David Gonzalez
About David Gonzalez
David C. Gonzalez is President of Portsmouth Square, Inc. (PRSI), serving since May 24, 2021; he is 57 years old as of the 2025 proxy and has long-tenured operating roles at PRSI’s parent, The InterGroup Corporation (INTG), including Vice President Real Estate (2001–2023) and Chief Operating Officer (appointed May 31, 2023) . Company pay-versus-performance disclosures cover fiscal 2023–2024, showing cumulative TSR metrics and net losses, while PRSI’s revenues have risen through FY 2025; Gonzalez’s compensation is primarily cash with no equity grants reported . In April 2025, he led and publicly communicated a strategic refinancing of PRSI’s flagship Hilton San Francisco Financial District, demonstrating execution on capital structure optimization .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| PRSI | President | May 24, 2021 – present | Executive leadership of PRSI; advisor to Executive Strategic Real Estate and Securities Investment Committee |
| The InterGroup Corporation (INTG) | Vice President, Real Estate | Jan 31, 2001 – May 31, 2023 | Led real estate operations; long-tenured management across real estate and securities investment activities |
| The InterGroup Corporation (INTG) | Controller; Director of Real Estate | 1989 – 2001 (Controller), then Director of Real Estate | Finance and operating oversight; foundation for later executive roles |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| The InterGroup Corporation (NASDAQ: INTG) | Chief Operating Officer | Appointed May 31, 2023 – present | Operational leadership at PRSI’s parent company, aligning hotel operations and investments |
Fixed Compensation
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|
| Base Salary ($) | $113,000 | $173,000 | $173,000 | $173,000 |
| Cash Bonus ($) | $0 | $0 | $211,000 | $0 |
| Other Compensation ($) | $0 | $0 | $0 | $0 |
| Total Annual Compensation ($) | $113,000 | $173,000 | $384,000 | $173,000 |
Performance Compensation
| Incentive Type | Fiscal Year | Metric | Weighting | Target | Actual | Payout ($) | Vesting |
|---|---|---|---|---|---|---|---|
| Annual Cash Bonus | FY 2023 | Not disclosed | N/A | Not disclosed | Not disclosed | $211,000 | N/A |
| Equity (RSUs/PSUs/Options) | FY 2023–2024 | None granted; no plans in effect | N/A | N/A | N/A | $0 | N/A |
- Company states no stock awards, long-term incentive plans, options, or SARs for named executive officers over the last two fiscal years; Portsmouth has no stock option plan and no equity compensation plans in effect .
Equity Ownership & Alignment
- Outstanding equity awards at fiscal year-end: none; no equity compensation plans in effect .
- Stock option plan: none .
- Beneficial ownership disclosure focuses on controlling shareholder InterGroup/Winfield; individual ownership for Gonzalez is not specifically enumerated in the 2025 proxy excerpts provided .
- Clawback Policy: Adopted effective December 1, 2023; applies to executive officers for erroneously awarded incentive compensation in the event of an accounting restatement, with administration by the Compensation Committee .
Employment Terms
| Term | Detail | Source |
|---|---|---|
| Employment Start Date | Appointed President effective May 24, 2021 | |
| Employment Contract | None; no employment contracts for executive officers | |
| Severance Provisions | None disclosed; no termination-of-employment arrangements | |
| Change-of-Control | None disclosed | |
| Non-Compete / Non-Solicit | Not disclosed | — |
| Clawback Policy | Effective Dec 1, 2023; applies to executive officers |
Company Performance Context (FY)
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenues ($) | 42,027,000 | 41,886,000 | 46,363,000 |
| EBITDA ($) | 5,777,000* | 4,065,000* | 7,405,000* |
| Net Income (Loss) ($) | (13,203,000)* | (11,375,000)* | (9,110,000)* |
Values retrieved from S&P Global.*
- Pay-versus-Performance (company-wide disclosures) show cumulative TSR reference values and net loss figures: TSR value of initial fixed $100 investment reported at $0.11; net loss was $(13,203) thousand in both FY 2023 and FY 2024 .
Board Governance and Committees (context for compensation oversight)
- Compensation Committee: Nance (Chair), Grunwald, Love; two meetings in FY 2024; no compensation consultants used; Board may delegate certain compensation decisions to the CEO .
- Audit Committee: Nance (Chair), Grunwald, Love; four meetings in FY 2024; independent per Rule 10A-3; charter posted online .
- Executive Strategic Real Estate and Securities Investment Committee: Winfield (Chair), Grunwald, Gonzalez (Advisor); three meetings in FY 2024 .
Say-on-Pay & Shareholder Feedback
- Advisory vote on executive compensation approved at the fiscal 2023 Annual Meeting (held May 20, 2024) .
- Prior advisory votes (2017) showed >99% approval for say-on-pay and a triennial frequency preference (>99%) .
Track Record and Notable Initiatives
- Capital structure execution: April 2025 refinancing of Hilton San Francisco Financial District via subsidiaries—$67 million PRIME Finance mortgage (SOFR + 4.80%, SOFR cap at 4.50%); $36.3 million mezzanine at 7.25% fixed; two-year maturity with three 1-year extension options; Gonzalez quote emphasizes financial stewardship .
- Leadership continuity: Long service within INTG and PRSI across finance, real estate, and investment oversight .
Risk Indicators & Red Flags
- No equity grants, no option plans, and no CIC/severance arrangements reduce misalignment and parachute risk but also limit long-term equity-based retention hooks .
- Clawback policy in force (Dec 1, 2023), adding governance protections on incentive-based pay .
- Controlling shareholder (InterGroup) owns ~75.9% of PRSI as of Apr 1, 2025, concentrating voting power and potentially limiting traditional shareholder pressures on pay design .
Investment Implications
- Compensation alignment: Gonzalez’s pay is predominantly fixed cash with an occasional discretionary cash bonus (FY 2023); lack of equity incentives minimizes forced selling pressure but provides limited direct alignment with TSR and long-term shareholder returns .
- Retention risk: Absence of employment contracts, severance, or CIC protections suggests low contractual lock-in; however, deep tenure within INTG/PRSI reduces practical departure risk and supports continuity .
- Execution signals: The 2025 refinancing under Gonzalez’s leadership strengthens liquidity and flexibility for the core asset, a positive indicator for operating discipline amid improving revenue and EBITDA trends through FY 2025 (Revenues/EBITDA from S&P Global*).
- Governance: Compensation oversight remains simple and board-driven without consultants; the effective clawback policy is a positive governance safeguard, though the heavy ownership by InterGroup centralizes decision-making power .