Matthew J. Simmes
About Matthew J. Simmes
Matthew J. Simmes, 49, is IES’s President & Chief Operating Officer and will become President & Chief Executive Officer and a Director effective July 1, 2025. He has served in leadership roles across IES for 31 years, including President of IES Communications and COO, with a track record centered on operational execution and systems/process improvements . Company performance metrics tied to pay show strong recent results: total shareholder return (fixed $100) reached $628.33 in FY2024, while Net Income was $219 million and Adjusted Pretax Income $295 million, both up sharply from FY2023; FY2024 Adjusted Pretax Income achieved 163.9% of target, triggering maximum company STIP payout levels .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| IES Holdings, Inc. | President & COO | Dec 7, 2023 – present | Led operations and drove company financial goals; personal goals included process improvement, ERP implementation, and succession planning . |
| IES Holdings, Inc. | COO | Dec 3, 2021 – Dec 6, 2023 | Company-wide operational leadership and execution . |
| IES Communications (IES segment) | President | Jan 2017 – Dec 2021 | Led segment operations; executed growth and operational initiatives . |
| IES Communications (IES segment) | VP, Operations | Mar 2007 – Dec 2016 | Operational oversight and process leadership . |
External Roles
No external public-company directorships or board committee roles are disclosed for Mr. Simmes in the company’s 10-K/proxy biographies .
Fixed Compensation
| Metric | FY2024 | FY2025 |
|---|---|---|
| Base salary ($) | 750,000 | 750,000 (no increase; offset by supplementary STIP opportunity) |
| Target annual bonus (% of salary) | 100% | 100% |
| Actual STIP bonus paid ($) | 1,214,241 (97% of max) | n/a (in year) |
Performance Compensation
FY2024 Short-Term Incentive Plan (STIP)
| Component | Weight | Metric/Scale | Target | Actual | Payout (% of component) | Notes |
|---|---|---|---|---|---|---|
| Company performance | 66.67% | Adjusted Pretax Income vs. plan | 100% = $180.1m | 163.9% of target; $293.0m | 150% (max) | Max achieved at ≥120% of target . |
| Personal performance | 33.33% | 1–5 rating scale (target 3.5) | 3.5 | Assessment by Committee | 185.7% | Goals: processes/project execution, FY24 financials, IT/ERP, succession . |
| Total cash payout | — | — | — | — | — | $1,214,241 (97% of max) . |
FY2025 STIP and Supplementary STIP (SSTIP)
- STIP target: $750,000 (100% of salary); same weighting and payout matrix as FY2024 .
- Supplementary STIP (for Simmes only): cash bonus = 1.0% of FY2025 Adjusted Pretax Income above 62.5% of target + 1.5% of amount above 100% of target; capped at $7,500,000 .
Long-Term Incentives (Equity)
| Grant/Program | Grant date | Type | Units (#) | Vesting & performance | Status / outcomes |
|---|---|---|---|---|---|
| FY22 LTIP Phantom Units | Dec 1, 2021 | Phantom Units | 12,124 | 2/3 perf. on Cumulative Adjusted Pretax Income (FY2022–24), 1/3 time-based; vesting mid-Dec 2024 | Performance achieved at 120% of target; 9,699 perf. units vested Nov 22, 2024; 4,041 time-based units vested Nov 22, 2024 . |
| FY23 LTIP Phantom Units | Dec 1, 2022 | Phantom Units | 17,715 | 2/3 perf. on Cumulative Adjusted Pretax Income (FY2023–25), 1/3 time-based; vest mid-Dec 2025 | Outstanding (subject to FY2023–25 results) . |
| FY24 LTIP Phantom Units | Nov 30, 2023 | Phantom Units | 10,521 | 2/3 perf. on Cumulative Adjusted Pretax Income (FY2024–26), 1/3 time-based; vest mid-Dec 2026 | Outstanding . |
| FY25 LTIP Phantom Units | Nov 22, 2024 | Phantom Units | 2,691 | 2/3 perf. on Cumulative Adjusted Pretax Income (FY2025–27) with max vesting increased to 150% at ≥120% of target; 1/3 time-based; vest mid-Dec 2027 | Outstanding . |
| Stock-Price-Based Award | Dec 3, 2021 | Phantom Units | 50,000 | Two tranches; each half subject to $75/$90 20/25-day price hurdles; tranche employment dates Dec 3, 2023 and Dec 3, 2024 | Vested in full: 12,500 on Jan 8, 2024; 12,500 on Mar 7, 2024; 25,000 on Dec 3, 2024 . |
| Time-Based Award (promotion) | Dec 5, 2023 | Phantom Units | 25,000 | Time-based; scheduled to vest Dec 7, 2026 (continued employment) | Outstanding . |
| Simmes Special Equity Award | Dec 5, 2023 | Phantom Units | 5,612 | Time-based; scheduled to vest Dec 7, 2026 | Outstanding . |
