Raul Parra
MERIT MEDICAL SYSTEMSAbout Raul Parra
Raul Parra is Chief Financial Officer and Treasurer of Merit Medical Systems (MMSI), serving since July 2018. He is 47 and previously held roles at Merit including VP of Accounting, Corporate Controller, and Director of Financial Reporting; prior to Merit, he held audit and managerial positions at Deloitte & Touche. He holds a B.S. in Business Administration (Accounting emphasis) from Sonoma State and is a Certified Public Accountant (inactive). He also serves as Director and Audit Committee Chair at American Express National Bank (2022–present) . Company performance under his finance leadership includes record 2024 revenue of $1.357 billion, strong Non-GAAP EPS of $3.46, Adjusted Non-GAAP Free Cash Flow of $208.5 million, and five-year cumulative TSR of approximately 210% through year-end 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Merit Medical Systems | VP Accounting; Corporate Controller; Director of Financial Reporting | Not disclosed | Built financial reporting and controls before promotion to CFO |
| Deloitte & Touche LLP | Audit and managerial positions | Not disclosed | Public-company audit rigor; capital markets and accounting depth |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| American Express National Bank | Director; Audit Committee Chair | 2022–present | Governance and audit oversight at a regulated financial institution |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $600,000 | $629,423 | $630,000 |
| All Other Compensation ($) | $53,339 (incl. 401(k) match $8,700) | $68,634 (incl. 401(k) match $8,700) | $39,796 (incl. 401(k) match $10,350; vacation cash $29,446) |
| 2025 Approved Base Salary ($) | — | — | $630,000 |
Performance Compensation
| Component | Structure | Metric Weighting | 2024 Target | 2024 Actual | Payout/Attainment | Vesting/Settlement |
|---|---|---|---|---|---|---|
| Annual Bonus (Exec Bonus Plan) | Target 50% of base salary | Sales 40%; Non-GAAP Op Margin 40%; Non-GAAP EPS 20%; plus CGI Modifier | Sales $1,325M; Op Margin 18.90%; EPS $3.35 | Sales $1,357M; Op Margin 18.98%; EPS $3.46 | Weighted attainment 118.90%; payment $374,535 | Paid by Mar-2025 timeline per plan |
| RSUs (2024 grant) | 7,319 units; intended fair value $559,977 | n/a | Grant 3/4/2024 | n/a | Time-based | Vest 25% per year over 4 years (anniversaries of grant date) |
| PSUs (2024–2026 cycle) | Target 10,979 shares; intended fair value $840,000 | FCF multiplier × rTSR multiplier | FCF Target $400M; Threshold $320M; Max $480M; rTSR vs Russell 2000 (25th/50th/75th percentiles) | In-cycle (performance period 2024–2026) | 50–250% of Target shares possible via multipliers | Earned shares/payable after performance period; vesting date second day of calendar year following period (2027 for 2024–2026) |
| PSUs (2022–2024 cycle – settled in 2025) | Target shares (2019 program design) | FCF + rTSR as above | FCF Goal $396M (Max); rTSR 1st Quartile | Adjusted Non-GAAP FCF $475M; rTSR met 1st Quartile | 250% payout; shares issued: 20,760 to Parra | Shares issued Feb 27, 2025 |
Multi-year Compensation Summary (NEO-level)
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $600,000 | $629,423 | $630,000 |
| Stock Awards ($) | $1,239,123 | $1,304,054 | $2,124,680 |
| Option Awards ($) | $360,003 | $400,011 | — |
| Non-Equity Incentive ($) | $275,010 | $372,078 | $374,535 |
| All Other Comp ($) | $53,339 | $68,634 | $39,796 |
| Total ($) | $2,527,475 | $2,774,200 | $3,169,011 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 41,039 shares as of Mar 18, 2025; less than 1% of outstanding |
| Shares Outstanding Reference | 59,067,132 shares (for % calculations) |
| Options (exercisable within 60 days) | 27,397 shares |
| Outstanding RSUs (unvested) | 7,319 shares (2024 grant) |
