Leonard J. Sokolow
About Leonard J. Sokolow
Leonard J. “Lenny” Sokolow is Chief Executive Officer of SKYX Platforms Corp. (CEO since September 30, 2025; previously Co-CEO from September 12, 2023) and a director since November 2015. He is a seasoned capital markets executive and attorney/CPA with prior leadership roles at Newbridge Financial, vFinance and National Holdings; he also practiced corporate/securities law and worked as a CPA at Ernst & Young and KPMG, bringing deep governance, audit and M&A expertise to SKYX . He is 68 years old (as of the 2025 record date) . TSR under SKYX’s SEC “pay versus performance” framework fell from $21.27 (value of $100 invested) in 2022 to $11.43 in 2023 and $8.29 in 2024 as the company scaled revenues while remaining loss-making on GAAP metrics . Quarterly revenues rose from $18.98M in Q1’24 to $23.89M in Q3’25 while EBITDA stayed negative, reflecting growth investments and integration costs .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Newbridge Financial, Inc. | CEO & President | 2015–Aug 2023 | Led broker-dealer and RIA subsidiaries; capital markets advisory; governance |
| Newbridge Securities Corporation (BD) | CEO; Chairman (earlier) | CEO: Jul 2022–Aug 2023; Chair: Jan 2015–Jul 2022 | Broker-dealer leadership; audit/compliance oversight |
| Newbridge Financial Services Group, Inc. (RIA) | CEO | Jul 2022–Aug 2023 | Asset management oversight |
| vFinance, Inc. | Chairman; CEO; President; Director | Director: Nov 1997–; Chairman/CEO: Jan 2007–Jul 2008; President: 2001–2006 | Public co. leadership; merged into National Holdings |
| National Holdings Corp. | President; Vice Chairman | President: Jul 2008–Jul 2012; Vice Chair: Jul 2008–Jul 2014 | Post-merger integration; corporate development |
| Caribou LLC | Consultant & Partner | Jul 2012–Dec 2014 | Strategic advisory services |
| Americas Growth Fund Inc. | Founder, Chairman & CEO | 1994–1998 | Closed-end fund creation/management |
| Applica Inc. | EVP & General Counsel | 1988–1993 | Public company legal, M&A & compliance |
| Ernst & Young; KPMG Peat Marwick | CPA | 1980–1982 | Audit/financial reporting foundations |
External Roles
| Organization | Role | Committees | Since | Notes |
|---|---|---|---|---|
| Consolidated Water Co. Ltd. | Director | Audit Chair; Nominations & Corp Gov member | Jun 2006 | Water infrastructure; audit leadership |
| Vivos Therapeutics, Inc. | Director | Audit Chair; Nominating & Corp Gov member | Jun 2020 | Medtech; governance oversight |
| Agrify Corporation | Former Director | Audit & Compensation | Dec 2021 (former) | Cannabis tech; prior audit chair |
| Marquee Energy Ltd. (formerly Alberta Oilsands Inc.) | Former Director | Audit Chair (prior) | Prior | Energy sector oversight |
Fixed Compensation
| Component | 2023 | 2024 | Notes |
|---|---|---|---|
| Base Salary ($) | 49,129 | 160,000 | 2023 reflects partial year post-appointment (Sept 12, 2023); 2024 full-year |
| Minimum Bonus ($) | — | 80,000 | Employment agreement provides $40,000 every six months; 2024 bonus total was $125,000 (includes retention) |
| Retention Bonus ($) | — | 45,000 | Approved Dec 15, 2024 (Campi also $45k) |
| All Other Compensation ($) | — | 21,909 | Health insurance premiums |
| Total Compensation ($) | 452,821 | 306,909 | Includes equity grant accounting values in 2023; 2024 reduced equity awards |
Performance Compensation
| Incentive Type | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| Semiannual cash/stock bonus | Minimum bonus (fixed) | N/A | $40,000 per half-year | Paid per agreement | $80,000 in 2024 | Immediate; per agreement |
| Discretionary performance bonus | Performance metrics (as determined) | Not disclosed | Not disclosed | Not disclosed | Paid in equity and/or cash if approved | As approved by Comp Committee |
| RSUs (grant 9/12/2023, 450,000) | Time-based | N/A | N/A | N/A | Equity | 120,000 vested at grant; 300,000 vest in six semiannual tranches of 50,000 (Mar 12/Sept 12, 2024–2026); 30,000 vest Mar 12, 2027 |
| Stock Options (grant 9/12/2023, 450,000 @ $1.58) | Time-based | N/A | N/A | N/A | Equity | 120,000 vested at grant; 300,000 vest in six semiannual tranches of 50,000 (Mar 12/Sept 12, 2024–2026); 30,000 vest Mar 12, 2027; 10-year term cap under plan; actual award term 5 years |
Notes:
- SKYX’s 2021 Stock Incentive Plan allows performance objectives (e.g., ROE, EPS, EBITDA, sales growth) at committee’s discretion, but Sokolow’s disclosed awards are time-based; specific performance metric targets/weights are not disclosed .
