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James L. Morvant

Senior Vice President – Operations at GULF ISLAND FABRICATION
Executive

About James L. Morvant

James L. Morvant is Senior Vice President – Operations at Gulf Island Fabrication (GIFI). He became SVP – Operations in April 2022 after progressing through leadership roles in Fabrication & Services (SVP 2020–2022), Services (VP 2019–2020), Offsite (Manager 2013–2019), and prior roles from 2000–2013; he is 52 per the 2025 proxy biography . Company performance metrics driving his incentives include 2024 Adjusted Cash Flow of $14.874 million and safety outcomes (TRIR 0.27; LTIR 0.00), with his 2024 annual cash incentive payout of $160,942 and confirmation that 2024 performance-based RSUs met the performance condition (break-even Adjusted Cash Flow), subject to three-year service vesting . GIFI emphasizes pay-for-performance, with no employment agreements, robust clawback, and prohibitions on hedging/pledging; executives must meet stock ownership guidelines (1.25x base salary for non-CEO officers), and NEOs were in compliance as of year-end 2024 .

Past Roles

OrganizationRoleYearsStrategic Impact
Gulf Island FabricationSenior Vice President – OperationsApr 2022–present Not disclosed
Gulf Island FabricationSenior Vice President – Fabrication & Services Division2020–2022 Not disclosed
Gulf Island FabricationVice President – Services Division2019–2020 Not disclosed
Gulf Island FabricationManager of Offsite, Services Division2013–2019 Not disclosed
Gulf Island FabricationVarious roles (inshore manager, project manager, estimating manager), Services Division2000–2013 Not disclosed
Various oil & gas services and shipbuilding companiesProject manager, design engineerPrior to joining GIFI Not disclosed

External Roles

OrganizationRoleYearsStrategic Impact
None disclosed

Fixed Compensation

Metric20232024
Base Salary ($)225,008 225,008
Bonus ($)
Non-Equity Incentive Plan Compensation ($)187,839 160,942
Stock Awards – Grant Date Fair Value ($)68,800 56,655
Total Compensation ($)481,647 442,605

Key governance points: No employment agreements for executive officers ; clawback policy adopted in 2023 to comply with SEC/NASDAQ standards ; no excise tax gross-ups and prohibitions on hedging/pledging .

Performance Compensation

Annual Incentive Program (AIP) – Structure and 2024 Results

MetricTargetActualPayout/Impact
Adjusted Cash Flow ($000)Break-even threshold for LTI performance RSUs; Plan Excess Cash Flow Amount $8,606 $14,874 Adjusted Cash Flow; Actual Excess Cash Flow $8,744 Management Amount $2,782 ($000) computed at 32% up to Plan, 20% above
Safety – TRIR0.63 0.27 100% of Safety Bonus Amount (metric weighted equally)
Safety – LTIR0.15 0.00 100% of Safety Bonus Amount (metric weighted equally)

Named Executive Officer payout detail (2024):

NEOParticipant InterestSafety Bonus Earned ($)Management Amount Earned ($)Adjustments ($)Cash Incentive Payout ($)
James L. Morvant8.7% 36,060 145,831 (20,949) 160,942

Notes:

  • AIP revised for 2024 to focus on Adjusted Cash Flow and safety; NEO payouts ranged 90%–101% of plan awards .
  • Additional Shipyard claims bonus applied to CEO and CFO only; no payout in 2024 .

Long-Term Incentive (LTI) – RSUs

Grant YearAward TypePerformance MetricPayout DeterminationVesting
2024Performance-based RSUsBreak-even Adjusted Cash Flow (company-level) Achieved (confirmed early 2025) 33% on each of Apr 1, 2025/2026/2027
2023Performance-based RSUsAnnual metrics aligned to AIP (adjusted EBITDA, adjusted year-end cash, safety, strategic objectives) 139.1% of target; converted to additional time-based RSUs (vest over 3 years) One-third on May 1, 2024/2025/2026

Say-on-Pay Context

Shareholders approved say-on-pay in 2023 with >86% support; Committee emphasizes pay-for-performance and continues to refine programs .

Equity Ownership & Alignment

Item2024 (as of Mar 27, 2024)2025 (as of Apr 1, 2025)
Beneficially Owned Shares80,580 83,448
% of Outstanding Common Stock<1% <1% (based on 16,377,229 shares)
RSUs vesting within 60 days27,636 7,970

Outstanding RSUs and Vesting Schedules (as of Dec 31, 2024):

Grant DateRSUs UnvestedMarket Value ($)Vesting Schedule
4/1/20227,166 48,800 100% on Apr 1, 2025
5/1/202315,939 108,545 50% on each of May 1, 2025 and 2026
4/1/20247,554 51,443 33% on Apr 1, 2025/2026/2027

Alignment policies:

  • Stock ownership guidelines: 1.25x base salary for executive officers; compliance required within five years; NEOs exceeded target ownership as of Dec 31, 2024 .
  • Anti-hedging and anti-pledging: Executives prohibited from hedging, borrowing against, or pledging company stock .
  • Clawback: Stand-alone compensation recovery policy adopted in 2023; equity award agreements include clawback provisions .

Employment Terms

TermDetails
Employment AgreementCompany has no employment agreements with executive officers
Change-of-Control (CoC) ProtectionsCoC agreements apply to CEO/CFO only; not disclosed for Morvant; equity awards use “double trigger” for acceleration (CoC plus qualifying termination)
Potential Payments upon CoC Termination (Morvant)RSUs (Unvested and Accelerated): $208,788; no severance or welfare benefits noted
Non-Compete / Non-SolicitNot disclosed
Clawback PolicyApplies to executives; compliant with SEC/NASDAQ rules

Compensation Structure Analysis

  • Increased at-risk pay: 2024 LTI awards moved to 100% performance-based RSUs versus 50% performance-based component in 2023, heightening pay-for-performance linkage .
  • Cash incentives tied to cash generation and safety: 2024 AIP pivots to Adjusted Cash Flow and safety (TRIR/LTIR), reducing discretionary elements; Morvant’s payout adjusted downward to reflect limited involvement in Shipyard division .
  • No base salary inflation: No changes since April 1, 2022, limiting guaranteed cash and anchoring incentives to performance .
  • Governance protections: No tax gross-ups; explicit anti-hedging/pledging; robust clawback; double-trigger equity awards .

Investment Implications

  • Alignment and retention: Morvant’s equity is entirely in RSUs with multi-year vesting and double-trigger acceleration, promoting retention and performance continuity; stock ownership guideline compliance reduces misalignment risk .
  • Vesting-driven supply risk: Concentrated vesting in 2025 from 2022/2023/2024 grants (Apr 1 and May 1 tranches) could have created selling pressure windows; anti-hedging/anti-pledging mitigates leverage risk, but actual selling requires Form 4 review .
  • Pay-for-performance linkage: The cash-flow centric AIP and 100% performance RSUs in 2024 indicate management confidence in cash generation; Morvant’s adjusted payout suggests discipline around divisional accountability .
  • Limited severance exposure: Absence of CoC severance for Morvant (only RSU acceleration) reduces parachute risk; potential payouts are primarily equity acceleration under double-trigger terms .