| Outstanding PSUs (unearned) | 21,958 shares (2024 grant; max scenario listing) |
| Vested PSU (2022 cycle) | 20,760 shares issued in 2025 |
| 2024 Exercises/Vesting (liquidity signal) | Options exercised: 39,361 (value realized $1,830,623); Stock awards vested: 7,110 ($543,986) |
| Hedging/Pledging | Hedging, short sales, derivatives, and certain transactions prohibited by Insider Trading Policy; no pledging disclosure noted in proxy |
Employment Terms
| Term | Key Provision |
|---|---|
| Employment Agreement | CFO agreement entered in 2018 |
| Change-in-Control (CIC) Economics | Double-trigger; upon termination without Cause or for Good Reason in connection with CIC: cash severance equals 2x (base salary + average bonus over last 3 full fiscal years), 2 years of health benefits, outplacement, and acceleration of target PSU awards; RSUs fully vest within 30 days of CIC; options fully vest on CIC |
| CIC Hypothetical Payout (12/31/2024) | Salary+bonus continuation $1,941,082; option acceleration value $594,925; stock award acceleration value $3,395,162; health coverage $49,866; deferred comp balance $96,500; total $6,077,535 |
| Non-CIC Termination (illustrative) | Company discretion to pay severance equal to one year salary (for NEOs other than CEO); pro-rata PSU vesting after ≥1 year outstanding; example total $3,429,115 for Parra includes severance and pro-rata equity (as of 12/31/2024) |
| Clawbacks | Executive Incentive Compensation Clawback Policy adopted Oct 2, 2023 (SEC 10D/Nasdaq compliant); PSU agreements include clawback for misconduct causing restatement; bonus plan allows reimbursement if restatement lowers awards |
| Tax Gross-ups | No 280G/4999 tax gross-up obligations for NEOs |
| Insider Trading Windows | Blackout windows, pre-clearance, and prohibitions on short-term trading, short sales, options/derivatives, hedging, and gifts during blackout |
Compensation Program Design Notes
- Long-term equity shifted from options to RSUs and PSUs in 2024; NEO target mix ~60% PSUs and ~40% RSUs, enhancing pay-for-performance and retention .
- PSUs measure three-year Adjusted Free Cash Flow and relative TSR vs. Russell 2000, with 50–250% payout range; vesting requires continued employment through vest date (pro-rata on death/disability/qualifying termination after ≥1 year) .
- 2024 annual bonus anchored to Sales, Non-GAAP Operating Margin, and Non-GAAP EPS, plus a capped CGI modifier tied to Gross Margin and Employee Engagement; Say-on-Pay support ~96% in 2024 .
Investment Implications
- Alignment: PSU metrics (Adjusted FCF, rTSR) and bonus focus (sales/margins/EPS) tie Parra’s incentives to value creation and operating discipline, consistent with CGI targets and strong 2024 execution (record revenue, margin expansion, elevated FCF, higher Non-GAAP EPS) .
- Retention/Overhang: Four-year RSU vesting and multi-year PSU cycles create continuing equity overhang and retention hooks; CIC terms are double-trigger, reducing “single-trigger” risk while ensuring target award acceleration under CIC scenarios .
- Trading Signals: 2024 option exercises (39,361; $1.83M value realized) and PSU vesting indicate liquidity events; future RSU tranches and PSU settlement could add supply, though hedging/derivatives are prohibited and trading is subject to blackout/pre-clearance .
- Governance Risk: No pledging disclosed; robust clawback policy implemented and no tax gross-ups; strong Say-on-Pay support (96%) suggests investor acceptance of pay program .
Overall, Parra’s compensation is predominantly at-risk and aligned with multi-year FCF/TSR outcomes and near-term operating targets, while double-trigger CIC and clawbacks mitigate governance risk; watch for scheduled RSU/PSU vesting and any future Form 4 activity as potential trading pressure signals .