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Wayne Wasechek

Vice President and Chief Financial Officer at POTLATCHDELTIC
Executive

About Wayne Wasechek

PotlatchDeltic’s CFO since August 29, 2023 (previously Interim CFO/Chief Accounting Officer from April 19, 2023, and Controller/Principal Accounting Officer since November 2018), Wayne Wasechek is a CPA with prior leadership roles at Vail Resorts (VP & Assistant Controller 2011–2018; Senior Director of Financial Reporting 2006–2011) and early career at PwC; he was age 53 at appointment and holds a business administration degree (accounting) from the University of Colorado Boulder . Under his finance leadership, PCH increased 2024 Total Adjusted EBITDDA to $232.1M on $1.1B revenue (from $200.2M on $1.0B in 2023), maintained a 2.3% weighted-average cost of debt via swaps/refinancing, and executed a $131M sawmill modernization while returning $177M via dividends and buybacks . 2024 FFO was $222.4M (96.9% of target), and 2022–2024 PSUs paid 78.67% on relative TSR underperformance versus peers/Nareit, signaling real pay-for-performance sensitivity to shareholder returns . In Q3’25, PCH reported $314.2M revenue, $25.9M net income and $89.3M Total Adjusted EBITDDA, and announced a definitive merger agreement with Rayonier, highlighting capital markets execution and portfolio strategy continuity during his tenure .

Past Roles

OrganizationRoleYearsStrategic impact
PotlatchDeltic (PCH)Vice President, Chief Financial Officer (also Chief Accounting Officer)Aug 29, 2023 – presentElevated AIP/long-term incentive targets; oversees capital structure, swaps program, refinancings; supports large-scale mill modernization and M&A processes .
PotlatchDeltic (PCH)Interim VP, CFO & CAOApr 19, 2023 – Aug 29, 2023Transitional executive leadership of finance and accounting .
PotlatchDeltic (PCH)Controller & Principal Accounting OfficerNov 2018 – Apr 19, 2023Led accounting and treasury; established reporting foundations prior to CFO appointment .
Vail Resorts (MTN)VP & Assistant Controller2011 – 2018Senior controllership for a complex, multi-entity public company .
Vail Resorts (MTN)Senior Director, Financial Reporting2006 – 2011External reporting leadership .
PwCAuditorEarly careerFoundational audit/CPA experience .

Fixed Compensation

Item20232024Notes
Base salary ($)$405,000 $445,500 +10.0% increase recognizing performance and market alignment per Semler Brossy .
Target annual bonus (% of base)65% 65% Corporate participant measured primarily on FFO and non-financial goals .
Actual annual bonus paid ($)$323,300 $280,100 Corporate AIP payout achieved 97% of target before individual modifier in 2024 .
Stock awards grant-date fair value ($)$380,543 $544,429 Mix of PSUs (60%) and RSUs (40%) .
All other comp (benefits) ($)$25,574 $34,439 Includes 401(k) match $14,490, supplemental plan $17,538, life insurance $2,411 for 2024 .

Performance Compensation

Annual Incentive Plan (AIP) Structure and Results (Corporate Participant)

MetricWeight2024 Targets2024 Actual/OutcomePayout Factor
Corporate FFO80%Threshold $183.6M; Target $229.5M; Max $290.8M Actual FFO $222.4M (96.9% of target) 88%
Non-financial goals (Ops/ESG/HCM)20%Safety, capital projects, GHG progress, ops execution Above target on corp. responsibility, safety, real estate sales; ops execution 130%
Total corporate payout achieved97% of target

Notes:

  • AIP awards are subject to individual performance modifier (0–200%); awards pay 10–190% of target based on matrices .
  • Division-level metrics (for non-corporate participants) also include Division EBITDDA; corporate executives are measured on FFO and non-financial goals .