Equity Ownership & Alignment
| Measure | 2024 (Record date May 15, 2024) | 2025 (Record date May 13, 2025) | Detail |
|---|---|---|---|
| Beneficial ownership – common shares | 1,541,844 (1.5%) | 1,722,228 (1.6%) | % of common outstanding; includes options/convertibles within 60 days |
| Series A-1 Preferred owned | — | 10,000 shares | Purchased Oct 4, 2024 for $250,000 (convertible into 125,000 common at $2.00 initial conversion) |
| Options exercisable within 60 days | 955,000 | 1,080,000 | Footnotes detail instruments by strike/maturity |
| Convertible notes (within 60 days) | 83,334 common | 83,334 common | From 2020 note amendment/conversion terms |
| RSUs outstanding (schedule) | 330,000 | 230,000 | Per 9/12/2023 grant; vesting semiannually + final tranche 2027 |
| Pledging/Hedging | Prohibited without prior approval; hedging, short selling and derivative trading prohibited | Same | Insider Trading Policy prohibits hedging/short selling; pledging requires approval |
Key outstanding option and award positions (as of Dec 31, 2024):
- Legacy options: e.g., 150,000 @ $0.60 (exp. 11/15/2025); 150,000 @ $3.00 (exp. 4/19/2027); 150,000 @ $4.00 (exp. 4/19/2027); multiple $12.00 series expiring 2025–2026; director program options (e.g., 17,500 @ $12.34 exp. 3/11/2027) .
- 2023 grant: 220,000 exercisable and 230,000 not yet exercisable at $1.58; RSUs 230,000 unvested with schedule detailed above .
Employment Terms
| Term | Sokolow Agreement |
|---|---|
| Effective date | September 12, 2023; initial 3-year term with automatic 1-year renewals unless notice given 30+ days before end of term |
| Base salary | $160,000 per year (subject to annual review) |
| Semiannual minimum bonus | $40,000 every six months (cash or stock, at executive’s election) |
| Performance bonus | Eligible, payable in equity and/or cash, subject to committee approval and metrics determined by Executive Chairman; specific metrics not disclosed |
| Severance | If terminated without cause/nonrenewal or resigns for Good Reason: six months’ base salary; six months’ health premiums (gross amount, subject to COBRA election); RSU/options scheduled to vest within six months continue to vest on schedule |
| Restrictive covenants | Non-compete and non-solicit provisions |
| Expense, benefits | Standard executive benefits; expense reimbursement; up to four weeks’ vacation |
| Change-in-control (CIC) | Treatment governed by employment agreements or at the Compensation Committee’s discretion under the 2021 Plan; committee may accelerate vesting/make cash payments/cancel underwater options; no single/double-trigger specifics disclosed for Sokolow |
| Clawback policy | SEC/Nasdaq-compliant compensation recovery policy adopted in 2023; recovery for restated financials over prior 3 fiscal years |
Related party and financing links (alignment considerations):
- 2024 Series A-1 Preferred purchase: 10,000 shares ($250,000), convertible into common; cumulative dividend terms 8% cash, with accruals and redemption/mandatory conversion provisions .
- 2020 convertible note: $250,000 principal (amended Mar 2024; conv. price reduced to $3.00; interest increased to 10%); 2024 interest paid $36,122; maturity May 16, 2025 .
- Newbridge Securities advisory shares: 40,333 restricted shares awarded under 11/9/2022 advisory agreement; vesting schedule set; 10,084 unvested at 12/31/2023 .
Board Governance
- Role and independence: Director since 2015; currently CEO; Board determined Sokolow is not independent under Nasdaq/SEC rules given management role .
- Committees: Not a member of standing Audit/Compensation/Nominating committees; member of Business Strategy & Development Committee (with Executive Chairman and Nancy DiMattia) .
