Erica Ackerman
HYDROFARM HOLDINGS GROUPAbout Erica Ackerman
Erica Ackerman is Hydrofarm’s Chief Accounting Officer (CAO), serving since January 2025 per the proxy and assuming the CAO role concurrent with the October 17, 2024 leadership succession plan; she previously served as Corporate Controller (March 2023–present) and Assistant Controller (March 2021–March 2023) . She is a California CPA and holds a BBA from the University of Washington Foster School of Business; prior experience includes 14+ years at McKesson as Director of Global Corporate Reporting (2018–2020) and Senior Manager of Technical Accounting (2013–2018) . Company performance context during 2021–2024: net sales declined 16% in 2024 vs 2023 ; in 2023, net sales fell 34% YoY while gross profit rose 28% and operating cash flow was positive; TSR-based $100 investment values were $53.80 (2021), $2.95 (2022), and $1.74 (2023); reported net income (loss) was $13.416M (2021), $(285.415)M (2022), $(64.813)M (2023) .
Company TSR and Net Income
| Metric | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|
| Value of $100 investment (TSR) | $53.80 | $2.95 | $1.74 |
| Net Income (Loss) ($USD Millions) | $13.416 | $(285.415) | $(64.813) |
Sales/Gross Profit YoY Change
| Metric | FY 2023 vs FY 2022 | FY 2024 vs FY 2023 |
|---|---|---|
| Net Sales YoY Change | -34% | -16% |
| Gross Profit YoY Change | +28% | — |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Hydrofarm | Assistant Controller | Mar 2021–Mar 2023 | Technical accounting, controls support |
| Hydrofarm | Corporate Controller | Mar 2023–present | Corporate accounting leadership |
| Hydrofarm | Chief Accounting Officer | Oct 2024 leadership plan; serving since Jan 2025 | Enterprise accounting oversight |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| McKesson Corporation | Director, Global Corporate Reporting | Jun 2018–Jul 2020 | Led global reporting |
| McKesson Corporation | Senior Manager, Technical Accounting | Jan 2013–Jun 2018 | Technical accounting policy |
Fixed Compensation
| Component | Detail |
|---|---|
| Base Salary | $250,000 (effective Oct 17, 2024 leadership plan) |
| Target Bonus | 50% of base salary |
| FY 2024 Target Cash Bonus | Increased from $34,500 to $50,000 concurrent with CAO appointment |
Performance Compensation
| Incentive Type | Grant | Vesting | Performance Linkage |
|---|---|---|---|
| RSUs (one-time appointment grant) | 50,000 RSUs | One-third vesting on each annual anniversary of the Effective Date | Not specified for CAO; company uses a mix of cash and PSUs for NEO annual incentives |
Context: Hydrofarm’s NEO annual incentives combine cash and PSUs with objectives set by the board; Korn Ferry served as the compensation consultant in 2024 . For CAO, appointment terms specify RSUs and a cash bonus target; no CAO-specific PSU metrics disclosed .
Equity Ownership & Alignment
| Policy Area | Disclosure |
|---|---|
| Stock Ownership Guidelines | CEO: 6x salary; CFO: 4x; Executive Leadership Team: 2x salary |
| Compliance Status | As of March 31, 2025, NEOs and executive leadership team were making progress toward or met guidelines |
| Hedging/Pledging | Hedging, short sales, and pledging prohibited for directors, executive officers, and designated insiders |
| Clawback Policy | Adopted; Company will recover incentive-based compensation after accounting restatements irrespective of misconduct; no restatements in FY 2023–2024 |
Employment Terms
| Item | Details |
|---|---|
| Appointment | Assumed CAO role in the leadership succession plan effective October 17, 2024; serving as CAO since January 2025 per proxy |
| Compensation Terms | Base salary $250,000; 50% target bonus; 50,000 RSU grant vesting over three years (one-third on each annual anniversary of the Effective Date); FY 2024 target cash bonus increased to $50,000 |
| Related Party/Arrangements | No arrangements/understandings; no family relationships; no Item 404 related person transactions disclosed for Ms. Ackerman |
Investment Implications
- Alignment and retention: The three-year RSU vest schedule and ownership guidelines align pay with long-term value and create retention hooks; stepwise vesting may add periodic share delivery events but hedging/pledging prohibitions mitigate misalignment risk .
- Performance sensitivity: Company-wide annual incentives for executives use cash and PSUs tied to board-set objectives; CAO’s appointment package emphasizes fixed cash plus time-vested RSUs, suggesting moderate direct linkage to performance vs NEO PSU constructs .
- Governance safeguards: Robust clawback policy and insider trading restrictions reduce downside governance risk; no related-party red flags noted for Ms. Ackerman .
- Execution context: Hydrofarm’s 2023 margin improvement and positive operating cash flow alongside sales headwinds and poor TSR underscores a turnaround environment where disciplined reporting and accounting leadership are critical—Ackerman’s McKesson technical accounting background is relevant to execution quality .