Eric Tanzberger
SERVICE CORP INTERNATIONALAbout Eric Tanzberger
Executive Vice President and Chief Financial Officer of Service Corporation International since October 1, 2024; previously served as Senior Vice President and CFO. In his expanded role, he oversees business development (M&A), construction and real estate, pricing and revenue development in addition to finance responsibilities . SCI’s recent performance context under his finance leadership: adjusted EPS of $3.53 in 2024 (13% CAGR since 2019), adjusted operating cash flow of $977 million, revenue of ~$4.2 billion and ~$2.6 billion preneed sales production in 2024; 10‑year TSR of +316% (2014‑2024), significantly above the S&P 500 . Tanzberger exceeds SCI’s stock ownership guideline by a wide margin (required 4x salary; actual ~19x; 170,526 shares), reinforcing alignment with shareholders .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Service Corporation International | Senior Vice President & Chief Financial Officer | Through Oct 1, 2024 | Led finance; subsequently expanded remit to BD/M&A, construction/real estate, pricing with promotion to EVP CFO |
External Roles
No external directorships or outside roles for Eric Tanzberger are disclosed in the 2025 proxy or the October 1, 2024 8‑K reviewed .
Fixed Compensation
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $630,000 | $650,000 | $670,000 |
| Target Bonus (% of Salary) | 100% | 100% | 100% |
| Actual Annual Bonus ($, Non-Equity Incentive) | $1,260,000 | $597,805 | $480,948 |
| All Other Compensation ($) | $672,506 | $486,410 | $446,667 |
| Current Base Salary (as of Mar 11, 2025) | — | — | $700,000 |
Notes:
- 2024 annual incentive payout was 72% of target for NEOs, based on metric outcomes described below .
- 2024 perquisites totaled $147,636, including personal aircraft use ($107,779), medical reimbursement, and tax/financial planning .
Performance Compensation
Annual Incentive Plan – 2024 Outcomes
| Metric | Weighting | Threshold | Target | Max | Actual | Payout Factor |
|---|---|---|---|---|---|---|
| Normalized EPS | 1/3 | $3.45 | $3.65 | $3.85 | $3.48 | 15% |
| Normalized FCF/Share | 1/3 | $3.91 | $4.11 | $4.31 | $4.40 | 200% |
| Comparable Preneed Production | 1/3 | 100.0% | 102.5% | 105.0% | 98.8% | 0% |
| Customer Satisfaction Modifier (Google stars) | Downward-only | Below 4.25 reduces payout | 4.25 | — | 4.65 (exceeded) | No reduction |
| Resulting Total Payout | — | — | — | — | — | 72% of target |
Long-Term Incentives – Grant Structure and 2024 Grants
| Instrument | 2024 Grant Detail | Vesting/Term | Grant Date Fair Value ($) |
|---|---|---|---|
| Performance Units (PUP) | 8,920 target units (2024–2026 cycle) | Settles on relative TSR vs S&P MidCap 400; ROE modifier; cap at target if absolute TSR negative | $887,762 |
| Restricted Stock | 8,920 shares | Vests 1/3 per year | $623,419 |
| Stock Options | 35,300 options @ $70.58 strike | 1/3 vest annually; 8‑year term | $609,920 |
Performance Unit Historical Cycle (2022–2024): SCI TSR ranked above 55th percentile; performance factor 125%; ROE modifier not applied (SCI 32.3% vs S&P MidCap 400 13.3%); applicable cap rules in place .
Equity Ownership & Alignment
| Item (as of Mar 11, 2025) | Amount | Notes |
|---|---|---|
| Beneficial Shares Owned | 170,526 | Exceeds guideline minimum (25,134 shares) |
| Options Exercisable Within 60 Days | 217,299 | Multiple tranches detailed in outstanding awards table |
| Total (Shares + Near-term Options) | 387,825 | <1% of class |
| Ownership Guideline Multiple | Required: 4x salary; Actual: 19x | Measured at $79.82 share price at 12/31/2024 |
| Shares Pledged/Hedged | Prohibited by policy | Anti-hedging and anti-pledging apply to officers/directors |
Vesting Schedules (upcoming and staged):
- Restricted Stock unvested: 17,167 shares; schedule: 8,483 (03/05/2025), 5,710 (03/05/2026), 2,974 (03/05/2027) .
- Options unexercisable tranches: vest 100% on 02/16/2025 (2030-expiry grants), 50% on 02/16/2025 and 50% on 02/15/2026 (2031-expiry grants), and 33% each on 02/16/2025, 02/15/2026, 02/14/2027 (2032-expiry grants) .
Insider activity (realized in 2024):
- Options exercised: 66,200 shares; value realized $2,108,563 .
- Restricted stock vesting: 8,634 shares; value realized $639,434 (4,317 deferred into executive plan) .