| Value Creation PSUs | Nov 21, 2024 | Phantom Units (cash-settled for Simmes) | 40,000 | Two equal time-based tranches scheduled to vest on or about Dec 1, 2026 and Dec 1, 2027 | Outstanding . |
Key vesting overhang: multiple sizable time-based tranches in Dec 2026 (25,000 + 5,612 + FY24 LTIP time/perf) and Dec 2027 (Value Creation PSUs + FY25 LTIP time/perf) may concentrate liquidity windows .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 24,583 shares; less than 1% of 20,006,630 shares outstanding as of Dec 27, 2024 . |
| Unvested stock awards (9/30/24) | 78,764 units not vested; market value $15,722,870 at $199.62/share . |
| Unearned perf. awards (9/30/24) | 22,589 unearned perf. units (max basis), market value $4,509,216 . |
| Hedging/derivatives | Hedging and options trading prohibited by Insider Trading Policy . |
| Pledging | No specific disclosure on pledging in the cited policies . |
| Exec ownership guidelines | No formal stock ownership guidelines for executive officers . |
Employment Terms
| Provision | Economics / Terms |
|---|---|
| Agreement eligibility | Simmes participates in the Executive Officer Severance Plan per his Letter Agreement . |
| Termination without cause / good reason (pre-COC) | 12 months base salary ($750,000), bonus for year of separation per Committee, COBRA est. $17,064, pro-rata vesting of performance units per plan; example total $14,877,090 as of 9/30/24 (includes equity vesting valuation) . |
| Termination without cause / good reason (within 12 months post-COC) | 24 months base salary ($1,500,000), 2× greater of last bonus or bonus opportunity ($2,428,482), COBRA est. $17,064, accelerated equity at max; example total $24,177,432 as of 9/30/24 . |
| Death/Disability | Bonus for year of separation ($1,214,241), 12 months salary ($750,000), COBRA est. $17,064, accelerated equity at max; example total $22,213,191 as of 9/30/24 . |
| Equity treatment on COC | If stock remains publicly traded, performance conditions deemed met at maximum; awards continue subject only to service. If not publicly traded, full vesting at COC with performance at maximum . |
| Clawbacks | Company has an Incentive Compensation Recoupment Policy; severance plan allows recoupment for “erroneously awarded” incentive compensation . |
Related Party / Governance Considerations
- Family employment: In FY2024, Mr. Simmes’s son and spouse were employed at IES. Aggregate FY2024 compensation was approximately $450,525 (son) and $502,380 (spouse; employment ended during FY2024) .
- Majority shareholder: Tontine entities beneficially own ~54.77% of IES; a sale could trigger change-of-control provisions, affecting executive severance and other agreements .
- Insider trading policy: Prohibits short sales and options trading; requires pre-clearance and trading windows for insiders .
Compensation Structure Analysis
- Mix shift and leverage: 2024 featured a significant discretionary cash award ($2,285,000) atop a maximum company STIP payout and high personal-performance factor, increasing cash realization vs. prior year discretionary cash ($400,000) .
- Added short-term leverage for 2025: Base salary held flat at $750,000, offset by a new Supplementary STIP with up to $7.5 million cap tied to outperformance on Adjusted Pretax Income, raising short-term earnings sensitivity of pay .
- Equity structure: Emphasis on phantom units with combined performance and time-based vesting; special time-based awards (25,000; 5,612; 40,000 cash-settled PSUs) increase guaranteed equity vesting exposure through 2026–2027 absent termination for cause .
Pay Versus Performance (Context)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 |
|---|---|---|---|---|
| TSR – value of $100 investment ($) | 143.81 | 86.94 | 207.33 | 628.33 |
| Net Income ($ millions) | 67 | 35 | 108 | 219 |
| Adjusted Pretax Income ($ millions) | 80 | 51 | 141 | 295 |
FY2024 STIP company metric achieved 163.9% of target Adjusted Pretax Income ($293.0m vs. $180.1m target), driving the max company component payout .
Compensation Governance
- HR & Compensation Committee: Independent; members included Todd M. Cleveland (Chair), Jennifer A. Baldock, and Joe D. Koshkin; met 7 times in FY2024 .
- Market benchmarking: Mercer engaged; peer practices and groups reviewed and updated (TSR peer group in disclosures includes Comfort Systems USA, MYR Group, Sterling Infrastructure, Primoris, and Installed Building Products) [11: