Matthew Fuchsen
MIDDLEBYAbout Matthew R. Fuchsen
Chief Development Officer at The Middleby Corporation since May 2023; age 54 as of March 28, 2025. Prior roles include Vice President, Mergers, Acquisitions and Tax (2018–2023), Vice President of Tax (2014–2018), and Senior Tax Manager (2011–2014), underscoring deep transactional and tax structuring expertise aligned to Middleby’s acquisitive strategy . Company performance under the current incentive framework: 2024 TSR $178.16 vs $161.25 in 2023; Adjusted EBITDA $866.3M vs $900.4M; Adjusted EPS $9.49 vs $9.70; Net Income $428.4M vs $400.9M .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| The Middleby Corporation | Senior Tax Manager | Nov 2011–Mar 2014 | Led tax planning/compliance supporting growth |
| The Middleby Corporation | Vice President of Tax | Mar 2014–Feb 2018 | Built corporate tax optimization capabilities |
| The Middleby Corporation | VP, Mergers, Acquisitions and Tax | Feb 2018–May 2023 | Drove M&A execution and integration strategy |
| The Middleby Corporation | Chief Development Officer | May 2023–Present | Oversees corporate development and strategic M&A |
Fixed Compensation
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Base Salary ($) | $400,000 | $420,000 |
| Target Bonus (% of Base) | 100% of base (VCIP) | 100% of base (VCIP) |
| Actual Annual Incentive Paid ($) | $533,600 | $80,460 |
Performance Compensation
Annual Performance-Based Cash Incentive (VCIP)
| Metric | Weight | Threshold | Target | Maximum | Reported | Adjusted | Payout Basis |
|---|---|---|---|---|---|---|---|
| EBITDA $ (in millions) | 65% | $925 | $942 | $975 | $866 | $865 | 0% of base salary |
| EBITDA % | 35% | 22.3% | 22.5% | 23.0% | 22.4% | 22.3% | 19.2% of base salary |
Long-Term Incentives (PSUs/RSUs) – Design and 2022–2024 Outcomes
- Structure: 2/3 PSUs (Adjusted EPS Growth 50%; EV Growth (Less Net Debt) per share 50%) + TSR modifier (+/−30% vs peer group); 1/3 RSUs, time-based, ratable over three years; RSUs must be held until end of 3-year period .
- 2022–2024 PSU performance certified: Adjusted EPS Growth 24% and EV Growth per share 29%; TSR below 25th percentile (−30% modifier). PSU vesting approved at 89% of target for EPS and 84% for EV; Fuchsen vested 4,907 PSUs for the period .
| Metric (2022–2024 PSUs) | Weight | Target | Actual | Payout vs Target | Vesting Detail |
|---|---|---|---|---|---|
| Adjusted EPS Growth | 50% | 20% | 24% | 89% | Cliff vest; 4,907 PSUs vested |
| EV Growth (Less Net Debt) per share | 50% | 25% | 29% | 84% | Cliff vest |
| TSR Modifier | Modifier | 25th–75th percentile | Below 25th percentile | −30% | Applied to PSU outcomes |
Recent Grant Details (Fuchsen)
| Grant Date | Instrument | Target/Granted (#) | Fair Value ($) | Performance Period / Vesting |
|---|---|---|---|---|
| May 14, 2024 | PSUs (target) | 6,934 | 948,502 | FY2024–FY2026; cliff vest Q1 FY2027; TSR modifier applies |
| May 14, 2024 | RSUs | 3,467 | 475,014 | Ratable vest Mar 2025/2026/2027; shares held until end of period |
| Aug 9, 2023 | PSUs (target) | 6,166 | 906,094 | FY2023–FY2025; TSR modifier applies |
| Aug 9, 2023 | RSUs | 3,084 | 454,212 | Ratable vest Mar 2024/2025/2026 |
| May 15, 2022 | PSUs (target / max) | 5,666 / 16,746 | — | FY2022–FY2024; outcomes certified Q1 2025 |
| May 15, 2022 | RSUs | 2,834 | — | 1/3 vest Mar 2023/2024/2025 (944 per tranche) |
Stock Vested – FY 2024
| Name | Shares Acquired on Vesting (#) | Value Realized ($) |
|---|---|---|
| Matthew R. Fuchsen | 10,749 | 1,663,601 |
Equity Ownership & Alignment
Beneficial Ownership
| Holder | Shares Beneficially Owned | % of Class |
|---|---|---|
| Matthew R. Fuchsen | 34,329 | <1% |
- Stock ownership guidelines: NEOs required to hold a multiple of base salary; unvested time-based RSUs count; unvested performance-based equity does not. As of Dec 31, 2024, all NEOs exceeded minimum requirements .
