David Kim
About David Kim
David Kim, age 56, is Chairman of the Board and Chief Executive Officer of GEN Restaurant Group (Nasdaq: GENK). He has served as CEO since the company’s formation in October 2021 and as a director since 2023; the Board designates him as chairperson, and he is not independent under Nasdaq rules . Under his leadership, GEN expanded into South Korea and continued new store openings; Q1’25 revenue rose 13.0% to $57.3 million with restaurant-level adjusted EBITDA of $9.0 million, while Q3’25 revenue grew 2.7% to $50.4 million with restaurant-level adjusted EBITDA of $7.6 million . He previously led La Salsa and Baja Fresh, and has broad franchise and investment experience across multiple concepts .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| La Salsa, Inc. | Chief Executive Officer | Jul 2007–Sep 2011 | Led a fast-casual Mexican chain; franchise operations and growth experience |
| Baja Fresh Enterprises | Chief Executive Officer | Oct 2006–Sep 2011 | CEO leadership at well-known Mexican fast-casual brand |
| Caliber Capital Group | President | Sep 2005–present | Equity investments in distressed companies; turnaround expertise |
| CinnaWorks, LLC | Managing Member | Aug 2002–Sep 2011 | National Cinnabon franchise owner/operator |
| Sweet Candy, LLC (Sweet Factory) | Managing Member | Nov 1994–Mar 2016 | Retail candy concept ownership/operations |
| Golden Den Corp. & RD Restaurant Group, Inc. | Managing | Nov 1994–Mar 2016 | Operated Denny’s, Carl’s Jr., Golden Corral, Pick-Up Stix franchises |
| Various restaurant concepts (sushi, ramen, non-AYCE) | Owner/operator/manager | Various | Built multi-concept portfolio; entrepreneurship and brand development |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Kim Family Foundation | Founder | Not disclosed | Supports scholastic achievement and leadership |
| Private restaurant concepts (sushi, ramen, etc.) | Owner/operator/manager | Various | Non-public concepts outside GEN; operational breadth |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $289,000 | $289,000 (reported; employment agreement sets $300,000 effective 1/1/2024) |
| Target Bonus (%) | 100% of base (at Board discretion) | 100% of base (at Board discretion) |
| Actual Bonus ($) | $38,750 (discretionary) | $20,000 (discretionary) |
| Stock Awards ($) | — (no awards) | — (no awards) |
| Other Compensation ($) | $4,375 (car/phone allowance) | $4,375 (car/phone allowance) |
Performance Compensation
| Incentive Type | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| Annual cash bonus (discretionary) | Discretionary (no pre-set performance plan payout) | n/a | 100% of base | 2023: $38,750; 2024: $20,000 | Paid as noted | n/a |
| Equity awards | None to CEO in 2023–2024 | n/a | n/a | n/a | n/a | n/a |
The proxy states the CEO did not receive any bonus or incentive compensation tied to performance-based plans in 2023 or 2024; all NEO bonuses were discretionary .
Equity Ownership & Alignment
| Holder/Category | Class A Shares | % of Class A | Class B Shares | % of Class B | Total Voting Power |
|---|---|---|---|---|---|
| David Kim (DJK Trust + direct) | 166,652 | 3.3% | 8,972,667 | 32.3% | 31.8% |
| Put-Call Forever LP (Kim-affiliated) | 151,870 | 3.0% | — | — | — |
| Kim Family Trust – Trust for Andrea | — | — | 586,217 | 2.1% | 2.1% |
| Kim Family Trust – Trust for Solomon | — | — | 586,217 | 2.1% | 2.1% |
| Kim Family Trust – Trust for Joy | — | — | 586,217 | 2.1% | 2.1% |
| Combined (Kim + affiliated trusts/LP) | 318,522 | 6.3% | 10,731,318 | 38.7% | 38.1% |
| Shares outstanding (Record Date) | 5,038,461 (Class A) | — | 27,761,515 (Class B) | — | — |
- Insider trading policy prohibits hedging and short sales; directors/officers must pre-clear transactions, which reduces hedging risk and signals alignment through restricted trading practices .
- The GEN LLC Agreement and Registration Rights Agreement allow Class B holders (including Mr. Kim and certain family members) to exchange into Class A and require the company to register shares for sale, creating potential liquidity and insider selling windows over time .
