Dennis F. McKenna
About Dennis F. McKenna
Chief Executive Officer of Preformed Line Products (PLPC) since January 1, 2024; company veteran since April 1993 with progressive leadership across marketing, international operations, global business development, and COO (2019–2023). Age 56 at appointment; as CEO he oversees all sales and operations worldwide and is supported by an Executive Chairman structure that retains the principal executive officer role at the Board level . Company performance context: revenues rose 2021–2023 then moderated in 2024; EBITDA and net income followed a similar pattern; PLPC’s five‑year pay-versus-performance table shows a 2024 TSR value of $222.39 for an initial $100 investment (vs. $231.46 in 2023) . See detailed performance table below.
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Preformed Line Products | Various roles in Marketing and International Operations | 1993–2017 | Built global marketing/international operations experience; long-tenured company operator |
| Preformed Line Products | Executive Vice President (Global Business Development) | Jan 2018–Dec 2019 | Led global business development ahead of COO elevation |
| Preformed Line Products | Chief Operating Officer | Dec 2019–Dec 2023 | Responsible for Sales, Operations and Business Development in the US, Americas and EMEA |
| Preformed Line Products | Chief Executive Officer | Jan 2024–Present | Oversees all Sales and Operations worldwide |
Fixed Compensation
| Year | Base Salary ($) | Annual Bonus Paid ($) | Bonus Plan Max (% of Salary) | All Other Compensation ($) | Total ($) |
|---|---|---|---|---|---|
| 2024 | 685,008 | 685,008 (paid at 100% of salary on 12.3% ROE) | 100% (CEO/CFO/President in 2024) | 231,470 | 2,951,584 |
| 2023 | 600,000 | 510,000 (85% of salary) | 85% (other NEOs in 2023) | 221,686 | 1,945,776 |
| 2022 | 575,004 | 488,753 | — | 192,821 | 1,813,778 |
Notes
- Annual cash incentive formula: sliding scale based on pre-tax income as a % of average shareholders’ equity (3%–11%), with a midpoint at 7% that “implies a linear, symmetrical bonus curve with one-half of the maximum bonus earned at the midpoint.” In 2024 the Committee set max at 100% of salary for CEO/CFO/President (85% for other officers) and paid 100% for CEO at 12.3% ROE .
- Perquisites in “All Other Compensation” include SERP contributions/tax gross-ups, profit-sharing, financial planning, club dues, dividends on deferred/vested stock, limited personal aircraft use (McKenna: $5,862 in 2024) .
Performance Compensation
Annual Bonus Plan
| Element | Metric | Range/Target | 2024 Actual/Payout | Notes |
|---|---|---|---|---|
| Annual cash incentive | Return on Shareholders’ Equity | Range 3%–11%; implied target at 7% (50% of max per plan design) | ROE 12.3% → 100% payout for CEO | Max = 100% of salary for CEO/CFO/President in 2024 |
Long-Term Incentive (LTIP) – RSUs
| Grant Year | Vehicle | Metrics / Thresholds | Target | Max | Vesting | Grant date / Size / FV |
|---|---|---|---|---|---|---|
| 2024 | Performance RSUs (CEO 100% performance) | 3-yr avg YoY pre-tax income growth and sales growth; thresholds −7%→0% (PTI) and 0%→2% (Sales); target −3% (PTI) and 1% (Sales); CEO payout range 50%–200% of target | 5,455 sh | 10,909 sh | End of 3-year performance period (12/31/2026) | 2/7/24; $1,350,098 grant date FV |
| 2023 | Performance + service RSUs (pre-CEO mix) | 3-yr pre-tax income 3%→9%; sales 6%→12%; target 6% (PTI)/9% (Sales); max 9%/12% | 2,308 perf + 2,308 svc sh | 4,616 perf sh | Service cliff vest after 3 years; performance vest after 3-year period (12/31/2025) | 2/8/23; $614,090 grant date FV |
| 2022–2024 cycle | Performance RSUs | Company achievement confirmed; vested at 100% of maximum shares (CEO 200% of target) after Committee certification in Feb 2025 | — | — | Vested Feb 2025 (cycle ending 12/31/2024) | — |
Additional vesting terms and dividends
- Dividends on unvested RSUs accrue in cash and are paid upon vesting .
