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David Johanson

Senior Vice President, Project Acquisition and Operations at Great Lakes Dredge & Dock
Executive

About David Johanson

David J. Johanson is Senior Vice President, Project Acquisition & Operations at Great Lakes Dredge & Dock (GLDD), appointed in July 2022 after joining the company in 1994 and rising through project management and regional leadership roles; he holds a B.S. in Ocean Engineering (Virginia Tech) and an MBA (Finance) from the University of South Carolina . He is 53 years old and serves among GLDD’s named executive officers, with operational scope spanning backlog, contract margin, and execution across dredging projects . Company performance during his current-role tenure improved markedly: FY2024 net income was $57.3m and Adjusted EBITDA $136.0m (vs. FY2023 net income $13.9m and Adjusted EBITDA $73.0m), while cumulative TSR for 2024 was 99.6 vs. peer group 153.3, underscoring strong operating recovery albeit lagging peer equity performance .

Past Roles

OrganizationRoleYearsStrategic Impact
GLDDSenior Vice President, Project Acquisition & Operations2022–present Responsibility for backlog, margin, and execution across dredging operations aligned to PSU metrics (G&A+OH, contract margin, year-end backlog) .
GLDDSenior Vice President, Gulf Regionn/a (prior to 2022) Regional leadership driving project acquisition and operations across a key geography .
GLDDVice President & Hydraulic Division Manager2015– (later advanced) Led hydraulic dredging division operations and project performance .
GLDDVice President, Project Director – Charleston Deepening2018–2020 Directed largest USACE dredging contract at the time, evidencing execution on complex capital projects .
GLDDField Engineer; Project Management Roles1994–2015 Progressive responsibility in project delivery and operations .

External Roles

OrganizationRoleYearsStrategic Impact
Western Dredging Association (WEDA) – Eastern BranchBoard Membern/a Industry engagement and network contributing to market development and best practices .
American Society of Civil EngineersMembern/a Professional standards and technical development .

Fixed Compensation

MetricFY2023FY2024
Base Salary ($)$350,000 $364,000
Target Bonus (% of Salary)55% 55%

Performance Compensation

Annual Incentive – FY2024 (Executive Leadership Annual Incentive Program)

MetricWeightingThresholdTargetMaximumActualPayout & Vesting
Adjusted EBITDA (company)70% (financial) $65m (50% funding) $130m (100%) $156m (200%) $162.5m (above max) Annual cash paid; Johanson earned 200% of target ($400,400 vs. $200,200 target)
Individual strategic goals (Safety, People, Operational, Market/Backlog, Offshore Energy, Fleet renewal, Budget)30% Qualitative (set at start of year) n/an/aAchievements assessed by CEO/Committee (e.g., MOB incident reduction, backlog, dry dock on-time/budget) Included within 200% total payout

Long-Term Incentives – FY2024 Grants

Award TypeShares GrantedGrant Date Fair Value ($)VestingPerformance MetricsFY2024 Results
RSUs12,668 $109,198 Time-based; three annual installments (e.g., March 15, 2025 and March 15, 2026 for remaining tranches) n/an/a
PSUs (Annual program)62,668 $564,698 One-year performance periods (2024/2025/2026); earned PSUs vest on anniversary of grant date after applicable year (e.g., March 15, 2025 for 2024 tranche) 20% G&A+OH; 40% Contract Margin; 40% Year-end Dredging Backlog Actuals: G&A+OH 10.9% vs. target 12.8%; Contract Margin 27.2% vs. target 23.3%; Backlog $1.2bn vs. target $624.2m; funding at 200% for 2024
Special PSUs (Retention/performance)50,000 (20k+30k) $455,500 20,000 PSUs vest on June 30, 2026 if FY2025 EBITDA within ±10% of budget; 30,000 PSUs vest on June 30, 2028 if FY2026 EBITDA within ±10% of budget; continued employment required FY2025/FY2026 budgeted EBITDA thresholds Performance years pending

Multi-Year Compensation Summary

ComponentFY2023 ($)FY2024 ($)
Salary350,000 364,000
Stock Awards (RSUs/PSUs grant-date fair value)210,000 673,896
Non-Equity Incentive Plan Compensation (Annual bonus)196,350 400,400
All Other Compensation38,640 52,120
Total794,990 1,490,416

Equity Ownership & Alignment

  • Stock ownership guideline: 3.0x salary; must retain 50% of net shares from RSU/PSU settlements until guideline met; all named executive officers were in compliance as of Dec 31, 2024 .
  • Prohibition on hedging/pledging: Directors, officers, and all employees are prohibited from hedging or pledging GLDD securities, reducing alignment risk; clawback policy (Sept 6, 2023) covers cash and equity incentive compensation and allows recoupment for termination-for-cause conduct .

