Michael I. Flum
About Michael I. Flum
Michael I. Flum (age 38) is Chief Executive Officer and President of CreditRiskMonitor.com, Inc. (CRMZ). He joined CRMZ in June 2018, became COO in Oct 2019, President & COO in Oct 2020, and was appointed CEO in May 2023. He holds an MBA from Columbia Business School and a BS in Mechanical Engineering and BA in Religious Studies from Rice University . Company performance context during his tenure (as disclosed in Pay vs. Performance): Net Income was $1,360,238 in 2022, $1,695,053 in 2023, and $1,674,902 in 2024; the Company’s “$100 initial investment” TSR values were $142 (2022), $97 (2023), and $130 (2024) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| CreditRiskMonitor.com, Inc. | VP, Operations & Alternative Data → COO → President & COO → CEO/President | 2018–present | Led operational strategy; appointed CEO in 2023 to drive technology-levered growth and expansion into supply chain and sales/marketing data verticals . |
| Gullett & Associates, Inc. | Vice President of Operations | 2016–2017 | Operations leadership at a midstream oil & gas survey/drafting firm . |
| Enterprise Products Partners | Engineering and Project Management roles | 2009–2016 | Managed completion of pipeline/plant projects totaling >$1.3B . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | None disclosed in Company filings for current external public company directorships or committee roles | — | — . |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary | $201,000 | $211,200 |
| Target Bonus % | Not disclosed | Not disclosed |
| Actual Bonus Paid (for prior fiscal year) | $38,000 | $40,000 |
| Option Awards (Grant-Date Fair Value, ASC 718) | $13,129 | $22,513 |
| Total Compensation | $252,129 | $273,713 |
- CEO base salary was increased to $205,000 effective May 1, 2023 upon promotion; 10-year options for 50,000 shares were granted the same day .
Performance Compensation
- Annual cash bonus framework: The proxy discloses bonus amounts but does not disclose a formal performance metric framework (e.g., weighting/targets) for the CEO’s annual bonus .
- Equity awards: The Company primarily uses stock options with time-based vesting; default vesting schedules and change-in-control acceleration are set by plan documents (see below) .
| Incentive Type | Metric | Weighting | Target | Actual/Payout | Vesting |
|---|---|---|---|---|---|
| Annual Cash Bonus | Not disclosed | Not disclosed | Not disclosed | $38,000 (2023); $40,000 (2024) | N/A |
| Stock Options (CEO grant 5/1/2023) | Time-based | N/A | N/A | 50,000 options at $3.08 strike (grant-date fair value $101,086 total across CEO and reporting period) | Vest 20% on the 3rd, 4th, 5th, 6th, 7th anniversaries of 5/1/2023 (i.e., 5/1/2026–5/1/2030); 10-year term; strike = close on grant date + 10% premium |
Equity Ownership & Alignment
- Beneficial ownership (as of Jan 31, 2025): Michael I. Flum directly owns 6,500 shares; less than 1% of shares outstanding . He also has 37,500 stock options that were exercisable at the time of the ownership table disclosure .
- Family ownership/control: Flum Partners (general partners include Jerome S. Flum (controlling GP), Michael I. Flum, and Barbara Schwartz) owns 5,410,437 shares (50.5% of outstanding). Jerome S. Flum is deemed to beneficially own shares held by Flum Partners; Michael is a general partner but not attributed this block in the table .