- LTIP change-in-control (CIC) treatment: time-based RSUs fully vest; performance RSUs vest, with shares earned at the end of the performance period based on achievement of performance goals in effect for the award .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (3/14/2025) | 35,551 shares; “less than 1%” of class |
| Deferred common shares (DSP) | 24,535 shares deferred in rabbi trust |
| 401(k) stock fund units | 1,987 shares-equivalent |
| Unvested RSUs outstanding (12/31/2024) | 24,113 shares (performance and service categories per footnote) valued $3,081,410 at $127.79 |
| Stock options | None outstanding (NEOs had no option awards outstanding) |
| Ownership guidelines | CEO 6x base salary; other officers 3x; types counting include direct stock, retirement-plan stock, and unvested time-vested RSUs. All current executive officers have met the requirement (two new hires on timeline) |
| Hedging/short sales | Prohibited for directors/officers; preclearance/blackout controls in place |
| Pledging | No specific pledging disclosure noted; no pledges disclosed in ownership tables |
Insider activity context
- Company share purchases from insiders (liquidity program) in 2023 included 4,512 shares purchased from McKenna at a 30-day average price of $155.71 (June 14, 2023) .
- Beneficial ownership for McKenna increased from 30,426 (as of 3/8/2024) to 35,551 (as of 3/14/2025); excludes unvested RSUs .
- Significant RSU vesting cycles (2022–2024 and 2023–2025) can create periodic selling pressure upon settlement given accrued dividends and DSP usage .
Employment Terms
- Employment agreement: None; all employees (including NEOs) are at-will; no individual employment, severance, or standalone change-in-control agreements .
- Change-in-control economics (equity only): Time-based RSUs fully vest; performance RSUs vest and pay at the end of the performance period based on achievement; estimated CIC value of McKenna’s stock awards at 12/31/2024 was $3,081,410 (assumes max performance attainment) .
- Clawback: Adopted August 2023; recoupment of incentive compensation upon an Accounting Restatement for the three years prior to the restatement determination, per NASDAQ rules .
- Non-compete / non-solicit: Not disclosed in proxy .
- Deferred compensation/SERP: 2024 balances – SERP $2,019,744; DSP $3,135,328; aggregate $5,155,072; 2024 SERP contribution $115,818 (with $7,182 tax gross-up) .
Performance & Track Record
Company fundamentals (fiscal years)
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|
| Revenues ($) | 517,417,000 | 637,021,000 | 669,679,000 | 593,714,000 |
| EBITDA ($) | 63,704,000* | 93,145,000* | 103,754,000* | 71,942,000* |
| Net Income ($) | 35,729,000 | 54,395,000 | 63,332,000 | 37,094,000 |
Values retrieved from S&P Global*
Selected performance signaling
- Pay vs performance: TSR value of initial $100 investment was $222.39 in 2024 (down from $231.46 in 2023) alongside ROE of 12.3% in 2024 vs. 20.8% in 2023 .
- Execution momentum: As CEO, McKenna highlighted 2025 European capacity expansions (Poland greenfield hub; Spain relocation/scale-up) to align with grid modernization/broadband demand, signaling operational scaling and regional growth focus .
Compensation Structure Notes (alignment and governance)
- LTIP design: CEO long-term equity is 100% performance-based RSUs with 3-year performance periods tied to pre-tax income growth and sales growth; for 2024, thresholds were lowered given anticipated demand headwinds, with CEO payout range 50%–200% of target .
- Annual bonus: ROE-based formula with linear schedule; 2024’s 12.3% ROE produced 100% payout for CEO/CFO/President; “target” implied at 50% of max at 7% ROE .
- Peer benchmarking: Committee used Willis Towers Watson survey (manufacturing revenue $500M–$1B) in 2024; officers (including CEO) benchmarked between 25th–75th percentile on base, and near median on total comp; no external advisor retained in 2024 . In 2023, peer classification was based on headcount (1,000–4,999 employees) .
- Say-on-Pay: 2023 received >97% approval; shareholders chose triennial frequency .
Investment Implications
- Alignment: Strong, given CEO’s 100% performance-based equity and ownership guideline (6x salary) compliance; accrued dividends further tie vesting to long-term outcomes .
- Cyclicality and target-setting: 2024 LTI thresholds were eased amid end-market inventory/demand normalization, which may increase the probability of vesting despite down-cycle results; monitor 2024–2026 PSU outcomes vs. lowered targets .
- Retention/transition risk: No severance/CIC cash protection; retention relies on unvested equity, ownership policy, and profit-sharing; outstanding 24,113 unearned RSUs (12/31/2024) provide retention but can convert to selling pressure at vest .
- Governance/controls: Hedging banned; clawback adopted; CIC equity acceleration is plan-based (time-based immediate; performance-based earned at period end), reducing windfall optics vs. single-trigger cash parachutes .
- Trading signals: Company repurchases from insiders include McKenna’s 4,512 shares in 2023 (liquidity), and substantial PSU vesting in Feb 2025 (2022–2024 cycle); watch Form 4s around future vesting dates (Dec/Feb cadence) for supply dynamics .