Mary Beth Hunsberger
About Mary Beth Hunsberger
Mary Beth Hunsberger, age 50, joined Culp in January 2024 as Executive Vice President of the Culp Upholstery Fabrics division, became division President in July 2024, and was appointed Chief Operating Officer in April 2025 . She holds an MBA from Wake Forest University and a BA from UNC Chapel Hill; prior experience includes DEDON (President, North & South America) and Gloster Furniture (COO, North & South America), with 13 years earlier at Tempur + Sealy International . Company performance during her tenure included FY2025 net sales of $213.2 million versus $225.3 million in FY2024, with a consolidated loss from operations widening but an approximately 15% year-over-year improvement in adjusted operating performance due to restructuring actions; the restructuring is expected to deliver $10–$11 million in annualized savings .
| Metric | FY 2024 | FY 2025 |
|---|---|---|
| Net Sales ($USD Thousands) | $225,333 | $213,237 |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| DEDON, Inc. | Controller; President, North & South America | 2016–2023 | Led Americas P&L and growth initiatives for premium outdoor furnishings |
| Gloster Furniture (North & South America) | Chief Operating Officer | 2023 | Operational leadership across supply chain and execution |
| Tempur + Sealy International | Various roles | 13 years (dates not disclosed) | Deep industry experience across bedding operations and commercialization |
External Roles
- None disclosed in company filings or press materials .
Fixed Compensation
- Hunsberger was not included among the three Named Executive Officers (NEOs) for FY2025; detailed individual pay elements (base salary, target bonus) are not disclosed for her in the proxy .
- Company-level policy: base salaries for executive officers were frozen in FY2025; CEO salaries also frozen since FY2023; NEO base salaries remained well below the 50th percentile of the peer group .
Performance Compensation
| Component | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| Annual Cash Incentive (FY2025) | Adjusted Operating Income (Loss) | 60% | Not disclosed (set above budgets) | Below threshold at all reporting units | No awards earned for NEOs; below-threshold performance | N/A |
| Annual Cash Incentive (FY2025) | Adjusted Operating Cash Flow | 20% | Not disclosed (set above budgets) | Below threshold at all reporting units | No awards earned for NEOs; below-threshold performance | N/A |
| Annual Cash Incentive (FY2025) | Net Sales | 20% | Not disclosed (set above budgets) | Below threshold at all reporting units | No awards earned for NEOs; below-threshold performance | N/A |
| Long-Term Incentive (FY2025 grants) | Performance-based RSUs tied to 3-year cumulative adjusted operating income; TSR modifier +/-25% | 100% of equity awards (for execs) | Threshold 20% of target; Max 200% of target shares | FY2025 LTIP expected below threshold overall; no vesting expected based on current outlook | Earned shares, if any, adjusted by relative TSR, capped at 200% | Single cliff vesting after ~3 years, service requirement |
Notes:
- The Committee did not alter performance targets despite macro headwinds; all reporting units failed minimum thresholds, resulting in no annual cash awards to NEOs for FY2025 .
- Hunsberger’s specific grant amounts are not disclosed; the company granted performance RSUs only to executives in FY2025 and expects LTIP vesting to be below threshold for FY2023–FY2025 programs based on performance .
Equity Ownership & Alignment
- Beneficial Ownership: Individual beneficial ownership for Hunsberger is not itemized; the proxy shows the group of all current executive officers, directors, and nominees (16 persons) owning 938,055 shares, or 7.4% of outstanding .
- Stock Ownership Guidelines: Executive officers are subject to stock ownership and retention requirements; CEO must hold shares equal to 3x base salary; other named executive officers must hold 2x base salary; if below required levels, must retain at least 50% of shares granted until compliant; 5-year compliance window from adoption or role start .
- Hedging/Pledging: Company policy prohibits hedging and strongly discourages pledging; none of the executive officers or directors have pledged Company securities .
- Anti-hedging and retention policies apply to executive officers and directors; shares from unearned performance awards do not count toward compliance .
| Ownership Item | Detail |
|---|---|
| Group ownership (execs, directors, nominees) | 938,055 shares; 7.4% of outstanding |
| Hedging/Pledging | Prohibited/strongly discouraged; none pledged currently |
| Ownership guidelines | CEO 3x salary; other NEOs 2x salary; 50% retention until compliance; 5-year window |
Employment Terms
- Appointment & Tenure: EVP, Culp Upholstery Fabrics (Jan 2024); President, Upholstery Fabrics (Jul 2024); Chief Operating Officer (Apr 2025) .
- Employment Agreements: Company does not provide employment agreements; executives are covered via plan designs and policies rather than individual contracts .
- Severance Protection: Company maintains a double-trigger Change-in-Control severance plan for certain officers, including all NEOs, with payments approximately 2x total cash compensation (base + target bonus), plus an additional 1x total cash compensation in exchange for non-compete covenants; capped to avoid 280G excise taxes .
- Clawback: SEC/NYSE-compliant clawback policy requires recovery of excess incentive compensation upon required financial restatements; additional clawbacks for cause and material negative restatements embedded in award agreements .
- Perquisites: Limited—auto allowance and optional executive health program; broad-based benefits (401(k) match), and supplemental non-qualified deferred compensation plan contributions for NEOs (e.g., CEO 15%; others 12.5% in FY2025) .
Investment Implications
- Pay-for-performance alignment is strong: 100% performance-based equity for executives in FY2025 with rigorous 3-year adjusted operating income goals and a TSR modifier, plus FY2025 annual bonuses tied to profitability, cash, and revenue; no payouts were made given below-threshold performance .
- Retention risk appears moderated by policy architecture: no employment agreements, but double-trigger CIC protection, stock ownership/retention requirements, and limited perquisites promote alignment without excessive guarantees .
- Near-term insider selling pressure likely limited: executives must retain at least 50% of shares until guideline compliance and none have pledged shares; combined with below-threshold LTIP outcomes, realized equity liquidity is constrained in the near term .
- Execution track record and context: FY2025 restructuring completed, expected to deliver $10–$11 million in annualized savings, with sequential operating improvements and a pathway to FY2026 profitability; as COO, Hunsberger’s operating rigor and prior supply-chain experience align to the company’s cost and agility priorities .