Tyler Farquharson
About Tyler Farquharson
Tyler S. Farquharson is President and Chief Executive Officer of Granite Ridge Resources (GRNT), appointed June 12, 2025 after serving as CFO since July 2022; age 42; B.S. in Finance (University of Kansas, 2005) . He has 19+ years of oil and gas finance experience, primarily at EXCO Resources (CFO/Treasurer 2017–2022) before joining GRNT . The company does not disclose TSR, revenue growth, or EBITDA growth metrics tied to his tenure in the proxy; as an Emerging Growth Company (EGC), GRNT provides scaled compensation disclosure and is not required to hold say‑on‑pay votes .
Past Roles
| Organization | Role | Years | Strategic impact / Notes |
|---|---|---|---|
| Granite Ridge Resources (GRNT) | President & Chief Executive Officer | 2025–present | Promoted to CEO on June 12, 2025; tasked with capital structure optimization (RBL expansion, potential terming out debt) and partnership structuring, per earnings call commentary . |
| Granite Ridge Resources (GRNT) | Chief Financial Officer | 2022–2025 | Led finance and IR through public-company transition; certifying officer on 10‑K/10‑Q . |
| EXCO Resources, Inc. | VP, Chief Financial Officer & Treasurer | 2017–2022 | Senior finance leadership at independent E&P . |
| EXCO Resources, Inc. | Corporate finance, planning, treasury, IR roles | 2005–2017 | Progressive finance roles across planning/treasury/IR . |
External Roles
No external public-company board roles are listed for Mr. Farquharson in the GRNT proxy biography reviewed .
Fixed Compensation
| Metric | FY 2023 | FY 2024 | 2025 Update |
|---|---|---|---|
| Base Salary ($) | $385,000 | $450,000 | CEO base $500,000 effective 6/12/2025 |
| Target Bonus (% of salary) | 30% (per employment agreement) | 30% (per employment agreement; salary increased) | Not specified in 8‑K CEO appointment (target % not disclosed) |
| Actual Annual Bonus ($) | $173,250 (earned 2023, paid 2024) | $263,560 (earned 2024, paid 2025) | — |
Notes:
- CFO employment agreement base was set at $385,000 and increased to $450,000 for 2024, remaining at that level for 2025 until CEO promotion .
- Bonuses are discretionary and based on individual and company performance under the EGC-scaled program .
Performance Compensation
Annual Equity Grants (CFO role)
| Year/Grant | Instrument | Grant size / Terms | Vesting | Valuation/Strike |
|---|---|---|---|---|
| 2023 | Options | 196,054 options (160,000 @ $9.22; 36,054 @ $5.02) | 1/3 on 3/21/2023; 1/3 on 3/21/2024; 1/3 on 3/21/2025 | ASC 718; Black‑Scholes/lattice models |
| 2023 | RS/PSU | 13,287 RS; up to 26,574 PSUs (target 13,287); performance period to 12/31/2025 | RS in 3 equal annual tranches beginning 3/21/2024; PSUs vest at end of performance period | ASC 718; PSU Monte Carlo |
| 2024 | Options | 56,250 options @ $6.06 (exp. 3/31/2034) | 1/3 on 3/6/2024; 1/3 on 3/6/2025; 1/3 on 3/6/2026 | ASC 718; Black‑Scholes |
| 2024 | RS/PSU | 14,851 RS; up to 59,406 PSUs (target 29,703); performance period to 12/31/2026 | RS in 3 equal annual tranches beginning 3/6/2025; PSUs vest at end of performance period | ASC 718; PSU Monte Carlo |
CEO Promotional Awards (June 12, 2025)
| Award | Grant size | Performance/price hurdles | Performance window | Settlement/Vesting |
|---|---|---|---|---|
| PSUs | 515,464 target PSUs (three tranches of 171,821/171,821/171,822) | Each tranche vests upon achieving $7.00 share price for 20 consecutive trading days | Through 12/31/2032 | Settled in shares upon achievement; continued employment generally required |
| Restricted Stock | 171,821 shares | Time-based | Vests in full on 6/12/2030 | Service condition |
Plan Features and Clawbacks
- 2022 Omnibus Plan allows options, SARs, RS/RSUs, other stock-based awards; no repricing/exchanges without stockholder approval; standard 10‑year option max term .
