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Leslie A. Moriyama

Chief Financial Officer at DORCHESTER MINERALS
Executive

About Leslie A. Moriyama

Chief Financial Officer of Dorchester Minerals, L.P. since May 2015; age 46; Chartered Accountant with dual degrees (B.Comm Accounting and B.A. Economics) from the University of Calgary; prior roles at PwC (Capital Markets & Accounting Advisory) and Encana (financial reporting/BU accounting) . In 2024, DMLP delivered $92.4M net income and paid $146.5M in distributions; activity was driven by Permian/Bakken drilling and unit-funded mineral acquisitions, with lower realized gas prices as a headwind . Revenues and EBITDA trended modestly lower over 2022–2024 (see table; S&P Global data). Pay structure is largely discretionary with time-based equity (notional units) introduced to strengthen retention and alignment; no formulaic performance metrics are used .

Past Roles

OrganizationRoleYearsStrategic Impact
PricewaterhouseCoopers LLCDirector, Capital Markets & Accounting Advisory Services2014–2015Capital markets and complex accounting advisory before joining DMLP as CFO .
Encana Oil & Gas (USA) Inc.Manager – Financial Reporting; Director – Accounting, Mid-Continent BU2008–2014Led reporting and BU accounting for a major E&P, building industry finance depth .

Fixed Compensation

YearBase Salary ($)Cash Bonus ($)All Other Comp (SEP-IRA) ($)Notes
2024380,000340,00069,000CFO base/bonus; discretionary bonus; SEP-IRA employer contribution .
2023350,000275,00066,000
2022242,167200,00061,000Partial-year salary level reflected
2025 (effective 1/1)410,000Base salary increase effective Jan 1, 2025 .

Performance Compensation

Compensation structure and policy

  • No formulaic bonus plan; bonuses are discretionary (subjective assessments of impact, leadership, collaboration); Board does not benchmark NEO pay; equity awards granted to enhance retention and alignment .
  • 2024 equity grants comprised of common units and time-vested notional units (3 equal annual tranches), with continued-employment vesting; no performance metrics/targets or PSU-type awards disclosed .

Grants in 2024

Grant DateInstrumentUnitsGrant-Date Fair Value ($)
12/3/2024Common Units12,050414,641
12/3/2024Notional Units (time-vested)12,050414,641

Vesting schedule (outstanding as of 12/31/2024)

Vesting DateNotional Units to Vest
12/3/20254,017
12/15/20254,351
12/3/20264,017
12/15/20264,350
12/3/20274,016

Units vested during 2024

MetricValue
Units Acquired on Vesting (2024)16,401
Value Realized on Vesting (2024)$557,441

Pay vs performance (program design)

  • Company discloses it “does not use any financial or non-financial performance measures” to link CAP to performance; no company-selected measure provided for PVP .

Equity Ownership & Alignment

Holding/PolicyDetail
Beneficial Ownership80,632 common units (held individually/jointly/IRA/Keogh) .
Ownership as % of SO~0.17% of 47,339,756 units outstanding as of record date (beneficial units / SO) .
Unvested Notional Units (12/31/2024)20,751 notional units; aggregate market value $691,631 .
Notional Units excluded from BO table8,701 notional units not scheduled to vest within 60 days are excluded from beneficial ownership .
Upcoming Vesting Overhang (next 12 mo)8,368 notional units scheduled in 2025 (4,017 on 12/3/2025; 4,351 on 12/15/2025) .
Hedging/PledgingInsider trading policy prohibits short sales and trading in options/derivatives; no explicit pledging disclosure noted .
Ownership GuidelinesNot disclosed.

Employment Terms

TopicDisclosure
Employment AgreementNone; company has not entered into employment agreements with NEOs .
SeveranceNo contractual severance obligations .
Change-in-ControlNo contractual payments/accelerated vesting obligations disclosed; no CoC severance .
ClawbackNot disclosed.
Start Date / TenureCFO since May 2015 (≈10 years through 2025 proxy) .
Say-on-Pay92% approval at 2023 annual meeting; next say-on-pay in 2026 .
Insider ReportingOne late Form 4 in 2024 for a grant of notional units (company-wide Section 16(a) disclosure) .
Insider Trading PolicyProhibits short sales and publicly traded options on DMLP units .

Performance Context

Company performance (selected metrics)

MetricFY 2022FY 2023FY 2024
Net Income ($)130,607,000 114,117,000 92,449,000

Revenues and EBITDA trend (S&P Global data)

MetricFY 2022FY 2023FY 2024
Revenues ($)163,548,000*155,761,000*152,751,000*
EBITDA ($)149,690,000*140,424,000*135,037,000*
Values retrieved from S&P Global.*

Qualitative 2024 operating context (company disclosure)

  • Primary drivers: higher royalty property sales volumes from Permian/Bakken drilling and 2023–2024 acquisition contributions; offsets included lower realized natural gas prices and reduced NPI volumes/leasing .

Compensation Structure Analysis

  • Mix shift toward time-vested equity: Notional units added in 2023–2024 to improve retention and market competitiveness; awards vest over three years based on continued employment (no performance hurdles), indicating lower risk-taking incentives vs PSUs/options .
  • Cash pay remains discretionary: No formulaic bonus plan or benchmarking; Board emphasizes subjective assessment (value creation, leadership, teamwork) .
  • Increased fixed pay: 2025 base salary raised to $410,000 (from $380,000 in 2024), modestly increasing the fixed component .
  • Governance safeguards: Prohibitions on short sales/derivatives; no employment, severance, or CoC contracts; reduces shareholder-unfriendly parachute risk but may elevate retention risk if market tightens .

External Roles

  • Not disclosed in the 2025 DEF 14A for Ms. Moriyama (no public company directorships noted) .

Risk Indicators & Red Flags

  • Late Section 16 filing (one Form 4 for 2024 grant) noted in aggregate disclosure .
  • No clawback policy disclosure and absence of performance-conditioned equity reduce explicit pay-for-performance alignment .
  • No employment/severance/CoC protections; retention relies on time-based vesting and annual discretion .

Compensation Peer Group and Shareholder Feedback

  • No compensation benchmarking; Board states it does not benchmark NEO pay .
  • Pay-versus-performance TSR peer set used for disclosure: Black Stone Minerals, Viper Energy, Sitio Royalties, Kimbell Royalty Partners .
  • Say-on-Pay support: 92% approval in 2023; Board responded by adding equity-based compensation (notional units) to enhance alignment/retention; next vote in 2026 .

Investment Implications

  • Alignment: Time-based equity and meaningful unit ownership (80.6K units; ~0.17% of SO) provide some alignment, though lack of performance metrics and no clawback dampen pay-for-performance rigor .
  • Retention/selling pressure: Scheduled vesting of ~8.4K notional units in 2025 and a further ~8.4K in 2026 is modest relative to float; could create limited periodic selling pressure around vest dates .
  • Risk posture: Absence of severance/CoC protections reduces parachute risk to unitholders; however, reliance on discretionary bonuses/time-based equity may weaken incentives tied to specific financial/TSR outcomes .
  • Execution track record context: 2024 saw significant distributions and acquisitive growth despite commodity headwinds; finance leadership continuity (CFO since 2015) supports execution, but revenue/EBITDA trends reflect macro pricing and mix effects (see tables) .