Eric Sherb
About Eric Sherb
Eric Sherb, age 38, has served as Chief Financial Officer (Principal Financial/Accounting Officer) of Scienture Holdings, Inc. since March 13, 2025, following service as an accounting consultant to the company beginning in 2023 . He brings 16 years of experience in accounting advisory, auditing, M&A, and SEC financial reporting for public entities; he founded EMS Consulting Services, LLC in October 2018 and previously held roles at CFGI (Senior Manager), RBSM LLP (Audit Manager), and PricewaterhouseCoopers (various roles) . As CFO, Sherb has executed SOX 302 and 906 certifications for the company’s 10-K (March 26, 2025) and subsequent 10-Qs (Q2 and Q3 2025), evidencing accountability for disclosure controls and internal control over financial reporting . Performance metrics such as TSR, revenue growth, and EBITDA growth tied specifically to his tenure are not disclosed in the company’s filings .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| EMS Consulting Services, LLC | Founder/Owner | Oct 2018–present | Provides accounting advisory/CFO services (audit & IPO readiness, SEC reporting, complex US GAAP matters) |
| CFGI | Senior Manager | Mar 2015–Oct 2018 | Led advisory engagements across reporting and transactions for public entities |
| RBSM LLP | Audit Manager | Jan 2013–Jan 2015 | Managed audit engagements, strengthening audit quality and controls |
| PricewaterhouseCoopers (NYC) | Associate/Staff (various) | Jul 2008–Jan 2013 | Audited across hedge funds, manufacturing, healthcare; built foundational public-company reporting expertise |
| Scienture Holdings, Inc. | Accounting Consultant | 2023–Mar 2025 | Supported SEC reporting and advisory prior to CFO appointment |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| SMC Entertainment Inc. (OTC: SMCE) | Chief Financial Officer | Since Jan 2025 | CFO responsibilities across SEC reporting and finance |
| Fatpipe Inc. (NASDAQ: FATN) | Chief Financial Officer | Since Apr 2025 | CFO responsibilities across SEC reporting and finance |
| Crown Reserve Acquisition Corp. I (SPAC) | Chief Financial Officer | Current | CFO role for SPAC preparing for Nasdaq listing |
Fixed Compensation
| Component | Terms | Effective Date/Period | Notes |
|---|---|---|---|
| Annual Cash Fee | $100,000 per year | Effective Mar 13, 2025; ongoing | Independent Contractor Agreement (ICA) as CFO |
| Annual Stock Grant (Common Stock) | $50,000 per year (issued upon signing and annually thereafter) | Effective Mar 13, 2025; ongoing | Issued at closing price; form is common stock (no RSU/PSU specified) |
| Discretionary Bonus | Board-determined, amount at sole discretion | Effective Mar 13, 2025; ongoing | Cash or stock at Board’s discretion |
| Pre-Appointment Consulting Fees | $3,794 (FY 2023); $82,252 (FY 2024) | FY 2023–2024 | Compensation for advisory/consulting services to SCNX |
Performance Compensation
| Metric/Incentive | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Discretionary Annual Bonus | N/A | N/A (Board discretion) | Not disclosed | Not disclosed | N/A |
| Annual Common Stock Grant ($50,000) | N/A | N/A | Issued upon signing; annually thereafter | $50,000 in common stock per year | Vesting terms not disclosed (common stock grant; no RSU/PSU terms provided) |
No explicit performance metrics (e.g., revenue growth, EBITDA, TSR percentile) are tied to Sherb’s compensation in disclosed agreements; the bonus is discretionary and stock grants are formulaic by amount rather than performance-conditioned .
