Richard Grondin
Executive Vice President of Hanford and International Waste Operations at PERMA FIX ENVIRONMENTAL SERVICES
Executive
About Richard Grondin
Richard Grondin (age 66) is Executive Vice President of Hanford and International Waste Operations at Perma-Fix Environmental Services, appointed January 23, 2025, after serving as EVP of Waste Treatment Operations since July 2020; he joined Perma-Fix in 2002 and previously held roles including VP of Technical Services, VP/GM of Perma-Fix Northwest Richland, and VP of Western Operations . He is a Project Management Professional with 35+ years of technical and management experience in hazardous/mixed waste treatment and start-up facility operations; education includes Diplomas in Pure & Applied Sciences (CEGEP of Amiante), Analytical Chemistry Techniques (CEGEP of Ahuntsic), a Geography minor (University of Montreal), and a Certificate of Business Management (HEC/School of Higher Commercial Studies, University of Montreal) . Company-level “Pay versus Performance” disclosures show TSR up to a $175 value from a $100 base (Jan 3, 2022) by year-end 2024, while net loss was $19.979M in 2024, indicating limited financial performance alignment for variable pay that year .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Perma-Fix Environmental Services | EVP, Hanford & International Waste Operations | 2025–present | Oversees Hanford and international waste operations; broader remit from waste treatment segment . |
| Perma-Fix Environmental Services | EVP, Waste Treatment Operations | 2020–2025 | Led Treatment Segment operations; accountability for revenue/EBITDA targets under MIP gating . |
| Perma-Fix Environmental Services | VP, Technical Services | 2002–(years not disclosed) | Technical leadership across treatment segment; operational optimization . |
| Perma-Fix Environmental Services | VP/GM, Perma-Fix Northwest Richland, Inc. | 2002–(years not disclosed) | Facility leadership and performance delivery . |
| Perma-Fix Environmental Services | VP, Western Operations | 2002–(years not disclosed) | Oversight of western facilities; startup/scale execution . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Allied Technology Group (Richland, WA) | VP, Mixed Waste Operations | Pre-2002 (not disclosed) | Led mixed waste operations; regulatory and technical expertise . |
| Waste Control Specialists (Andrews, TX) | VP, Operations | Pre-2002 (not disclosed) | Facility operations leadership in commercial sector . |
| Rollins Environmental Services (Deer Trail, CO) | Technical Manager/Director of Operations | Pre-2002 (not disclosed) | Technical/operations management at disposal/treatment facility . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 261,233 | 266,458 | 285,267 |
| Bonus ($) | – | – | – |
| All Other Compensation ($) | 38,240 | 40,890 | 41,330 |
| Total Compensation ($) | 299,473 | 498,325 | 326,597 |
Perquisites detail (2024):
| Component | Amount |
|---|---|
| Insurance premiums | $24,705 |
| Auto allowance | $9,000 |
| 401(k) match | $7,625 |
| Total perquisites | $41,330 |
2025 base salary reset: On January 23, 2025, the Board set Grondin’s annual salary at $315,267 in the new EVP role .
Performance Compensation
MIP structure emphasizes EBITDA gating (no payouts unless ≥75% of EBITDA target achieved) and includes revenue, health & safety, and permit/license violations objectives; no 2024 MIP payout was earned for any NEOs due to results .
2024 MIP (EVP of Waste Treatment Operations):
| Metric | Target Payout at 100% ($) | Gating/Notes | Actual (2024) | Payout |
|---|---|---|---|---|
| Revenue | $14,263 | Payout scale by performance tier; EBITDA ≥75% required for any payout | Not disclosed; EBITDA gate not met | $0 |
| EBITDA | $85,581 | Central gate; tiers up to >150% | Not disclosed; gate not met | $0 |
| Health & Safety (WCLTA) | $21,395 | Tiered by lost-time accidents count | Not disclosed | $0 |
| Permit & License Violations | $21,395 | Tiered by official notices; defined thresholds | Not disclosed | $0 |
| Total Target at 100% | $142,634 | Max total capped by company pre-tax income % | — | $0 |
2025 MIP (EVP of Hanford & International Waste Operations):
| Metric | Target Payout at 100% ($) | Gating/Notes |
|---|---|---|
| Revenue | $15,763 | EBITDA gate ≥75%; multi-tier payouts |
| EBITDA | $94,581 | Core profitability gate |
| Health & Safety | $23,645 | Fixed payout at 90–>150% tiers |
| Permit & License Violations | $23,645 | Tiered risk/Compliance metric |
| Total Target at 100% | $157,634 | Paid ~90 days after year-end subject to audit |
Notes:
- MIP pool cannot exceed 50% of pre-tax net income .
- 2024 and 2025 plan matrices include tiered payouts by “Performance Target Achieved” brackets (75–89%, 90–110%, 111–129%, 130–150%, >150%) .