- Company adopted NYSE/Rule 10D‑1 compliant clawback policy effective Nov 8, 2023 covering incentive-based compensation tied to financial reporting measures upon restatement (received on/after Oct 2, 2023) .
Equity Ownership & Alignment
| Ownership/awards (as of 12/31/2024 unless noted) | Amount | Notes |
|---|---|---|
| Beneficial ownership (shares) | 321,333 (<1% of 131,134,671 SO) | Footnote indicates includes 248,939 vested options . |
| Options exercisable | 106,666 @ $9.22; 24,036 @ $5.02; 18,750 @ $6.06 | Per “Outstanding Equity Awards” table. |
| Options unexercisable | 53,334 @ $9.22; 12,018 @ $5.02; 37,500 @ $6.06 | Reflects status at year‑end 2024 . |
| Unvested RS | 23,709 shares (MV $153,160 at $6.46) | Vests 3/21/2026 (4,429); 3/6/2026 (4,950); 3/6/2027 (4,950); 3/6/2025 tranche (4,951) already scheduled post‑YE . |
| Unvested PSUs (max shown) | 85,980 units (MV $555,431 at $6.46) | 2023–2025 & 2024–2026 cycles; proxy shows amounts at max due to trending between target and max . |
| Hedging/pledging | Hedging/monetization transactions prohibited by Insider Trading Policy | Pledging not specifically disclosed in proxy; no reference identified in reviewed sections. |
Supply/vesting overhang indicators:
- 2026: remaining 37,500 options @ $6.06 plus RS tranches 4,950 + 4,429; 2026 PSUs (up to 59,406 at max) settle at period end if performance achieved .
- 2030: 171,821 time‑based CEO restricted shares cliff vest .
- Through 2032: price‑hurdle PSU opportunity of 515,464 target units .
Employment Terms
| Term | Detail |
|---|---|
| Agreement term | Initial 3‑year term from Oct 24, 2022; auto-renews annually unless 90 days’ notice . |
| Target bonus | CFO agreement: 30% of base salary; CEO target % not disclosed in 8‑K . |
| Severance (without cause/for good reason) | Lump sum equal to 2x (base salary + target bonus) based on prior fiscal year; 18 months COBRA eligibility . |
| Change‑in‑control (CIC) + termination (double trigger, or within 6 months post‑CIC) | 3x (base salary + target bonus) based on prior year; time‑based awards vest; 18 months COBRA; release required . |
| Non‑compete / non‑solicit | 12 months post‑termination; non‑disparagement also applies . |
| Definitions of Cause/Good Reason | Detailed definitions in agreement (material breach, failure to perform, policy violations, etc.; material diminution, reporting change, relocation >50 miles, company breach) . |
| CIC treatment under plan | If awards not assumed/replaced, time‑based awards vest; performance awards vest per achievement as determined; Plan Administrator may cash‑out . |
Compensation Structure Observations
- Mix and performance linkage: 2023–2024 equity included sizable PSUs with multi‑year performance and options with staged vesting, aligning with share price/outperformance; 2025 CEO package meaningfully increases at‑risk equity via price‑hurdle PSUs and a long‑dated time‑based cliff RS component, strengthening retention .
- Bonus determination: Annual cash incentives are discretionary based on individual and company performance under scaled EGC disclosure; explicit metric weightings/targets are not enumerated in the proxy .
- Governance: Compensation Committee engaged an independent consultant (Dana Krieg) to review executive compensation program in 2024 . As a NYSE “controlled company,” GRNT relies on governance exemptions (e.g., majority independent board not required) .