Long-Term Equity (2024 Grants)

AwardGrant dateThresholdTargetMaxGrant date fair value ($)
PSUs (TSR-based)Feb 8, 20241,646 sh 6,583 sh 13,166 sh $348,372
RSUs (time-based)Feb 8, 20244,389 sh $196,057
  • PSU metrics: 50% relative to median TSR of timber/wood peers; 50% relative to FTSE Nareit All Equity REITs percentile; 25–200% payout scale (threshold to max) .
  • Vesting: RSUs vest Dec 31 immediately before the third anniversary; PSUs vest based on 3-year TSR performance (2024–2026 cycle) .

Realized/Lapsing Performance Context

  • 2022–2024 PSU cycle vested at 78.67% (relative TSR underperformed peer median by 2.38 pts; ranked 75/137 in Nareit), demonstrating downside sensitivity .
  • Company TSR: Pay-versus-performance shows $100 invested = $117.95 at 2024 year-end vs peer index $123.25, consistent with PSU underperformance .

Equity Ownership & Alignment

Ownership and Awards (as of stated date)Amount
Beneficially owned common shares (3/1/2025)12,449 (<1% of outstanding)
Common stock units (deferred/RSU units) (3/1/2025)15,252
Unvested RSUs (grant 2/8/2024; vests 12/31/2026)4,578 units; $179,687 value at $39.25 (12/31/2024)
Unvested RSUs (grant 2/9/2023; vests 12/31/2025)1,595 units; $62,604 value
Unvested RSUs (grant 4/19/2023; vests 4/19/2026)3,826 units; $150,171 value
PSU targets outstanding (12/31/2024)6,866 units; $269,491 value at $39.25 (target basis; payout 0–200% plus dividends)
Shares acquired on vesting in 20242,913 shares; $114,335 value

Alignment policies and compliance:

  • Officer stock ownership guideline for CFO: 2x base salary; all NEOs compliant or within 5-year window as of March 1, 2025 .
  • Hedging prohibited; pledging prohibited except limited, preapproved exceptions for directors/executives .
  • Clawbacks: Nasdaq Rule 5608 restatement policy and broader misconduct/for-cause recovery policy in place .

Implications for potential selling pressure:

  • Notable vesting dates may create liquidity windows: 12/31/2025 (2023 RSUs), 4/19/2026 (2023 RSUs), 12/31/2026 (2024 RSUs); PSU outcomes contingent on TSR through 12/31/2026 .

Employment Terms

Scenario (assumes 12/31/2024 event)Cash severancePro‑rata AIPEquityBenefits/outplacementTotal
Termination not in connection with CoC (involuntary, no cause)$445,500 Forfeited $14,933 benefits + $20,000 outplacement $480,433
Double‑trigger CoC termination (within 1 mo. before to 24 mo. after CoC)$1,837,700 (2.5x base+target bonus) $289,575 $755,877 acceleration $14,933 benefits + $20,000 outplacement $2,918,085

Key terms:

  • Double-trigger required for CoC benefits and equity vesting; PSUs convert to target RSUs at CoC and then require termination for acceleration; RSUs vest on termination if granted ≥6 months before CoC .
  • Retirement/death/disability: pro‑rata AIP and pro‑rated PSU payout at actual performance; RSUs accelerate pro‑rata per plan .
  • No tax gross‑ups disclosed; severance plan uses standardized formulas and includes benefits/outplacement; company maintains a Benefits Protection Trust to fund obligations post‑CoC .

Compensation Structure Analysis

  • Increased fixed pay to market for CFO role (base +10% in 2024) while keeping target bonus at 65%, aligning to Semler Brossy market medians .
  • Equity mix is 60% PSUs (relative TSR) and 40% RSUs; company does not grant options, reducing risk of repricing and emphasizing TSR alignment .
  • Annual incentive program (80% FFO; 20% non‑financial goals) paid near target for corporate (97%), with divisional dispersion (e.g., Wood Products 45%, Real Estate 161%), indicating differentiated accountability .
  • Robust shareholder support for pay program (96% say‑on‑pay), independent consultant (Semler Brossy), double‑trigger CoC, clawbacks, hedging/pledging prohibitions, and ownership guidelines support governance quality .

