Mark Herndon
About Mark Herndon
Mark Herndon, age 55, is Chief Financial Officer of Horizon Kinetics Holding Corporation (HKHC), responsible for all financial reporting functions; he joined Horizon Kinetics in 2024 and previously served as SVP & CFO at Safeguard Scientifics (2018–2023) and spent 27 years at PwC, including Assurance Partner (2006–2018) . He holds a BBA in Accounting from Georgia Southern University and an MBA from Emory University’s Goizueta Business School . Company performance during his tenure includes revenue growth of 18% in FY2024, AUM rising 51% to $9.8B, net income to HKHC shareholders of $92.5M, and TSR of 169.86 (Aug 1–Dec 31, 2024) as disclosed in pay-versus-performance; note HKHC’s TSR reflects post-merger period .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Safeguard Scientifics, Inc. (NASDAQ: SFE) | Senior Vice President & Chief Financial Officer | 2018–2023 | CFO at a company providing capital and expertise to a portfolio of private entities . |
| PricewaterhouseCoopers (PwC) | Assurance Partner; various client service and national office roles | 2006–2018 (Partner) | Senior audit/assurance leadership; broad technical and client service responsibilities . |
External Roles
No external directorships or committee roles for Mr. Herndon are disclosed in HKHC filings .
Fixed Compensation
| Metric (USD) | 2024 | 2025 |
|---|---|---|
| Base Salary | $350,000 | $525,000 |
| Cash Bonus | $260,000 (actual) | TBD (bonus pool formula set, amount not disclosed) |
- Program design: base salary plus discretionary cash bonus; no equity-based compensation currently; no employment agreements for any executive officers .
Performance Compensation
| Element | 2024 | 2025 |
|---|---|---|
| Bonus Mechanism | Discretionary bonus from general pool (non-founder executives) | Bonus pool based on a percentage of incentive fees earned by HKHC, subject to Compensation Committee discretion |
| Performance Metrics | Specific metrics not disclosed; program aligned to firm performance and incentive fees | Incentive-fee driven pool; specific weighting/targets not disclosed |
| Target | Not disclosed | Not disclosed |
| Actual | $260,000 cash bonus for 2024 | TBD for 2025 |
| Payout Form | Cash; discretionary | Cash; discretionary |
| Vesting | Immediate (cash) | Immediate (cash) |
- Risk controls: the Compensation Committee cites discretionary authority to reduce annual cash incentive awards and a clawback policy for incentives in the event of financial restatements due to misconduct or fraud .
Equity Ownership & Alignment
| Ownership Detail | As of Apr 21, 2025 |
|---|---|
| Shares Beneficially Owned | 0 |
| Ownership % of Shares Outstanding | 0.0% (out of 18,635,321 shares outstanding) |
| Vested vs. Unvested Shares | No equity awards outstanding for NEOs as of 12/31/2024 |
| Options (Exercisable/Unexercisable) | None |
| Shares Pledged | Not disclosed; no holdings for Mr. Herndon |
| Stock Ownership Guidelines | Not disclosed in proxy |
- Insider trading policy: HKHC maintains an insider trading policy governing transactions by directors, officers, employees and the Company .
Employment Terms
| Term | Details |
|---|---|
| Role | Chief Financial Officer |
| Employment Start | Joined Horizon Kinetics in 2024 |
| Contract Term / Expiration | No employment agreements with any executive officers |
| Auto-Renewal | Not applicable (no employment agreement) |
| Non-compete / Non-solicit | Not disclosed |
| Severance / Change-of-Control | Not disclosed |
| Clawback | Clawback for incentives if financial restatement due to misconduct or fraud |
Performance & Track Record
- FY2024 revenue grew 18% on higher mutual fund and SMA fees; AUM rose ~51% to $9.8B, supported by strong market appreciation in major holdings (e.g., TPL, GBTC) .
- Net income attributable to HKHC shareholders was $92.5M for FY2024; TSR from the Aug 1, 2024 merger to year-end was 169.86 on a $100 base (with dividends reinvested) .
- Material weaknesses in internal control over financial reporting remained unremediated as of 12/31/2024 (segregation of duties, reconciliations/valuations, supervisory review controls) .
- Business exposure includes heavy concentration in Texas Pacific Land Corporation (TPL) across funds/SMAs (~41% of AUM at 12/31/2024) and cryptocurrency exposures, creating potential volatility for fees and performance .
Compensation Structure Analysis
- Shift remains cash-heavy (salary + discretionary bonus); HKHC currently does not grant RSUs/PSUs/options to executive officers, limiting stock-based alignment and vesting-related selling pressure .
- 2025 introduces incentive-fee-linked bonus pool for non-founder executives, tightening linkage to firm economics but still without disclosed metric targets/weightings .
- No employment agreements or disclosed severance/change-of-control terms; clawback policy is in place for misconduct/fraud-related restatements .
Related Party Transactions (Context)
- FRMO Corporation has revenue-share and equity interests with HKHC; HKHC and certain officers have roles/arrangements with CMSC and Winland, and HKHC holds shares in FRMO and CMSC, indicating ongoing related-party dynamics overseen by the Audit Committee per policy .
Investment Implications
- Alignment: Zero personal share ownership, no equity awards, and cash-only incentives suggest limited direct alignment with long-term stock appreciation; however, the 2025 bonus pool’s tie to incentive fees links compensation to performance economics and AUM trends .
- Retention: Absence of an employment agreement (and no disclosed severance/change-of-control terms) increases mobility but also reduces guaranteed payouts; compensation variability tied to incentive fees may be supportive in strong markets but could compress in downturns .
- Execution risk: Unremediated internal control material weaknesses and significant exposure to concentrated positions (e.g., TPL) and crypto-linked assets heighten operational and earnings volatility, impacting bonus pool potential and finance function demands .
- Trading signals: Expect compensation sensitivity to incentive fees tied to fund performance/AUM; monitoring TPL, crypto markets, and remediation of controls is relevant for anticipating CFO-related compensation cadence and the firm’s operating leverage to market moves .