Employment Terms
| Term | Key Provision |
|---|---|
| Agreement Term | Current employment agreements expire Dec 31, 2025; auto-renew annually absent notice |
| Severance (Without Cause) | Salary continuation for two years; prorated annual bonus; 18 months health benefits |
| Death/Disability | Prorated bonus; salary continuation (death: through term; disability: 24 weeks); 18 months health benefits |
| Non-Compete | Company option to impose one-year non-compete extendable by one year; pay equals base salary during non-compete (except for cause/voluntary term) |
| Change-of-Control (CoC) Cash | 3x (salary + target bonus) lump sum; prorated target bonus at CoC; 18 months health benefits; double-trigger for equity after 2022 |
| Clawback | 2023 policy for recoupment of excess incentive-based comp upon accounting restatement; also fraud-triggered clawbacks for other officers |
| Hedging/Pledging | Prohibited for officers/directors |
Potential Payments (as of Dec 31, 2024 scenario analysis):
| Scenario | Salary+Bonus ($) | Long-Term Incentives ($) | Other Benefits ($) | Total ($) |
|---|---|---|---|---|
| Involuntary Not for Cause | $1,820,948 | $3,795,682 | $1,018,026 | $6,634,656 |
| Disability | $790,179 | $3,795,682 | $1,018,026 | $5,603,887 |
| Death | $1,150,948 | $3,795,682 | $4,018,026 | $8,964,656 |
| CoC (Involuntary/Good Reason) | $4,690,000 | $4,503,706 | $1,018,026 | $10,211,732 |
Performance Compensation (Detail)
| Metric | Weight | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Normalized EPS | 33% | $3.65 | $3.48 | 15% | Cash (annual) |
| Normalized FCF/Share | 33% | $4.11 | $4.40 | 200% | Cash (annual) |
| Comparable Preneed Production | 33% | 102.5% | 98.8% | 0% | Cash (annual) |
| Customer Satisfaction (Google stars) | Modifier | ≥4.25 | 4.65 | No downward adjustment | Cash (annual) |
| Performance Units (2022–2024) | 100% share-denominated | Relative TSR = 50th percentile | 18% 3‑yr TSR; >55th percentile | 125% factor | Settles at cycle end (three years) |
Compensation Mix (Multi-year)
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Stock Awards ($) | $1,047,747 | $1,310,454 | $1,511,182 |
| Option Awards ($) | $515,516 | $584,955 | $609,920 |
| Non-Equity Incentive ($) | $1,260,000 | $597,805 | $480,948 |
| Total Compensation ($) | $4,125,769 | $3,629,624 | $3,718,717 |
Equity Grant Detail (2024)
| Grant Type | Quantity | Strike/Price | Vesting | Grant Date FV ($) |
|---|---|---|---|---|
| Performance Units | 8,920 target units | — | Settles on TSR; ROE modifier; cap if absolute TSR negative | $887,762 |
| Restricted Stock | 8,920 shares | — | 1/3 per year | $623,419 |
| Stock Options | 35,300 options | $70.58 | 1/3 per year; 8‑year term | $609,920 |
Governance and Shareholder Signals
- Say‑on‑pay support: 83.2% approval at 2024 annual meeting, indicating broad shareholder endorsement of NEO pay structure .
- Compensation philosophy ties pay to performance with robust ownership, clawback, no tax gross‑ups, and anti‑hedging/pledging policies .
- Peer benchmarking conducted by Meridian; broad comparator set tailored to SCI’s business complexity (166 companies in Annex B) .
Investment Implications
- Strong ownership alignment: Tanzberger’s holding of 170,526 shares and 19x salary multiple materially exceeds the 4x guideline, reducing agency risk and signaling long-term alignment .
- Moderate near-term selling pressure windows: RS and option tranches vest in Feb–Mar each year; 2024 saw $2.11 million value realized from option exercises, suggesting potential liquidity events around vest dates; monitor 02/16/2026 and 03/05/2026 for upcoming vests .
- Pay-for-performance integrity: 2024 annual bonus cut to 72% of target given mixed metric outcomes (EPS below target, FCF above max, preneed below threshold), while PUP cycle paid at 125%—balanced incentives that respond to performance variability .
- Retention vs. change-of-control economics: Two-year severance with prorated bonus supports retention; CoC package ($10.2 million) is competitive and equity is double-trigger post‑2022, mitigating windfall risk .
- Perquisites reasonable but include personal aircraft use; overall “other compensation” trending down from 2022 to 2024, reducing optics risk .
- Corporate performance tailwinds: TSR +316% over 10 years and sustained cash generation underpin long-term equity value; compensation metrics (EPS, FCF, TSR, ROE) are directly tied to shareholder returns .