Jeffery Conklin
CITIZENSAbout Jeffery Conklin
Jeffery P. Conklin, age 55, is Citizens, Inc.’s Chief Financial Officer, Treasurer, and Chief Investment Officer; he joined Citizens in May 2017 and has served as CFO since September 20, 2019 after senior finance roles at AIG (2004–2017). He holds a B.A. in Business/Accounting from The University of Olivet and brings expertise in budgeting, financial analysis, and strategic accounting initiatives . Company performance context: TSR value of a $100 investment rose from $40.11 (2022) to $50.66 (2023) and $75.52 (2024), while Adjusted Operating Income moved from $36.1M (2022) to $26.6M (2023) and $21.3M (2024) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Citizens, Inc. | Interim CFO | Mar 2019–Sep 2019 | Supported transition of finance leadership and investment oversight . |
| Citizens, Inc. | Chief Accounting Officer & Treasurer | Sep 2017–Mar 2019 | Led reporting, budgeting, analysis, and accounting initiatives . |
| Citizens, Inc. | VP, Chief Accounting Officer | May 2017–Sep 2017 | Strengthened reporting controls and processes . |
| American International Group (AIG) | VP, Financial Reporting; VP, Special Projects | 2004–2017 | Led complex reporting and strategic finance projects . |
External Roles
No public company directorships or external board roles disclosed for Conklin .
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $430,000 | $430,000 |
| Target Cash Bonus ($) | $170,000 | $170,000 |
| Actual Cash Bonus Paid ($) | $90,872 | $171,700 |
| Stock Awards (Grant-Date Fair Value, $) | $107,605 | $280,181 |
| All Other Compensation ($) | $15,988 | $14,400 |
Key points:
- Target bonus is set in dollars; a percent target was not disclosed .
- 2024 cash bonus paid reflects a 101% multiplier on his $170,000 target per milestone outcomes .
Performance Compensation
Short-term incentive structure and 2024 outcomes:
| Metric | Weighting (Conklin) | Target Definition | Actual Achievement | Contribution to Multiplier |
|---|---|---|---|---|
| First Year Sales Growth | 20% | Growth across all 3 markets | 110% | 0.22 (0.20 × 1.10) |
| Policy Retention Improvement | 10% | Improve lapses/surrenders; maintain 1st-year persistency | 90% | 0.09 (0.10 × 0.90) |
| Roadmap Execution | 35% | Deliver 5-quarter roadmap initiatives | 120% | 0.42 (0.35 × 1.20) |
| Financials & Expense Discipline | 35% | Net pre-tax vs budget; 120%/100%/80% payout levels | 80% | 0.28 (0.35 × 0.80) |
| Total Multiplier & Bonus | — | — | 101% | $171,700 on $170,000 target |
Long-term incentives (2024 grants and performance conditions):
- 2024 LTI target $200,000; RSUs: 37,383; PSUs: 56,075; RSUs vest 1/3 per year over 3 years; PSUs cliff-vest based on 3-year performance (to 12/31/2026) with payout at 3/28/2027 .
- PSU performance metric: Adjusted Book Value per Class A share. Thresholds:
- <$6.79: 0% earned; $6.79–$8.00: 50%; $8.01–$9.36: 100%; >$9.37: 200% .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 169,467 Class A shares; 0.3% of shares outstanding (50,149,966) as of Apr 21, 2025 . |
| Outstanding RSUs (Unvested) | 7,847 (3/31/2022); 19,336 (3/31/2023); 74,851 (3/28/2024); all vest 1/3 annually . |
| Outstanding PSUs (Unvested) | 28,037 (threshold count for 2024 PSUs); performance period ends 12/31/2026 . |
| Options | Company does not grant options; none outstanding . |
| Stock Ownership Guidelines | Company maintains guidelines for CEO and Section 16 officers (specific multiples not disclosed) . |
| Hedging/Pledging | Prohibited for directors and officers under Insider Trading Policy . |
| Trading Controls | Pre-clearance required for Section 16 officers; blackout periods apply . |
Outstanding equity details at 12/31/2024 (market value @ $4.01/share):
| Grant Date | Type | Unvested Units (#) | Market Value ($) |
|---|---|---|---|
| 3/31/2022 | RSUs | 7,847 | $31,466 |
| 3/31/2023 | RSUs | 19,336 | $77,537 |
| 3/28/2024 | RSUs | 74,851 | $300,153 |
| 3/28/2024 | PSUs (threshold) | 28,037 | $112,428 |
Alignment assessment:
- Meaningful share ownership and multi-year vesting, with anti-hedging/pledging and trading pre-clearance, reduce misalignment and near-term selling pressure .
- Presence of stock ownership guidelines indicates commitment to ownership, though specific salary multiples were not disclosed .
