Christopher L. Blanchard
Ramaco ResourcesAbout Christopher L. Blanchard
Christopher L. Blanchard is EVP for Mine Planning and Development at Ramaco Resources (METC) since May 2024; he previously served as Chief Operating Officer from December 2017 to May 2024 . He is 50 years old and holds a B.S. in Mining Engineering (Virginia Tech), an MBA (University of Charleston), and an M.S. in Systems Engineering (Missouri University of Science and Technology) . Company pay-versus-performance data during his executive tenure shows Total Shareholder Return (TSR) values of 387.59 in 2024 and 601.92 in 2023, with net income of $11.2M and $82.3M and Adjusted EBITDA of $105.8M and $186.1M, respectively . Annual bonus metrics for NEOs include Adjusted EBITDA, cost per ton, safety (TRIR), and environmental compliance; in 2024 Blanchard’s total annual bonus payout was $1,000,000 (100% of target) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Ramaco Resources | COO | Dec 2017–May 2024 | Led operations scale-up; transition to EVP role in 2024 |
| Cutlass Collieries (Cline Group), Nova Scotia | VP – Operations & Development | Not disclosed | Operations development at Cline Group asset |
| Alpha Natural Resources (subsidiary) | Director of Operations Support | Not disclosed | Operations support leadership |
| Massey Energy (subsidiary operating UBB) | President (UBB mine) | Apr 2010 | Was President at time of explosion; not charged |
Fixed Compensation
Multi-year cash and equity compensation for Blanchard:
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 580,000 | 610,000 | 630,000 |
| Discretionary Bonus ($) | 278,400 | 347,700 | 400,000 |
| Stock Awards (Grant-Date FV, $) | 1,640,625 | 2,090,747 | 1,351,867 |
| Non-Equity Incentive ($) | 417,600 | 521,550 | 600,000 |
| All Other Compensation ($) | 12,200 | 13,200 | 13,800 |
| Total ($) | 2,928,825 | 3,583,197 | 2,995,667 |
Additional targets:
- 2024 non-equity bonus target $600,000; threshold $300,000; maximum $1,200,000 .
- 2023 annual bonus target percentage: 150% of base salary for Blanchard .
Performance Compensation
Annual Bonus Design and Outcomes
| Metric | Weighting | Threshold | Target | Maximum | Actual | Payout as % of Target |
|---|---|---|---|---|---|---|
| Adjusted EBITDA (2022) | 25% | $208M | $260M | $312M | $214M | 56% |
| Cost of Coal Sales per Ton (2022) | 15% | $68.6 | $64.1 | $59.6 | $85.6 | 0% |
| Safety – TRIR (2022) | 10% | 4.05 | 3.68 | 3.31 | 3.29 | 200% |
| Environmental (2022) | 10% | 30 | 23 | 20 | 8 | 200% |
Bonus payouts:
- FY2023: Blanchard $869,250 (95% of target) .
- FY2024: Blanchard $1,000,000 (100% of target) .
2024 definitions:
- Adjusted EBITDA definition and components for 2024; cash mine costs per ton sold = $93 based on specified cost components and 3.6M tons sold .
Equity Awards and Vesting
| Award Year | Type | Shares (Blanchard) | Vesting Terms | Notes |
|---|---|---|---|---|
| 2024 | RSUs | 29,198 | Vest 1/3 on Jan 31, 2025/2026/2027, subject to continued employment | Granted under LTIP |
| 2024 | PSUs (target) | 29,198; max 58,396 | Time-vests Dec 31, 2026; performance-vests on TSR vs peer; 0–200% | CIC: deemed vested at max if employed at closing; or accelerate at max upon Qualifying Termination |
| 2023 | RSUs | 65,631 | Vest 1/3 on Jan 31, 2024/2025/2026 | Grant-date FV $696,345 |
| 2023 | PSUs (target) | 65,631; max 131,262 | Time-vests Dec 31, 2025; performance-vests on TSR vs peer; 0–200% | 2023 PSU plan modification added peer changes; incremental fair value $207,137 |
Options/stock vested and realized value:
| Year | Class | Shares Vested (#) | Value Realized ($) |
|---|---|---|---|
| 2024 | Class A | 285,725 | 3,595,798 |
| 2024 | Class B | 57,144 | 619,626 |
| 2023 | Class A | 199,739 | 1,782,145 |
| 2023 | Class B | 39,947 | 429,327 |
Equity Ownership & Alignment
| As-of Date | Class A Shares | Class B Shares | Total Common | % of Class |
|---|---|---|---|---|
| Apr 29, 2024 | 454,669 | 91,510 | 546,179 | 1.0% |
| Dec 31, 2024 (Proxy table date) | 416,020 | 96,902 | 512,922 | <1% (each class) |
Outstanding equity awards (12/31/2024):
| Type | Shares/Units | Market/Payout Value ($) |
|---|---|---|
| Unvested RSUs (2024 grant) | 29,198 | 295,484 |
| Unearned PSUs (2024 grant, at max) | 58,396 | 590,968 |
| Unvested RSUs (2023 grant) | 43,754 | 442,790 |
| Unearned PSUs (2023 grant, at max) | 131,262 | 1,328,371 |
| Class B related units (RSU-linked) | 8,751 | 86,460 |
| Class B related units (PSU-linked) | 26,252 | 259,370 |
Notes:
- Class B stock dividend in June 2023: NEOs entitled to 0.2 Class B shares per Class A share ultimately vesting under 2022/2023 awards .
