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Nancy Patzwahl

Director at ESPEY MFG & ELECTRONICS
Board

About Nancy Patzwahl

Independent director since 2022; age 59 in the 2025 proxy. Certified Public Accountant and principal at UHY Advisors NY, Inc. (since Jan 2020), previously a shareholder at Pattison, Koskey, Howe & Bucci (1997–2019) and Senior Manager at KPMG. Designated Audit Committee financial expert; elected/standing for Class B term to 2028; also serves as a director of Rhinebeck Bancorp Inc. (NASDAQ: RBKB) since April 2025 .

Past Roles

OrganizationRoleTenureCommittees/Impact
UHY Advisors NY, Inc.PrincipalJan 2020–present CPA; financial risk assessment expertise
Pattison, Koskey, Howe & Bucci, CPAs PCShareholder1997–2019 Board audit committee chair experience
KPMG LLP (Albany, NY)Senior ManagerNot disclosed Public accounting, controls and audit experience

External Roles

OrganizationRoleTenureCommittees/Impact
Rhinebeck Bancorp Inc. (NASDAQ: RBKB)DirectorSince Apr 2025 Banking oversight; potential finance/audit contribution
Other for-profit/non-profit boardsDirector/Audit ChairNot disclosed Served as chair of board audit committees

Board Governance

  • Independence: Board determined all directors except CEO David O’Neil are independent; Patzwahl is independent .
  • Committee assignments: Audit Committee member (Chair: Paul J. Corr; members: Patzwahl, Wool) . Not listed on Nominating (Helmetag, Wool, Corr) or Compensation (Wool, Helmetag) .
  • Financial expert: Board designated Patzwahl and Corr as audit committee financial experts per SEC rules .
  • Attendance: Board met 4 times in FY2025 and each director attended at least 75%; Audit Committee met 4 times with ≥75% attendance by each member .
  • Board leadership: No standing Lead Independent Director; lead role designated ad hoc based on issue/skills .
  • Risk oversight: Audit Committee oversees risk and cybersecurity; management reports regularly .

Fixed Compensation

MetricFY2024FY2025
Fees Earned or Paid in Cash ($)$67,500 $72,000
Option Awards (Grant Date Fair Value, $)$9,269 $6,000
Total Director Compensation ($)$76,769 $78,000
Standard Annual Board Fee ($)$65,000 (pre-10/1/24) $71,000 (effective 10/1/24)
Committee Fees (Policy)Audit member $2,500; Audit Chair $5,000; Compensation member $2,500; Legal Affairs member $2,500; ESOP Chair $2,500 Same

Performance Compensation

  • Structure: Non-employee directors receive stock options; no RSUs/PSUs disclosed for directors .
  • Hedging/pledging: Company policy prohibits hedging, short sales, derivatives, margin, and pledging company stock for loans .

Director option awards outstanding (as of June 30, 2025):

Expiration DateOptions Unexercisable (#)Strike Price ($)Vesting Schedule
09/08/20332,300 16.54 Vests 09/08/2025
09/06/20341,500 22.30 Vests 09/06/2026

(For FY2024 reference: 2,300 unexercisable options expiring 09/08/2033; vesting 09/08/2025) .

Other Directorships & Interlocks

CompanyRelationshipNotes
Rhinebeck Bancorp Inc. (RBKB)Current public company board (Director)Since April 2025; only ESP director with another public board per proxy

No disclosed shared directorships with ESP suppliers/customers/competitors; no related-party transactions disclosed involving Patzwahl .

Expertise & Qualifications

  • CPA with deep audit and financial controls background; designated Audit Committee financial expert .
  • Experience chairing audit committees; supports risk assessment and financial oversight .
  • Industry exposure in public accounting (KPMG), firm leadership (PKHB), and advisory (UHY) .

Equity Ownership

MetricOct 17, 2024Oct 16, 2025
Direct Shares Owned (#)2,500 4,800
Ownership (%)<1% <1%
Options Exercisable within 60 Days (#)0 2,300

Company-wide policy prohibits pledging and hedging; reduces alignment risk from leverage/derivatives .

Governance Assessment

  • Strengths: Independent director; audit financial expert; sits on only financially critical committee (Audit); attendance policy met; strong anti-hedging/anti-pledging policy enhances alignment; incremental cash retainer increase reflective of scope, not pay inflation excess .
  • Compensation mix: Majority cash retainer with modest annual option grants (FY2025 option fair value $6,000 vs $9,269 in FY2024), indicating balanced at-risk exposure without undue equity leverage .
  • Ownership alignment: Increase in directly owned shares and emergence of exercisable options by 2025 (<1% ownership, consistent for micro-cap board) . Policy bars hedging/pledging .
  • External role: Added RBKB board seat in Apr 2025—no apparent operating interlock with ESP; expands finance oversight experience .
  • Process cautions: No standing Lead Independent Director (ad hoc designation) may be less robust for consistent independent oversight; Compensation Committee does not use independent compensation consultants (small-cap norm, but reduces external benchmarking rigor) .
  • RED FLAGS: None specific to Patzwahl disclosed—no related party transactions, no pledging, no attendance issues, no Section 16 filing lapses noted for her (late filings in FY2025 were for other directors/officers) .

Overall signal: Patzwahl brings credible audit and financial risk expertise with demonstrable independence and engagement. Compensation/ownership structure is conservative, with limited equity risk. Governance framework is adequate for a small issuer, though investors may prefer a formal Lead Independent Director and periodic use of independent pay consultants to strengthen oversight .