Joseph W. Hauser
About Joseph W. Hauser
Joseph W. Hauser (age 43) is President of Trauma, Deformity, and OrthoPediatrics Specialty Bracing (OPSB) at OrthoPediatrics Corp. (KIDS). He joined the company in 2015, served as SVP (2021–2022), President of Trauma & Deformity (2022–2024), and has led Trauma, Deformity, and OPSB since 2024. He holds a Bachelor’s degree in Kinesiology & Exercise Science (ATC) from John Carroll University and pursued an MBA with a marketing focus at Capital University. The company’s key performance measures linking pay to results are revenue, Adjusted EBITDA, and free cash flow; KIDS reported net loss of $(37,822)k and Adjusted EBITDA of $8,519k in 2024, with cumulative TSR at 56 (value of a fixed $100 investment) for 2024, contextualizing incentive outcomes and shareholder alignment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| OrthoPediatrics Corp. | President, Trauma & Deformity | 2022–2024 | Led trauma and deformity portfolio expansion and commercial execution . |
| OrthoPediatrics Corp. | Senior Vice President | 2021–2022 | Advanced commercial operations prior to business unit leadership . |
| DJO Global; Biomet (Trauma); Zimmer (Trauma) | Various leadership roles | Pre-2015 | Built trauma category expertise across leading orthopedic platforms . |
External Roles
No public company board roles or external directorships disclosed .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 330,000 | 353,100 | 400,000 |
| All Other Compensation ($) | 12,200 | 13,200 | 13,800 |
Notes:
- 2024 base salary set by October 15, 2024 employment agreements at $400,000; three-year initial term with auto-renewal .
- Minimal perquisites; no tax gross-ups on perquisites or change-in-control benefits .
Performance Compensation
Annual Cash Bonus Structure and Outcome (2024)
| Named Executive Officer | Target Bonus % of Salary | Target ($) | Payout % of Target | Actual Bonus ($) |
|---|---|---|---|---|
| Joseph W. Hauser | 50% | 200,000 | 98% | 195,386 |
| Metric | Weighting | Targeting Framework | Actual vs Target | Payout Contribution | Vesting/Payment Timing |
|---|---|---|---|---|---|
| Sales Performance (Revenue) | 40% | Quarterly budgets; threshold 80%; overachievement multiplier allowed | Company assessed at 98% overall plan achievement; metric-level not disclosed | Included in 98% payout | Paid Feb 2025 |
| Adjusted EBITDA | 25% | Quarterly budgets; threshold 80%; overachievement pooled for year-end discretion | As above | Included in 98% payout | Paid Feb 2025 |
| Corporate Objectives | 25% | Pre-set annual objectives | As above | Included in 98% payout | Paid Feb 2025 |
| Individual Performance | 10% | Annual individual goals | As above | Included in 98% payout | Paid Feb 2025 |
Equity Awards (Long-Term Incentives)
| Grant Date | Instrument | Shares Granted (#) | Grant-Date Fair Value ($) | Vesting Schedule | Special Terms |
|---|---|---|---|---|---|
| 6/11/2024 | Restricted Stock (RS) | 37,936 | 1,130,493 | 100% vests on 3/15/2027 (≈2.75 years) | Under 2024 Plan; subject to clawback and anti-hedging/pledging |
| 3/15/2023 | Restricted Stock (RS) | 19,617 | 813,909 (SCT stock awards) | 3-year cliff vest (3/15/2026) | Outstanding at 12/31/2023 with market value $637,749 |
Vesting events realized in 2024: 5,756 shares vested on 2/16/2024; value realized $169,572 .
Three-Year Compensation Mix
| Component | 2022 ($) | 2023 ($) | 2024 ($) |
|---|---|---|---|
| Salary | 330,000 | 353,100 | 400,000 |
| Stock Awards | 548,640 | 813,909 | 1,130,493 |
| Non-Equity Incentive (Bonus) | 128,239 | 171,695 | 195,386 |
| All Other Compensation | 12,200 | 13,200 | 13,800 |
| Total | 1,019,079 | 1,351,904 | 1,739,679 |
Equity Ownership & Alignment
| Ownership Metric | Value |
|---|---|
| Beneficial Ownership (shares) | 137,663 |
| Restricted Shares included (unvested, votable, non-transferable) | 109,722 |
| Shares Outstanding | 24,831,427 |
| Ownership as % of Shares Outstanding | ≈0.55% (137,663 / 24,831,427) |
| Pledging/Hedging | Prohibited by insider trading policy (anti-hedging and anti-pledging) |
| Stock Ownership Guidelines | Director-only guideline ($225,000); no disclosed executive multiple |
Employment Terms
- Employment Agreement: Executed October 15, 2024; initial 3-year term with automatic one-year renewals; base salary set at $400,000; participation in annual bonus plan; benefits; expense reimbursement; compensation subject to legal/Nasdaq-mandated clawback policy .
