Jeffrey Darby
Senior Vice President, Sales & Marketing at DORM
Executive
About Jeffrey Darby
Jeffrey L. Darby, age 57, is Senior Vice President, Sales & Marketing at Dorman Products (DORM). He joined Dorman in November 1998 and has led Sales & Marketing since February 2011 after earlier roles including Group Vice President (2008–2010) and Vice President of Sales – Traditional and Key Accounts (2006–2008); prior to Dorman he held sales and marketing management positions at Federal‑Mogul/Moog Automotive beginning in 1990 . 2024 incentive design linked Darby’s cash bonus to both corporate performance and Light Duty segment outcomes—Corporate Adjusted Pre‑Tax Income, Net Sales, and Free Cash Flow as % of Net Income, plus Light Duty Adjusted Operating Income and Net Sales—driving a 193% payout on his 60%‑of‑salary target due to overachievement versus budget . Long‑term incentives emphasize pay‑for‑performance via PRSUs tied 50/50 to relative TSR vs Nasdaq US Benchmark Auto Parts Index and average ROIC over 2024–2026; prior cycles show discipline (2021 RTSR PRSUs forfeited at RTSR 27th percentile; 2022 RTSR PRSUs paid 135.5% at 62.1st percentile) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Dorman Products | Senior Vice President, Sales & Marketing | Feb 2011 – present | Leads Light Duty commercial strategy; bonus tied to segment profitability/sales |
| Dorman Products | Group Vice President | 2008 – 2010 | Managed growth across product groups |
| Dorman Products | Vice President of Sales – Traditional and Key Accounts | 2006 – 2008 | Expanded channel relationships |
| Dorman Products | National Account Manager | Nov 1998 – 2006 | Key account development |
| Federal‑Mogul/Moog Automotive | Sales & Marketing management | 1990 – 1998 | OE/aftermarket experience foundation |
Fixed Compensation
Multi‑Year Summary Compensation (Darby)
| Metric ($) | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary | 436,937 | 454,904 | 468,952 |
| Stock Awards (grant‑date fair value) | 468,251 | 398,272 | 627,056 |
| Option Awards (grant‑date fair value) | 65,994 | 85,776 | — |
| Non‑Equity Incentive Plan Compensation | 79,200 | 318,490 | 545,798 |
| All Other Compensation | 23,939 | 22,291 | 36,910 |
| Total | 1,074,321 | 1,279,733 | 1,678,716 |
Base Salary and Target/Actual Bonus
| Year | Base Salary ($) | Target Bonus (% of Salary) | Target ($) | Actual Bonus ($) | Achievement |
|---|---|---|---|---|---|
| 2023 | 457,600 | 60% | 274,560 | 318,490 | 116% |
| 2024 | 471,328 | 60% | 282,797 | 545,798 | 193% |
Performance Compensation
Annual Cash Bonus Design and Outcomes (FY 2024)
| Metric | Weighting | Threshold | Target | Maximum | Actual | Payout % |
|---|---|---|---|---|---|---|
| Corporate Adjusted Pre‑Tax Income ($mm) | 30% of LD subplan via Corporate composite | 187.0 | 215.1 | 233.8 | 286.3 | 200% |
| Corporate Net Sales ($mm) | 30% composite | 1,929.8 | 2,006.2 | 2,064.9 | 2,009.2 | 105% |
| Corporate FCF as % of Net Income | 30% composite | 70% | 80% | 100% | 101% | 200% |
| Light Duty Adjusted Operating Income ($mm) | 70% of LD subplan (75% of the 70%) | 211.3 | 236.7 | 264.2 | 313.8 | 200% |
| Light Duty Net Sales ($mm) | 70% of LD subplan (25% of the 70%) | 1,462.5 | 1,513.7 | 1,564.8 | 1,565.6 | 200% |
| Composite payout (Corporate subplan) | — | — | — | — | — | 176% |
| Composite payout (Light Duty subplan) | — | — | — | — | — | 193% |
Notes: Darby participated in the Light Duty subplan (30% Corporate composite; 70% LD metrics; LD split 75% AOI/25% sales) .
Long‑Term Incentives (Equity)
| Award | Grant Date | Metric | Threshold (Units) | Target (Units) | Maximum (Units) | Grant‑Date FV ($) |
|---|---|---|---|---|---|---|
| PRSU #1 | 3/4/2024 | RTSR vs Nasdaq US Benchmark Auto Parts Index | 764 | 1,529 | 3,058 | 211,889 |
| PRSU #2 | 3/4/2024 | Average ROIC (2024–2026) | 765 | 1,530 | 3,060 | 138,419 |
| Time‑based RSU | 3/4/2024 | Service (rated vesting) | — | 3,059 | — | 276,748 |
Vesting mechanics:
- Time‑based RSUs: 33.33% per year beginning first anniversary of grant (for 3/4/2024 grants). Prior RSUs: 3/2/2021 and 3/2/2023 grants vest 25% or 33.33% annually; 3/2/2022 grant of 2,594 RSUs vests 100% at 3 years for Darby .
- PRSUs: 3‑year cliff vesting; 50% RTSR and 50% ROIC; RTSR curve 0/50/100/200% at 25th/50th/80th percentile; ROIC curve 0/50/100/200% at 8.5%/10.5%/12.5%+ average ROIC; payout capped at 400% of grant‑date target value including stock appreciation .
Historical performance outcomes:
- 2021 PRSUs (RTSR vs S&P Growth): Company TSR −15.10%, RTSR 27th percentile; awards forfeited (0%) .
