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Andrew Carlson

VP of Engineering and Innovation at SOUTH DAKOTA SOYBEAN PROCESSORS
Executive

About Andrew Carlson

Andrew Carlson is Vice President of Engineering and Innovation at South Dakota Soybean Processors (SDSYA), age 41, appointed October 16, 2023, with responsibilities overseeing daily engineering for soybean processing and refining facilities . He holds an M.S. in Engineering and a B.S. in Agricultural & Biosystems Engineering, plus a minor in History, all from South Dakota State University . Company performance during his tenure shows revenues declined to $554.4M in FY 2024 from $703.1M in FY 2023 while net income fell to $20.3M from $70.4M; TSR under the “Pay vs Performance” framework indicates a $100 investment valued at $197.80 as of FY 2024 (company-wide) * * * * .

Primary incentive design for executives is profit-based; the most important financial performance measure used for linking compensation to performance is net income .

Past Roles

OrganizationRoleYearsStrategic Impact
South Dakota Soybean ProcessorsCustomer Service2003–2005Not disclosed
South Dakota Soybean ProcessorsProject Engineer2005–2011Not disclosed
South Dakota Soybean ProcessorsRefined Oils Manager2011–2013Not disclosed
South Dakota Soybean ProcessorsFood Safety Manager2013–2015Not disclosed
South Dakota Soybean ProcessorsProject Development & Coordination Director2015–2021Not disclosed
South Dakota Soybean ProcessorsVP of Engineering & InnovationOct 2023–PresentOversees daily engineering for processing/refining facilities

External Roles

OrganizationRoleYearsStrategic Impact
Gevo Net-Zero One, LLCPlant Engineering Leader2021–Mar 2023Developed maintenance/safety programs; supported site selection; recruiting/training; engineering design/operations input; staff/operation plans
Gevo Net-Zero One, LLCPlant Manager2023Continued plant management responsibilities described above

Fixed Compensation

ComponentFY 2024FY 2023Notes
Base Salary ($)205,000 41,667 Initial annual salary set at $200,000 upon appointment (Oct 2023)
Target Bonus (%)Not disclosed; executives eligible for profit-based incentive plan
All Other Compensation ($)6,533 628 Standard benefits (401k match, insurance)
Stock Awards ($)Company reports “Stock Awards: None”
OptionsNot disclosed; no option awards indicated

Performance Compensation

Incentive TypeMetricWeightingTargetActual Payout FY 2024Vesting/Payment Terms
Annual Cash BonusProfit-based; primary metric is Net Income Not disclosedNot disclosed23,202 Paid annually; specific vesting not disclosed
Deferred CompensationProfit-based/deferred bonuses Not disclosedNot disclosed51,250 Deferred compensation accrues; company estimates payout upon dismissal (see Employment Terms)

Equity Ownership & Alignment

ItemDetail
Beneficial Ownership (Units)None disclosed; row shows dashes for Andrew Carlson in beneficial ownership table
Ownership % of OutstandingNot applicable (none disclosed)
Vested vs Unvested SharesNot applicable; no stock awards
Options (Exercisable/Unexercisable)Not disclosed; no option awards indicated
Shares Pledged/HedgingNo pledging disclosed; company has insider trading policy and policy regarding hedging (filed as Exhibit 19.1 to 2024 10-K)
Stock Ownership GuidelinesNot disclosed
Compliance StatusNot applicable

Employment Terms

TermDetail
Employment Start DateOctober 16, 2023
Role Tenure2 years as of Nov 2025
Employment AgreementNone; employed at will
Base Salary at Appointment$200,000 annually
Incentive EligibilityEligible for profit-based incentive plan and benefits on same terms as other employees
Severance (Dismissal Without Cause)Company estimates deferred compensation payments of approximately $51,250 as of Dec 31, 2024 for the VP of Engineering & Innovation
Change-of-Control ProvisionsNot disclosed for Andrew Carlson
Non-Compete/Non-SolicitNot disclosed for Andrew Carlson; CEO/CFO have non-competes, but at-will executives (including Carlson) do not have employment agreements
Clawback ProvisionsNot disclosed
Related Party TransactionsNone involving Carlson; 8-K states no Item 404 transactions and no family relationships
Section 16 ComplianceCompany states all Section 16(a) requirements complied with for FY 2023

Company Performance Context (for pay-for-performance perspective)

MetricFY 2022FY 2023FY 2024
Revenues ($)721,532,329 *703,148,409 *554,419,770 *
EBITDA ($)73,309,242*77,762,743*29,856,202*
Net Income ($)67,464,101 *70,449,578 *20,319,817 *
TSR: $100 Investment Value257.88 (2022 base, reported in 2024 proxy) 276.38 (2023, 2024 proxy) 197.80 (2024, 2025 proxy methodology)
  • Values retrieved from S&P Global.

Compensation Committee and Governance Notes

  • The Governance Committee sets executive officer compensation; inputs include CEO assessments of personal performance and market alignment; principal components: base salary, incentive cash bonuses, deferred compensation, and other benefits .
  • Compensation Discussion & Analysis emphasizes a pay-for-performance philosophy with net income as the most important measure linking compensation actually paid to performance .
  • Audit committee oversight is conducted by the full board in light of company size; independence and PCAOB-required discussions documented with Eide Bailly LLP .

Investment Implications

  • Alignment: No equity awards and no disclosed beneficial ownership for Carlson, combined with cash/deferred-only incentives, reduces direct equity alignment; insider hedging policy exists but does not substitute for ownership .
  • Retention risk: At-will status and absence of an employment agreement imply limited contractual retention hooks; estimated severance exposure is confined to deferred compensation balances ($51,250 at FY 2024) .
  • Performance linkage: Bonus/deferred compensation tied to profit/net income provides operational performance sensitivity; however, FY 2024 payouts occurred in a materially lower net income year ($20.3M vs $70.4M), suggesting plan may incorporate individual performance components alongside company results * * .
  • Trading signals: With no units disclosed in beneficial ownership and no equity grants, insider selling pressure from Carlson is negligible; Section 16 compliance reported, and no related-party transactions or pledging noted .