David Crimmins
About David Crimmins
David E. Crimmins, age 44, is Vice President, Sales and Product Management at Flexsteel Industries (appointed January 2023; joined Flexsteel in September 2019). He holds a B.A. in Marketing from the University of Northern Iowa and an MBA from the University of Baltimore . In fiscal 2025, company performance under incentive metrics was strong: adjusted operating income hit 200% of target and net sales achieved 122% of target (177% weighted payout), while cumulative TSR from July 1, 2022 reached 215 (on a $100 base) and net income was $20.154 million . His remit spans sales leadership plus product design/engineering, development, merchandising, and channel messaging .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Flexsteel Industries | VP, Sales; VP, Sales & Product Mgmt | 2019–present | Expanded role to lead product portfolio, design/engineering, merchandising, and go-to-market across channels |
| The Senator Group (North America) | VP, Sales & Marketing | Not disclosed | Built sales/marketing capabilities; developed/executed go-to-market; drove improved financial performance |
| HNI Corporation (multiple operating companies) | Sales and general management roles | Not disclosed | Progressive sales/GM responsibilities in the furniture industry |
External Roles
- None disclosed in the proxy statement for Mr. Crimmins .
Fixed Compensation
| Metric | FY 2024 | FY 2025 |
|---|---|---|
| Base Salary ($) | 335,000 | 352,000 |
| Non-Equity Incentive Plan Payout ($) | 281,400 | 373,824 |
| Stock Awards – Grant Date Fair Value ($) | 234,484 | 246,378 |
| All Other Compensation ($) | 30,463 | 54,137 |
- Current terms and updates:
- Base salary increased to $370,000 effective July 1, 2025 .
- Target annual bonus: 60% of base salary; maximum 200% of target .
- Perquisites (FY 2025): Supplemental medical $24,881; Furniture program $11,581; 401(k) match $17,675; Total $54,137 .
Performance Compensation
Annual Cash Incentive Plan (FY 2025)
| Metric | Weight | Target | Actual Achievement | Payout Factor |
|---|---|---|---|---|
| Adjusted Operating Income | 70% | $26.2m | 200% of target | 200% |
| Net Sales | 30% | $431.6m | 122% of target | 122% |
| Weighted Payout | 100% | — | — | 177% (weighted average) |
- Mr. Crimmins’ FY 2025 cash incentive earned was $373,824, reflecting the plan’s 177% weighted outcome .
Long-Term Incentives (PSUs and RSUs)
- PSU program design and outcomes:
- LTI target opportunity for Mr. Crimmins: 80% of base salary (max 200%) .
- PSU metric: Adjusted Operating Income, measured annually within a three-year performance period; overall payout ranges 40%–200% at plan level .
- Three-year performance period ended June 30, 2025 achieved 145% of target .
- FY 2025 LTI grant mix:
- Total stock awards grant-date fair value: $246,378; includes RSUs $98,558 and PSUs at target; PSU maximum opportunity $295,641 .
- Outstanding/unearned awards (as of June 30, 2025):
- Unvested RSUs: 8,073 units; vesting 4,960 on 6/30/2026 and 3,113 on 6/30/2027; market value $290,870 at $36.03 .
- Unearned PSUs at target: 17,726 units across FY 2025, FY 2024, and FY 2023 grants .
| PSU Cohort (Target Units) | Performance Period End | Target Units |
|---|---|---|
| FY 2025 grant | 6/30/2027 | 4,669 |
| FY 2024 grant | 6/30/2026 | 7,440 |
| FY 2023 grant | 6/30/2025 | 5,617 |
| Total | — | 17,726 |
Equity Ownership & Alignment
| Ownership Item | Amount |
|---|---|
| Beneficially owned shares | 32,688 (0.6% of outstanding) |
| Unvested RSUs | 8,073 |
| Unearned PSUs (target) | 17,726 |
| Stock options | None outstanding for Crimmins |
- Stock ownership guidelines: Executive Officers must hold 2x base salary; Directors 5x cash retainer; CEO 4x salary .