Employment Terms
| Provision | Key Terms |
|---|---|
| Employment Agreement | None disclosed for Conklin; covered by Executive Change in Leadership Agreement . |
| Change in Leadership Agreement | Double-trigger: payment if CEO change (occurred 7/1/2024) or Change in Control AND termination without cause within one year; in effect until 7/1/2025 . |
| Severance Economics (if terminated without cause on 12/31/2024) | 6 months base ($215,000), 6 months COBRA ($8,445), pro-rata target bonus ($170,000), accelerated vesting of RSUs/PSUs ($713,825); total $1,107,270 . |
| Equity Acceleration | RSUs/PSUs accelerate under certain termination/events per award agreements . |
| Clawback | Compensation Recovery Policy effective 12/1/2023 (restatement-based) . |
| Single vs. Double Trigger | Change in Leadership Agreement requires both leadership change and termination (double trigger) . |
| Tax Gross-Ups | No gross-ups disclosed for Conklin; gross-ups noted for CEO relocation only . |
Performance & Track Record
Company-level financials over the last three fiscal years:
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($) | $239,140,000* | $236,293,000* | $243,040,000* |
| EBITDA ($) | $27,913,000* | $26,689,000* | $15,599,000* |
| Net Income ($) | $26,007,000* | $24,437,000 | $14,912,000* |
Values retrieved from S&P Global. Cells marked with * have no document citation.
TSR and pay-versus-performance context:
- TSR value of a fixed $100 investment: $40.11 (2022), $50.66 (2023), $75.52 (2024) .
- Adjusted Operating Income (pre-tax): $36.1M (2022), $26.6M (2023), $21.3M (2024) .
Operational highlights tied to performance metrics:
- 2024 first-year sales growth targets exceeded (domestic significantly above 120% payout goal; international at 120%); retention mixed (international 100%, Home Service 80%); roadmap execution at 120%; financial discipline at 80% .
Compensation Structure Analysis
- Shift toward equity: Conklin’s stock awards rose from $107,605 (2023) to $280,181 (2024) concurrent with the introduction of PSUs and a formal LTI plan emphasizing adjusted book value growth .
- Performance-linked cash: 2024 cash bonus increased to $171,700 as formulaic milestone outcomes produced a 101% payout vs. target .
- Governance enhancements: Adoption of clawback policy and LTI grant timing away from earnings releases; no option grants reduce repricing risk .
Say-On-Pay & Compensation Committee
- Say-on-Pay approval: 90% in 2024, indicating investor support .
- Compensation Committee composition: Independent directors (Chair Jerry D. Davis, plus Christopher W. Claus and Cynthia H. Davis); independent consultant Meridian engaged for design and peer benchmarking .
Risk Indicators & Red Flags
- Hedging/Pledging: Prohibited for officers/directors (reduces misalignment risk) .
- Clawback: In place; no restatements requiring recovery in 2024 .
- Related Party Transactions: None above $120,000 since Jan 1, 2024 .
- Legal matters: $3.5M non-cash accrual for legal fees in trade secret case; not specific to Conklin but affects financials .
Equity Ownership & Alignment Table (Summary)
| Component | Detail |
|---|---|
| Beneficial shares | 169,467; 0.3% of Class A shares . |
| Unvested RSUs | 102,034 total across 2022–2024 grants . |
| Unvested PSUs | 28,037 threshold count from 2024 grant . |
| Ownership guidelines | In place for Section 16 officers (specific multiples not disclosed) . |
| Pledging/Hedging | Prohibited . |
Employment Terms Table (Economic Detail)
| Scenario (12/31/2024 hypothetical) | Cash | Benefits | Equity Acceleration | Total |
|---|---|---|---|---|
| Termination without cause within 1 year of Change in Leadership | $385,000 (base + bonus) | $8,445 | $713,825 | $1,107,270 |
Investment Implications
- Alignment: Material share ownership, multi-year RSU/PSU vesting, anti-hedging/pledging, and clawback policy collectively align Conklin’s incentives with long-term value creation and temper near-term selling pressure .
- Performance linkage: Cash incentives are formulaic and tied to sales growth, retention, execution, and pre-tax income; PSUs tied to adjusted book value growth reinforce book value compounding priorities .
- Retention risk: The double-trigger Change in Leadership Agreement offered time-limited protection through 7/1/2025; after expiry, retention relies on standard LTI/RSU policies and ownership guidelines .
- Watch items: Company-level EBITDA declined in 2024 and Adjusted Operating Income trended lower since 2022, suggesting tighter financial headroom for pay-for-performance; continued monitoring of milestone rigor and PSU target ranges is warranted (financial values from S&P Global; see table).