- 2022 PRSUs (RTSR vs S&P Mid‑Cap 400 Growth): Company TSR 23.52%, RTSR 62.10th percentile; payout 135.5% of target; Darby vested 1,854 units .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 18,856 shares; less than 1% of 30,558,021 shares outstanding |
| Options exercisable within 60 days | 6,590 shares for Darby |
| Stock ownership guidelines | SVPs must hold ≥2× annual base salary; unvested time‑based RSUs/RS count toward compliance; PRSUs do not count. Measured annually; executives either comply or have time to comply . |
| Anti‑hedging/anti‑pledging policy | Prohibits hedging, short sales, publicly traded options, margin accounts, and pledging company stock . |
| Rule 10b5‑1 trading plan | Adopted Dec 5, 2024; expires Jun 30, 2025; covers up to 11,646 shares: potential sale of up to 4,540 shares upon RSU vesting, sale of up to 1,369 shares upon PRSU vesting (assumes 100% target), and potential option exercises with sale of up to 5,737 shares; actual sales depend on tax withholding and performance outcomes . |
Outstanding Equity Awards at Dec 31, 2024 (Selected Darby grants)
| Grant Date | Instrument | Exercisable (#) | Unexercisable (#) | Exercise Price ($) | Expiration | Unvested RSUs (#) | Unvested PRSUs (#) |
|---|---|---|---|---|---|---|---|
| 3/6/2019 | Stock Options | 1,871 | — | 82.03 | 3/6/2027 | — | — |
| 3/2/2021 | Stock Options | 1,497 | 501 | 101.45 | 3/2/2029 | 156 | — |
| 3/2/2022 | Stock Options | 1,020 | 1,020 | 96.36 | 3/2/2030 | 342; 2,594 (special 3‑year vest) | 2,738 (shown at max) |
| 3/2/2023 | Stock Options | 595 | 1,787 | 91.28 | 3/2/2031 | 705; 730 | 3,758 (shown at max) |
| 3/4/2024 | RSUs | — | — | — | — | 3,059 | 3,058 and 3,060 (shown at max) |
Exercises/Vesting and Deferred Comp (FY 2024)
- Options exercised: 4,422 shares; value realized $345,889 .
- Stock awards vested: 1,337 shares; value realized $124,635 .
- Non‑qualified deferred compensation: Aggregate balance $37,408; FY2024 earnings $3,661; withdrawals $(5,839) .
Employment Terms
- Severance Plan (non‑CEO):
- Covered termination (without cause or for Good Reason): cash severance = 1.0× base salary + 1.0× target bonus, paid over 12 months; subsidized COBRA up to 12 months for SVPs .
- Change‑in‑control covered termination (double trigger): cash severance = 2.0× base salary + 2.0× target bonus; subsidized COBRA up to 18 months for SVPs .
- Good Reason includes material diminution of duties/title, pay cuts >15% (unless broad‑based), significant commute increase, inconsistent assignment of duties, failure to assume plan in asset sale, or post‑CIC reductions in base/bonus/equity—subject to notice/cure .
- Equity treatment on change‑in‑control:
- Single‑trigger acceleration: All unvested RSUs and in‑the‑money options accelerate upon a change‑in‑control even if employment continues; for Darby, RSU acceleration value $2,616,910 and options $116,320 (at $129.55 closing price on 12/31/2024) .
- Death/Disability: RSU acceleration $1,454,501; options $116,320; pro‑rated actual cash incentive $545,798 .
- CIC with termination (double trigger): Darby total estimated $4,887,262 including 2.0× salary+bonus, benefits, equity acceleration, and outplacement .
- Clawbacks: Board‑adopted policy to recoup cash/equity incentives for fraud/misconduct related restatements (3‑year lookback) and SEC/Nasdaq‑compliant 10D clawback policy for erroneously awarded compensation (effective Oct 2, 2023) .
- Perquisites: Limited; executives eligible for standard benefits; no tax gross‑ups under Executive Severance Plan .
Compensation Structure Analysis
- Shift from options to RSUs: In 2024, Dorman discontinued annual stock options, moving to 50% time‑based RSUs and 50% PRSUs; RSU vesting adjusted to 3‑year rated vesting, increasing certainty of value and retention .
- Performance metrics tightened: PRSUs now split RTSR vs Nasdaq industry index and ROIC targets, aligning to relative performance and capital efficiency; payout capped at 400% of target value to limit windfalls .
- Cash plan updated: Amended and Restated Cash Bonus Plan (Feb 21, 2025) removed the prior $2 million per‑participant cap, retaining clawback coverage .
Investment Implications
- Alignment: High performance‑sensitivity—Darby’s 2024 bonus paid at 193% on strong corporate and Light Duty execution; PRSUs tie to RTSR and ROIC, reinforcing shareholder value creation .
- Retention: Significant unvested RSUs/PRSUs and option overhang create retention hooks; however, Darby’s active Rule 10b5‑1 plan through June 2025 and recent option exercises indicate potential near‑term selling pressure around vest/exercise events .
- Change‑in‑control economics: Single‑trigger equity acceleration plus 2.0× cash severance on double‑trigger CIC could incentivize orderly participation in strategic transactions; no tax gross‑ups and robust clawbacks mitigate governance risk .
- Execution track record: Light Duty margin expansion and share gains cited in 2025, consistent with bonus metrics; prior PRSU outcomes show discipline (2021 forfeiture; 2022 135.5% payout), suggesting a balanced pay‑for‑performance framework .