- Hedging/derivatives: Prohibited; certain transactions require pre-clearance under Insider Trading Compliance Program .
Outstanding Equity Awards at FY-End 2024 (Market values at $136.58/sh)
| Grant/Type | Unvested/Unearned (#) | Market/Payout Value ($) | Vesting Schedule |
|---|---|---|---|
| 2022 RSUs (time-based) | 5,598 | 764,575 | 1/3 on Mar 1, 2023/2024/2025 (944/sh each) |
| 2023 RSUs (time-based) | 2,056 | 280,808 | 1/3 on Mar 1, 2024/2025/2026 (1,028/sh vested in 2024) |
| 2024 RSUs (time-based) | 3,467 | 473,523 | Equal tranches Mar 2025/2026/2027; held until end of period |
| 2023 PSUs (target, unearned) | 6,166 | 842,152 | Performance FY2023–FY2025; TSR modifier applies |
| 2024 PSUs (target, unearned) | 6,934 | 947,046 | Performance FY2024–FY2026; TSR modifier applies |
Employment Terms
| Topic | Key Terms |
|---|---|
| Termination (without cause) | For NEOs including Fuchsen: pro‑rata vesting of time-based awards; performance-based awards vest pro‑rata based on actual performance through termination date; remainder forfeited . |
| Change in Control | All RSUs vest immediately; PSUs vest at the greater of target or actual performance measured immediately prior to CoC; remainder forfeited . |
| Clawback | Recovery of incentive compensation for 3 prior fiscal years upon accounting restatement indicating overpayment (Rule 10D‑1/Nasdaq compliant) . |
| Perquisites | Limited; no auto allowances, club memberships, or other professional fee reimbursements . |
| Retirement/Deferred | 401(k) plan available; NEOs do not participate in other company retirement plans . |
| Hedging/Pledging | Derivative/hedging transactions prohibited; certain transactions must be pre‑cleared under policy . |
Performance & Track Record (Company context)
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Total Shareholder Return (value of $100) | $161.25 | $178.16 |
| Net Income ($ thousands) | $400,882 | $428,433 |
| Adjusted EBITDA ($ thousands) | $900,394 | $866,295 |
| Adjusted EPS ($/share) | $9.70 | $9.49 |
Compensation Committee Analysis
- Committee members: Stephen R. Scherger (Chair), Edward P. Garden, Gordon J. O’Brien; all independent; no interlocks .
- Independent consultant: Aon retained since 2017; peer benchmarking updated for 2024, adding Dover and Regal Rexnord. Peer group includes AMETEK, Carlisle, Crane, Dover, Flowserve, Graco, Helen of Troy, Hubbell, IDEX, Ingersoll Rand, ITT, JBT, Lincoln Electric, Nordson, Pentair, Regal Rexnord, Rockwell Automation, Snap‑on, Timken, Woodward, Xylem .
- Say‑on‑pay support: ~90% in 2023; ~87% in 2024; 2025 LTI metrics to include Adjusted EPS Growth, ROIC, and TSR based on feedback .
Investment Implications
- Alignment: High equity mix (PSUs with EPS/EV growth and TSR modifier) plus RSUs held until end of 3‑year period ties compensation to long‑term value creation; annual cash payout fell to 19% of target in 2024, consistent with below‑target EBITDA performance .
- Retention and selling pressure: Multiple RSU tranches vest each March (e.g., 2022 and 2023 schedules; 2024 RSUs begin Mar 2025), creating periodic liquidity events; policy requires retention of 50% of net shares until guidelines met, and all NEOs already exceed minimums—moderating near‑term selling pressure .
- Ownership: 34,329 shares (<1%); sizable unvested RSUs and target PSUs outstanding; no stock option exercises in FY 2024—equity upside is primarily RSU/PSU-driven rather than options .
- Governance: Strong clawback and hedging prohibitions; clear CoC mechanics (RSU acceleration; PSUs vest at target/actual). Monitoring Form 4s around late Feb/Mar vesting dates is prudent for trading signals and potential Rule 10b5‑1 activity .