Kathleen McNally
RICHARDSON ELECTRONICSAbout Kathleen McNally
Kathleen McNally is Executive Vice President, Global Supply Chain at Richardson Electronics (RELL), a role she assumed in June 2024 after decades in senior operating positions since joining the company in 1979; she is 66 years old as of August 2025 and has served as SVP Global Supply Chain (2009–2024), SVP Marketing Operations & Customer Support (2000–2009), and VP & Corporate Officer, Marketing Operations (1989–2000) . Company performance over her recent tenure has been mixed: FY2025 revenue was $208.9M with a net loss of $1.14M, versus FY2024 revenue $196.5M and net income $0.06M; longer-run performance shows revenue cycling around $177–263M and improving net income through FY2023 before weakening in FY2024–FY2025; cumulative TSR (value of an initial $100) declined from FY2023 to FY2025 but remains above peer group over multi-year horizons .
Company performance (context)
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|---|---|
| Revenue ($USD) | $176,937,000 | $224,620,000 | $262,658,000 | $196,460,000 | $208,909,000 |
| Net Income ($USD) | $1,655,000 | $17,927,000 | $22,333,000 | $61,000 | $(1,143,000) |
| TSR: Value of initial $100 | $213 | $356 | $449 | $295 | $241 |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Richardson Electronics | EVP, Global Supply Chain | 2024–present | Leads global supply chain operations, continuity, and resilience initiatives . |
| Richardson Electronics | SVP, Global Supply Chain | 2009–2024 | Oversaw sourcing, logistics, and inventory management across cycles . |
| Richardson Electronics | SVP, Marketing Ops & Customer Support | 2000–2009 | Ran customer support and marketing operations . |
| Richardson Electronics | VP & Corporate Officer, Marketing Ops | 1989–2000 | Managed marketing operations and corporate processes . |
External Roles
No external directorships or outside roles are disclosed in recent proxies .
Fixed Compensation
Not disclosed. McNally was not a Named Executive Officer (NEO) in FY2024 or FY2025, and therefore her base salary and cash compensation are not itemized in the proxy’s compensation tables .
Performance Compensation
Not disclosed for McNally. For context, the company’s FY2025 executive annual incentive framework used revenue, operating income, and cash & investing activity at corporate level, and segment operating income for PMT and Canvys; payouts ranged from 0–110% of target for NEOs, with clawback provisions in place .
Company-wide executive incentive framework (FY2025 context)
| Metric | Weighting | Targeting & Payout Range | Vesting/Settlement |
|---|---|---|---|
| Revenue | 33% (CEO/COO/CFO) | 0–110% of target based on Board-approved plan | Annual cash; subject to clawback policy . |
| Operating Income | 33% (CEO/COO/CFO) | 0–110% of target | Annual cash; clawback . |
| Cash & Investing Activity | 33% (CEO/COO/CFO) | 0–110% of target | Annual cash; clawback . |
| PMT Operating Income | 75% (EVP PMT) | 0–110% of target | Annual cash; clawback . |
| Canvys Operating Income | 75% (EVP Canvys) | 0–110% of target | Annual cash; clawback . |
Equity Ownership & Alignment
| Ownership Detail | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Total beneficial ownership (shares) | 65,950 | 59,224 | 69,772 |
| Common shares owned directly | — | 3,578 | 3,578 |
| Options exercisable within 60 days | 27,303 | 17,153 | 24,053 |
| Restricted stock awards (beneficially owned) | 35,069 | 38,493 | 42,141 |
| Ownership % of class | <5% threshold (asterisked in proxy) | <5% threshold | <5% threshold |
- Alignment mechanisms: RELL prohibits hedging of company stock; a clawback policy is adopted and filed as an exhibit to the 10-K .
- Pledging: No pledging policy is mentioned in the proxied policies reviewed; pledging status for McNally is not disclosed .
- Stock ownership guidelines: Program applies to non-employee directors; executive officer ownership guidelines are not disclosed in recent proxies .
Equity award mechanics (plan terms)
- Stock options under the 2011 Plan typically vest 20% annually over five years; restricted stock awards typically vest in three equal annual installments .
- Repricing of options/SARs without shareholder approval is prohibited; cash tax reimbursement payments for award-related taxes are permitted (potential shareholder-unfriendly feature) .
Employment Terms
- No employment agreement is disclosed for McNally in FY2024–FY2025 proxies; Employment Agreements section covers other executives (COO, EVP PMT, CFO, EVP Canvys) and notes the CEO has no agreement .
- Historical (FY2014) disclosure indicates McNally had no employment agreement and would have severance under the company’s policy equal to one week of pay per year of service; a change-in-control table showed a severance figure at that time ($133,260), reflecting then-terms which may have changed since .
- Non-compete and auto-renewal: Not disclosed for McNally; non-competes are disclosed for other executives (1-year non-compete for COO/CFO/EVP PMT; Canvys EVP per local agreement) .
Investment Implications
- Pay transparency and alignment: McNally’s cash compensation and bonus targets are not disclosed (not an NEO), limiting direct pay-for-performance assessment. Her equity exposure (options and restricted stock awards) supports alignment, with hedging prohibited and clawbacks in place—positive for governance. The plan’s allowance for tax reimbursement payments is a mild red flag .
- Retention risk: Absence of a disclosed employment agreement suggests at-will employment; however, her 46-year+ tenure and continued equity participation mitigate near-term retention risk absent signs of insider selling. Section 16 compliance is noted; no McNally-specific Form 4 transactions are presented in proxies reviewed .
- Dilution and incentive headroom: FY2025 proposal to add 2.0M shares to the LTIP (total to 5.5M) increases equity compensation capacity and potential dilution; helpful for retention but may pressure shareholders if issuance accelerates .
- Execution risk: Company metrics indicate cyclical revenue and margin pressure post-FY2023; FY2025 returned to revenue growth with a small net loss. Supply chain leadership is central to margin recovery and working capital discipline—areas tied to corporate incentive metrics (cash & investing activity) .
Summary: McNally’s long tenure and equity holdings indicate solid alignment; governance features (hedging ban, clawbacks, no repricing) are constructive. Lack of disclosed employment terms and executive-specific ownership guidelines, plus the LTIP expansion and tax reimbursement feature, warrant monitoring for dilution and pay practices. Company performance volatility elevates the importance of supply chain execution under her purview .