David Naemura
NEOGENAbout David Naemura
David H. Naemura, age 56, is NEOG’s Chief Financial Officer since November 2022 and, effective January 1, 2025, also Chief Operating Officer, following the retirement of the prior COO; he previously served as CFO of Vontier (2020–2022) and Gates Industrial (2015–2020), with earlier finance leadership roles at Danaher and Tektronix (2000–2009) . FY2025 compensation was tightly linked to performance: the annual ICP used Revenue (50%), Adjusted EBITDA (30%) and Free Cash Flow (20%) with disclosed thresholds/targets; actual results missed all thresholds (Revenue $895M vs $900M threshold; Adjusted EBITDA $184M vs $202M; FCF -$46M vs $42M), resulting in zero bonus for all NEOs, including Naemura . Company performance context: FY2025 TSR was 16.5 (vs S&P MidCap 400 Health Care 102.8) with Adjusted EBITDA $184.2M and a net loss driven largely by a goodwill impairment; FY2024 TSR was 36.9 and Adjusted EBITDA $213.2 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Vontier Corporation | SVP & CFO | Feb 2020–Nov 2022 | Public-company CFO through portfolio and operations; set finance architecture for spin/regulatory environment |
| Gates Industrial Corporation | CFO | Mar 2015–Jan 2020 | Led finance at a global industrials issuer; capital markets and cost discipline |
| Danaher Corporation | VP Finance & Group CFO; earlier Platform CFO (Test & Measurement Communications) | Apr 2012–Mar 2015; Jan 2009–Apr 2012 | Multi-division finance leadership within Danaher system; integration/operational excellence |
| Tektronix Corporation (acquired by Danaher in 2007) | Finance roles | Aug 2000–Jan 2009 | Electronics T&M finance; M&A integration readiness during acquisition |
External Roles
No public company board or committee roles disclosed for Naemura in the proxy .
Fixed Compensation
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Base Salary Rate ($) | 500,000 | 520,000 | 650,000 (raised Jan 1, 2025 concurrent with COO role) |
| Target Bonus % (ICP) | — | 100% of base; Target $520,000 | 100% of base; Target $650,000 |
| Actual Annual Bonus ($) | 250,000 | 260,000 (50% of target) | 0 (thresholds not met) |
| All Other Compensation ($) | 297 | 23,343 | 17,681 |
Multi‑year total compensation summary:
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Salary ($) | 228,846 | 527,308 | 571,500 |
| Stock Awards ($) | 600,000 | 720,000 | 836,400 |
| Option Awards ($) | 900,000 | 3,280,000 (includes $2.2M retention performance options) | 1,254,600 |
| Non‑Equity Incentive ($) | 250,000 | 260,000 | — |
| All Other Compensation ($) | 297 | 23,343 | 17,681 |
| Total ($) | 1,979,143 | 4,810,651 | 2,680,181 |
Performance Compensation
Annual ICP design and payout:
| Item | FY 2024 | FY 2025 |
|---|---|---|
| Metrics & Weights | Revenue 50%; Adjusted EBITDA 30%; FCF 20% | Revenue 50%; Adjusted EBITDA 30%; FCF 20% |
| Target Bonus (% of base) | 100% | 100% |
| Target Value ($) | 520,000 | 650,000 |
| Actual Payout (% of target) | 50% (committee exercised negative discretion) | 0% (no metric met threshold; no discretion applied) |
| Actual Paid ($) | 260,000 | 0 |
FY 2025 ICP metric detail:
| Metric | Weight | Threshold | Target | Maximum | Actual | Payout (% of target) |
|---|---|---|---|---|---|---|
| Revenue ($M) | 50% | 900 | 960 | 1,020 | 895 | 0% |
| Adjusted EBITDA ($M) | 30% | 202 | 235 | 268.0 | 184 | 0% |
| Free Cash Flow ($M) | 20% | 42 | 74 | 107 | (46) | 0% |
Long‑term incentives and vesting:
- FY2025 mix: RSUs (3‑year ratable vesting) and stock options (3‑year ratable vesting; 7‑year term) .
- FY2026: PSUs introduced—50% of LTI value—with 3‑year performance period (FY26–FY28); metrics and weights: Revenue CAGR 40%, Adjusted EBITDA margin expansion 30%, Cash Flow Conversion 30%; payout 50%–200% of target; ±20% rTSR modifier vs S&P 600 Healthcare Equipment & Services (capped at 200%) .
FY2025 grants to Naemura:
| Grant Date | RSUs (#) | Options (#) | Exercise Price ($/sh) | Vesting Terms | Grant‑Date Fair Value ($) |
|---|---|---|---|---|---|
| 8/15/2024 | 42,883 | 201,764 | 16.79 | 3‑year ratable (RSUs & options) | 1,800,000 total (split per mix) |
| 1/16/2025 (promo prorate) | 10,034 | 45,150 | 11.60 | 3‑year ratable | 291,000 |
Special retention performance options (granted Oct 26, 2023):
- Aggregate value $2,200,000 at grant; exercisable upon one‑time achievement of 20% stock price hurdle over grant price, then vest in ~three equal installments on grant anniversaries within 7‑year term (double trigger: performance + time). The stock price hurdle was achieved; installments vest on anniversaries .
Vesting realized in FY2025:
| Item | Shares | Value Realized ($) |
|---|---|---|
| RSUs vested (FY2025) | 16,594 | 231,651 |
| Options exercised (FY2025) | — | — (none exercised) |
Equity Ownership & Alignment
- Anti‑hedging/anti‑pledging: Company prohibits hedging and pledging of NEOG securities by directors/officers; any pledge/margin requires CFO and Board Chair approval .
