William Yeung
Energy RecoveryAbout William Yeung
Energy Recovery’s Chief Legal Officer and Corporate Secretary since March 11, 2020; joined as General Counsel on May 27, 2016; age 52; education: J.D. (NYU School of Law) and B.A. (Boston College) . He leads securities law, corporate governance and compliance, M&A and SEC reporting, bringing 20+ years of legal experience across bulge-bracket banks and global corporates . Company performance context: FY2024 revenue $144.9M (+13% y/y), gross margin 66.9%, net income $23.1M, one-year TSR −28% and three-year TSR +8% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Energy Recovery, Inc. | General Counsel → Chief Legal Officer & Corporate Secretary | GC since 2016; CLO since 2020 | Led securities law, governance, compliance, M&A, SEC reporting |
| SharesPost, Inc. | General Counsel | Not disclosed | Private markets legal leadership and regulatory compliance |
| Thomas Weisel Partners Group Inc. | Senior legal executive | Not disclosed | Capital markets, transactional support |
| Socialutions Inc. | Senior legal executive | Not disclosed | Corporate legal oversight |
| Cleary Gottlieb Steen & Hamilton LLP | Associate | Not disclosed | Securities law and transactions |
| Morrison & Foerster LLP | Associate | Not disclosed | Corporate/securities practice |
Fixed Compensation
| Year | Base Salary ($) | All Other Compensation ($) | Notes |
|---|---|---|---|
| 2022 | 320,409 | 27,147 | Insurance premiums and 401(k) match; minor gifts |
| 2023 | 332,732 | 26,413 | Insurance premiums and 401(k) match |
| 2024 | 352,577 | 26,863 | Insurance premiums and 401(k) match |
| As of Dec 31, 2024 | Base Salary ($) | % Increase vs 2023 |
|---|---|---|
| William W. Yeung | 374,000 | 12% |
Performance Compensation
| Year | Target Bonus (%) | Target Bonus ($) | Actual AIP Achievement (%) | Actual AIP Paid ($) | Metric |
|---|---|---|---|---|---|
| 2024 | 60 | 212,465 | 89 | 188,550 | Revenue and Adjusted Operating Income (50%/50%) |
| 2024 AIP Metric | Weight (%) | Target | Actual Achievement (%) | Payout ($) | Vesting |
|---|---|---|---|---|---|
| Revenue | 50 | Not disclosed | 74 | Included in total 188,550 | N/A (cash) |
| Adjusted Operating Income | 50 | Not disclosed | 104 | Included in total 188,550 | N/A (cash) |
Notes:
- Adjusted operating income defined as net income less taxes, interest, other income/expense, share-based comp, and certain non-core costs .
- No upward discretion applied to NEO bonuses for 2024 .
Equity Ownership & Alignment
| Category | Value |
|---|---|
| Beneficial ownership (direct + indirect) | 37,396 shares; includes 5,568 held by spouse |
| Exercisable/vested within 60 days (as of Apr 7, 2025) | 195,725 shares |
| Total beneficial shares | 233,121 shares (0.4% of class; 54,756,113 SO) |
| Unvested RSUs (as of Dec 31, 2024) | 64,962 shares |
| Unexercisable options (as of Dec 31, 2024) | 7,565 options (1,646 at $13.96 exp 2/1/31; 5,919 at $18.99 exp 1/28/32) |
| Hedging/Pledging | Prohibited for employees and directors (including non-recourse pledge); short sales and similar prohibited |
| Stock ownership guidelines | Executives: 2× base salary; Directors: 5× annual cash retainer; excludes unvested RSUs/options |
| Compliance status | Covered directors/executives in compliance or on pace to comply within required period |
| Clawback policy | Dodd-Frank compliant clawback; recovery of erroneously awarded compensation upon restatement |
Equity Award Detail and Vesting
| Instrument | Grant Date | Shares/Options (#) | Fair Value ($/Share or Award) | Vesting Schedule |
|---|---|---|---|---|
| RSU | 1/25/2024 | 39,542 | $638,999 total; $16.16/sh | 25% per year over 4 anniversaries of vesting commencement date |
| RSU | 7/25/2023 | 11,116 | $163,405 (market value at 12/31/24) | 33⅓% per year over 3 anniversaries |
| RSU | 1/30/2023 | 5,255 | $77,249 (market value at 12/31/24) | 25% per year over 4 anniversaries |
| RSU | 3/7/2022 | 2,637 | $38,764 (market value at 12/31/24) | 33⅓% per year over 3 anniversaries |
| Option | 2/1/2021 | 24,690 ex.; 1,646 unex. | $13.96 strike; exp 2/1/2031 | 25% at 1-year, then 1/48 monthly; 10-year expiration |
| Option | 1/28/2022 | 14,374 ex.; 5,919 unex. | $18.99 strike; exp 1/28/2032 | 25% at 1-year, then 1/48 monthly; 10-year expiration |
Note: “ex.” = exercisable; “unex.” = unexercisable.