Equity Ownership & Alignment
| Metric | Oct 6, 2025 | Oct 22, 2025 |
|---|---|---|
| Shares Outstanding (Reference) | 23,232,260 | 31,975,003 |
| Shares Beneficially Owned | 50,000 (direct) | 50,000 (direct) |
| Ownership % of Outstanding | <1% (as reported) | <1% (as reported) |
| Vested vs. Unvested Shares | Not disclosed | Not disclosed |
| Options (Exercisable/Unexercisable) | None for Sherb as of FY 2024 | None for Sherb as of FY 2024 |
| In-the-Money Option Value | N/A (no options) | N/A (no options) |
| Shares Pledged as Collateral | Not disclosed | Not disclosed |
| Ownership Guidelines | Not disclosed | Not disclosed |
| Hedging/Pledging Policy | Anti-hedging policy prohibits short sales; trading only in windows or preapproved 10b5-1 plans; pledging not specifically addressed in cited sections | Anti-hedging policy prohibits short sales; trading only in windows or preapproved 10b5-1 plans; pledging not specifically addressed in cited sections |
Employment Terms
| Term | Detail |
|---|---|
| Appointment | Appointed CFO effective March 13, 2025 |
| Contract Form | Independent Contractor Agreement (EMS Consulting Services, LLC) |
| Term & Termination | Indefinite; terminable by either party with ≥14 days’ prior notice |
| Base Cash Compensation | $100,000 annual cash fee |
| Equity Compensation | Annual common stock grant of $50,000 issued upon signing and annually thereafter, priced at prior-day Nasdaq close |
| Bonus | Annual discretionary bonus (cash or stock), amount at Board’s sole discretion |
| Severance (Salary+Bonus Multiples) | Not disclosed for Sherb; ICA provides only 14-day termination notice, no severance multiple |
| Change-of-Control Provisions | Not disclosed for Sherb’s ICA |
| Accelerated Vesting (CIC) | Not disclosed for Sherb |
| Clawback Provisions | Not disclosed for Sherb’s ICA |
| Non-Compete/Non-Solicit | Not disclosed in ICA |
| Garden Leave | Not disclosed |
| Post-Termination Consulting | Not disclosed |
| Expense Reimbursement | Reimbursement of reasonable and necessary business expenses subject to policy compliance |
| Tax Treatment | Contractor responsible for taxes; Company issues Form 1099 |
| Confidentiality | Confidentiality obligations survive termination |
Governance & Shareholder Feedback
| Item | Data |
|---|---|
| SOX Certifications | CFO 302 certification on FY 2024 10-K (Mar 26, 2025); CFO 302/906 certifications on Q2 2025 10-Q (Aug 12, 2025) and Q3 2025 10-Q (Nov 12, 2025) |
| Insider Trading Policy | Prohibits short sales; requires trading in windows or under preapproved 10b5-1 plans; blackout periods around filings/disclosures |
| Board/Committee Activity (2024) | Board met 13 times; Audit Committee 5; Compensation Committee 1; Nominating & Governance 1; independent directors held 5 executive sessions |
Say-on-Pay (Advisory Vote) – March 10, 2025 Annual Meeting
| Proposal | Votes For | Votes Against | Abstentions |
|---|---|---|---|
| Non-binding approval of NEO compensation | 6,270,914 | 5,494 | 12,653 |
Advisory Vote on Frequency of Say‑on‑Pay
| Frequency Option | Votes |
|---|---|
| 1 Year | 3,829,343 |
| 2 Years | 503 |
| 3 Years | 2,393,125 |
| Abstentions | 16,829 |
Compensation Structure Analysis
- Independent contractor structure sets a modest fixed cash fee ($100,000) plus formulaic annual common stock grant ($50,000), with additional compensation via fully discretionary bonus—no disclosed performance metrics or PSU/RSU structures linking pay to operational or market outcomes .
- No option awards are outstanding for Sherb (as of FY 2024), and no equity vesting schedules are disclosed for his common stock grants, indicating limited long-term incentive design visibility in public filings .
- No severance multiples, CIC protections, or clawback provisions are disclosed for Sherb’s ICA, reducing entrenchment but also potentially weakening retention incentives relative to market norms for CFOs .
- Anti-hedging policy reduces misalignment risk by prohibiting short sales and confining trades to windows or preapproved 10b5‑1 plans; pledging is not specifically addressed in cited policy sections .
Track Record & Execution Risk
- Certifications reflect active oversight of disclosure controls/ICFR across FY 2024 and Q2/Q3 2025 filings (SOX 302/906) .
- Company executed divestitures of IPS and Bonum, closing April 30, 2025; background context includes related-party sensitivities at buyer (Tollo) tied to prior executives—CFO risk management oversight is implied but not explicitly attributed .
- Concurrent external CFO roles (SMCE, FATN, Crown Reserve Acquisition Corp. I) may introduce bandwidth and retention considerations .
Investment Implications
- Retention risk: The ICA’s at-will structure with only 14 days’ notice and no severance/CIC protections suggests high mobility; monitoring Form 4s and any amendments to the ICA is prudent .
- Alignment: Beneficial ownership is 50,000 shares (<1%); annual common stock issuances provide ongoing exposure, but lack of disclosed vesting/performance conditions limits pay‑for‑performance linkage .
- Trading signals: Anti‑hedging policy and trading window constraints reduce hedging-related misalignment; absence of pledging disclosure should be monitored in future proxies .
- Governance feedback: Strong support for say‑on‑pay by raw vote counts; continued transparency around CFO compensation metrics would enhance investor confidence .
- Execution bandwidth: Multiple concurrent CFO roles across issuers may pose time allocation risks; watch for 8‑K Item 5.02 disclosures or contract amendments indicating changes in engagement scope .