Robert Cranmer
J&J SNACK FOODSAbout Robert Cranmer
Robert K. Cranmer is Senior Vice President, Operations at J&J Snack Foods (JJSF). He is 68 years old, joined the company in 2013, and has served in various operational plant roles before being promoted to SVP of Operations in 2022 . Company performance during his recent tenure includes record FY2024 sales of $1.575 billion and adjusted EBITDA of $200.1 million, with gross margin of 30.9% . Over the past three fiscal years, JJSF reported total shareholder return indices of 118.98 (2021), 102.64 (2022), and 132.13 (2023), and adjusted EBITDA of $127.952 million (2021), $124.068 million (2022), and $181.555 million (2023) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| J&J Snack Foods Corp. | Senior Vice President, Operations | 2022–present | Part of management team that completed openings of three regional distribution centers in 2023–2024, supporting distribution efficiency gains |
| J&J Snack Foods Corp. | Operational plant roles | 2013–2022 | Plant-level operations leadership roles prior to promotion |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| None disclosed | — | — | Proxy lists executive officers and notes other public directorships if any; none are listed for Cranmer |
Fixed Compensation
Multi-year compensation for Cranmer (NEO in FY2022–FY2023):
| Metric | FY 2022 | FY 2023 |
|---|---|---|
| Salary ($) | 271,154 | 316,058 |
| Stock Awards ($) | 150,050 | 225,052 |
| Non-Equity Incentive ($) | 79,800 | 165,510 |
| All Other Compensation ($) | 10,047 | 28,253 |
| Total ($) | 511,051 | 734,873 |
Base salary trajectory:
- $285,000 per annum for FY2022
- $320,000 per annum from January 2023
Perquisites and benefits (company-wide for NEOs): use of company-owned automobiles and gas cards; CEO also receives country club allowance; DCP (non-qualified deferred compensation plan) effective January 1, 2025 for NEOs and director-level employees above a threshold .
Performance Compensation
Annual bonus structure and outcomes:
| Year | Target ($) | Actual ($) | Payout vs Target | Basis |
|---|---|---|---|---|
| 2022 | 128,000 | 79,800 | 70% | Primarily Adjusted EBITDA (committee discretion) |
| 2023 | — | 165,510 | 129% | Primarily Adjusted EBITDA (committee discretion) |
Equity awards granted to Cranmer:
| Grant Date | Type | Units | Vesting | Performance Metric | Grant Date Fair Value ($) |
|---|---|---|---|---|---|
| Nov 16, 2022 | PSUs | 990 | Vest based on 2-year performance; require additional 1-year service | Cumulative adjusted EBITDA thresholds: $337.09M (50%), $396.57M (100%), $436.23M (200%) | 150,035 |
| Nov 16, 2022 | RSUs | 495 | Equal one-third annually over 3 years | — | 75,017 |
| Nov 10, 2021 | PSUs | 484 | Vest on 2-year EBITDA + 1-year service; target cited at $361.5M for cohort | Cumulative EBITDA (two-year) | — |
| Nov 10, 2021 | RSUs | 323 | Equal one-third annually over 3 years | — | — |
| Nov 17, 2023 | PSUs | 445 | Vest on 2-year EBITDA + 1-year service | Cumulative adjusted EBITDA (two-year) | — |
| Nov 17, 2023 | RSUs | 446 | Equal one-third annually over 3 years | — | — |
Outstanding equity awards (as of 9/29/2023):
- Options: 500 at $163.29 expiring 5/13/2024; 1,500 at $125.83 expiring 5/19/2025 .
- Unvested RSUs: 323 ($52,859) from 11/10/2021; 495 ($81,007) from 11/16/2022 .
- Unvested PSUs: 484 ($79,207) from 11/10/2021; 990 ($162,014) from 11/16/2022 .
Vesting activity (FY2023): 161 shares vested; value realized $22,943; no option exercises recorded for Cranmer in FY2023 .
Committee-wide FY2024 bonus decision: NEOs' short-term incentive payments approved at 98% of target based on record performance and qualitative achievements .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Shares beneficially owned (12/15/2023) | 2,148; less than 1% of outstanding |
| Unvested equity exposure | RSUs and PSUs detailed above provide multi-year retention and performance alignment |
| Hedging / pledging | Hedging by executive officers is prohibited; pledging not disclosed in proxy |
| Ownership guidelines | Stock ownership guidelines exist for non-employee directors; executive officer guidelines not disclosed |
Employment Terms
| Provision | Terms |
|---|---|
| Clawback Policy | Mandatory clawback for current and former executive officers aligned with SEC and Nasdaq rules; recovery of erroneously awarded incentive compensation for the three completed fiscal years preceding a restatement |
| Deferred Compensation | Non-qualified Deferred Compensation Plan approved in Dec 2024, effective Jan 1, 2025, available to NEOs and director-level employees above a threshold |
| Equity value on termination (as of 9/30/2023) | Death/disability: $145,812; termination by company for reasons other than cause: $70,533; termination in connection with a change in control: $243,020 |
| Employment agreement / severance specifics | Not disclosed for Cranmer in available proxy |
Compensation Structure Analysis
- Mix shift: From FY2022 to FY2023, Cranmer’s cash compensation (salary + bonus) increased from $350,954 to $481,568, and equity awards increased from $150,050 to $225,052, indicating greater at-risk pay via equity tied to multi-year metrics .
- Incentive design: Annual bonuses are primarily based on adjusted EBITDA with committee discretion; long-term PSUs are tied to two-year cumulative adjusted EBITDA with post-performance service vesting, aligning incentives to operational execution and sustained performance .
- Discretionary outcomes: FY2024 NEO bonuses paid at 98% of target despite adjusted EBITDA modestly below plan, reflecting committee consideration of broader operational achievements (distribution centers, margin improvements) .
Say-on-Pay & Governance Context
- Say-on-pay support: Approximately 97% approval at the 2024 Annual Meeting; compensation program remained largely consistent for FY2024 in response to strong support .
- Compensation Committee: Comprised of independent directors (Sidney R. Brown, Chair; Roy C. Jackson; Peter G. Stanley); met three times in FY2024; responsible for executive compensation, contracts, change-in-control provisions, and equity grants .
Performance & Track Record
Company results concurrent with Cranmer’s operations leadership:
- FY2024 record sales ($1.575B) and adjusted EBITDA ($200.1M) with margin improvements (30.9% gross margin), and operational milestones including three regional distribution centers opened across 2023–2024 .
- Pay-versus-performance context: Adjusted EBITDA rose to $181.555M in FY2023 from $124.068M in FY2022; TSR index increased to 132.13 in FY2023 vs 102.64 in FY2022 .
Investment Implications
- Pay-for-performance alignment: Cranmer’s incentives are anchored to adjusted EBITDA (annual bonus) and multi-year cumulative adjusted EBITDA (PSUs) with an extra year of service, which should align his compensation to scalable operational execution and margin discipline .
- Retention dynamics: Unvested RSUs and PSUs with multi-year vesting and service requirements, plus no FY2023 option exercises and options expiring in 2025, suggest retention incentives and potential timing considerations for future exercises/sales; no Form 4 transactions were identified in available filings .
- Ownership and risk controls: Beneficial ownership is modest (<1%), but exposure via unvested awards supports alignment; anti-hedging policy and clawback reduce misalignment and restatement risk; no pledging disclosed .
- Governance backdrop: Strong shareholder support (97% say-on-pay) and independent compensation oversight reduce pay inflation and governance risk; committee retains discretion to reward operational achievements even when financial metrics slightly miss plan, which may sustain morale/retention of operations leadership .