Kenneth J. Duffy
About Kenneth J. Duffy
Senior Vice President, Paperboard/High-Yield Pulp at RYAM. Age 61 (as of March 17, 2025). Chemical Engineering degree (BASc) from the University of Toronto. Joined RYAM in 2017 via the Tembec acquisition; promoted to VP, Commercial in 2021 and to his current SVP role effective January 1, 2024 . Company performance context during his senior leadership tenure: 2024 Adjusted EBITDA $222 million and TSR value-of-$100 at $214.84; 2023 Adjusted EBITDA $139 million and TSR value-of-$100 at $105.47 (company-selected measure in proxy) .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| RYAM | SVP, Paperboard/High-Yield Pulp | Jan 1, 2024 – present | Leads Paperboard/HYP segments; commercial and operational responsibility across product lines . |
| RYAM | VP, Commercial | May 1, 2021 – Jan 1, 2024 | Oversaw commercial strategy post-Tembec integration; pricing and sales leadership . |
| RYAM | VP, Sales & Marketing, High-Yield Pulp | Nov 2017 – May 1, 2021 | Led growth/commercial integration of Tembec pulp portfolio . |
| Tembec Inc. | VP, Sales & Marketing, High-Yield Pulp & Newsprint | Mar 22, 2016 – Nov 2017 | Managed global sales/marketing across pulp/newsprint . |
| Tembec Inc. | VP, Sales, Paper Pulp | 2011 – Mar 22, 2016 | Drove sales execution and customer portfolio expansion . |
| Specialty chemicals sector | Sales/technical service roles | Pre-2011 | Progressive commercial roles in specialty chemicals . |
External Roles
No public company directorships or external board roles disclosed for Duffy in RYAM’s proxies .
Fixed Compensation
- RYAM’s executive program (VP-level and above) comprises base salary, annual cash incentive, and long-term equity; specific base salary/bonus targets for Mr. Duffy are not individually disclosed in proxies (NEO-only detail) .
- Stock ownership guideline for Senior Vice President: 2x base salary; executives have five years to comply and retention requirements apply until met .
Performance Compensation
| Incentive | Metric | Weighting | Target | Actual | Payout mechanics | Vesting |
|---|---|---|---|---|---|---|
| Annual Cash Incentive (2023 design) | Adjusted EBITDA | 50% | Not disclosed for Duffy | Company-level performance referenced | Payout 0–200% of target based on achievement | Annual cash; paid after year end . |
| Annual Cash Incentive (2023 design) | Adjusted Operating Cash Flow | 20% | Not disclosed for Duffy | Company-level performance referenced | 0–200% of target | Annual cash . |
| Annual Cash Incentive (2023 design) | Strategic objectives (safety, sustainability, diversity) | 15% | Not disclosed | Not disclosed | Committee assessment | Annual cash . |
| Annual Cash Incentive (2023 design) | Individual objectives | 15% | Role-specific | Not disclosed | Committee assessment | Annual cash . |
| Long-Term Incentive | PSUs: 50% Relative TSR, 50% Cumulative Adjusted EBITDA (FY23–FY25 cycle) | PSU component typically 35% of LTI for non-CEO | Targets set by Committee | Not disclosed | Earn-out range 0–200% of target | 36-month performance period; vest after performance certification . |
| Long-Term Incentive | RSUs (time-based) | RSU component typically 30% of LTI for non-CEO | N/A | N/A | Time-based retention | Cliff vest on 3rd anniversary of grant . |
Notes: Adjusted EBITDA remained the most heavily weighted metric in 2024’s annual plan, reinforcing cash earnings focus .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial common shares | 20,746 shares held (as reflected by insider holdings trackers); subsequent award increased declared holdings to 26,290 on Mar 4, 2025 per Form 4 sequence . |
| Recent Form 4 activity (2024–2025) | 2025-03-01: Option exercise (M) 13,021 sh; 2025-03-01: Tax withholding (F) 6,902 sh at $7.70; 2025-03-04: Award (A) 10,458 sh; 2025-03-04: Tax withholding (F) 5,544 sh at $7.48; 2024-03-01: Option exercise (M) and tax withholding around RSU vest at $3.78; post-transaction positions reported on each filing . |
| Pledging/hedging | Pledging and hedging prohibited; company states none of the directors/executive officers have pledged shares . |
| Stock ownership guidelines | Senior VP 2x base salary; executives must retain shares until compliant; counted securities include common, restricted stock, and RSUs (excludes unvested PSUs and unexercised options). Committee determined executives were in compliance as of Jan 1, 2024 . |
| Vested vs unvested mechanics | RSUs cliff vest after 3 years; PSUs have 36-month performance periods with certification at completion; option awards (when granted historically) vest 1/3 per year over 3 years . |
Employment Terms
- Appointment history: joined RYAM in Nov 2017; promoted to VP, Commercial on May 1, 2021; promoted to SVP, Paperboard/High-Yield Pulp on Jan 1, 2024 .
