Matthew Murphy
BOSTON BEER COAbout Matthew Murphy
Matthew D. Murphy (age 56) serves as Chief Accounting Officer and Vice President of Finance at The Boston Beer Company and previously acted as Interim Chief Financial Officer from April to September 2023; he has led accounting roles at Boston Beer since 2006, becoming Chief Accounting Officer in August 2015, and earlier served as CFO of Opodo (2004–2006) . During his tenure, Boston Beer’s FY2024 performance included net revenue of ~$2.01B (+0.2% YoY), GAAP net income of $59.7M, gross margin of 44.4%, depletions down ~2%, and operating cash flow of $249M; FY2023 saw net revenue of ~$2.009B (−3.9% YoY), gross margin 42.4%, and net income of $76.3M . Total shareholder return (fixed $100) tracked at $79.50 for FY2024 versus the peer S&P 500 Beverages Index at $129.12, while FY2023 TSR was $144.71 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| The Boston Beer Company | Corporate Controller | 2006–2015 | Led corporate accounting and controls as company scaled across multiple beverage categories . |
| The Boston Beer Company | Chief Accounting Officer; VP Finance | 2015–present | Oversees accounting policy, reporting, controls; continuity of finance leadership . |
| The Boston Beer Company | Interim CFO | Apr–Sep 2023 | Bridged CFO transition; supported capital markets and reporting during changeover . |
| Opodo (Europe) | Chief Financial Officer | 2004–2006 | Led finance for online travel agency, bringing external CFO experience to Boston Beer . |
External Roles
No current external public-company directorships disclosed in the proxy for Mr. Murphy .
Fixed Compensation
| Metric | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|
| Base Salary ($) | 355,674 | 366,344 | 379,698 |
| Target Bonus % of Salary | 40% (pre-interim CFO) | 40% | 50% (raised upon interim CFO appointment) |
| Actual Bonus Paid ($) | 8,536 | 66,000 | 189,850 (paid Mar 2024) |
| All Other Compensation ($) | 25,565 | 28,153 | 31,419 |
| Total Compensation ($) | 539,967 | 760,746 | 1,451,382 |
Performance Compensation
| Component | Weight | Target (100% payout) | Actual FY2023 | Metric Payout | Company Payout/Funding | Murphy Bonus Paid |
|---|---|---|---|---|---|---|
| Depletions Growth | 50% | −3.5% YoY (like-for-like 52 weeks) | −4.5% YoY (like-for-like) | 88% | Formulaic achievement 95%; bonus pool funded 100% | $189,850 (Mar 2024) |
| EBIT ($M) | 30% | $128 | ~$119.6 | 63% | ||
| Focused Cost Savings ($M) | 20% | $72 | $81.5 | 148% |
Vesting metrics for long-term equity emphasize net revenue CAGR over two years (FY2024 vs FY2022 for 2023 options), consistent with historical practice; equity awards for 2024 grant cohorts shifted to RSUs with CAGR to FY2026 vs FY2023 for NEOs (Murphy was not an NEO in 2024) .
Equity Awards and Vesting Schedules
| Grant Date | Type | Shares | Grant-Date Fair Value ($) | Strike ($/sh) | Vesting Schedule | Performance Criteria |
|---|---|---|---|---|---|---|
| 03/01/2023 | Performance Stock Options | 771 | 125,015 | 323.80 | If net revenue CAGR FY2024/FY2022 ≥ −5.5%: 50% eligible; ≥ 2%: 100% eligible. Vests in thirds on 03/01/2025–2027 contingent on employment . | Net revenue CAGR FY2024 vs FY2022 . |
| 05/15/2023 | Time-Based Stock Options | 3,944 | 600,090 | 308.14 | 25% on each 03/01/2024–2027 contingent on employment . | None (time-based) . |
| 03/01/2023 | RSUs (time-based) | 387 | 125,311 | N/A | 25% on each 03/01/2024–2027 contingent on employment . | None (time-based) . |
Outstanding equity at FY2023 year-end:
- Options exercisable/unexercisable: 2,077 exercisable and 2,078 unexercisable at $201.91 (expires 12/31/2025) . Unearned options: 771 at $323.80 (FY2023 grant) . Service options: 3,944 at $308.14 (FY2023 grant) .