| Ownership Item | Amount | % of Class |
|---|---|---|
| Common Shares – Direct (Michael I. Flum) | 6,500 | <1% |
| Options – Exercisable (disclosed in ownership section) | 37,500 | <1% (together with shares) |
| Shares pledged as collateral | Not disclosed | |
| Hedging/Pledging policy | Company does not maintain a policy that prohibits directors, officers and employees from engaging in hedging or monetization transactions . |
Option Grants (Recent)
| Grant Date | Instrument | Size | Exercise Price | Term | Grant-Date FV |
|---|---|---|---|---|---|
| 1/25/2023 | Stock Options | 5,000 | $2.70 | 10 years | $10,013 |
| 5/01/2023 | Stock Options | 50,000 | $3.08 | 10 years | $101,086 |
| 3/13/2024 | Stock Options | 5,000 | $2.42 | 8 years (to 3/13/2032) | $6,590 |
Outstanding Equity Awards (as of Dec 31, 2024)
| Exercisable | Unexercisable | Exercise Price | Expiration |
|---|---|---|---|
| 30,000 | 20,000 | $1.45 | 10/24/2029 |
| 7,500 | 17,500 | $2.19 | 10/29/2029 |
| 0 | 30,000 | $1.85 | 01/28/2032 |
| 0 | 5,000 | $2.70 | 01/25/2033 |
| 0 | 50,000 | $3.08 | 05/01/2033 |
| 0 | 5,000 | $2.42 | 03/13/2032 |
| Closing stock price (12/31/2024) | $3.03 | — |
Plan vesting and CIC: Awards under the 2009 Plan vest in 20% increments beginning on the 4th anniversary; 2020 Plan awards vest in five annual 20% increments beginning on the 2nd anniversary. Upon a change in control, options vest in full .
Employment Terms
- Promotion and pay: Effective May 1, 2023, Michael Flum was appointed CEO and President; annual salary increased from $193,000 to $205,000; granted 50,000 options with a 10-year term, vesting 20% annually on the 3rd–7th anniversaries (2026–2030), exercise price set at close on grant date + 10% premium .
- Severance, change-of-control cash benefits, non-compete, non-solicit, garden leave, post-termination consulting: Not disclosed in the cited filings.
- Equity acceleration on CIC: Options vest in full upon a change in control per plan documents .
- Hedging/pledging: The Company does not maintain a policy that prohibits hedging or monetization transactions; pledging not specifically addressed beyond the section heading .
Performance & Track Record
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income ($) | $1,360,238 | $1,695,053 | $1,674,902 |
| Value of Initial $100 Investment (TSR index) | $142 | $97 | $130 |
- Strategic initiatives: In connection with his appointment, management emphasized an increased focus on technological innovation and expansion into new verticals such as supply chain management and sales & marketing data; the Company highlighted its SupplyChainMonitor platform and broader SaaS risk analytics offering .
Compensation Committee Analysis
- Compensation Committee members: Brigitte Muehlmann, Lisa Reisman, and Joshua M. Flum (with planned addition of independent director Lawrence Fensterstock in 2025). The Committee has authority to engage outside advisors; CEO may assist on compensation matters for other executives . 2024 committee membership: Muehlmann, Reisman, and Joshua Flum .
- Say-on-pay (2025): Advisory vote on executive compensation on the ballot; Board recommends “FOR” . Say-on-frequency (2025): Board recommends “THREE YEARS” .
Risk Indicators & Governance Considerations
- Controlled-company dynamics: Flum Partners owns ~50.5% of shares; Jerome S. Flum (Executive Chairman) is controlling GP; family relationships disclosed (Michael is Jerome’s son; Joshua M. Flum is Jerome’s son) .
- Hedging/monetization: No prohibition on hedging/monetization transactions for insiders .
- Board leadership: No lead independent director; Executive Chairman is former CEO; Board oversight of risk described at full Board and audit committee levels .
- Section 16 compliance: Company states all required insider filings were timely for 2024 and 2023, respectively .
Investment Implications
- Pay-for-performance visibility is limited: Bonuses are disclosed but without performance metric frameworks, reducing transparency on incentive alignment; equity is time-based with long vesting schedules and full CIC acceleration .
- Vesting/selling pressure: CEO’s large 5/1/2023 option grant begins vesting 20% annually starting 5/1/2026 through 2030; multiple tranches carry exercise prices below the 12/31/2024 close ($3.03), while the $3.08 tranche was slightly out-of-the-money at year-end—monitor vesting dates and price levels for potential liquidity events .
- Alignment and control: Direct CEO share ownership is de minimis (<1%), though he holds options; family partnership controls ~50.5% of shares, aligning long-term control but potentially limiting independent oversight and float; no prohibition on hedging/monetization may dilute alignment quality .
- Governance watch items: Absence of a lead independent director and familial relationships on the Board warrant continued monitoring of compensation decisions and related-party dynamics; say-on-pay and frequency votes in 2025 provide a near-term sentiment check .