Michael L. Schmit
Vice President, Chief Financial Officer, Treasurer and Corporate Secretary at MARINE PRODUCTS
Executive
About Michael L. Schmit
Michael L. Schmit has served as Vice President, Chief Financial Officer, Treasurer and Corporate Secretary of Marine Products Corporation (MPX) since May 17, 2022, and concurrently holds the same roles at RPC, Inc. . He previously served as Chief Accounting Officer at Schweitzer-Mauduit International (SWM) since 2019, and held Chief Accounting Officer and Controller roles at Chart Industries in 2018–2019, with earlier finance and risk roles at Georgia-Pacific and audit experience with Ernst & Young in the U.S. and Australia; he holds a B.S. in Business Administration (Accounting) from the University of Nebraska and is a CPA . Company performance during his tenure included FY2024 net sales of $236.6M (-38% YoY), net income of $17.9M (-57% YoY), EBITDA of $21.1M, and continued debt-free status with $43.7M dividends paid, while 2023 EBITDA achieved 103.2% of target; the company’s TSR trailed the Russell 2000 over the four-year period ending 2023 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Marine Products Corporation | VP, CFO, Treasurer & Corporate Secretary | Since May 17, 2022 | Corporate finance leadership; executive officer |
| RPC, Inc. | VP, CFO, Treasurer & Corporate Secretary | Since May 17, 2022 | Corporate finance leadership; dual role with MPX |
| Schweitzer-Mauduit International (SWM) | Chief Accounting Officer | Since 2019 | Global performance materials company leadership |
| Chart Industries | Chief Accounting Officer and Controller | 2018–2019 | Global clean energy/industrial gas equipment manufacturer |
| Chart Industries | Corporate Controller | 2017 | Corporate accounting leadership |
| Georgia-Pacific; Ernst & Young | Finance/risk roles; public accounting | Prior years | Financial and audit experience (U.S. & Australia) |
External Roles
- No external public-company directorships disclosed in biography sections provided for executive officers .
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | $93,173 | $150,000 | $160,000 |
| Target Bonus % of Base | — | 70% | 70% |
| Actual Annual Cash Incentive ($) | $157,500 (150% of target) | $113,400 (108% of target) | $56,000 (50% of target) |
| Total Compensation ($) | $421,673 | $501,000 | $456,120 |
| Stock Awards Grant-date Fair Value ($) | $171,000 | $237,600 | $240,120 |
Performance Compensation
Annual Incentive Design and Outcomes
| Year | Metric | Weighting | Threshold | Target | Maximum | Actual | Payout vs Target |
|---|---|---|---|---|---|---|---|
| 2024 | EBITDA | 100% | $21.0M (75%) | $28.0M (100%) | $36.4M (130%) | $21.1M | 50% of Target ($56,000) |
| 2023 | EBITDA | 100% | $37.5M (75%) | $50.0M (100%) | $65.0M (130%) | $51.6M | 108% of Target ($113,400) |
| 2022 | EBITDA | 100% | $26,250 (Threshold $) | $105,000 (Target $) | $157,500 (Max $) | Committee paid 150% of target | $157,500 |
Long-Term Equity Awards (Grants and Vesting)
| Award | Grant Date | Shares / Target Units | Grant-date Fair Value ($) | Vesting / Performance |
|---|---|---|---|---|
| RSUs (2023) | 1/24/2023 | 13,500 | $237,600 | Vests ratably over 4 years; RSUs have voting/dividends; cannot be sold/transferred/pledged until vest |
| PSUs (2023) | 1/24/2023 | 4,500 target (max 9,000 excl. ±20% TSR modifier) | Fair value at target included in stock awards; max fair value $142,560 if max + TSR | 3-year performance; cliff vest 12/31/2025; PSU payout subject to relative TSR modifier (±20%) |
| RSAs (2024) | 1/23/2024 | 16,667 | $188,837 | Vests ratably over 3 years (2024+ grants) |
| PSUs (2024) | 1/23/2024 | 4,166 target (max 8,332 excl. ±20% TSR modifier) | $51,283 | Performance on 3-Year Cumulative EPS (FY2024–FY2026); cliff vest 12/31/2026; TSR modifier ±20% |
- 2024 equity mix: 80% RSAs / 20% PSUs for executives; 2025 awards set at 75% RSAs / 25% PSUs .
