Shyarsh Desai
About Shyarsh Desai
Shyarsh Desai (age 59) joined CreditRiskMonitor.com, Inc. (CRMZ) in February 2025 and was appointed Chief Operating Officer (COO) in March 2025; he holds an MBA from Northwestern University’s Kellogg School, a BS in Life Sciences and an MS in Management Studies (Finance) from the University of Mumbai . CRMZ delivered 2024 operating revenue of $19.81M (up ~5% YoY) and net income of $1.67M; the company’s Pay vs Performance table shows the value of a $100 initial investment at $130 for 2024, providing context for pay-for-performance alignment during the baseline year before Desai’s appointment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| SMYYTH + CARIXA | Chief Executive Officer | Nov 2021 – Feb 2025 | Led a SaaS platform for invoice-to-cash automation and receivables management targeting mid‑to‑large enterprises . |
| Credit2B | Chief Executive Officer | 2012 – 2019 | Led AI-driven B2B credit decision automation; company sold to Billtrust, where he served as Group President . |
| Billtrust | Group President | Post‑2019 (after Credit2B sale) | Senior operating leadership post-acquisition . |
| Global Compliance (now Navex) | Management roles (strategy, growth, biz dev) | 2007 – 2012 | Growth and business development at enterprise risk/compliance leader . |
| Dun & Bradstreet | Management roles (strategy, growth, biz dev) | 2007 – 2012 | Strategy and business development in enterprise risk/compliance . |
| IBM | Solutions lead (Financial Services vertical); Corporate Development (CFO org) | Early career | Led key solutions for financial services and worked in corporate development . |
| Tata Group | Corporate finance and investment management | Early career | Foundational finance/investment roles . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Various non-profit boards (education and training) | Director | Ongoing | Serves/has served as a director on multiple non-profit boards; specific entities not disclosed . |
Fixed Compensation
| Year/Term | Base Salary | Target Bonus % | Actual Bonus Paid | Notes |
|---|---|---|---|---|
| 2025 appointment terms | $225,000 | Not disclosed | Not disclosed | Appointed COO Mar 19, 2025; eligible for bonus and equity awards in year-end reviews . |
Performance Compensation
- Annual cash incentive metrics, weighting, targets, and payout details were not disclosed for Desai in the proxy/10-K .
Long-term equity awards (stock options)
| Grant Date | Award Type | Shares/Units | Exercise/Strike | Expiration | Vesting Terms | Source |
|---|---|---|---|---|---|---|
| 03/12/2025 | Stock Options | 50,000 | $2.59 | 03/12/2033 | Under the 2020 Plan, default vesting begins in five annual 20% tranches starting on the second anniversary of grant unless otherwise set in the award agreement; options accelerate on change of control . |
Notes
- Desai’s initial Form 3 reports 50,000 options and no non-derivative common stock holdings; award agreement terms beyond plan defaults were not disclosed .
