John P. Schwartz
About John P. Schwartz
John P. Schwartz is Chief Compliance Officer (CCO) of The Royce Funds (since May 2022) and Associate General Counsel and Compliance Officer of Royce Investment Partners (since March 2013) . He serves as an officer of Royce Micro-Cap Trust, Inc. (RMT) in the role of Chief Compliance Officer, elected by and serving at the pleasure of the Board; his age is disclosed as 54 in the latest filings . Fund documents identify his compliance and legal responsibilities but do not attribute specific investment performance metrics (e.g., TSR, revenue/EBITDA growth) to the CCO position or provide officer performance scorecards .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| The Royce Funds | Chief Compliance Officer | May 2022–present | Oversees fund complex compliance for closed-end funds and related vehicles |
| Royce Investment Partners | Associate General Counsel & Compliance Officer | Mar 2013–present | Legal and compliance leadership; supports Board oversight and reporting to directors |
External Roles
No external public company directorships or outside board roles are disclosed for Schwartz in RMT’s proxy/N-CSRS officer biographies; filings list only his roles at The Royce Funds and Royce Investment Partners .
Fixed Compensation
RMT’s proxy statements provide detailed disclosure for director compensation and committee retainers but do not include compensation tables for officers; Schwartz is disclosed as an officer employed by Royce Investment Partners rather than as a compensated executive of RMT. No base salary, target bonus, or actual bonus amounts are disclosed by RMT for Schwartz .
| Component | 2023 | 2024 | Notes |
|---|---|---|---|
| Base Salary ($) | Not disclosed | Not disclosed | Officer compensation not reported in RMT proxy; officers are employees of Royce |
| Target Bonus (%) | Not disclosed | Not disclosed | No officer bonus targets disclosed in fund filings |
| Actual Bonus Paid ($) | Not disclosed | Not disclosed | No officer bonus payments disclosed in fund filings |
Performance Compensation
No performance-linked equity or cash incentive detail is disclosed for RMT officers; proxies contain no metrics, weightings, targets, or payouts for Schwartz. Closed-end fund disclosures focus on director fees and fund governance, not officer incentive plans .
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Not disclosed | — | — | — | — | — |
Equity Ownership & Alignment
RMT discloses officer and director beneficial ownership as of the proxy record dates; Schwartz held no shares of RMT in both the 2024 and 2025 proxy records. Aggregate officer/director ownership is less than 1% of outstanding shares; no pledging by officers/directors is disclosed, and all Section 16(a) filing compliance is reported as satisfactory .
| Metric | Record Date (2024) | Record Date (2025) |
|---|---|---|
| Shares Beneficially Owned (John P. Schwartz) | None | None |
| Officers/Directors Group Ownership (%) | <1% overall | <1% overall |
| Pledged Shares (John P. Schwartz) | Not disclosed in proxy | Not disclosed in proxy |
| Section 16(a) Filing Status | Compliant | Compliant |
Employment Terms
- Officer election and tenure: Officers (including CCO) are elected annually by the Board and serve at its pleasure; resignation is effective upon written notice, and removal may occur with or without cause if the Board deems it in the corporation’s best interests .
- Indemnification: The bylaws provide indemnification subject to MGCL and Investment Company Act standards; determinations are made by disinterested directors or independent counsel, and coverage extends to former officers; the corporation may purchase and maintain insurance for directors/officers .
- Compensation-setting authority: Officer compensation is fixed by the Board, with delegation permitted to officers for others under their control; however, fund proxies disclose director compensation only and do not report officer pay schedules .
- Governance context: The Board’s role is oversight; it regularly receives reports from the fund and adviser’s Chief Compliance Officer and portfolio management, underscoring the compliance function’s centrality .
Investment Implications
- Alignment: Schwartz’s zero beneficial ownership in RMT reduces direct equity alignment but is consistent with closed-end fund structures where officers are employees of the adviser rather than the fund; aggregate officer/director ownership is <1% .
- Incentives and selling pressure: Absence of disclosed officer compensation, stock/option awards, or vesting schedules for RMT officers implies limited fund-specific pay-for-performance levers and minimal direct insider selling pressure; Section 16(a) compliance indicates timely reporting of any transactions .
- Retention risk: Employment is governed by bylaws rather than a reported individual employment agreement; as an adviser-employee, retention and compensation levers reside at Royce Investment Partners, not RMT, which could insulate fund governance but reduce transparency on individual economic incentives .
- Governance quality: The Board’s structured oversight, active Audit Committee, and formal indemnification/insurance framework support operational rigor; compliance oversight flows include regular reporting from the CCO role, strengthening control environment .
Net takeaway: Schwartz’s role is critical to RMT’s compliance and governance; however, limited disclosure of officer compensation and zero beneficial stake mean investors should focus on adviser-level incentives and fund governance safeguards rather than expecting traditional executive pay-for-performance alignment at the fund level .