from appointment (May 14, 2025) |
| Section 16 filings | Form 4 for Adam B. Sefchick filed May 21, 2025 (company’s Section 16 review) |
Employment Terms
| Provision | Status/Detail |
|---|---|
| Start date / tenure | Appointed CFO effective May 14, 2025 |
| Contract term | At-will employment |
| Severance | None disclosed for Sefchick as of filings reviewed (company severance/change-in-control agreements disclosed for other executives; Sefchick not listed) |
| Change-in-control | None disclosed for Sefchick |
| Non-compete / non-solicit | Not disclosed for Sefchick (award agreements for other executives in FY2025 contained such terms) |
| Regulatory clearance | Appointment subject to satisfactory background investigation by Kansas Racing & Gaming Commission |
Investment Implications
- Pay-performance architecture: Cash is modest (base $290k; bonus target $60k) with explicit operating (revenue and operating income) and qualitative KPIs—useful for aligning near-term execution; long-term alignment driven by a 3-year, time-based RS schedule rather than performance shares, reducing near-term dilution and emphasizing retention .
- Selling pressure/vesting calendar: The $75k RS vests in three equal tranches on 5/1/2026, 5/1/2027, and 5/1/2028, creating identifiable windows when shares vest; while the company prohibits hedging/pledging, vesting events can sometimes coincide with insider sales for liquidity/tax, warranting monitoring around those dates .
- Alignment safeguards: Prohibitions on hedging, short sales, pledging, and margin reduce misalignment risk; executive ownership guidelines (2x salary in 3 years) push meaningful “skin in the game” for the CFO (implied guideline ~$580k), though current individual holdings are not disclosed—track progress toward guideline by May 2028 .
- Retention/CoC risk: At-will status with no disclosed severance or change-in-control protection suggests lower “golden parachute” risk from a shareholder perspective, but potentially higher retention risk if market compensation rises—watch for future proxy/8-K updates on any employment agreement or revised equity mix .
- Execution focus: Prior roles emphasize SEC reporting, debt transactions, and systems integration—consistent with management commentary on streamlining processes and cost efficiencies; this background should support improved controls, reporting cadence, and operational data visibility during BUKS’s current growth phase .