Equity Ownership & Alignment
Holdings and potential economic interest
| Item | Detail |
|---|---|
| Common stock (non-derivative) | No common shares reported on Desai’s initial Form 3 (Table I) . |
| Derivative securities | 50,000 stock options, $2.59 strike, expiring 03/12/2033 . |
| Potential ownership vs outstanding | ≈0.46% on an as-exercised basis (50,000 options ÷ 10,767,501 shares outstanding as of Aug 12, 2025), subject to vesting; calculation based on reported outstanding shares . |
| Vested vs unvested | Default 2020 Plan schedule indicates vesting begins on the second anniversary in five annual 20% installments unless otherwise determined (implying no vesting before Mar 2027 absent different terms) . |
| In-the-money context | For reference, CRMZ’s closing price on 12/31/2024 was $3.03; relative to $2.59 strike, intrinsic value would have been ~$0.44/share at that date, if exercisable (award was granted in 2025; current intrinsic value depends on prevailing price) . |
| Hedging/pledging policy | Company states it does not maintain a policy prohibiting directors, officers, or employees from engaging in hedging or monetization transactions (no expressed prohibition) . |
| Ownership guidelines | No executive ownership guidelines disclosed in the proxy/10-K . |
Equity plan and change-of-control provisions
| Plan Feature | Disclosure |
|---|---|
| Equity plan in force | 2020 Long‑Term Incentive Plan (1,000,000 shares authorized) . |
| Option vesting defaults | 2009 Plan: 20% increments beginning in year 4; 2020 Plan: five annual 20% increments beginning on second anniversary; committee may set different terms . |
| Change-of-control | Options vest in full at time of change in control (plan or award agreement definitions apply) . |
Employment Terms
| Term | Detail |
|---|---|
| Appointment date | Joined Feb 2025; appointed COO Mar 19, 2025 . |
| Base salary | $225,000 . |
| Equity sign-on | 50,000 stock options (see above) . |
| Bonus eligibility | Eligible for bonus and equity awards in connection with year-end reviews; targets not disclosed . |
| Severance/CoC cash | Not disclosed in proxy/10‑K; only option acceleration on CoC disclosed . |
| Non-compete/Non-solicit | Not disclosed . |
| Clawback policy | Not disclosed; exhibits include Insider Trading Policy (no clawback exhibit identified) . |
Governance and Shareholder Feedback Context
| Item | 2025 Status |
|---|---|
| Say‑on‑Pay (advisory) | Approved: For 6,732,866; Against 127,578; Abstain 35,515 . |
| Say‑on‑Pay frequency | “Three Years” received 6,112,623 votes; company will hold triennial votes . |
| Compensation Committee | Brigitte Muehlmann, Lisa Reisman, Joshua M. Flum; nominee Lawrence Fensterstock to serve (post-2025 annual meeting) . |
| Board leadership | Executive Chairman role; no lead independent director noted . |
| Control/Concentration | Flum Partners beneficially 50.5% as of Jan 31, 2025; Jerome S. Flum 56.0% including deemed ownership via Flum Partners and trusts (disclaimed as noted) . |
Performance & Track Record (Company baseline prior to Desai’s appointment)
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Operating Revenues ($) | 18,931,931 | 19,809,881 |
| Net Income ($) | 1,695,053 | 1,674,902 |
| TSR – Value of $100 (PEO Pay v. Performance) | $97 (2023) | $130 (2024) |
Risk Indicators & Red Flags (as disclosed)
- Hedging/monetization not prohibited by policy, which can weaken alignment if used by insiders .
- Options accelerate on change-of-control, which can create windfall incentives around M&A timing .
- Ownership concentration: Flum Partners’ majority stake may influence pay and governance dynamics independent of minority shareholder preferences .
- No explicit disclosure of clawback, non‑compete, non‑solicit, or severance multiples for executives, limiting visibility on downside protection and retention economics .
Compensation Structure Analysis
- Mix skews to fixed salary plus options; no disclosed performance-vested equity (PSUs) or explicit annual bonus metrics/weightings for Desai, suggesting higher structural discretion vs. formulaic pay-for-performance at this time .
- Default vesting under the 2020 Plan delays initial vesting to the second anniversary, indicating retention-oriented design and reducing near‑term selling pressure from the 50,000‑share grant (absent different award terms) .
Investment Implications
- Alignment and selling pressure: Desai’s 50,000 options are subject to the 2020 Plan’s default vesting (five annual 20% tranches starting two years post‑grant), implying limited near‑term exercisability/sales and a multi‑year retention hook absent alternative award terms .
- Upside sensitivity: If CRMZ’s share price remains above the $2.59 strike, the options embed leverage; at a 12/31/2024 reference price of $3.03, intrinsic value would be ~$0.44/share if exercisable, though current value depends on prevailing prices .
- Governance risk: Lack of a hedging prohibition and change‑of‑control acceleration can weaken long‑term alignment and may create M&A‑timing incentives; majority control by Flum Partners reduces minority influence on compensation policy and leadership transitions .
- Shareholder sentiment: Strong 2025 Say‑on‑Pay support and triennial frequency vote suggest investor acceptance of the current program framework as of the latest vote .