Outstanding Equity Awards (as of Dec 31, 2024; closing price $11.29/share)

AwardUnvested/Unearned Shares (#)Market/Payout Value ($)
RSUs (various tranches; time-based)11,031; 2,645; 6,810; 8,446124,540; 29,862; 76,885; 95,355
PSUs (earned at 182.8% and 199.0% for certain grants; vest Mar 15, 2025)12,495; 8,402; 734141,069; 94,859; 8,287
PSUs (FY2025 goal; vest Mar 15, 2026 if earned)13,620153,770
PSUs (FY2025/FY2026 goals; vest starting Mar 15, 2026 if earned)16,892190,711
Special PSUs (FY2025/FY2026 budgeted EBITDA; vest Jun 30, 2026/2028)50,000564,500

Deferred Compensation (SSP)

MetricFY2024
Executive Contributions ($)3,640
Registrant Contributions ($)7,560
Aggregate Earnings ($)378
Aggregate Balance at FYE ($)25,613

Employment Terms

ProvisionDetail
Employment AgreementNone as of Dec 31, 2024 (Johanson not subject to an employment agreement) .
Severance (general Severance Plan; if terminated Dec 31, 2024)Salary continuation $280,000; medical/dental $8,832 (discretionary plan) .
Change-in-Control (CIC)No cash CIC multiple; estimated value of long-term incentives vesting/acceleration: $1,200,895 (if awards not assumed, vest per award terms) .
Death/DisabilityEstimated long-term incentives value: $1,200,895 .
ClawbackNASDAQ-compliant clawback policy revised Sept 6, 2023; covers cash and equity incentives; allows recoupment for termination-for-cause conduct .
Hedging/PledgingProhibited for directors, officers, and employees .
Stock Ownership Guideline3.0x salary; in compliance as of Dec 31, 2024 .

Compensation Structure Analysis

  • Shift toward equity/at-risk pay: Stock awards increased from $210k in 2023 to $673.9k in 2024, driven by larger PSUs linked to profitability, cost management, and backlog, indicating stronger alignment with multi-year financial outcomes .
  • Incentive metrics tightened around operational levers: 2024 PSUs weighted to G&A+OH (20%), contract margin (40%), and year-end backlog (40%); annual bonus fully tied to Adjusted EBITDA plus qualitative execution goals, with payout capped at 200%—all achieved at max in 2024, reflecting rigorous but achieved targets .
  • Governance safeguards: No excise tax gross-ups, double-trigger CIC provisions, strict prohibitions on hedging/pledging, and robust clawback reduce misalignment and risk-taking incentives .

Say-on-Pay & Peer Benchmarking

  • Say-on-pay support: ~95% approval at the 2024 annual meeting; ~92% at the 2023 meeting, signaling investor support for compensation design .
  • Compensation peer group (2024 program): Ameresco; Argan; Badger Infrastructure Solutions; Construction Partners; Forum Energy Technologies; Helix Energy Solutions; KLX Energy Services; Limbach; Logistec; Matrix Service; Mistras; Newpark Resources; Northwest Pipe; NV5 Global; Oil States International; Orion Group; ProPetro; Sterling Infrastructure; Team; Tidewater; GLDD does not target specific pay percentiles against peers .

Investment Implications

  • Pay-for-performance alignment is strong: Johanson’s incentives are concentrated on EBITDA, margin, and backlog—core value drivers for GLDD’s asset-intensive dredging business; FY2024 max payouts across annual and PSU metrics reflect robust execution momentum .
  • Retention risk moderated by special PSUs: 50,000 PSUs with service-through-June 2028 and EBITDA triggers provide a clear retention mechanism for Johanson across FY2025–FY2026 cycles .
  • Governance mitigants reduce red flags: No hedging/pledging, comprehensive clawback, no tax gross-ups, and double-trigger CIC provisions support investor confidence in compensation governance .
  • Equity acceleration exposure: In a CIC or death/disability scenario, Johanson’s value realization is predominantly equity-based ($~1.2m), with limited cash severance—aligning outcomes with shareholder value but creating potential insider selling pressure around vesting dates; vesting calendars are transparent (e.g., Mar 15 cycles; Jun 30 for special PSUs) .