Marcus Watts
SERVICE CORP INTERNATIONALAbout Marcus A. Watts
Marcus A. Watts (age 66) has served on SCI’s board since 2012 and is the Lead Independent Director. He is President of The Friedkin Group (since 2011) and holds degrees from Texas A&M University and Harvard Law School. His background includes Vice Chair and Managing Partner–Houston at Locke Lord LLP (1984–2010); he brings rare industry knowledge from prior service as independent counsel to SCI and other deathcare entities, plus expertise across marketing, governance, and government/regulatory matters .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Locke Lord LLP | Vice Chair and Managing Partner–Houston | 1984–2010 | Corporate/securities law, governance; deep regulatory experience |
| SCI (engagements prior to directorship) | Independent counsel (industry) | Various | Unique deathcare industry experience benefiting board oversight |
External Roles
| Organization | Role | Tenure | Notes |
|---|---|---|---|
| The Friedkin Group | President | 2011–present | Private company spanning automotive, hospitality, entertainment |
| Coterra Energy, Inc. | Director | Current | Public company board |
| Highland Resources, Inc. | Board Member | Current | Private real estate company |
| Greater Houston Partnership | Former Chairman | Past | Civic leadership |
| United Way of Greater Houston | Former Board Chair | Past | Civic leadership |
| Federal Reserve Bank of Dallas (Houston Branch) | Former Board Chair | Past | Financial/regulatory oversight |
| Complete Production Services, Inc. | Director (past) | 2007–2012 | Acquired by Superior Energy Services |
| Cornell Companies | Director (past) | 2001–2005 | Public company board |
Board Governance
- Independence status: Independent; currently Lead Independent Director. SCI’s board determined 9 of 10 directors are independent; the committees (Audit, Compensation, Nominating & Corporate Governance) are entirely independent .
- Committee assignments (2024):
- Nominating & Corporate Governance Committee: Chair; 4 meetings; 100% attendance .
- Compensation Committee: Member; 4 meetings; 100% attendance .
- Executive Committee: Member; no meetings in 2024 .
- Lead Independent Director duties: Presides over executive sessions; authorized to call board meetings; liaison to Chair; participates in CEO and director evaluations; interviews director candidates; shareholder communications; consults with committee chairs; may serve as interim Chair upon conflict/absence .
- Attendance and engagement: Board met 6 times with 97% combined attendance; each committee had ≥94% attendance; executive sessions held after every regular board meeting and chaired by the Lead Independent Director .
- Governance refresh and limits: SCI updated Corporate Governance Guidelines and Audit Committee Charter in 2024 to limit director service on public company boards/audit committees; proxy access adopted in 2023 .
Fixed Compensation
| Component | Policy/Amount | 2024 Cash Paid | Notes |
|---|---|---|---|
| Annual Board Cash Retainer | Increased to $100,000 effective 11/15/2024 | $92,500 | Prorated for 2024 given mid-year increase |
| Lead Independent Director Retainer | $30,000 | $30,000 | Leadership role |
| NCGC Chair Retainer | $15,000 | $15,000 | Committee chair fee |
| Total Cash Fees (2024) | — | $137,500 | Sum of retainers above |
- Director compensation benchmarking: Reviewed periodically by NCGC with Meridian Compensation Partners against peer group and NACD market data .
Performance Compensation
| Component | Grant Value/Terms | 2024 Grant | Vesting/Other |
|---|---|---|---|
| Annual Stock Awards (equity retainer) | Target $180,000 (raised to $190,000 effective 11/15/2024) | $180,052 | Standard director equity; not performance-based |
- No performance metrics disclosed for director equity retainer (directors receive time-based stock awards, not PSUs/options under executive LTI) .
Other Directorships & Interlocks
| External Entity | Relationship to SCI | Potential Interlock/Conflict |
|---|---|---|
| Coterra Energy, Inc. | Unrelated industry | No SCI-related transactions disclosed |
| Highland Resources, Inc. | Private real estate | No SCI-related transactions disclosed |
| The Friedkin Group | Private diversified | No SCI-related transactions disclosed |
- SCI related-party review disclosed 2024 transactions involving a director’s family (Waring) and payments to the founder’s estate, but none involving Watts .
Expertise & Qualifications
- Marketing/Brand Management and Corporate Governance expertise via leadership at The Friedkin Group and multiple boards .
- Government/Regulatory and legal background through Locke Lord and Federal Reserve service .
- Unique deathcare industry experience via prior independent counsel engagements with SCI and other industry entities .
Equity Ownership
| Holder | Shares Beneficially Owned | Notes | % of Class |
|---|---|---|---|
| Marcus A. Watts | 70,576 | Includes 10,971 shares held in family trusts where he is trustee | <1% |
- Director stock ownership guideline: $500,000 within five years; measured for 2025 at 6,265 shares minimum (closing price $79.82 on 12/31/2024); 100% of directors exceeded the guideline as of 3/11/2025 .
- Anti-hedging/pledging: Directors prohibited from hedging or pledging SCI stock, supporting alignment and reducing collateral risk .
Insider Trades (Form 4 Activity)
| Transaction Date | Filing Date | Type | Shares | Price | Post-Transaction Ownership | Direct/Indirect | Source |
|---|---|---|---|---|---|---|---|
| 2025-05-06 | 2025-05-08 | Award (A) | 2,514 | $0.00 | 59,477 | Direct | |
| 2024-11-26 | 2024-11-29 | Gift (G) | 6,774 | $0.00 | 58,657 | Direct | |
| 2024-11-26 | 2024-11-29 | Gift (G) | 1,694 | $0.00 | 56,963 | Direct | |
| 2024-11-26 | 2024-11-29 | Gift received (G) | 6,774 | $0.00 | 10,971 | Indirect (family trust) | |
| 2024-05-07 | 2024-05-08 | Award (A) | 2,642 | $0.00 | 2,642 | (unspecified) |
- Note: Gifts on 11/26/2024 reflect transfers from direct to indirect family trust holdings; indirect trust balance aligns with proxy disclosure of 10,971 shares held in family trusts .
Governance Assessment
- Strengths:
- Lead Independent Director authority is robust (can call board meetings; presides over executive sessions; shareholder engagement; evaluation roles), reinforcing independent oversight .
- High board/committee attendance and independent committee composition; clear ESG and risk oversight delegation .
- Director pay is balanced cash/equity, market-benchmarked; increased retainers reflect evolving responsibilities while maintaining equity alignment .
- Ownership alignment: Watts exceeds director guideline; anti-hedging/pledging policy reduces misalignment risks .
- Shareholder-friendly provisions (proxy access; say-on-pay support at 83.2%) signal responsiveness .
- Watch items:
- Transfers to family trust (gifts) are common estate planning, but investors should monitor any future pledge activity; SCI policy currently prohibits pledging, mitigating collateral risk .
- Board service limits were introduced in 2024, which should reduce director overboarding risk; ongoing compliance remains a focus area .
Citations
- Director profile, roles, age, tenure, education and expertise .
- Board independence, attendance, executive sessions, committees .
- Lead Independent Director duties .
- Director compensation and retainers .
- Ownership guidelines and director holdings .
- Related-party transactions (none involving Watts) .
- Governance changes (proxy access; limits on board/audit committees) .
- Say-on-pay support .
- Insider trades: Full SEC URLs shown above.