- Hedging/pledging: Company policy prohibits hedging, short sales, margin and pledging; mandates minimum six-month holding period for open-market purchases .
- Upcoming vesting that may create liquidity windows: 4,960 RSUs on 6/30/2026 and 3,113 RSUs on 6/30/2027; tax withholding on vest events may result in stock sales .
Employment Terms
- Contract status: No employment agreement or letter agreement for Mr. Crimmins; participates in the Severance Plan and has a Confidentiality and Non-Competition Agreement .
- Non-compete and non-hire: 12 months post-termination (required for severance eligibility) .
- Severance (Qualifying Termination): 12 months base salary continuation; lump-sum COBRA-equivalent premiums for 12 months; lump-sum target annual bonus (CIP) for the year of termination; CEO severance doubles only for CEO upon CIC timing; clawback if restrictive covenants breached .
- Incentive plan treatment upon death/disability/retirement/CIC: Pro-rata payout of CIP/LTIP for certain terminations; under 2022 Equity Plan, RSUs/PSUs vest on death/disability or upon termination other than for cause at age ≥55 with ≥10 years service (pro-rata); CIC treatment depends on assumption/substitution—if not assumed, full vest at 100% of target; if assumed and involuntarily terminated within 12 months, similar treatment (Board-approved amendment extends CIC protection window to signing through 24 months post-CIC for service providers) .
- Clawback: Incentive compensation subject to recoupment under the Company’s clawback policy and applicable exchange rules (Dodd-Frank) .
Performance & Track Record
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Net income ($) | 14,778,000 | 10,528,000 | 20,154,000 |
| Cumulative TSR (Value of $100 from 7/1/2022) | 110 | 182 | 215 |
- FY 2025 incentive metrics: Adjusted operating income 200% of target; net sales 122% of target; weighted 177% .
- LTI 3-year period ended 6/30/2025 paid at 145% on adjusted operating income metric .
Governance, Policies, and Risk Indicators
- Related party transactions: None reportable in FY 2025 .
- Insider trading policy: Prohibits hedging, short selling, pledging/margin, and derivatives; six-month minimum hold for open-market purchases .
- Compensation consultant: Meridian Compensation Partners engaged by Compensation Committee in 2025 to advise on incentives and peer practices .
- Equity plan overhang/dilution context: Three-year average burn rate 2.93% (FY23–FY25); potential dilution ~11.2% with 2025 plan amendment (adds 150,000 shares to 2022 Plan) .
Compensation Structure Analysis
- Mix and trend: No stock options granted in FY 2024 or FY 2025; emphasis on RSUs and PSUs aligns with ownership guidelines and pay-for-performance .
- Annual bonus rigor: 70% weight on adjusted operating income and 30% on net sales; payouts scale 40%–200%—FY 2025 paid at 177% on strong results .
- LTI rigor: Three overlapping three-year PSU cycles measured on adjusted operating income; FY 2023–2025 cycle paid at 145% .
- Governance protections: Robust clawback; anti-hedging/pledging; no automatic vesting on CIC if awards are assumed; no evergreen; no repricing .
Investment Implications
- Alignment: High portion of at-risk pay tied to operating income and sales; LTI in PSUs/RSUs plus stock ownership guidelines and anti-pledging policy support alignment with shareholders .
- Near-term supply/vesting: RSU vesting in 2026 and 2027 may create modest selling pressure (tax withholdings or liquidity), but hedging/pledging bans reduce leveraged sell pressure risk .
- Retention/transition risk: No individual employment contract; however, the Severance Plan provides 12 months salary, target bonus, and COBRA equivalent, with non-compete requirements—adequate retention without over-commitment; CIC window expansion under the amended 2022 Plan increases protection but also potential accelerated vesting costs in change-of-control scenarios .
- Pay-for-performance signal: FY 2025 cash incentive at 177% and 3-year PSU payout at 145% indicate strong execution versus internal targets; company TSR and net income trends improved over FY 2024–2025, supportive for confidence in sales/product leadership continuity under Mr. Crimmins .