Adam Baumann
About Adam Baumann
Adam M. Baumann is Chief Accounting Officer (CAO) and Principal Accounting Officer of Kimball Electronics, appointed in 2023; he joined KE in 2019 as Assistant Corporate Controller and became Corporate Controller in March 2021. Prior roles include Vectren Corporation (2009–2019) and Ernst & Young LLP (2003–2009); he holds a degree in Accounting and Finance from Indiana University and is a Certified Public Accountant; age 42 as of June 16, 2023 when promoted to CAO . Company performance context: revenues decreased year-over-year while EBITDA moderated; long‑term incentives for executives emphasize relative TSR and three‑year economic profit, aligning pay with sustained value creation .
| Metric | FY 2024 | FY 2025 |
|---|---|---|
| Revenue ($USD) | $1,714,510,000 | $1,486,727,000 |
| EBITDA ($USD) | $115,741,000* | $93,042,000* |
Values retrieved from S&P Global.*
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Kimball Electronics (KE) | Assistant Corporate Controller | 2019–2021 | Built corporate accounting processes and controls prior to promotion . |
| Kimball Electronics (KE) | Corporate Controller (Principal Accounting Officer) | Mar 2021–Jun 2023 | Led external reporting and accounting oversight; functioned as Principal Accounting Officer . |
| Vectren Corporation | Manager, External Reporting & Accounting Research; Manager, Regulatory Implementation & Analysis | 2009–2019 | Led SEC reporting, technical accounting, and regulatory implementation efforts . |
| Ernst & Young LLP | Assurance roles | 2003–2009 | Public-company audit and accounting foundation . |
Fixed Compensation
Not specifically disclosed for Mr. Baumann (not a Named Executive Officer in FY2025). KE’s philosophy: base salary adjusted for role, performance, and market; NEOs received FY2025 base adjustments as part of annual review .
Performance Compensation
Company-wide executive incentive architecture (applies equally to executive officers) emphasizes short-term operating rigor and long-term market-relative and economic profit performance.
-
Short-Term Cash Incentives (FY2025 design) :
- 60% weighting on Operating Margin (Adjusted) vs Board-approved plan .
- 20% weighting on Revenue Growth vs Russell 2000 Electronic Components subsector peers .
- 20% weighting on Revenue Growth vs Board-approved plan .
- Payout capped; below-target outcome for FY2025 noted; payout formula included a 102% ESG modifier applied to target % and base salary .
-
Long-Term Equity Incentives (2023 Equity Incentive Plan) :
- Performance Shares (PSUs): 30% relative TSR vs Russell 2000 Electronic Components subsector; 70% three‑year Economic Profit vs Board-approved plan; cliff vest after three years .
- Restricted Shares (RSUs): three‑year incremental vesting schedule; minimum one-year vesting required by plan .
- FY23–FY25 PSU awards certified at 99.0% total (49.0% profitability attainment; 50% growth attainment) .
- No dividends on unvested stock awards; strong clawback applies .
| Component | Metric | Weighting | Target Framework | Actual/Payout | Vesting |
|---|---|---|---|---|---|
| STI (Cash) | Operating Margin (Adjusted) vs Plan | 60% | Board‑approved plan | Below target; payout formula with 102% ESG modifier | 1‑year performance period |
| STI (Cash) | Revenue Growth vs Peers | 20% | Russell 2000 Electronic Components subsector peers | Below target; part of capped award design | 1‑year performance period |
| STI (Cash) | Revenue Growth vs Plan | 20% | Board‑approved plan | Below target | 1‑year performance period |
| LTI (PSUs) | Relative TSR | 30% | rTSR vs Russell 2000 Electronic Components subsector | FY23–FY25: 99.0% total certification (part of overall PSU) | Cliff vest after 3 years |
| LTI (PSUs) | Economic Profit (3‑yr) | 70% | Board‑approved plan (3‑year horizon) | FY23–FY25: 99.0% total certification (49% profitability; 50% growth) | Cliff vest after 3 years |
| LTI (RSUs) | Time‑based | — | N/A | N/A | Incremental vest over 3 years; ≥1‑year min vesting |
Additional PSU Award Terms (general form): non‑transferable; subject to forfeiture; proration on death, disability, or retirement; payment within 2.5 months after vesting year; dividend/voting rights only upon vesting .
Equity Ownership & Alignment
- Stock ownership guidelines: executives reporting directly to the CEO must hold shares equal to 3× base salary (CEO 6×); must retain 100% of net, post‑tax shares until guideline met; target attainment within ~5 years; unearned/unvested awards and options do not count .
- Anti‑hedging/anti‑pledging: directors, executive officers, and covered employees prohibited from hedging or pledging KE stock; company notes no pledging/hedging by NEOs to its knowledge .
- No stock options granted; equity delivered via PSUs and RSUs with multi‑year vesting .
Employment Terms
- At‑will employment; KE does not maintain individual employment agreements for NEOs and relies on company plans for severance/CoC terms .
- Leadership team severance structure (Severance and Change‑in‑Control Plan): double‑trigger for CoC; no excise tax gross‑ups; severance generally equals 6–12 months base salary by tier, plus a bonus amount based on higher of target or 3‑year average, up to $25,000 outplacement, and for eligible U.S. employees a COBRA subsidy up to 12 months; amounts double during the CoC protection period; restrictive covenants include confidentiality and a 12‑month non‑solicit post‑termination .
- CAO role definition: general supervision of corporate accounting under the authority of the CEO/President/CFO; duties customary to the office .
Investment Implications
- Alignment: The pay mix emphasizes at‑risk compensation tied to operating margin, revenue growth, rTSR, and three‑year economic profit; required retention of net shares and prohibition on pledging/hedging reduce near‑term selling pressure and enhance alignment .
- Governance safeguards: Double‑trigger CoC, capped incentives, no stock options, and clawback policy mitigate excessive risk‑taking while sustaining long‑term focus .
- Disclosure gap: As a non‑NEO executive, Mr. Baumann’s individual salary, bonus, award sizes, and personal ownership amounts are not itemized in the proxy; monitoring future proxies and any Form 4 filings is necessary to assess insider selling pressure or ownership changes .