Performance & Track Record

Metric20242023Notes
Revenues ($B)$1.1 $1.0 Real Estate EBITDDA strength offset softer lumber pricing; record lumber shipments 1,107 MMBF .
Total Adjusted EBITDDA ($M)$232.1 $200.2 Cost management, rural land sales, and portfolio actions .
Corporate FFO ($M)$222.4 (96.9% of target) Primary AIP metric for corporate participants .
TSR ($100 initial value at YE)$117.95 $141.08 Versus Nareit Equity Index $123.25 (2024) .
Q3’25 resultsRev $314.2M; Net inc $25.9M; Total Adj. EBITDDA $89.3M Q3’24: Rev $255.1M; Net inc $3.3M; Total Adj. EBITDDA $45.9M Announced definitive merger with Rayonier; refinanced $100M; liquidity $388M .

Debt/capital highlights:

  • 2024: repaid $65.7M revenue bonds; refinanced $110M term loan; used swaps to fix term loan rates 4.02–4.28%; maintained weighted‑avg cost of debt at 2.3% .
  • Q3’25: refinanced $100M of maturing debt; continued weighted‑avg cost of ~2.3% across portfolio .

Equity Ownership & Alignment (Policies)

  • Ownership guideline: CFO must hold 2x base salary; all NEOs in compliance/as within window .
  • Hedging prohibited; pledging prohibited without Compensation Committee pre‑approval; violations would be a red flag, but none disclosed .
  • Related‑party transactions: none requiring disclosure in 2024 .

Deferred Compensation and Pensions

Item (2024)Amount
401(k) company match$14,490
401(k) Supplemental Plan II allocation$17,538
Life insurance premiums$2,411
Supplemental/Deferred comp – registrant contrib. (last FY)$17,538
Supplemental/Deferred comp – aggregate earnings (last FY)$3,378
Supplemental/Deferred comp – aggregate balance (12/31/24)$44,589
Pension participationNot a participant; plan closed to post‑2010 hires

Say‑on‑Pay, Peer Group & Governance

  • Say‑on‑pay approval: >96% in May 2024, supporting continuity of program design .
  • PSU performance peer group: Weyerhaeuser, UFP Industries, Rayonier, St. Joe, West Fraser, Canfor, Interfor, Western Forest Products; target at median with 25–200% payout slope .
  • Independent consultant (Semler Brossy), annual risk assessment, clawbacks, double‑trigger CoC, director/NEO ownership guidelines indicate strong governance posture .

Investment Implications

  • Alignment and incentive sensitivity: High share of at‑risk pay via TSR‑linked PSUs (60% of LTI) and FFO‑based AIP ties CFO incentives to shareholder returns and cash generation; 2022–2024 PSUs paid below target when TSR lagged, indicating real downside (watch TSR relative to the mixed timber/REIT peer set) .
  • Retention risk and sale pressure: Significant unvested RSUs with clustered vest dates (12/31/2025, 4/19/2026, 12/31/2026) and mid‑cycle PSUs create potential post‑vesting liquidity windows; hedging/pledging prohibitions reduce misalignment risk (monitor Form 4s around these dates) .
  • Change‑of‑control economics: Pending Rayonier merger elevates salience of double‑trigger CoC severance (2.5x cash plus equity acceleration at target), aligning CFO to successful close while retaining service through consummation; investors should assess integration risk and any revised equity conversion mechanics disclosed pre‑close .
  • Execution track record: Debt cost management (2.3% WACD via swaps), timely refinancings, and disciplined capital deployment amid volatile lumber markets underscore financial stewardship; Real Estate monetization underwrites EBITDDA stability, but wood products cyclicality remains a constraint on upside until pricing improves .