Employment Terms
| Provision | Summary | Yeung-specific 12/31/2024 Change-in-Control Scenario |
|---|---|---|
| Change-in-Control (CIC) Severance Plan | Double trigger; 12 months base salary + 100% target bonus; immediate vesting of 100% unvested equity; up to 12 months COBRA; up to $10,000 outplacement; no excise tax gross-ups; automatic annual renewal unless notice | Lump sum $598,400; equity vesting value $956,159; COBRA $41,464; outplacement $10,000 |
| CIC definitions | Detailed “Cause,” “Good Reason,” “Change in Control” definitions; equity at target if performance-based | Applies if termination without Cause or for Good Reason within 18 months of CIC |
| Severance (non-CIC) | Qualifying termination: 6 months base salary; 25% of unvested equity vests; up to 6 months COBRA; extended option exercise to 6 months; subject to release; non-qualifying exceptions defined | Lump sum $187,000; equity vesting value $239,040; COBRA $20,732 |
Multi-year Compensation Summary (NEO disclosure)
| Year | Salary ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive ($) | All Other Comp ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2022 | 320,409 | 299,976 | 150,006 | 213,447 | 27,147 | 1,010,984 |
| 2023 | 332,732 | 659,389 | — | 177,135 | 26,413 | 1,195,669 |
| 2024 | 352,577 | 638,999 | — | 188,550 | 26,863 | 1,206,989 |
Compensation Structure Insights
- Substantial at-risk pay and multi-year vesting; RSUs used for retention; performance-based equity introduced in 2025; no option repricing; independent committee/consultant; annual pay assessment and clawback in place .
- AIP metrics emphasize revenue and adjusted operating income; Yeung achieved 89% of target leading to $188,550 payout for 2024; no upward discretion applied .
Compensation Peer Group, Say-on-Pay, and Governance
- Peer group used for 2024 pay benchmarking spans industrial machinery, clean tech, energy, broader tech and health care equipment (e.g., Ambarella, Helios Technologies, Impinj, Stem, TransMedics, etc.) .
- Say-on-pay approval 89.3% at 2024 Annual Meeting; ongoing investor engagement and program refinement (performance-based equity in 2025) .
- Prohibition on hedging/pledging; stringent stock ownership guidelines; independent board and committees; clawback policy .
Investment Implications
- Alignment: High variable compensation tied to revenue and adjusted operating income, robust ownership guidelines, clawback, and prohibition on hedging/pledging indicate strong alignment with shareholders .
- Retention and pressure: Material unvested RSUs and scheduled vesting across 2023–2024 grants support retention; however, periodic vesting could create episodic selling pressure depending on tax and diversification needs .
- Change-in-control economics: Double-trigger CIC with full equity acceleration and 12 months salary + target bonus reduces transition risk but implies meaningful payout sensitivity to corporate events .
- Performance backdrop: Mixed TSR (−28% 1-year; +8% 3-year) against nine years of revenue growth underscores execution focus in AIP metric design, with Yeung’s 2024 payout reflecting outperformance on adjusted operating income despite revenue attainment below target .