Employment Terms
| Term | Detail |
|---|---|
| Agreement date/effective | Employment agreement dated Aug 4, 2023; effective Jul 1, 2023 |
| Term | 3 years with automatic extensions unless 60-day non-renewal notice |
| Role | Chief Executive Officer |
| Base salary | $150,000 (7/1/2023–12/31/2023), then $300,000/year beginning 1/1/2024 |
| Target annual bonus | 100% of base, at Board discretion |
| Severance/change-in-control | Severance of six months base salary if terminated without “Cause,” by the executive for “Good Reason,” or following a “Change in Control” (as defined) |
| Clawback | Board-adopted policy enabling recoupment for restatements or misconduct, including cancelation of awards and recovery of realized gains |
| Insider trading policy | Prohibits hedging and short sales; pre-clearance required |
| Equity plan | 2023 Equity Incentive Plan (4,000,000-share pool; annual evergreen ~4%); CEO had no grants in 2023–2024 |
| Exchange/registration rights | Class B holders (incl. Kim/family) can exchange to Class A; registration rights to facilitate resales |
Board Governance
- Board service: Director since 2023; currently Chairman of the Board and CEO (dual role) .
- Independence: Board determined David Kim is not independent under Nasdaq standards .
- Controlled company: GEN qualifies as a “controlled company,” allowing a non-fully independent nominating/governance committee; David Kim chairs that committee .
- Lead Independent Director: Michael B. Cowan; responsible for executive sessions and agenda approval among other duties .
- Committee roles: Chairman serves as a de facto non-paid member of Audit, Compensation & Human Capital, and Nominating & Governance Committees; Audit: Gregory (Chair), Cowan, Park; Compensation: Cowan (Chair), Gregory; Nominating & Governance: Kim (Chair), Chang .
- Meetings and attendance: 2024 meetings—Board 4; Audit 4; Compensation 1; Nominating & Governance 1; all directors attended all meetings and the 2024 annual meeting .
Related Party Transactions (Governance red flags)
| Counterparty | Relationship | 2024 Amount | 2023 Amount | Description |
|---|---|---|---|---|
| Ignite Consulting | 100% owned by David Kim | $0 | $2.3 million | Consulting agreement (up to 25% of gross revenue) terminated in connection with IPO; no 2024 payments |
| Pacific Global Distribution (PGD) | 100% owned by Jae Chang and family | ~$678,000 | ~$2.8 million | Supplies purchases; AP outstanding $20k (2024) and $137k (2023) |
| Wise Universal, Inc. | Affiliate 60% owned by Jae Chang | $0 | ~$12.4 million | Meat supplier; no purchases in 2024 |
| Administrative Services | Restaurants owned by David Kim (unrelated entities) | Not disclosed | Not disclosed | Company provides admin services (limited scope) |
TRA Economics (Change-of-control and liquidity considerations)
| Assumptions/Term | Value/Provision | Notes |
|---|---|---|
| Estimated DTA and liability if all non-Company GEN LLC units exchanged (as of 3/31/2025 at $12/share) | Deferred tax asset: ~$117.2 million; TRA liability: ~$99.6 million | Based on constant 26.6% effective tax rate; actual payments vary with timing, tax rates, and income |
| Early termination discount rate | Lesser of 6.5% or SOFR + 400 bps | Applies upon early termination, change in control, bankruptcy rejection, payment failure or material breach (subject to cure periods) |
| Payment timing/interest | Due shortly after filing relevant tax return; interest accrues at SOFR +300 bps; late payments at SOFR +500 bps | Liquidity constraints at GEN LLC may defer payments with interest |
Performance & Track Record
- Expansion and new concepts: Opened first restaurants in South Korea and debuted a dual-concept GEN Korean BBQ + Kan Sushi in Austin; development pipeline remained robust in 2025 .
- Revenue and profitability signals: Q1’25 revenue $57.3 million (+13% YoY) with restaurant-level adjusted EBITDA $9.0 million; Q3’25 revenue $50.4 million (+2.7% YoY) with restaurant-level adjusted EBITDA $7.6 million; management cited challenging restaurant environment and macro headwinds .
- Liquidity and debt: Cash and cash equivalents of $15.4 million (Q1’25) and $4.8 million (Q3’25); management highlighted no material long-term debt and full availability of $20 million line of credit (Q2’25 release) .
Investment Implications
- Alignment: Significant insider ownership (Kim + affiliated trusts/LP total 38.1% voting power) aligns the CEO with long-term value creation; hedging and shorting are prohibited, supporting alignment .
- Overhang & selling pressure: Class B exchange rights and registration rights create potential liquidity/selling windows; while the CEO had no recent equity awards, family trust holdings could be exchanged and sold, especially post-lock-up/registration, potentially impacting float and trading dynamics .
- Governance risk/dual-role implications: Combined Chair/CEO with controlled company status and Kim chairing Nominating & Governance may raise independence concerns; presence of lead independent director and committee structures partially mitigates but does not eliminate risk .
- Change-of-control economics: TRA obligations could be substantial and accelerate upon change in control, potentially deterring M&A or affecting deal economics and post-transaction liquidity; early termination payment mechanics and interest accruals add complexity .
- Compensation design: CEO cash pay is modest and largely discretionary without disclosed performance metrics; absence of recent equity grants reduces forced selling on vest dates but may limit explicit pay-for-performance linkage; severance is relatively small (six months base), lowering change-in-control cash risk .