Matthew Arpano
About Matthew Arpano
Managing Director and Portfolio Manager at Silvercrest Asset Management Group (SAMG), age 56. He manages the firm’s Core International equity strategy and serves on Silvercrest’s Executive and Management Committees. Previously, he held a similar portfolio management role at Morgan Stanley in New York, beginning his investment career in 1992; he holds an MBA from the University of Miami and graduated summa cum laude from the University of Rhode Island (economics) . Company performance metrics used to inform executive pay include Adjusted Diluted EPS (1.10 in 2024), Revenue, Adjusted EBITDA and margin, and Discretionary AUM, with cumulative TSR at 182.25 for 2024 (vs peer group TSR 232.43) and GAAP Net Income of 15,709 (company-reported) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Morgan Stanley (New York) | Portfolio Manager (equity and fixed-income) | 1992–not disclosed | Built foundational investment management experience; predecessor role to current PM responsibilities |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Economics Club of New York | Member | Not disclosed | Industry engagement and network connectivity |
Fixed Compensation
| Year | Base Salary ($) | Target Bonus (%) | Actual Bonus Paid ($) | Perquisites ($) |
|---|---|---|---|---|
| 2024 | 325,000 | Not disclosed | 3,091,000 | 45,272 (auto allowance $6,000; life/disability premiums $1,565; discounted advisory fee savings $37,707) |
Performance Compensation
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Revenue (client-facing bonus plan) | Predominant variable; committee discretion | Not disclosed | Not disclosed | 3,091,000 (cash bonus for FY2024) | Cash; no vesting |
- 2024 equity grants: None (no RSUs or options granted to Arpano in 2024) .
- Company equity practices: Awards subject to clawback; no tax gross‑ups; no dividends on unearned awards; no option/SAR repricing without shareholder approval .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Class A shares beneficially owned | 321,159 (3.4% of Class A) |
| Class B units beneficially owned | 95,134 (2.3% of Class B) |
| Total voting power | 2.4% |
| Vested vs unvested (12/31/2024) | No unvested RSUs or options outstanding; zero near-term vesting overhang |
| Options (exercisable/unexercisable) | None outstanding |
| Ownership guidelines | Principals required to retain at least 25% of Class B units owned at IPO while employed |
| Hedging/short sales | Prohibited for directors and officers |
| Pledging | Not disclosed |
| Related party transactions | Discounted advisory fee for personal funds; 2024 savings of ~$37,707 included in “All Other Compensation” . Company disclosed managing personal funds with fee discounts; 2024 savings to Arpano ~$38,000 (rounded) under related-person policy . |
Employment Terms
| Term | Detail |
|---|---|
| Employment agreement | None (at-will; only CEO and MD–Institutional have agreements) |
| Severance provisions | No formal severance; may be negotiated ad hoc upon termination |
| Change-of-control | RSUs automatically vest on change in control; Arpano’s acceleration value was $0 as of 12/31/2024 given no outstanding RSUs |
| Non-compete / non-solicit | As Silvercrest L.P. limited partner: 1-year post-termination restrictions on soliciting clients/vendors, accepting business from firm clients, and hiring firm employees (exceptions for “good reason”) |
| Clawback policy | Equity awards subject to company clawback policy |
| Garden leave / consulting | Not disclosed |
Compensation Structure Analysis
- Strong pay-for-performance alignment for client-facing principals: Arpano’s cash bonus is driven predominantly by revenue tied to client relationships, with committee discretion; no equity grants in 2024 indicate a heavier cash mix for the year .
- Equity overhang and selling pressure: No unvested RSUs or options outstanding at year-end 2024, reducing near-term forced selling pressure from vesting events .
- Governance safeguards: Prohibitions on hedging/short sales, clawback coverage, and no option/SAR repricing without shareholder approval support shareholder‑friendly practices .
Investment Implications
- Alignment: Material beneficial ownership (321,159 Class A; 95,134 Class B; 2.4% voting power) and retention of Class B units requirement support alignment with shareholders, while no outstanding equity awards reduce short‑term selling pressure .
- Compensation levers: Bonus tied predominantly to revenue can incentivize asset gathering and client retention; payouts will vary with markets/AUM. Monitoring firm revenue, net flows, and discretionary AUM is important for forecasting Arpano’s incentive trajectory .
- Retention risk: At‑will employment with no formal severance or guaranteed equity reduces contractual retention protections; retention likely hinges on economics of the client book and bonus potential .
- Trading signals/governance: Hedging/short‑sale prohibitions and clawback reduce misalignment risk; no disclosed pledging. Minor related‑party fee discounts appear standard and transparent for employees .