Jessica DeLorenzo
About Jessica DeLorenzo
Jessica L. DeLorenzo is Chief Human Resources Officer (CHRO) of Kimball Electronics and an executive officer since 2018; she joined the company in 2015 as Director, Organizational Development, was promoted to Vice President, Human Resources in 2018, and her title was changed to CHRO in 2025 to reflect the evolution of her role. She is age 40 as of August 22, 2025 and holds a B.A. in Psychology from Rice University and an M.S. in Human Services Administration from Louisiana State University in Shreveport, with responsibilities spanning global HR strategy, talent management, and “Employer of Choice” frameworks across worldwide operations . Company performance context for FY2025 included net sales of $1,486.7M, adjusted operating income of $61.3M, record $183.9M operating cash flow, and material debt reduction, underpinning the executive compensation program’s focus on profitability, growth, and capital discipline .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Kimball Electronics | Director, Organizational Development | 2015–2018 | Built talent management framework and “Employer of Choice” philosophies across global operations . |
| Kimball Electronics | Vice President, Human Resources | 2018–2025 | Led HR strategies for people development, business growth, and continuous improvement aligned to Guiding Principles . |
| Kimball Electronics | Chief Human Resources Officer | 2025–Present | Expanded leadership remit as CHRO to reflect role evolution; executive officer since 2018 . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Vincennes University | Director, Student Services | 2011–2015 | Led student services; prior experience preceding KE appointment . |
Fixed Compensation
- Program design: Executive compensation comprises base salary (fixed), annual cash incentives, and long-term equity incentives under the 2023 Equity Incentive Plan; the Talent, Culture, and Compensation Committee (TCC) approves principal elements and applies governance best practices (ownership requirements, clawbacks, no tax gross-ups) .
- Base salary policy: Linked to performance, leadership, contribution, market demand; salary is the only fixed component of direct compensation .
- Note: The proxy’s Summary Compensation Tables identify named executive officers (NEOs) and do not disclose Jessica DeLorenzo’s individual base salary or cash payouts; as CHRO she is an executive officer but not a disclosed NEO in FY2025 .
Performance Compensation
| Component | Metric | Weighting | Target Definition | Actual/Payout (FY2025 Program-Level) | Vesting |
|---|---|---|---|---|---|
| Annual Cash Incentive | Operating Margin (Adjusted) vs Board Plan | 60% | Board-approved plan target | Below-target payout at 20% of target, × 102% ESG modifier; applies to NEO program-level; CHRO program follows executive framework . | N/A (cash) |
| Annual Cash Incentive | Revenue Growth vs Russell 2000 Electronic Components subsector peers | 20% | Peer-relative growth | See above program-level payout . | N/A (cash) |
| Annual Cash Incentive | Revenue Growth vs Board Plan | 20% | Board-approved plan target | See above program-level payout . | N/A (cash) |
| ESG Modifier | ESG goals | ±5% | Company ESG modifier | Applied at 102% in FY2025 program . | N/A (cash) |
| Long-Term Equity (PSUs) | Relative TSR (Russell 2000 Electronic Components subsector) | 30% | 3-year relative TSR | FY23–FY25 PSU awards paid ~99% total (49% profitability attainment, 50% growth attainment) at program level . | Cliff vest after 3 years . |
| Long-Term Equity (PSUs) | Three-year Economic Profit vs Board Plan | 70% | 3-year economic profit | See above program-level payout . | Cliff vest after 3 years . |
| Long-Term Equity (RSUs) | Time-based | — | Service condition | One-third vests annually; Aug 2025 vesting included tranches from FY2023, FY2024, and FY2025 grants . | Annual tranches over 3 years . |
- Performance periods and payouts: PSUs granted in FY2023 cliff vest after the three-year period; KE’s three-year revenue CAGR (calendar 2022–2024) was 9.40% vs EMS Industry’s 4.60%, a factor in PSU formula mechanics .