- Restrictive Covenants: Confidentiality and invention assignment; non-compete and non-solicit for employment term plus 30 months post-termination across locations where company/NEO conducted business in prior 12 months .
- Severance (without cause / good reason): 30 months of base salary plus 2.5x average bonus over prior 3 fiscal years (paid in 30 monthly installments), unpaid prior-year bonus, pro-rated current-year bonus upon objective achievement, and up to 12 months of company-subsidized healthcare continuation .
- Change-of-Control: Same severance benefits if employment is terminated or title is changed within 12 months post-CoC (modified double-trigger) .
- Clawback: Exchange Act 10D/Nasdaq-compliant policy adopted November 1, 2023; applies to current/former Section 16 officers .
Performance & Track Record
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Net (Loss) Income ($USD Thousands) | 1,258 | (20,974) | (37,822) |
| Adjusted EBITDA ($USD Thousands) | 227 | 5,040 | 8,519 |
| Cumulative TSR (Value of $100 Investment) | 96 | 79 | 56 |
- OPSB Expansion (2025): Under Hauser’s leadership as OPSB President, the division expanded clinics into California, Ohio (Dayton), Colorado (Denver), NYC area, and internationally into Ireland, accelerating entry into 4 target markets and deepening hospital partnerships—evidencing operational execution and growth orientation .
Governance, Policies, and Shareholder Feedback
- Compensation Committee: Independent directors Terry D. Schlotterback (Chair), George S.M. Dyer, and Jimmy D. McDonald; periodic use of independent consultant NFP for market analysis; emphasis on pay-for-performance via annual bonus and restricted stock .
- Incentive Plan (2024): New 2024 Plan with minimum 1-year vesting, no option repricing/cash buyouts without shareholder approval, anti-hedging/anti-pledging, independent administration, and full vesting at 100% of target upon change-of-control; total share reserve 1,629,000 .
- Say-on-Pay Results: ~99% approval at 2024 annual meeting (for 2023 compensation program); no significant changes implemented following strong support .
Company Financial Context (Pay-for-Performance linkage)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($USD Millions) | 122.289* | 148.732* | 204.727* |
| Diluted EPS – Continuing Ops ($USD) | 0.0596* | (0.9250)* | (1.64)* |
Values marked with * retrieved from S&P Global via GetFinancials [S&P Global].
Notes: Adjusted EBITDA is a primary company-selected measure; bonus plan metrics emphasize revenue and Adjusted EBITDA performance, aligning annual incentives with top-line growth and operating profitability improvements .
Compensation Structure Analysis
- Mix Shift: Increasing equity grants and higher base salary in 2024 (13.2% increase vs 2023) indicate greater retention focus and market alignment to 50th percentile per consultant data .
- Pay-for-Performance: 2024 bonus paid at 98% of target based on predefined revenue and Adjusted EBITDA thresholds; no mid-year target adjustments—supports discipline in incentive design .
- Equity Design: Restricted stock only (no options), 3-year vesting norm; 2024 awards vest slightly sooner due to 2024 Plan timing (March 15, 2027) .
- Governance Safeguards: Clawback policy, anti-hedging/pledging, no tax gross-ups, and no option repricing—shareholder-friendly features .
Investment Implications
- Alignment: Significant unvested restricted shares (109,722) tie Hauser’s wealth to equity value realization; anti-hedging/pledging strengthens alignment quality .
- Retention vs. Mobility: Robust severance (30 months salary + 2.5x average bonus) and a 30-month post-termination non-compete reduce near-term departure risk but create potential cost under change-of-control or separation scenarios (modified double trigger) .
- Near-Term Selling Pressure: RSU vesting cadence (3/15/2026 and 3/15/2027) creates periodic liquidity windows; 2024 vest events (5,756 shares) illustrate ongoing release of equity—monitor Form 4s for selling behavior around vest dates .
- Execution Track Record: OPSB expansion across new markets and internationally (Ireland) under Hauser suggests positive growth optionality and cross-business synergies; watch for revenue and Adjusted EBITDA uplift attributable to OPSB footprint .
- Shareholder Sentiment: ~99% Say-on-Pay support indicates strong investor endorsement of compensation design, reducing governance overhang risk .
S&P Global disclaimer: Financial values marked with * were retrieved from S&P Global (Capital IQ) via GetFinancials.