Tom Line
About Tom Line
Thomas E. Line, age 57, is Chief Financial Officer and Treasurer of Diamond Hill Investment Group (DHIL) since 2015 and currently serves as President of the Diamond Hill Funds; he holds a BS in Accounting from Wake Forest University and is a Certified Public Accountant (inactive) . Under his finance leadership, DHIL reported a 29% GAAP net operating margin and 32% adjusted net operating margin in 2024, and a company five-year TSR proxy metric shows an initial $100 investment valued at $151 for 2024 versus $156 in 2023 and $168 in 2022 . In Q3 2024, revenue was $39.0 million, up 10% year-over-year, with total AUM/AUA rising to $33.2 billion, reflecting progress in diversifying the asset base and fixed income expansion .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Diamond Hill Funds | Independent Trustee and Chair | 2005–2014 | Board oversight and fund governance |
| Lancaster Pollard & Company | Chief Operating Officer | 2012–2014 | Operations leadership at real estate mortgage and investment banking firm |
| Red Capital Group | Managing Director & CFO | 2005–2012 | Finance leadership at financial services company |
| Red Capital Group | Vice President & Treasurer | 2004–2005 | Treasury and capital management |
| KPMG | Various roles | 1989–2004 | Audit/tax/advisory experience over seven years at KPMG within a 1989–2004 industry tenure |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Diamond Hill Funds | President (current) | n/a | Leads fund complex as part of DHIL’s business |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $250,000 | $250,000 | $300,000 |
| “All Other Compensation” ($) | $43,100 | $43,100 | $50,600 |
| 401(k) + HSA Contributions ($) | n/a | n/a | $45,000 + $5,600 |
Performance Compensation
Annual Incentive Awards (Cash)
| Year | Award ($) | Type | Basis | Payment Timing |
|---|---|---|---|---|
| 2022 | $625,000 | Cash | Discretionary; considered long-term investment performance and adjusted NOI, margin, EPS | Paid Q1 following year |
| 2023 | $495,000 | Cash | Discretionary; same framework | Paid Q1 following year |
| 2024 | $552,000 | Cash | Discretionary; considered Company operating results and contributions not reflected in results | Paid Q1 2025 |
Long-Term Incentive (LTI) – Restricted Stock
| Grant (for Performance Year) | Grant Date | Grant-Date Fair Value ($) | Shares | Vesting |
|---|---|---|---|---|
| 2021 | Feb 2022 | $350,000 | 1,981 | 1/3 annually from Apr 1, 2023 |
| 2022 | Feb 2023 | $250,000 | 1,306 | 1/3 annually from Apr 1, 2024 |
| 2023 | Feb 16, 2024 | $300,000 | 1,955 | 1/3 annually from Apr 1, 2025 |
| 2024 | Feb 2025 (granted) | $300,000 | n/a | 1/3 annually from Apr 1, 2026–2028 |
Detailed Vesting Schedule (Unvested as of Dec 31, 2024)
| Vest Date | Shares |
|---|---|
| Apr 1, 2025 | 654 (2022 grant), 431 (2023 grant), 651 (2024 grant tranche) |
| Apr 1, 2026 | 431 (2023 grant), 652 (2024 grant tranche) |
| Apr 1, 2027 | 652 (2024 grant tranche) |
Stock Options
- DHIL has not granted stock options in more than 10 years; none outstanding for NEOs .
Stock Awards Vested in 2024
| Metric | 2024 |
|---|---|
| Shares Vested | 9,626 |
| Value Realized ($) | $1,575,400 |
Performance Measures Used by Compensation Committee
- Adjusted net operating income, adjusted operating margin, adjusted diluted EPS, long-term investment performance .
Equity Ownership & Alignment
| Ownership Metric | Detail |
|---|---|
| Beneficial Ownership | 16,197 shares as of Mar 3, 2025; includes 1,294 shares in DHIL 401(k) |
| Percent of Class | Less than 1% of 2,787,492 shares outstanding |
| Unvested Restricted Stock | 3,471 shares as of Dec 31, 2024 |
| Stock Ownership Guideline | 3x salary; target 5,803 shares; owned 14,145 as of Dec 31, 2024; guideline met |
| Pledging/Hedging | No pledging by named individuals; hedging and derivatives prohibited by Insider Trading Policy |
| Options | None outstanding |
Employment Terms
| Term | CFO Tom Line |
|---|---|
| Employment Agreement | None; DHIL has an employment agreement only with CEO |
| Severance | No severance obligations for Mr. Line |
| Change-in-Control (Company Plans) | All unvested restricted stock immediately vests upon change in control; Mr. Line’s unvested awards valued at $538,352 as of Dec 31, 2024 |
| Clawbacks | Company-wide Compensation Recoupment & Restitution Policy and Nasdaq-aligned executive officer clawback policy |
Compensation Structure Analysis
| Element | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $250,000 | $250,000 | $300,000 |
| Incentive Award ($) | $625,000 | $495,000 | $552,000 |
| LTI Award ($) | $350,000 | $250,000 | $300,000 |
- Mix skewed to at-risk pay via discretionary cash incentives and time-vested stock; no performance-conditioned equity or options, lowering option-related risk but relying on Committee discretion rather than formulaic targets .
- Ownership alignment is strong: guideline met with significant surplus and no pledging/hedging permitted .
- Say-on-pay support was high (96% approval in 2024 for 2023 NEO compensation), indicating shareholder acceptance of pay design .
- Peer benchmarking: Committee uses broad McLagan asset management survey data; no fixed peer group or percentile targeting (reduces ratcheting risk) .
SAY-ON-PAY & Shareholder Feedback
- 2024 advisory vote on 2023 NEO compensation approved by 96% of votes cast .
Equity Plan Capacity and Future Grants
- 2025 Equity & Cash Incentive Plan proposed with 225,000 shares; replaces 2022 Plan; minimum vesting generally one year; prohibits repricing without shareholder approval .
Performance & Track Record Context
| Company Metric | 2023 | 2024 |
|---|---|---|
| GAAP Net Operating Margin (%) | 26% | 29% |
| Adjusted Net Operating Margin (%) | 30% | 32% |
| TSR ($100 initial investment) | $156 | $151 |
- Q3 2024 revenue growth +10% YoY to $39.0M; AUM/AUA at $33.2B, supported by fixed income inflows and vehicle diversification (interval fund, CITs, SMAs) .
Investment Implications
- Alignment: High personal share ownership above guideline, no pledging, and hedging prohibitions reduce misalignment risk; continued use of time-vested stock supports retention .
- Supply events: Scheduled vesting tranches on April 1, 2025–2027 may create episodic selling pressure if shares are sold to cover taxes or diversify; monitor Form 4 filings and 10b5-1 plans around those dates .
- Pay-for-performance signal: Incentives are discretionary against a framework of adjusted NOI, margin, EPS, and long-horizon investment outcomes; absence of formulaic PSU metrics limits direct trading signals from preset hurdle disclosures but provides flexibility to reward execution .
- Downside protections: No special severance or CIC cash benefits for CFO (beyond equity acceleration), reducing entrenchment risk; robust clawback policies mitigate misconduct risk .
- Governance acceptance: Strong say-on-pay support and no options or repricing history suggest low compensation-related controversy risk .