Sean T. Moriarty
STEPANAbout Sean T. Moriarty
Sean T. Moriarty, age 55, is Vice President and General Manager – Surfactants at Stepan Company, a role he has held since January 2021 after serving as Vice President and General Manager – Polymers from September 2017 through December 2020 . In 2024, Stepan reported net income of $50.4 million, up 25% year over year, and the Surfactant segment delivered operating income of $85.6 million, an 18% increase versus prior year . Company total shareholder return (TSR) based on a fixed $100 investment was $68 in 2024 versus $97 in 2023 and $108 in 2022, indicating a difficult equity performance year alongside modest net income improvement .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Stepan Company | Vice President & General Manager – Surfactants | 2021–present | — |
| Stepan Company | Vice President & General Manager – Polymers | 2017–2020 | — |
External Roles
- Not disclosed in company filings reviewed.
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $437,500 | $458,333 | $472,395 |
| Bonus ($) | — | — | $85,171 |
| Stock Awards ($) | $230,691 | $437,677 | $434,822 |
| Option Awards ($) | $360,005 | $150,019 | $150,014 |
| Non-Equity Incentive Plan ($) | $366,891 | $18,376 | — |
| All Other Compensation ($) | $63,566 | $56,904 | $53,525 |
| Total ($) | $1,458,653 | $1,121,309 | $1,195,927 |
2024 “All Other Compensation” includes company retirement contributions ($33,281) plus limited perquisites (e.g., company-leased vehicles, airline club memberships; long-term disability insurance; spousal travel) .
Performance Compensation
Short-Term Incentive Plan (MIP)
| Item | 2024 Detail |
|---|---|
| Target Annual Incentive (% of salary) | 75% |
| Maximum Annual Incentive (% of salary) | 150% |
| Corporate Metrics | Corporate Net Income, Corporate EBITDA, Corporate Growth Goal (profit) |
| Corporate Metric Weighting | At least 30% of annual incentives tied to corporate objectives; Net Income largest; Growth Goal smallest (exact weighting not disclosed) |
| Individual Objective Emphasis | Global Surfactant Operating Income comprised 33% of Moriarty’s 2024 STIP objectives |
| 2024 Corporate Results vs Threshold | Net Income $50.5mm vs $56.0mm; EBITDA $187.0mm vs $198.0mm; Growth Goal $692.3mm vs $704.0mm → 0% payout for corporate objectives |
| 2024 Bonus Outcome | Committee exercised discretion due to one-time impacts; Moriarty received 18% of salary as bonus (paid Mar 2025) |
| Metric | Threshold | Target | Maximum | 2024 Actual | Payout Earned |
|---|---|---|---|---|---|
| Corporate Net Income ($mm) | $56.0 | $70.2 | $98.0 | $50.5 | 0% |
| Corporate EBITDA ($mm) | $198.0 | $248.0 | N/A | $187.0 | 0% |
| Corporate Growth Goal ($mm) | $704.0 | $750.0 | N/A | $692.3 | 0% |
Long-Term Incentive (LTI) – 2024 Grants to Moriarty
| Type | Value ($) | Units Granted | Grant Date | SAR Base Price ($/sh) | Vesting |
|---|---|---|---|---|---|
| Stock Appreciation Rights (SARs) | $150,000 | 4,685 | 3/4/2024 | $87.50 | 3-year ratable; 10-year term |
| Restricted Stock Units (RSUs) | $149,975 | 1,714 | 3/4/2024 | — | 3-year ratable |
| Performance Shares (PSUs) – target | $284,847 | 3,429 | 3/4/2024 | — | Performance-based (CN Income & ROIC) |
Performance Share structure and outcome:
- 2024 CN Income objectives: Threshold $56.0mm, Target $70.2mm, Max $98.0mm; 2026 ROIC modifier: ≤4.5% (-30%), 6.0% (0), ≥7.5% (+30%) .
- Company’s 2024 CN Income was $50.5mm (below threshold) → 2024 PSUs forfeited (0% earned) .
Historic PSU vesting (granted 2022; vested 2024):
| Grant Year | Earned % of Target | Shares Vested (#) | Value Realized ($) |
|---|---|---|---|
| 2022 | 89.8% (CN Income 2022: $153.5mm; 2022–2024 avg ROIC: 5.16%) | 1,937 | $119,658 |
Stock vested and realized in 2024:
| Type | Shares Vested | Value Realized ($) |
|---|---|---|
| Performance Shares (2021 grant vesting in 2024) | 1,323 | $109,902 |
| RSUs | 455 | $40,509 |
| Total | 1,778 | $150,410 |
Equity Ownership & Alignment
| Beneficial Ownership as of 3/3/2025 | Shares | % Outstanding |
|---|---|---|
| Total shares beneficially owned | 34,129 | <1% |
Breakdown (footnote components):
- ESOP II allocated shares: 4,478
- Options (exercisable rights within 60 days): 9,355
- RSUs vesting rights within 60 days: 571
- Management Incentive Plan stock account credits: 5,751
Footnote does not disclose any shares pledged for Moriarty; table footnotes enumerate components but do not include pledged shares for him .
