Fred J. Smith, III
Also at Construction Partners Inc
About
Fred J. Smith, III currently serves as the President, Chief Executive Officer, and Director at ROAD, where he has overseen significant financial certifications and the company’s strategic communications, including statements highlighting a record fiscal year with strong revenue, net income, and Adjusted EBITDA growth.
He earned both a Master of Business Administration and a Bachelor of Arts in History from Wake Forest University, providing him with a balanced educational foundation in business and the liberal arts.
Although detailed information regarding the exact start of his tenure and career progression is not available, his leadership is underlined by strategic acquisitions like Lone Star Paving in Texas and Sunbelt Asphalt Surfaces in Georgia, which have expanded ROAD’s market footprint and operational capabilities.
$ROAD Performance Under Fred J. Smith, III
Past Roles
| Organization | Role | Date Range | Details |
|---|---|---|---|
| Construction Partners, Inc. (ROAD) | Chief Operating Officer | October 2020 to March 2021 | Held the role immediately prior to his promotion to President, CEO, and Director |
| Construction Partners, Inc. (ROAD) | Senior Vice President | Since 2017 (ended upon promotion) | Role concluded when he assumed his current positions |
| FSC II, LLC | President | 2009 to 2020 | Served at the North Carolina subsidiary of ROAD |
| FSC II, LLC | Various Management Roles | 2005 to October 2020 | Held multiple management roles within the subsidiary |
| Fred Smith Construction, Inc. | Chief Operating Officer | 2005 to 2009 | Role prior to his involvement at FSC II, LLC |
Fixed Compensation
| Component Name | Amount | Payment Schedule | Additional Details |
|---|---|---|---|
| Base Salary | $735,000 | 2024 Annual | Fixed base salary for fiscal 2024 |
| Discretionary Cash Bonus (In-Year) | $550,000 | During Fiscal 2024 | Awarded in recognition of leadership and contributions during fiscal 2024 |
| Discretionary Cash Bonus (Post-Year-End) | $65,000 | Post Fiscal Year-End 2024 | Additional bonus post fiscal year-end for performance during 2024 |
| Annual Cash Incentive | $735,000 | 2024 Annual | Based on achieving 100% of targets for Adjusted EBITDA and individual/additional company goals |
| Stock Bonus | 3,594 shares, $344,665 | Grant Date: December 17, 2024 | Award of Class A common stock recognizing performance |
| Transaction Bonus | $500,000 | Upon Transaction Completion | Bonus related to the Lone Star Acquisition |
| Market-Based Shares | 10,000 shares (Class A) & 11,000 shares (Class B) | Based on Vesting Conditions | Awarded as market-based shares linked to performance |
Performance Compensation
Annual Cash Incentive
| Metric | Weighting (%) | Target | Actual Result | Payout Percentage | Payout Amount |
|---|---|---|---|---|---|
| Adjusted EBITDA | 50% | $209.1 million | $220.6 million | 100% | $367,500 |
| Individual/Additional Goals | 50% | Achieve 100% target | Achieved 100% | 100% | $367,500 |
| Total | 100% | N/A | N/A | N/A | $735,000 |
Evaluation Period: Fiscal 2024 No vesting schedule applicable for the cash incentive component.
Stock Awards Performance
-
LTIP-B Awards:
- Compound Aggregate Revenue Growth Rate: Target 18.0% , Actual 26.1% resulting in a 150% payout .
- ROCE: Target 13.0% , Actual 11.0% leading to a 0% payout .
- TSR Adjustment: Earned shares increased by 15% due to a 92nd percentile total shareholder return performance.
-
LTIP-A Awards:
- Award of 7,352 restricted shares vesting in equal annual installments over four years, with the first vesting on September 30, 2024 .
-
Transaction Bonus Awards (Stock-Based):
- Awarded 10,000 Class A shares and 11,000 Class B shares .
- Vesting Conditions: Vest upon the later of (a) the closing of the Lone Star Acquisition, or (b) when the closing price of Class A common stock equals or exceeds $88.00 (on or before the fourth anniversary of the grant date), subject to continued employment.