- Company maintains an SEC/Nasdaq-compliant Clawback Policy covering incentive-based compensation for Section 16 officers .
Equity Ownership & Alignment
Beneficial ownership (as of June 2, 2025):
| Holder | Shares Beneficially Owned | Percent of Class | Breakdown |
|---|---|---|---|
| Richard Grondin | 39,780 | <1% (approx. 0.22% computed vs 18,452,227 SO) | 28,780 common + 11,000 immediately exercisable options |
Outstanding equity awards (12/31/2024):
| Grant Date | Exercisable (#) | Unexercisable (#) | Exercise Price ($) | Expiration |
|---|---|---|---|---|
| 10/14/2021 (ISO) | 5,000 | 10,000 | 7.005 | 10/14/2027 |
| 1/19/2023 (ISO) | – | 24,000 | 3.950 | 1/19/2029 |
Option exercises in 2024:
| Grant | Exercise Date | Shares Exercised | Shares Issued (net of withholding) | Exercise Price ($) | FMV ($/sh) | Value Realized ($) |
|---|---|---|---|---|---|---|
| 1/17/2019 ISO (2,000 sh) | 3/26/2024 | 2,000 | 1,455 | 3.15 | 11.57 | 16,840 |
| 10/14/2021 ISO (10,000 sh) | 3/26/2024 | 10,000 | 3,946 | 7.005 | 11.57 | 45,650 |
| 1/19/2023 ISO (6,000 sh) | 3/26/2024 | 6,000 | 3,952 | 3.95 | 11.57 | 45,720 |
Alignment policies:
- Stock Trading Policy strongly discourages short sales, margin accounts, standing/limit orders, and speculative transactions; ownership guidelines and pledging prohibitions are not explicitly disclosed in the proxy .
- Company uses 2017 Stock Option Plan; options typically vest 20% per year over 5 years; exercise prices set at or above market price at grant .
Employment Terms
- Agreement: Employment agreement dated April 20, 2023 (amended solely to reflect new EVP role on Jan 23, 2025); initial three-year term to April 20, 2026 with automatic one-year renewal unless either party gives six-month notice not to extend .
- Base salary: Set at $315,267 effective January 23, 2025 for EVP Hanford & International ops (previously $285,267 as EVP Waste Treatment Ops) .
- Severance and change-in-control economics:
- If terminated for “good reason” or without cause (including within 24 months after a Change in Control): Accrued amounts + 2x base salary + performance compensation multiple (1x if prior year bonus already paid; 2x if unpaid) + cash medical continuation (18× monthly COBRA premium) .
- Accelerated vesting: Upon good reason termination, without cause, death, or change in control, all outstanding stock options become immediately exercisable; exercise window is lesser of original term or 60 days post-termination (12 months post-death); after CIC, options are exercisable through original term .
- Non-compete/Non-solicit: Not specifically disclosed for Grondin’s agreement in the proxy; company maintains confidentiality and restrictive covenants in other executive agreements (example COO) including non-solicit for 12 months post-termination .
- Clawback: SEC/Nasdaq-compliant clawback of incentive-based compensation for restatements .
Compensation Structure Analysis
- Mix shift: In 2023, Grondin received option awards ($60,360) and MIP payout ($130,617), while 2024 had no option awards or MIP, leaving compensation ~89% salary and ~11% perquisites—indicative of pay-for-performance gating tied to EBITDA .
- Risk profile: Shift from realized variable comp in 2023 to zero MIP in 2024 underscores stringent payout thresholds; 2025 MIP retains EBITDA gating and compliance metrics, maintaining at-risk structure .
- No evidence of repricing or underwater option modifications; option awards maintain original exercise prices and vesting schedules .
Investment Implications
- Pay-for-performance discipline: No 2024 MIP payout reflects tight EBITDA gating amid a 2024 net loss, reducing cash incentive outflows and aligning executive pay with shareholder outcomes; 2025 plan maintains gating, tempering compensation inflation risk .
- Retention and change-in-control: Severance at 2x salary plus bonus multiple and full option acceleration create retention value but also meaningful CIC economics; exercise windows vary by termination scenario and can shift insider liquidity timing .
- Insider selling pressure watchpoints: March 2024 multi-grant option exercises increased net share issuance amid withheld shares for exercise costs; upcoming option expirations (2027, 2029) and continued annual vesting could introduce episodic trading activity, though the Stock Trading Policy discourages speculative transactions (short sales, margin) .
- Ownership alignment: Beneficial ownership ~0.22% (including 11,000 immediately exercisable options) indicates moderate “skin-in-the-game” for a mid-level NEO; absence of explicit ownership guidelines/pledging disclosures offsets alignment clarity, though margin use is discouraged .