- Policy framework: clawback provisions cover cash and equity, triggered by “detrimental conduct” (illegal acts, willful policy violations); Company anticipated adopting NYSE/SEC 10D-compliant clawback policy . No hedging/pledging; no option repricing; no excise tax gross-ups; no single-trigger CIC cash or equity acceleration; NEOs do not have employment agreements (company-wide practice reference) .
Performance & Track Record
- Company performance under his senior leadership period: 2024 Adjusted EBITDA $222 million; 2024 net loss $(38.7) million; 2024 TSR value-of-$100: $214.84. 2023 Adjusted EBITDA $139 million; 2023 net loss $(101.8) million; 2023 TSR value-of-$100: $105.47 .
- Long-term incentive rigor: 2021 PSU and performance cash cycle (TSR and HPC EBITDA margin) earned 0% for applicable NEOs, indicating strict goals and pay-for-performance alignment; while Duffy was not an NEO in 2021, the result evidences program difficulty .
Compensation Peer Group (program benchmarking)
- 2023 peer group included AdvanSix, Ecovyst, Glatfelter, H.B. Fuller, Hawkins, Ingevity, Innospec, Koppers, Minerals Technologies, Quaker Chemical, Sensient, Stepan, Tredegar, Venator; changes removed Ashland Global, Ferro, Kraton, Verso to improve alignment to median .
Risk Indicators & Red Flags
- Program safeguards: clawbacks; prohibition on hedging/pledging; annual risk assessment concluded compensation programs did not motivate adverse-risk behaviors (2022 review) .
- Insider selling pressure: recent filings show grants, option exercises, and tax withholding rather than open-market sales, suggesting routine vesting/withholding vs discretionary selling .
Expertise & Qualifications
- Chemical engineering background; extensive pulp/paper and specialty chemicals commercial leadership; over a decade managing sales/marketing for pulp products across Tembec/RYAM .
Investment Implications
- Alignment: Duffy operates under RYAM’s performance-heavy incentive architecture (Adjusted EBITDA, cash flow, TSR/EBITDA PSUs) and stringent ownership/retention rules, supporting pay-for-performance alignment .
- Execution risk: 2021 PSU cycle paid 0% for peers, indicating ambitious targets; 2023–2024 company-level Adjusted EBITDA and TSR improvements point to momentum in turnaround but with continuing net losses, requiring disciplined commercial execution in Paperboard/HYP to sustain cash generation .
- Trading signals: Recent Form 4s show vesting-related activity (A/M/F) and tax withholding rather than discretionary sales; absence of pledging/hedging reduces alignment risk .
- Data gaps: As a non-NEO, granular pay details (base, target bonus %) and severance/CIC economics for Duffy are not disclosed; investors should rely on company-wide policies and monitor future proxies/8-Ks for any contract-specific amendments .