Jake Petkovich
PATRICK INDUSTRIESAbout Jake Petkovich
Jake Petkovich is President – Marine at Patrick Industries, rejoining the company on May 19, 2025 after serving as CFO from 2020–2023 and, most recently, CFO of Indicor LLP (2023–2025) . He brings deep leveraged finance experience from Wells Fargo/Wachovia (2004–2020) and holds a BA in Accounting (Washington & Jefferson College) and an MBA in Finance (William & Mary) . During and around his tenure, Patrick’s pay-for-performance model tied incentives to Net Income and multi‑year EBITDA, with company EBITDA of $425M and Net Income of $138M in 2024, and cumulative TSR rising to $262 for a $100 investment as of 2024, underscoring alignment of incentive programs to financial outcomes .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Patrick Industries | EVP–Finance, CFO & Treasurer | 2020–2023 | Drove financial strategy and capital allocation; developed many Marine acquisitions; enhanced operational efficiency . |
| Indicor LLP | Chief Financial Officer | 2023–2025 | Led finance for global industrial solutions platform . |
| Wells Fargo/Wachovia Securities | Managing Director, Leveraged Finance | 2004–2020 | Led underwriting/structuring for acquisition financings, recapitalizations, and refinancings . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Washington & Jefferson College | BA, Accounting | — | Degree credential . |
| William & Mary | MBA, Finance | — | Degree credential . |
Fixed Compensation
| Component | Value | Terms |
|---|---|---|
| Base Salary (2025 appointment) | $500,000 | Employment Agreement dated May 19, 2025; full-time role reporting to CEO; eligible for company benefit plans . |
Performance Compensation
| Component | Target | Metric/Weighting | Payout Curve | Vesting |
|---|---|---|---|---|
| Short-Term Incentive (2025) | $900,000 | Company STIP design uses Net Income (70%) + Individual strategic objectives (30%) ; 2025 target set in Employment Agreement . | Threshold 50% at 75% of plan; Target 100% at 100% of plan; Stretch 175% at 110%; Max 200% at 115% of plan . | Annual cash, based on fiscal-year results . |
| Long-Term Incentive (RSUs, granted 2025) | 10,257 units | RSUs split: time-based and performance-based . | Performance shares earn 0–200% vs 3-year cumulative EBITDA targets in LTIP framework . | 2,051 time-based units vest Jan 28, 2028 (service); 8,206 performance-contingent units vest Jan 2028 subject to LTIP targets and continued employment . |
| Stock Options (granted 2025) | 42,180 options | Exercise price $92.72 . | Equity value realized on exercise; contractual terms nine years . | Vest pro-rata on first four anniversaries of grant date (4-year ratable) . |
| Stock Appreciation Rights (granted 2025) | 42,180 SARs | Four tranches with strikes: $92.72, $110.76, $132.31, $158.05 . | Value realized equals intrinsic value above tranche strikes; nine-year terms . | Four equal tranches vest pro‑rata over first four anniversaries . |
Equity Ownership & Alignment
- Newly granted equity provides “skin-in-the-game” with a majority of RSU value contingent on 3-year EBITDA performance and multi-year option/SAR vesting, aligning outcomes with sustained profitability and share price appreciation .
- Hedging is permitted by company policy (no prohibition), which can reduce alignment if used; no pledging disclosures are cited in available filings .
- Stock ownership guidelines exist for NEOs (e.g., 2–4x salary multiples) and were met by 2024 NEOs; Jake’s guideline status is not disclosed in his 2025 appointment filing .
Vesting schedule highlights:
- Options/SARs: 25% per year from grant date years 1–4; options strike $92.72; SARs laddered strikes ($92.72/$110.76/$132.31/$158.05) .
- RSUs: 2,051 time-based vest Jan 28, 2028; 8,206 performance RSUs vest Jan 2028 contingent on LTIP EBITDA targets .
Employment Terms
- Agreement date: May 19, 2025; ongoing term until terminated by either party; restrictive covenants and confidentiality provisions included .
- Eligible for STIP and LTIP per company plans; equity grants issued under the 2009 Omnibus Incentive Plan .
- Company-wide clawback policy implemented in 2023 applies to incentive compensation recovery per Nasdaq/SEC rules .
- Insider trading policy blackout: begins 14 calendar days before quarter-end and ends after first full trading day following earnings release .
Performance & Track Record
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Company Net Income ($M) | 97 | 225 | 328 | 143 | 138 |
| Company EBITDA ($M) | 247 | 457 | 627 | 405 | 425 |
| Company TSR (Value of $100) | 133 | 159 | 122 | 207 | 262 |
- As Patrick’s CFO (2020–2023), Jake helped drive capital allocation and Marine platform acquisitions; the company emphasizes EBITDA in LTIP and Net Income in STIP, reinforcing pay-for-performance culture .
Historical compensation (Jake as CFO, Patrick):
| Metric | 2021 | 2022 | 2023 |
|---|---|---|---|
| Salary | $447,596 | $470,673 | $205,529 |
| Stock Awards (Grant-date FV) | $1,234,710 | $1,230,670 | $1,470,092 |
| Non-Equity Incentive (STIP) | $1,295,000 | $1,377,573 | $0 (no payout; forfeiture upon departure) |
| Total Comp | $3,162,022 | $3,103,116 | $1,688,151 |
Notes:
- Jake resigned May 14, 2023; unvested 2020–2023 time-based and performance-contingent shares were forfeited at termination .
- Company say‑on‑pay support was ~95% in 2024 for FY2023 NEO compensation, indicating investor alignment with the pay framework .
Compensation Structure & Peer Benchmarking Context
- Base salaries targeted at 25th–50th percentile; STIP targets at 50th–75th; LTIP at 25th–50th; total target compensation at 50th–75th vs peers .
- Peer group includes American Woodmark, Apogee, Brunswick, Cavco, EnPro, Hyster‑Yale, LCI Industries, Modine, Mueller, Polaris, Thor, UFP, Wabash, Winnebago (Masonite removed post‑acquisition) .
- Committee uses Willis Towers Watson; clawback adopted 2023; strong pay‑vs‑performance disclosure and oversight .
Risk Indicators & Red Flags
- Hedging permitted by policy (no prohibition), which may reduce alignment if used; pledging not disclosed in filings reviewed .
- No related-party transactions disclosed involving Petkovich since last fiscal year .
- STIP/LTIP designs allow discretion and performance curve adjustments; however, design and oversight disclosed (Net Income and 3‑year EBITDA) .
Investment Implications
- Alignment: Multi‑year, performance‑weighted RSUs and 4‑year ratable options/SARs create retention and performance linkage, reducing near-term selling pressure; earliest option/SAR tranches vest beginning one year from grant, spreading potential exercise/sale over 2026–2029 .
- Execution leverage: Marine platform leadership returns with prior acquisition/integration track record; incentives tied to EBITDA and Net Income should reinforce disciplined growth and margin focus .
- Watch‑items: Hedging permissibility and any future disclosure on pledging; changes in STIP/LTIP targets or payout curves; potential acceleration terms if Jake’s agreement follows typical NEO constructs (company-wide change‑of‑control and severance frameworks documented, although his specific severance multiples are not disclosed in the 8‑K) .