- Company has not issued stock options to executive officers since 2003 and has no plans to do so; no outstanding options for NEOs .
Equity Ownership & Alignment
| As-of Date | Beneficial Ownership (Shares) | Percent of Shares Outstanding | Restricted Shares Included |
|---|---|---|---|
| Mar 1, 2024 | 41,865 | <1% | 35,792 |
| Feb 28, 2025 | 60,114 | <1% | 47,382 |
| Unvested/Unearned Awards at 12/31/2023 | Count | Market/Payout Value |
|---|---|---|
| RSUs unvested | 25,500 | $290,700 (at $11.40 close) |
| PSUs unearned (adjusted to date) | 4,500 | $51,300 (at $11.40 close) |
- RSAs/RSUs cannot be sold, transferred or pledged until vesting; unvested RSAs fully accelerate upon death or change in control .
- PSUs vest at target upon death, disability or change in control (2023: Committee intends same treatment; 2024: 100% of target, no TSR adjustment) .
Employment Terms
- No employment agreements guaranteeing continued employment, severance, or compensation; annual cash incentives and equity awards are discretionary under committee oversight .
- Severance: Company does not have severance agreements with executive officers; change-in-control accelerates all unvested time-lapse restricted stock; PSUs treated per plan/committee intent (2023) or vest at target (2024) .
- Deferred compensation: Schmit (and other NEOs) has chosen not to participate in the Supplemental Retirement Plan (SRP); SRP allows flexible distributions but currently no participation by the NEOs .
Compensation Committee & Governance
- Human Capital Management and Compensation Committee: Jerry W. Nix (Chair), Patrick J. Gunning, John F. Wilson .
- 2024/2025 incentive structure centered on EBITDA for annual cash; PSUs tied to 3-Year Cumulative EPS with relative TSR modifier ±20% against Russell 2000 .
Performance Context (Company-level)
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Net Sales ($) | Prior year baseline | $236.6M (-38% YoY) |
| Net Income ($) | Higher than prior years | $17.9M (-57% YoY) |
| EBITDA ($) | $51.6M (achieved 103.2% of target) | $21.052M (threshold achieved; payout 50% of target) |
| TSR vs Russell 2000 (4-year) | Slightly worse than Russell 2000 | — |
Investment Implications
- Pay-for-performance linkage: Annual bonus tightly linked to EBITDA with clear threshold/target/max and sliding scale; 2024 threshold-level performance resulted in a 50% of target payout ($56k), while 2023 outperformance delivered 108% of target ($113.4k) .
- Long-term incentives emphasize retention and performance: Majority RSAs/RSUs with time-based vesting (ownership/retention), complemented by PSUs on 3-year cumulative EPS with relative TSR modifier; 2024 mix 80/20 RSAs/PSUs, shifting to 75/25 in 2025 .
- Insider selling pressure windows: RSUs/RSAs vest ratably (2023 grants over 4 years; 2024+ over 3 years) and PSUs cliff-vest at cycle end (2023 cohort in 2025; 2024 cohort in 2026), creating predictable vesting events that can elevate sell pressure around those dates .
- Alignment and ownership: Schmit’s beneficial ownership remains <1% (60,114 shares as of Feb 28, 2025, including 47,382 restricted), supporting alignment but with limited “skin in the game” relative to controlling shareholders; RSAs cannot be pledged before vesting .
- Change-in-control economics: Immediate vesting of unvested RSAs; PSUs vest at target upon death/disability/change-in-control (explicitly at target without TSR adjustment for 2024 awards), creating potential event-driven value realization despite short-term performance variability .
- Governance note: No severance agreements and no executive stock options since 2003 reduce shareholder-unfriendly risk (e.g., repricing risk), while committee oversight and explicit performance frameworks support disciplined incentive governance .