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David Kowalczyk

Chief Financial Officer and Chief Operating Officer at LIQTECH INTERNATIONAL
Executive

About David Kowalczyk

David Nørby Foss Kowalczyk (age 47) was appointed Chief Financial and Operating Officer (CFO & COO) of LiqTech International effective March 1, 2025, and serves as the principal financial, accounting, and operating officer signing the company’s 10‑Q officer certifications in 2025 . He holds a B.Sc. in Economics & Business Administration, an M.Sc. in Accounting & Auditing, and an M.Sc. in Finance & Investments from Copenhagen Business School . His 20+ years of experience spans equity research, audit, FP&A, business systems, and operational finance in global industrials (Nordea Securities, PwC, Novozymes, Flügger, Globus Wine, Hempel) . Company performance metrics disclosed in the 2025 proxy (covering 2024) show total shareholder return of $4.03 per $100 invested and negative net income; these relate to the company pre‑tenure and provide historical context rather than an assessment of his impact to date .

Past Roles

OrganizationRoleYearsStrategic Impact
Nordea SecuritiesEquity Analyst2000–2003Equity research and capital markets exposure
PricewaterhouseCoopersAuditor and Consultant2003–2007Assurance and advisory foundation
NovozymesMultiple finance leadership roles (Group FP&A Manager; Enzyme Business Finance Manager; Head of Biopharma FP&A; Finance Sr. Manager Supply Ops EMEA & HQ; Business Finance Director for Business Operations)2007–2016FP&A, business operations finance, supply chain finance in R&D‑driven industrials
FlüggerVice President; Group Management Member2016–2018Group‑level financial leadership and governance
Globus WineChief Financial Officer2018–2020CFO stewardship in consumer manufacturing
Hempel A/SVice President, Business Finance and Systems2020–2024Enterprise business systems and finance transformation

External Roles

OrganizationRoleYearsNotes
No public company board or external directorships disclosed for Kowalczyk in company filings .

Fixed Compensation

ComponentTermsEffective DateNotes
Base SalaryDKK 2,000,000 per year (approx. $280,000) Mar 1, 2025Subject to adjustment each February starting Feb 2026
Target Annual BonusUp to 60% of base salary; discretionary Mar 1, 2025Determined under company’s annual performance process
PensionCompany contribution up to 10% of base salary Mar 1, 2025Provided by LiqTech Holding A/S
Equity Program EligibilityRSU awards valued up to 60% of base salary Mar 1, 2025Under 2022 Equity Incentive Plan
Paid Time OffUp to six weeks per year Mar 1, 2025Consistent with officer benefits

Performance Compensation

Incentive TypeMetricWeightingTargetActualPayout MechanicsVesting
Annual Incentive (Cash)Not specified; discretionaryNot disclosed Up to 60% of salary Not disclosedDiscretionary bonus per Service Agreement N/A
Long‑Term Incentive (RSUs)Not specifiedNot disclosed Grant value up to 60% of salary Not disclosedRSUs under 2022 Plan; no tax gross‑ups; no automatic single‑trigger acceleration Vesting schedule not disclosed for Kowalczyk

The 2022 Equity Incentive Plan emphasizes governance: clawbacks per SEC/Nasdaq, no discounted options, no repricing without shareholder approval, 10‑year max option/SAR term, and no single‑trigger change‑of‑control vesting .

Equity Ownership & Alignment

ItemValue/StatusAs‑of Date
Beneficial Ownership (shares)0 (listed as “–” in table; less than 1%) Apr 8, 2025
Ownership % of Shares Outstanding<1% Apr 8, 2025
Shares Outstanding9,606,024 Apr 8, 2025
Vested vs. UnvestedNot disclosed for Kowalczyk
Pledged SharesNo pledging arrangements disclosed that could result in change of control Apr 8, 2025
Ownership GuidelinesNot disclosed for executives
Hedging PolicyCompany does not have a policy on hedging by employees/directors 2025 proxy

Employment Terms

TermProvisionSource
Start Date & RoleEffective Mar 1, 2025; appointed CFO & COO on Jan 27, 2025 8‑K
AgreementService Agreement via Danish subsidiary; Exhibit 10.1 8‑K
SeveranceNot disclosed for Kowalczyk in 8‑K summary; see Exhibit 10.1 8‑K
Change‑of‑Control2022 Plan does not provide automatic single‑trigger vesting; Committee may accelerate or substitute awards at discretion upon change‑of‑control DEF 14A
ClawbackExecutive incentive compensation subject to recovery upon accounting restatement per SEC/Nasdaq Rule 5608 policy DEF 14A
Non‑compete/Non‑solicitNot disclosed in 8‑K summary; see Exhibit 10.1 8‑K
Auto‑renewal/Garden LeaveNot disclosed 8‑K

Performance & Track Record

  • Certifications: Signed SOX Section 302 certifications for Q1, Q2, and Q3 2025 as CFO & COO, indicating responsibility for disclosure controls and ICFR .
  • Achievements: Company emphasized his expertise in FP&A, business systems, and operational finance in global industrials at appointment .
  • Legal/Controversies: No involvement in certain legal proceedings disclosed for executive officers, including Kowalczyk .

Compensation Committee Analysis

  • Composition: Independent directors; Chair Peyton Boswell. Committee meets to set goals, approve CEO/executive salaries, cash bonuses, equity grants, and performance targets; can retain independent advisors .
  • Plan Governance: 2022 Equity Incentive Plan expanded to 2,500,000 shares in 2025; includes clawbacks, no tax gross‑ups, no repricing without shareholder approval, and no single‑trigger acceleration .

Compensation Structure Analysis

  • Mix & risk: Kowalczyk’s package balances fixed cash (salary, pension) with at‑risk pay via discretionary annual bonus (up to 60%) and RSUs (up to 60% of salary), aligning with equity plan governance (clawback, no single‑trigger) .
  • Equity capacity: Share reserve increase to 2,500,000 supports ongoing equity issuance across executives, potentially increasing long‑term alignment if grants are made .

Risk Indicators & Red Flags

  • Hedging policy gap: Company states it does not have a policy on hedging by employees/directors, which is a governance gap that could weaken alignment compared to peers with explicit anti‑hedging policies .
  • Ownership alignment baseline: As of Apr 8, 2025, Kowalczyk had no reportable beneficial ownership; future RSU grants will be important for alignment tracking .
  • Clawback protection: Formal clawback policy per SEC/Nasdaq mitigates restatement‑related incentive risk .
  • Change‑of‑control: No automatic single‑trigger vesting under the plan reduces windfall risk; treatment remains at Compensation Committee discretion .

Investment Implications

  • Near‑term: Discretionary bonus design and RSU eligibility up to 60% of salary suggest meaningful at‑risk compensation, but lack of disclosed performance metrics/weightings reduces transparency for pay‑for‑performance linkage; monitoring future proxy disclosures for 2025–2026 will be key .
  • Alignment: Zero reported ownership at the 2025 record date places greater importance on timely RSU grants and vesting to build skin‑in‑the‑game; watch for Form 3/4 filings and future beneficial ownership updates .
  • Governance: Strong plan‑level guardrails (clawback, no single‑trigger, no repricing) are positives; absence of an anti‑hedging policy is a governance gap investors should address in engagements .
  • Execution risk: With CFO/COO dual mandate, his certifications and operational finance/system background should support controls and profitability initiatives; assess quarterly commentary and KPIs to gauge his impact on margin trajectory and cash generation .