Performance & Track Record
- Strategic/Capital structure (CEO): Intends to expand RBL and evaluate high‑yield/private credit to term out RBL balances (Q2 2025 call) .
- Risk management (CFO): Maintained consistent hedging framework targeting ~50–75% PDP coverage, despite low leverage, to manage cash flow (Q3 2023 call) .
- Certifications/controls: As CFO, certified GRNT 10‑K/10‑Q compliance and internal controls .
Compensation Committee & Governance Context
- Committee composition (2024): Compensation Committee chaired by Thaddeus Darden; members include Matthew Miller, John McCartney; independent consultant engaged; ESG/Conflicts/Audit committees active with meeting cadence disclosed .
- EGC scaled disclosure and no say‑on‑pay requirement in 2024 .
- Related party/Manager MSA: GRNT operates under a Management Services Agreement with a Manager affiliated with certain directors; annual services fee ~$10 million; related transactions disclosed including asset divestiture to affiliate and fees paid in 2024, reviewed by Conflicts Committee .
Risk Indicators & Red Flags
- Change‑in‑control economics: 3x salary+target bonus double‑trigger payout plus vesting of time‑based awards—a generous multiple within small/mid‑cap E&P, increasing sale‑process incentives .
- Controlled company structure and Manager MSA represent governance/related‑party risk; Conflicts Committee oversight mitigates but does not eliminate potential conflicts .
- Clawback policy compliant with NYSE/Rule 10D‑1; hedging transactions prohibited—positive alignment features .
- Potential selling pressure windows: 2025–2027 option/RS tranches and end‑2026 PSU settlement could increase share supply if in‑the‑money/performance achieved; CEO 2030 cliff RS is long‑dated retention .
Equity and Award Detail Snapshot (as of 12/31/2024)
| Category | Detail |
|---|---|
| Options outstanding | 106,666/53,334 @ $9.22 (exercisable/unexercisable); 24,036/12,018 @ $5.02; 18,750/37,500 @ $6.06; expirations 3/31/2033–3/31/2034 . |
| Unvested RS | 23,709 shares; remaining tranches through 2027 . |
| PSUs in cycle | Up to 85,980 units (max depiction; cycles to 2025 and 2026) . |
| Beneficial ownership | 321,333 shares (<1%); includes 248,939 vested options . |
Employment Terms – Quick Reference
| Item | CFO Agreement (10/24/2022) | CEO Appointment (6/12/2025) |
|---|---|---|
| Base Salary | $385k (raised to $450k for 2024/approved for 2025) | $500k |
| Target Bonus | 30% of salary | Not disclosed |
| Severance (No Cause/Good Reason) | 2x (salary + target bonus) + 18m COBRA | Same agreement terms apply unless amended |
| CIC + Termination | 3x (salary + target bonus) + time‑based vesting + 18m COBRA | Same (per plan/agreements) |
| Non‑compete | 12 months | 12 months |
Investment Implications
- Pay-for-performance and retention: The 2025 CEO package heavily tilts toward long-dated, at‑risk equity (eight‑year price‑hurdle PSUs; five‑year cliff RS), aligning rewards to durable stock appreciation and encouraging tenure through 2030/2032 .
- Near-term supply dynamics: 2025–2027 option/RS vesting and potential 2026 PSU settlement could add incremental tradable shares if exercised/earned; monitor Form 4s and 10b5‑1 plans for selling programs as tranches vest .
- Governance/related‑party overlay: Controlled company status and the Manager MSA are key diligence items; Conflicts/ESG/Audit oversight and disclosure are positives, but investors should track related-party transactions and committee independence rigor .
- Risk management posture: Historical hedging discipline (50–75% PDP) and proactive balance sheet strategy (RBL increases, potential terming out) are constructive for cash flow resilience in a volatile commodity tape .