Employment Terms
Severance and change-in-control economics (Severance Plan/CIC Plan):
- Non-CIC termination without cause: Cash severance equals 2.0×(base salary + greater of target bonus or 3-year average bonus), plus prorated target bonus, accelerated vesting of time-based equity, 401(k) equivalent, and up to 18 months COBRA at employee rate .
- CIC protected period (90 days before to 24 months after CIC): Qualifying Termination (double trigger: without cause or for good reason) increases cash multiple to 2.5× and accelerates equity per plan terms; COBRA and 401(k) payment apply .
- Restrictive covenants: 12-month post-termination non-competition and non-solicitation required for severance eligibility .
Potential payments for Blanchard:
| Scenario (as of date) | Aggregate Cash ($) | Accelerated Equity ($) | COBRA ($) |
|---|---|---|---|
| Qualifying Termination (12/31/2024) | 5,102,600 | 3,880,523 | 47,276 |
| CIC without Qualifying Termination (12/31/2024) | — | 3,055,789 | — |
| Qualifying Termination (12/31/2023) | 4,755,100 | 10,001,816 | 47,276 |
| CIC without Qualifying Termination (12/31/2023) | — | 4,324,140 | — |
Performance & Track Record
- Background includes leadership roles at Cline Group (Cutlass Collieries), Alpha Natural Resources, and Massey Energy’s UBB mine; he was not charged in connection with the April 2010 UBB explosion .
- Bonus metrics emphasize operations and safety; 2022 safety (TRIR) and environmental targets paid at 200% due to performance exceeding maximum thresholds (TRIR 3.29 vs max 3.31; environmental exceedances 8 vs max 20) .
- Company TSR and financials show volatile outcomes: TSR 601.92 (2023) with net income $82.3M and Adjusted EBITDA $186.1M; TSR 387.59 (2024) with net income $11.2M and Adjusted EBITDA $105.8M .
Compensation Committee Analysis
- Compensation Committee members (FY2023): Patrick C. Graney III (Chair), David E.K. Frischkorn Jr., Richard M. Whiting .
- The company uses Meridian Compensation Partners as independent compensation consultant; compensation is not formally benchmarked but informed by peer practices and CEO recommendations for non-PEO NEOs .
- Introduction of PSUs in 2022 to align with peer group practices and TSR performance measurement; peer group revised in 2023 to include additional energy/mining companies (e.g., Peabody, Arch, Alpha Metallurgical, CONSOL, Warrior Met Coal, SunCoke, etc.) .
Equity Ownership & Alignment (Additional)
- Pay mix emphasizes at-risk compensation: significant equity (RSUs/PSUs) and performance-based cash; base salary increases from $580k (2022) to $630k (2024) reflect market alignment and performance growth considerations .
- No disclosure found on share pledging or hedging by Blanchard in the proxy excerpts returned; Class B dividend mechanics add alignment via additional vesting-linked shares .
Investment Implications
- Alignment: Strong pay-for-performance architecture with PSU TSR-based vesting (0–200%), multi-year RSU schedules, and operational/safety metrics driving cash bonuses; this supports long-term value creation alignment .
- Retention risk: Material unvested RSUs/PSUs outstanding (e.g., 2024 RSUs 29,198 and 2023 RSUs 43,754; 2024 PSUs max 58,396 and 2023 PSUs max 131,262) provide retention hooks; however, CIC terms accelerate at maximum upon Qualifying Termination, which can reduce retention power in a sale scenario .
- Selling pressure: Periodic RSU vesting dates (Jan 31, 2025/2026/2027) and PSU settlements at performance period ends could create supply overhang around those dates; 2023 and 2024 vesting produced sizable realized values ($2.21M combined in 2023; $4.22M combined in 2024), which may correlate with potential share dispositions for tax/liquidity .
- Design changes: 2023 PSU modification (peer group methodology change) carried incremental ASC 718 fair value ($207,137 for Blanchard), a governance watchpoint for award calibration and potential pay inflation .
- Reputational context: UBB mine history (no charges) is a background consideration for safety stewardship, but 2022 metrics indicate strong safety and environmental performance outcomes at the company level .