Robert L. Savage
About Robert L. Savage
Robert L. Savage (age 77) has served on The Reserve Petroleum Company’s Board since May 6, 1975, bringing five decades of capital markets and brokerage leadership to the boardroom . He holds a BBA from Trinity University and an MBA from Southern Methodist University . The Board’s independence disclosure does not list Mr. Savage among independent directors, indicating he is not classified as independent by the Company .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Reynolds Securities / Dean Witter Reynolds | Account Executive | 1975–1989 | Retail brokerage and client advisory experience |
| Park Avenue Securities, Inc. | Vice President | Jan 1989–May 1994 | Senior role at broker-dealer |
| Century Investment Group, Inc. | Vice President | Apr 1994–Sep 1997 | Senior role at investment firm |
| Leonard Securities, Inc. | President & Chief Executive Officer | 1997–Feb 2015 | Led broker-dealer operations |
| Leonard Agency, Inc. | President | 1998–2019 | Ran affiliated agency business |
| Leonard Investment Advisors, Inc. | President | 1999–present | Leads registered investment advisory business |
| B.B. Graham & Company, Inc. | Financial Consultant | Dec 2014–present | Ongoing consulting in securities industry |
External Roles
| Organization | Role | Public Company? | Notes |
|---|---|---|---|
| Leonard Investment Advisors, Inc. (LIA) | President | No (RIA) | LIA managed $309,224 of Company securities; earned $5,627 in commissions/fees in 2024; realized gains on sales were $25,343 (Company-related related-party disclosure) |
| B.B. Graham & Company, Inc. | Financial Consultant | No | Ongoing consulting engagement |
| Other public company directorships (past 5 years) | — | — | None disclosed in the Company’s proxy |
Board Governance
- Independence: The Board identifies four independent directors (Ditzler, Fuller, Harris, Smith); Mr. Savage is not included and is therefore not classified as independent by the Company .
- Committee assignments: Not listed on the Audit Committee (Ditzler—Chair; Fuller; Harris), Nominating Committee (Fuller; Cameron R. McLain; Smith), or Executive Committee (Cameron R. McLain; Kyle L. McLain) .
- Meetings/attendance: The Board held three meetings in 2024; all directors attended at least 75% of Board and committee meetings and all directors attended the Annual Meeting .
- Risk oversight: The Board delegates risk oversight to executive officers (two of whom are directors), reflecting a management-centric oversight model common to very small issuers .
- Board size/structure: Eight directors, all elected annually .
Fixed Compensation
| Component | Policy / Amount | 2024 Amount for R.L. Savage |
|---|---|---|
| Board meeting fees | Per-meeting pay set by directors; $1,500 per Board meeting in 2024 | $4,500 (attended March, May, November meetings) |
| Committee fees | Audit Committee Chair $1,000; members $300; no other committee fees; Mr. Savage not listed on committees | $0 |
| Equity/Options/Deferred comp | None for directors (no stock, options, non-equity incentives, or deferred comp) | $0 |
Performance Compensation
- The Company provides no performance-based or equity-linked compensation to directors (no RSUs/PSUs, options, or performance cash) .
- No director performance metrics, vesting schedules, clawbacks, or change-in-control director equity provisions are disclosed for directors .
Other Directorships & Interlocks
- Public company boards: None disclosed for Mr. Savage in the past five years .
- Interlocks/related parties: Mr. Savage’s advisory entity (LIA) managed Company securities and received commissions/fees; see Related-Party section below for details .
Expertise & Qualifications
- Education: BBA (Trinity University); MBA (Southern Methodist University) .
- Core expertise: Brokerage, investment advisory, and broker-dealer leadership across multiple firms; long-tenured capital markets knowledge .
- Board value-add: Financial markets and advisory background; however, he is not designated as the Audit Committee financial expert (that role is held by Eddy R. Ditzler) .
Equity Ownership
| Holder | Shares Beneficially Owned | % of Class | Notes |
|---|---|---|---|
| Robert L. Savage | 1,970 | 1.29% | 1,269 shares pledged as security; Company does not prohibit hedging; outstanding shares 151,779 (Record Date 4/10/2025) |
- Pledging/Hedging policies: The Company has no policy prohibiting employees or directors from hedging; Mr. Savage has pledged 1,269 shares as security, noted as a footnote exception vs. other insiders .
Related-Party Transactions (Conflict Review)
- Mr. Savage is a Financial Consultant with B.B. Graham & Company and an advisor with Leonard Investment Advisors (LIA) .
- Under “Certain Relationships and Related Transactions,” LIA managed $309,224 in Company securities as of December 31, 2024; in 2024, LIA earned $5,627 in broker commissions and fees; realized gains on securities sold totaled $25,343 (disclosed within the related-party section, indicating Company accounts managed by an entity affiliated with a director) .
- Additional board related-party context: Separate from Mr. Savage, a director (James L. Tyler) received $14,650 for tax consulting services in 2024, evidencing a permissive related-party posture at the Company .
Say‑on‑Pay & Shareholder Feedback (Context)
- 2022 say‑on‑pay approval: ~98% in favor, indicating historically high support for the executive pay program at that time .
- Frequency: Board recommends triennial say‑on‑pay votes; the Company plans the advisory vote on frequency at the 2025 Annual Meeting .
Governance Assessment
- Independence and conflicts: Mr. Savage is not classified as independent; his advisory firm managed Company securities and received commissions/fees, creating a direct related‑party nexus that may affect perceived independence and objectivity on capital allocation and treasury matters .
- Committee engagement: No committee roles; combined with only three Board meetings in 2024, his formal governance workload appears limited (though attendance met the 75% threshold) .
- Alignment: Director pay is nominal, entirely in cash, and there is no equity-based compensation program for directors—limiting structured alignment to long-term shareholder value beyond personal shareholdings .
- Ownership risk indicators: Mr. Savage has pledged a substantial portion of his shares; the Company does not prohibit hedging—both are alignment red flags for many investors .
- Board oversight model: Risk oversight is delegated to management (two of three executives sit on the Board), which can concentrate oversight within management rather than independent directors at a time when the Board includes multiple non-independent members .
RED FLAGS
- Not independent per Board disclosure .
- Related‑party transactions via LIA (commissions/fees earned while managing Company securities) .
- Shares pledged as collateral; Company does not prohibit hedging .
- No Compensation Committee; directors set meeting fees; limited formal oversight structures typical of micro‑caps but below governance best practices for conflict mitigation .
Potential Investor Implications
- The combination of non-independence, related‑party financial relationships, and pledged shares may weigh on governance quality assessments and could pressure investor confidence, particularly for institutions with strict independence/pledging policies .
- Absence of equity-based director compensation reduces engineered alignment, making personal ownership (subject to pledging risk) the primary alignment lever .