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Jacob McDonough

Secretary at PARKS AMERICA
Executive
Board

About Jacob McDonough

Jacob McDonough, 32, has served as a director of Parks! America, Inc. (PRKA) since June 6, 2024, and is the Audit Committee Chairman; the Board determined he is independent and qualifies as an “audit committee financial expert” under SEC rules . He earned a B.A. in Finance from Michigan State University in 2014 and has prior experience as an investment analyst and portfolio manager focused on fundamental analysis and reverse DCF modeling . Company performance during the most recent two fiscal years showed cumulative TSR of $102.44 (value of $100 initial investment) in FY2024 vs $90.24 in FY2023 and net losses of $(1,094,481) in FY2024 and $(483,738) in FY2023 . The Board held 17 meetings in FY2024 and the Audit Committee met four times; no director attended fewer than 75% of meetings .

Past Roles

OrganizationRoleYearsStrategic Impact
BDG Partners LLCAnalystAug 2024 – Present Alternative investment analysis focused on unique, overlooked markets
McDonough InvestmentsPortfolio Manager2021 – 2024 Founded and managed capital; produced research content for investors
New Constructs, LLCInvestment Analyst2017 – 2021 Reviewed thousands of 10-K/10-Qs, reversed accounting distortions, built reverse DCF models

External Roles

OrganizationRoleYearsStrategic Impact
Author“Capital Allocation: The Financials of a New England Textile Mill (1955–1985)”Provides analytical perspective on capital reallocation at Berkshire Hathaway; educates investors on complex financial topics
Content creatorBlog articles/podcastsOngoing investor education through research and analysis

Fixed Compensation

ComponentAmount/StructureNotes
Director annual retainer$10,000 Paid at the end of service period (generally December) and paid early in subsequent fiscal year; directors may elect cash, stock, or combination
Audit Committee Chair fee$2,500 Additional compensation for chair responsibilities

The proxy’s 2024 director compensation table lists payments to legacy directors; Jacob McDonough’s specific 2024 amounts are not itemized. Policy indicates his role as Audit Chair would typically add $2,500 to the $10,000 retainer .

Performance Compensation

  • The company states: “At the present time, the Company has no plan to issue equity awards,” and did not grant equity awards to named executive officers during timing-sensitive periods in FY2024 .
  • PRKA has a legacy Stock Option and Award Plan approved in 2005 for up to 5,000,000 shares, but it was never submitted to stockholders and has had no grants to date .

No director or executive performance-based metrics tied to compensation are disclosed for Jacob McDonough; skip detailed metric/weighting/payout table due to lack of disclosure .

Equity Ownership & Alignment

ItemDetail
Beneficial ownership (shares)“—” (none disclosed for Jacob)
Ownership % of class0.0%
Vested vs unvested sharesNot applicable; no equity awards disclosed
Options (exercisable/unexercisable)None; no grants disclosed
Shares pledged as collateralProhibited under Insider Trading Policy for Covered Persons without advance approval; policy prohibits pledging for Covered Persons and bars margin accounts
HedgingProhibited for Covered Persons without advance approval; short sales and derivatives prohibited
Trading windowsBlackout from two weeks before fiscal quarter-end until second trading day after results disclosure; trades require pre-clearance unless under Rule 10b5-1 plan
Ownership guidelinesNo formal numeric director ownership guideline disclosed; Board considers stock ownership a “fundamental tenet” of Board service and allows compensation election in stock

Employment Terms

TermDetail
Board service start dateJune 6, 2024
Current roleDirector; Audit Committee Chairman
Committee membershipsAudit Committee (Chair); no standing Compensation or Nominating Committees exist
Independence statusIndependent for audit committee purposes under Rule 10A-3 and Nasdaq definitional standards
Board/Audit meeting cadenceBoard: 17 meetings FY2024; Audit: quarterly, met 4 times FY2024
AttendanceNo director attended fewer than 75% of applicable meetings FY2024
Director term lengthOne-year term; directors elected annually by majority of votes cast

Board Governance

  • Committee roles: PRKA has only an Audit Committee; Jacob McDonough served as Audit Committee Chairman; Audit Committee responsibilities include oversight of financial reporting, auditor appointment/compensation, and auditor independence .
  • Audit Committee structure: No formal charter; members are independent and financially literate; Jacob McDonough signed the Audit Committee report .
  • Governance gaps: No Compensation or Nominating Committee; compensation determined by Board majority and nominations made by Board majority .
  • Control context: Focused Compounding Fund, LP owns 40.2% of outstanding shares; officers/directors and controlled entities as a group controlled ~41.8% as of Jan 10, 2025 .
  • Dual-role implications: McDonough is a non-employee director and Audit Chair (no CEO/Chair dual role). Governance risk stems more from the absence of compensation/nominating committees and concentrated ownership than from his dual roles .

Director Compensation

ComponentFY2024 Policy/Practice
Cash retainer$10,000 per director
Audit Chair fee$2,500
Equity grantsDirectors may elect to receive compensation in shares; however, company currently has no plan to issue equity awards
Meeting feesNot disclosed; Board emphasizes expected time beyond meetings

Say‑on‑Pay & Shareholder Feedback

  • Proposal 3 seeks non-binding shareholder approval of NEO compensation; Board recommends voting “FOR” .
  • The company outlines compensation objectives to align pay with corporate strategy and long-term value creation, ensure competitiveness and fairness, and responsibly manage costs .

Related‑Party Transactions and Policies

  • Insider Trading Policy prohibits hedging, short-term trading, options/derivatives, short sales, margin accounts, and pledging for Covered Persons without advance approval; requires preclearance and sets blackout periods; Rule 10b5‑1 plans are permitted .
  • A 2025 refinancing included a $2.5M bank term loan to a subsidiary with a $2.5M cash collateral reserve posted by Focused Compounding Fund, LP; no fee or benefit to the fund was received; highlights influence of a large shareholder controlled by board members (Gannon and Kuhn) .

Performance & Track Record

MetricFY2023FY2024
Total Shareholder Return (value of $100 initial)$90.24 $102.44
Net Income (Loss)$(483,738) $(1,094,481)

No executive performance metrics tied to Jacob McDonough’s compensation are disclosed; company-level TSR and net income are shown for context .

Investment Implications

  • Alignment: McDonough owns no PRKA shares (0.0% of class), reducing direct “skin‑in‑the‑game,” but director pay is modest ($10,000 plus $2,500 Audit Chair) and the company encourages share-based compensation elections; formal ownership guidelines are not disclosed .
  • Retention and selling pressure: With no disclosed equity awards or options for McDonough and hedging/pledging prohibited, insider selling pressure appears minimal; monitor any future adoption of equity awards or changes to director pay structure .
  • Governance risk: McDonough strengthens financial oversight as an audit committee financial expert and independent director, but governance gaps (no compensation/nominating committees) and concentration of ownership (40.2% by Focused Compounding) warrant heightened monitoring of compensation decisions and related‑party dynamics .
  • Trading signals: Watch outcomes of the upcoming say‑on‑pay vote and the proposed reverse/forward stock split; liquidity and price dynamics could be affected by the split structure, while vote results may signal investor sentiment on compensation governance .