Equity Ownership & Alignment
- Stock ownership guidelines: Executives reporting to the CEO must hold at least 3× base salary in KE shares; the CEO must hold 6×. Unearned/unvested performance shares and unexercised options do not count. Executives must retain 100% of net shares post-tax until meeting requirements, with a target compliance window of up to five years from appointment .
- Anti-pledging/anti-hedging: Directors and executive officers are prohibited from pledging, hedging, short sales, options, derivatives, or exchange funds; the company notes to its knowledge no pledging/hedging by NEOs .
- Beneficial ownership disclosure: FY2025 proxy tabulates beneficial ownership for directors and NEOs; Jessica DeLorenzo is not itemized among those categories, so her specific ownership and % outstanding are not disclosed therein .
Employment Terms
- Employment status: Executives are at-will; no individual employment agreements .
- Severance and change-of-control: Covered by the Leadership Team Severance and Change in Control Plan with double-trigger change-in-control benefits (event plus qualifying termination within 24 months). No excise tax gross-ups; equity vesting accelerates upon qualifying termination in connection with change-in-control; otherwise prorated/subject to performance .
- Severance components (tiers vary by role): 6–12 months of base salary (Tier III to Tier I), bonus amount based on target or three-year average (higher of), up to $25,000 outplacement, and COBRA subsidy up to 12 months for eligible U.S. employees; amounts double if within the change-in-control protection period .
- Restrictive covenants: Post-termination obligations include confidentiality, refraining from unfair competition, and non-solicitation of employees, customers, and clients for 12 months following a qualifying termination .
- Clawback: Incentive awards subject to clawback .
Company Performance Context (for alignment assessment)
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenue ($USD) | $1,823.429M | $1,714.510M | $1,486.727M |
| EBITDA ($USD) | $125.646M* | $115.741M* | $93.042M* |
Values retrieved from S&P Global.*
Notes: FY2025 CD&A highlights include operating income $45.5M (3.1% margin), adjusted operating income $61.3M (4.1%), record operating cash flow $183.9M, debt down $147.3M YoY; inventory reduced by $64.6M .
Vesting Schedules and Potential Insider Selling Pressure
- RSUs: Three-year vesting in equal annual installments beginning one year post-grant; one-third of RSUs granted in FY2023, FY2024, and FY2025 vested in August 2025. Annual August RSU tranches create predictable windows for potential Form 4 activity and related selling pressure around vest dates .
- PSUs: Three-year cliff vesting; FY2025–FY2027 grants issued with target numbers based on 30-day VWAP ($18.99 on Nov 21, 2024) and restricted share grants based on VWAP ($20.08 on Aug 29, 2024). Maximum PSU payout is 200% of target; vesting contingent on profitability and relative TSR goal attainment .
Compensation Structure Signals
- Equity-heavy, at-risk pay: Majority of executive target compensation is variable (71% for NEOs, 81% for CEO), emphasizing long-term PSUs tied to relative TSR and economic profit; company does not grant stock options and caps awards, reducing asymmetrical risk-taking incentives .
- Governance safeguards: Strong ownership guidelines, clawback policy, anti-hedging/pledging, and no excise tax gross-ups; minimum one-year vesting on equity under the plan .
Investment Implications
- Alignment: Ownership guidelines (3× salary for execs) and mandatory net-share retention until compliance, combined with PSU weighting to relative TSR and economic profit, indicate high pay-for-performance alignment for executives such as the CHRO .
- Selling pressure and timing: Annual August RSU vest tranches and three-year PSU cliffs create recurring windows where insider Form 4 activity may cluster; monitor filings around these dates for execution or diversification-related sells .
- Retention risk: At-will status is mitigated by a structured Severance Plan with double-trigger change-in-control protection, 6–12 months salary, bonus components, COBRA subsidy, and outplacement, reducing abrupt departure risk while avoiding shareholder-unfriendly gross-ups .
- Performance linkage: FY2025 below-target cash incentive payout at 20% of target (with 102% ESG modifier) underscores discipline; PSU outcomes tied to outperformance vs industry (e.g., 9.40% vs 4.60% revenue CAGR for 2022–2024) concentrate realized pay on sustained execution .