Outstanding equity awards at 12/31/2024 (Moriarty):
| Award Type | Exercisable (#) | Unexercisable (#) | Exercise/Base Price ($) | Expiration | Unvested RSUs (#) | Market Value ($) | Unearned PSUs/Stock (#) | Payout/Market Value ($) |
|---|---|---|---|---|---|---|---|---|
| Options/SARs (various tranches) | see below | see below | $78.58; $72.99; $92.29; $102.30; $123.73; $111.26; $109.92; $87.50 | 2027–2034 | 4,561 | $295,097 | 2,155 | $139,429 |
Future vesting schedules (key dates and counts):
- SARs: 1,266 (2/14/2025); 1,561 (3/4/2025); 1,266 (2/14/2026); 1,562 (3/4/2026); 1,562 (3/4/2027) .
- RSUs: 455 (2/14/2025); 571 (3/4/2025); 455 (2/14/2026); 571 (3/4/2026); 572 (3/4/2027) .
Stock ownership & trading policies:
- Executive stock ownership guideline: 2.5× base salary for non-CEO officers; expected to reach 100% of requirement within five years; committee determined all executive officers, including NEOs, were in compliance as of February 2025; non-compliant executives must retain 100% of vested LTI shares until compliant .
- Insider Trading Policy: prohibits hedging, short-selling, and requires pre-clearance and trading windows .
Deferred compensation and pension:
| Plan | 2024 Earnings (Losses) ($) | Aggregate Balance at FY-End ($) |
|---|---|---|
| Management Incentive Plan (deferred comp) | (154,701) | 439,519 |
| Pension (Retirement Plan for Salaried Employees) | Years Credited Service | Present Value of Accumulated Benefit ($) | Payments During Last Fiscal Year ($) |
|---|---|---|---|
| Defined benefit (frozen) | 13.8 | 175,708 | — |
Employment Terms
- No standing severance or change-in-control cash agreements; occasional retention/separation arrangements may be made; equity awards provide for pro rata vesting on retirement and full vesting on death/disability; under the 2022 plan, if no replacement award upon change-in-control, outstanding RSUs/SARs vest fully and PSUs vest at target; if replaced, double-trigger acceleration applies (termination without cause or for good reason within two years) .
- Clawback: awards subject to Company Clawback Policy; no dividend payments on unearned performance shares; no repricing of underwater options/SARs without shareholder approval; no excise tax gross-ups .
Estimated potential equity vesting value upon specified events (as of 12/31/2024; $64.70 share price):
| Scenario | RSUs ($) | Performance Shares ($) | Total ($) |
|---|---|---|---|
| Retirement | 52,256 | 213,510 | 265,766 |
| Death or Disability | 199,211 | 361,414 | 560,626 |
| Qualifying Termination in connection with Change-in-Control | 199,211 | 221,856 | 421,068 |
Performance & Track Record
- Segment performance under Moriarty’s purview: Surfactants operating income in 2024 was $85.6 million, up 18% versus prior year, although 2025 quarterly updates show Q3 Surfactants adjusted EBITDA down 14% due to start-up costs at the new Pasadena facility and higher oleochemical raw material costs, indicating execution and margin normalization challenges in the near term .
- Company TSR based on a fixed $100 investment was $68 in 2024 (peer group $138), reflecting underperformance vs peers; Net Income was $50.4 million and Adjusted Net Income $50.5 million in 2024 .
Say-on-Pay & Governance Signals
- Say-on-Pay approval: 96% support at 2024 Annual Meeting, suggesting broad shareholder alignment with compensation design .
- Compensation philosophy emphasizes pay-for-performance, significant at-risk mix, stock ownership, hedging prohibitions, and no standing severance/change-in-control cash agreements .
Investment Implications
- Pay-for-performance discipline is evident: 2024 corporate underperformance drove 0% corporate STIP payout and full forfeiture of 2024 PSUs; Moriarty’s bonus was a modest discretionary 18% of salary, signaling the committee’s use of discretion to retain key talent amid one-time headwinds while preserving performance alignment .
- Near-term selling pressure risk appears limited: upcoming RSU/SAR vesting tranches are scheduled through 2027, but executives must maintain stock ownership levels and hedging is prohibited, which mitigates forced selling; no pledging disclosed for Moriarty .
- Change-in-control exposure is equity-centric with double-trigger acceleration; lack of cash severance lowers downside cash liabilities but introduces event-driven equity acceleration risk if a transaction occurs .
- Execution risk: Surfactants faced adjusted EBITDA pressure in 2025 linked to Pasadena start-up and raw material inflation; segment recovery depends on pricing execution and productivity initiatives, key levers for Moriarty’s performance-linked incentives tied to segment operating income .