- Leadership structure: SKYX separates CEO and Board Chair roles; Board reiterates separation as appropriate for oversight .
- Attendance: Directors serving during 2024 attended at least 75% of Board and committee meetings (except Mr. Ridge due to health); Sokolow attended 2024 annual meeting .
- Director compensation: Employee directors’ compensation appears in NEO tables; non-employee director program includes retainers and equity grants; prior to becoming Co-CEO in 2023, Sokolow also received director program grants captured in 2023 NEO disclosure .
Company Performance Context
Recent quarterly operating metrics:
| Metric | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenues ($) | 22,174,103 | 18,977,821 | 21,446,148 | 22,168,919 | 23,683,988 | 20,113,938 | 23,061,655 | 23,891,537 |
| EBITDA ($) | -11,491,453* | -8,344,483* | -5,421,406* | -7,417,449* | -10,108,009* | -7,222,836* | -6,744,836* | -5,937,261* |
Values with asterisk retrieved from S&P Global.
Pay-versus-performance markers (SEC framework):
| Year | TSR ($ value of $100) | GAAP Net Income (Loss) ($) |
|---|---|---|
| 2022 | 21.27 | (27,035,941) |
| 2023 | 11.43 | (39,732,656) |
| 2024 | 8.29 | (35,768,144) |
Compensation Structure Analysis
- Mix and guarantees: Introduction of fixed semiannual minimum bonus ($40k per half-year) increases guaranteed pay vs. purely at-risk components, offset by time-based RSUs/options; 2024 included $45k retention bonus indicating near-term retention prioritization .
- Equity cadence: Time-based vesting semiannually can create periodic selling pressure upon RSU releases (50k tranches through 2026; final 30k in 2027) if not subject to holding guidelines; no holding-period or ownership guideline disclosures were provided .
- CIC and clawback: Plan permits discretionary CIC treatment; board adopted a clawback in 2023 for restatements (shareholder-friendly control) .
- Director dual-role implications: As CEO and director, independence concerns are mitigated by a fully independent composition for standing committees and separated chair/CEO roles .
Vesting Schedules and Potential Supply
- RSUs (450,000 grant on 9/12/2023): 50,000 vest on each Mar 12 and Sept 12 for six installments (expected dates: 3/12/2024; 9/12/2024; 3/12/2025; 9/12/2025; 3/12/2026; 9/12/2026), plus 30,000 vest on 3/12/2027 .
- Options (450,000 @ $1.58, 5-year term): same schedule as RSUs; 120,000 vested on grant; 300,000 in six semiannual tranches; 30,000 vest 3/12/2027 .
Track Record, Value Creation, and Risks
- Achievements: Revenue growth with record quarterly sales reported across 2024–2025 while transitioning leadership to a sole CEO model (Sokolow as CEO post Campi retirement on Sept 30, 2025) .
- Controversies/legal: Company states no director/executive involvement in Item 401(f) legal proceedings over the past 10 years .
- Listing/compliance dynamics: SKYX received Nasdaq notices in Oct 2024 regarding continued listing standards (company-level risk factor; not an individual-specific proceeding) .
- Related party financing: Participation in preferred equity (Series A-1) and convertible notes aligns financial incentives but introduces creditor-equity duality; advisory share grants via Newbridge arrangements disclosed .
Investment Implications
- Alignment and retention: Sokolow’s fixed semiannual bonuses and 2024 retention bonus support leadership continuity; significant unvested RSUs and options provide multi-year alignment but semiannual RSU releases could add incremental supply pressure near vesting dates absent holding requirements .
- Pay-for-performance: Compensation includes time-based equity with limited disclosure of quantified operating targets; TSR has declined since 2022 while revenues grew, suggesting emphasis on scaling and market development rather than near-term profitability metrics in executive pay design .
- Governance: Dual role as CEO/director with non-independence is counterbalanced by independent committees and separated chair/CEO leadership; insider trading policy curtails hedging/pledging, which supports alignment .
- Contract economics: Moderate severance (six months salary/benefits) and scheduled vesting post-termination for six months reduce abrupt turnover risk but maintain cost discipline; discretionary CIC treatment introduces uncertainty on award acceleration in change-of-control scenarios .
Sources: SKYX DEF 14A (2025, 2024) ; SKYX DEF 14A (2024) ; SKYX 8-K (Oct 3, 2025) ; Quarterly revenues table cells as cited above; EBITDA values marked with asterisk retrieved from S&P Global.