- Stock ownership guidelines: Corporate officers must hold stock valued at 2× annual base salary; unvested RSUs count, options/uneaned PSUs do not; those below guideline may sell no more than 25% of vested shares .
Beneficial ownership (Rule 13d‑3, as of record dates):
| Metric | Aug 27, 2024 | Aug 26, 2025 |
|---|---|---|
| Shares owned (direct) | 30,040 | 69,781 |
| Right to acquire within 60 days (options/RSUs) | 258,142 | 367,364 |
| Total | 288,182 | 437,145 |
| % of shares outstanding | <1% (of 216,698,138) | <1% (of 217,298,626) |
Outstanding equity (May 31, 2025):
| Item | Amount | Notes |
|---|---|---|
| Options exercisable | 300,109 | Exercise prices: $15.49, $15.48, $16.79, $11.60 |
| Options unexercisable | 678,515 | 3‑year vest on recent grants |
| RSUs unvested | 96,837 | Market value $567,465 at $5.86 close |
| Option moneyness | — | Closing price $5.86 vs strikes ($11.60–$16.79) → out‑of‑the‑money at FYE |
Employment Terms
Severance and change‑of‑control economics (letter agreements entered Oct 2023; amounts as of May 31, 2025):
- Cash severance: base salary (12 months, paid ratably) + target bonus (lump sum) + COBRA premiums during severance; CFO multiple equals 1× base salary (CEO is 2×) .
- Double trigger equity acceleration within 12 months post change‑of‑control; single‑trigger equity acceleration not provided .
- Clawback: Dodd‑Frank/Nasdaq‑compliant incentive compensation recovery policy filed with Form 10‑K; recoupment on restatement .
- No excise tax gross‑ups .
Illustrative amounts (CFO):
| Scenario | Amount ($) |
|---|---|
| Termination for Good Reason or without Cause | 1,333,299 |
| Same, within 12 months after change‑of‑control | 1,900,764 (includes equity acceleration) |
Deferred compensation participation:
| Metric | FY 2024 | FY 2025 |
|---|---|---|
| Non‑qualified deferred comp (balance/contributions) | None reported for Naemura | None reported for Naemura |
Compensation Structure Analysis
- Pay mix shift toward performance: After a 48.8% Say‑on‑Pay approval in 2024, NEOG introduced PSUs for FY2026 (50% of LTI), with multi‑year financial goals and an rTSR modifier to strengthen pay‑for‑performance alignment .
- Options and RSUs remain with 3‑year ratable vesting; CEO/NEOs’ equity remained underwater at FY2025 close, reinforcing alignment with TSR outcomes .
- Independent compensation consultant change in 2025 (Meridian → Farient) and updated peer group governance reflect responsiveness to investor feedback .
Compensation peer group (FY2025 examples): 10x Genomics, Bio‑Rad, Bruker, Charles River, IDEXX, Mettler‑Toledo, Waters, QuidelOrtho, NeoGenomics, Repligen, Sotera Health, Natera, OraSure, Bio‑Techne, Azenta .
Performance & Track Record
- FY2025 context: integration challenges with former 3M Food Safety Division (inventory write‑offs, inefficiencies, capital intensity), end‑market weakness (lower food production; US cattle herd trough), FX headwinds; refinancing extended debt maturity to 2030; divestiture of cleaners & disinfectants completed post‑year‑end .
- Pay‑versus‑performance: Adjusted EBITDA rose FY2022–FY2024 then declined in FY2025 (184.2M), with TSR below sector; PVP table provides multi‑year CAP reconciliation vs SCT .
Equity Ownership & Alignment Red Flags
- Hedging/pledging prohibited; no reported related‑party transactions in FY2025; anti‑pledging mitigates collateralization risk .
- No options exercised in FY2025 by NEOs, and options were out‑of‑the‑money at $5.86 close, suggesting limited near‑term insider selling pressure from options .
- Ownership guidelines (2× salary for officers) in place; compliance status for individual officers not disclosed in the proxy .
Employment & Contracts
- Severance: CFO receives 1× salary plus target bonus and COBRA; double‑trigger equity acceleration on change‑of‑control; payments subject to release and Detrimental Activity clawback; Compensation Committee retains discretion under the 2023 Omnibus Plan for equitable actions consistent with 409A .
- No non‑compete/non‑solicit specifics disclosed in proxy; executive consulting arrangements not indicated for Naemura .
Say‑on‑Pay & Shareholder Feedback
- 2024 Say‑on‑Pay approval: 48.8%; Board engaged with top holders and responded with enhanced ICP disclosure and PSU adoption for FY2026 .
- Compensation Committee independence; anti‑repricing, no evergreen, recoupment policy; stock ownership guidelines enforced .
Investment Implications
- Alignment signals: Zero ICP payout for FY2025 and underwater options materially tie realized pay to performance; PSUs introduce rigorous multi‑year hurdles and rTSR, improving pay‑for‑performance optics after 2024’s low Say‑on‑Pay result .
- Retention risk: Moderate—dual CFO/COO role plus large unvested equity (96,837 RSUs; 678,515 unvested options) and defined severance support retention; however, integration execution adds bandwidth risk .
- Trading signals: No FY2025 option exercises and options out‑of‑the‑money limit near‑term selling pressure; watch RSU vesting cadence and potential PSU outcomes; hedging/pledging bans reduce overhang risk .
- Governance/practices: Consultant change and peer group rigor, disclosure enhancements, and clawback compliance are positives; continued performance recovery (Revenue/EBITDA/FCF) will drive PSU vesting and realized pay—monitor FY2026–FY2028 targets and rTSR vs S&P 600 Healthcare peers .