- Unvested RSUs (and market values at $345.59 close): 101 ($34,905) from 2020 grant; 74 ($25,574) from 2021; 588 ($203,207) from 2022; 387 ($133,743) from 2023 .
Hypothetical value sensitivity at 12/30/2023 (for illustration used by the company):
- Options: $298,567 (2016 grant at $201.91), $16,800 (2023 performance options), $145,100 (2023 service options) if exercised/sold at market .
- RSUs: $397,429 total for vest-eligible RSUs at market .
Equity Ownership & Alignment
- Hedging/pledging: Company policy bans hedging and pledging by Directors, Executive Officers, and Insiders; annual certifications required; no known violations reported .
- Trading windows: Insiders (including Executive Officers) can only transact during open windows or via approved 10b5-1 plans .
- Ownership guidelines: Formal stock ownership guidelines apply to Directors and to the Chairman/CEO; no separate executive ownership guideline is disclosed for the Chief Accounting Officer .
Employment Terms
- Employment status: At-will; non-compete agreements required for Executive Officers, including Murphy .
- Severance/change-in-control (CIC): No severance arrangements; equity awards after 2015 include double-trigger CIC—accelerated exercisability/vesting only if CIC and termination without cause or for good reason within 12 months; CIC is defined by loss of control of Class B shares by Chairman C. James Koch (with specific exceptions applicable to certain grants) .
- Clawback: Restatement-based clawback policy effective Oct 2, 2023; recovery of excess incentive compensation regardless of misconduct .
- Retirement vesting provision: For awards granted on/after Feb 16, 2024, equity may continue vesting post-retirement if the coworker is age ≥60, ≥15 years of service, provides ≥6 months’ notice, and adheres to surviving covenants; Murphy is 56 as of the 2025 proxy .
Compensation Structure Notes
- Peer benchmarking: Compensation Committee uses FW Cook analysis and a peer group including Acushnet, Brown-Forman, Hostess (pre), Deckers, National Beverage, Church & Dwight, YETI, etc., reaffirmed in Oct 2023 .
- Variable pay design: Annual bonus scale weighted to Depletions (50%), EBIT (30%), and focused cost savings (20%); LTE awards historically option-based with net revenue CAGR performance, with 2024 shift toward performance RSUs for NEOs .
Say-on-Pay & Shareholder Feedback
- Say-on-Pay approval: 91.7% support at the 2023 meeting; 94.4% support at the 2024 vote reflected in the 2025 proxy summary .
- Engagement: Ongoing outreach to top holders (e.g., 2024: top 20 institutions holding ~57% of Class A; 2023: top 15 at ~61.7%/55.8%); feedback centered on dual-class structure, compensation design, ESG disclosure and governance .
Investment Implications
- Retention risk: Murphy has meaningful unvested RSUs vesting through 2027 and options vesting through 2027, supporting retention but creating scheduled supply overhangs around March 1 vest dates and open trading windows .
- Alignment vs. selling pressure: In-the-money legacy options ($201.91 strike) and time-based 2023 grants may incentivize exercise/sales during open windows; policy restrictions (blackouts; ban on hedging/pledging) moderate risk of misaligned behaviors .
- CIC economics: Absent severance, Murphy’s primary CIC economics derive from accelerated equity only upon double-trigger events, limiting “golden parachute” risk while preserving retention/incentive alignment .
- Performance linkage: Company-wide variable pay metrics (Depletions, EBIT, cost savings) and LTE net revenue CAGR targets tie a significant portion of compensation to operational execution and category trends, which remained mixed in FY2023–FY2024 (hard seltzer declines vs. gross margin gains) .