Matthew Sullivan
About Matthew Sullivan
Matthew Sullivan, age 38, was appointed Vice President and Chief Financial Officer of Climb Global Solutions effective January 10, 2025, after serving as Chief Accounting Officer since February 2022; he joined Climb in January 2019 and previously held roles as Corporate Controller and Director of Financial Reporting . He holds a B.S. in Accounting from Kutztown University and is a Certified Public Accountant; prior roles include Director of Accounting at Jackson Hewitt and five years in public accounting with BDO USA . Under his financial leadership, Q1 2025 results showed strong momentum: net sales up 49% to $138.0 million, net income up 35% to $3.7 million ($0.81 per diluted share), and adjusted EBITDA up 38% to $7.6 million; effective margin improved 20 bps to 32.7% . The company disclosed no related-party transactions for Sullivan under Item 404(a) upon his appointment .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Climb Global Solutions | Chief Accounting Officer | Feb 2022 – Jan 2025 | Oversaw global financial functions (external/internal reporting, compliance, FP&A) |
| Climb Global Solutions | VP, Corporate Controller | Mar 2020 – Feb 2022 | Led reporting and controls; supported operational finance |
| Climb Global Solutions | Director of Financial Reporting | Jan 2019 – Mar 2020 | Directed SEC and internal reporting |
| Jackson Hewitt | Director of Accounting | Nov 2016 – Jan 2019 | Managed audit and financial operations |
| BDO USA, LLP | Public accounting professional | Five years | Managed complex audit and financial operations |
External Roles
No public company board roles or external directorships for Sullivan were disclosed in company filings reviewed (executive bio lists only internal roles) .
Fixed Compensation
Not disclosed for Sullivan in 2025 proxy/8-K filings reviewed. The 2025 proxy provides scaled SRC disclosure and presents compensation for 2024 NEOs (CEO, prior CFO, CMO, CIO), but does not include 2025 CFO details .
Performance Compensation
Cash Incentive Plan (company executive design for FY 2024)
| Metric | Weighting | Target | Actual (company determination) | Payout range | Actual payout |
|---|---|---|---|---|---|
| EBITDA (non-GAAP) | 100% (single metric) | Board set vs 2024 budget | Achieved above target | 0–150% | 150% for NEOs (CEO, prior CFO, CMO, CIO) |
Notes: Non-stock incentive awards are determined by comparing actual performance to pre-set goals; payouts were earned in 2024 and paid in 2025 .
Equity Incentive Plan (2024 award design)
| Grant type | Weight in annual award | Vesting schedule | Performance metrics | Earnout range |
|---|---|---|---|---|
| Time-vested RSUs | 40% of target award | Vest in three equal annual installments | None | N/A |
| Performance-based RSUs (PSUs) | 60% of target award | Service through Jan 1 following end of 3-year cycle; settle within 30 days after vesting | 70% EPS goal; 30% ROE goal | 0–150% of target |
Policy notes:
- Company does not currently grant stock options and indicates anti-timing practices would apply if it did in the future .
- Clawback policy mandates recovery of erroneously received incentive-based pay upon a required restatement (look-back: 3 years) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (shares) | 18,855 shares |
| Ownership as % of outstanding | <1% of 4,584,055 shares outstanding |
| Unvested restricted stock included in beneficial ownership | 6,790 shares (implies 12,065 other owned/vested) |
| Anti-hedging / anti-pledging | Company prohibits short-selling, hedging, and pledging by directors, officers, employees |
| Clawback | Mandatory recovery of incentive-based compensation for restatements |
| Options held | Company does not currently grant options as part of equity programs |
| Insider trading controls | Insider Trading Policy governs trading; trading windows in policy framework (policy referenced in filings) |
Employment Terms
- Executive Severance and Change in Control Plan (adopted April 14, 2023) applies to designated executive participants; prior employment agreements are superseded upon participation .
- Severance (outside change-in-control period): salary continuation of 18 months (Tier 1), 12 months (Tier 2), or 6 months (Tier 3); COBRA coverage during severance period; pro-rated annual bonus based on actual performance .
- Severance (during change-in-control period: 60 days before to 12 months after): lump-sum salary of 24 months (Tier 1) or 18 months (Tier 2/3); COBRA coverage; lump-sum target annual bonus; double-trigger full acceleration of unvested equity at termination in the CIC period .
- Restrictive covenants: non-compete and non-solicit for one year following termination (or longer to match severance/CIC period), plus indefinite confidentiality and non-disparagement; benefits subject to clawback and compliance .
- 280G excise tax mitigation: “best net” cut-down—payments reduced only if it results in greater after-tax value than paying full amount with excise tax .
Performance & Track Record
- Led or supported diligence for five accretive acquisitions since 2020 as part of advancing Climb’s growth strategy .
- Q1 2025 operating performance: net sales +49% to $138.0M; net income +35% to $3.7M ($0.81); adjusted EBITDA +38% to $7.6M; effective margin +20 bps to 32.7% .
Say-on-Pay & Governance Signals
- Say-on-Pay approval: 88% in 2024; 91% in 2023 .
- Corporate governance: anti-hedging/anti-pledging, independent committees, clawback policy; Insider Trading Policy filed with FY 2024 10-K .
Risk Indicators & Red Flags
- No Item 404(a) related-party transactions for Sullivan flagged in appointment 8-K .
- Equity awards design relies on double-trigger vesting in CIC context, which mitigates windfall risks; strong clawback and anti-hedging/pledging policies further align incentives .
Investment Implications
- Alignment: Sullivan’s beneficial ownership (18,855 shares, including 6,790 unvested) and PSU design tied to EPS and ROE foster performance alignment; anti-hedging/pledging and clawback strengthen governance .
- Vesting cadence and potential selling pressure: time-based RSUs vest annually and PSUs settle within 30 days post-vesting (and require service through Jan 1 following the cycle), which can create discrete liquidity events; trades are subject to the company’s trading-window policy .
- Retention and CIC protections: double-trigger equity acceleration and robust severance tiers reduce retention risk around M&A; non-compete/non-solicit covenants protect continuity, albeit with typical market protections under the “best net” 280G cut-down .
- Execution bias: Q1 2025 operating momentum under Sullivan’s CFO tenure indicates disciplined financial execution; continued M&A diligence experience suggests ongoing inorganic opportunities and integration rigor .