Nathan Iles
About Nathan Iles
Nathan R. Iles is Chief Financial Officer (CFO) of Standard Motor Products, Inc. (SMP) since September 2019; he is 48 and a Certified Public Accountant. He holds an MBA from the University of Chicago Booth School of Business and a B.B.A. from Eastern Kentucky University, with prior finance roles at UCI International (2011–2019), Sears, and Deloitte . In 2024, SMP delivered net sales of $1,463.8 million and diluted EPS of $2.41; the pay-versus-performance table shows cumulative TSR value of $65.89 for a $100 investment vs $86.10 for the S&P 1500 Auto Parts & Equipment index (base year 2019) . SMP emphasizes pay-for-performance with annual incentives tied to Adjusted EPS and Adjusted Free Cash Flow Conversion and long-term PSUs tied to ROIC and Organic Sales Growth .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| UCI International Holdings, Inc. | Vice President & CFO | 2016–2019 | Led finance at a major aftermarket supplier, supporting corporate strategy and controls |
| ASC/Airtex Performance Pumps (UCI) | CFO | 2015–2016 | Business-unit CFO driving performance pump segment finance |
| UCI-FRAM Auto Brands | VP Corporate Finance | 2011–2015 | Corporate finance leadership across FRAM auto brands |
| Sears Holdings Corporation | Finance/Accounting roles | Not disclosed | Retail finance experience; controllership exposure |
| Deloitte & Touche | Audit/Accounting | Not disclosed | Public accounting and audit rigor |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| — | — | — | Certified Public Accountant (CPA) credential |
Fixed Compensation
| Metric (USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary | $534,000 | $558,000 | $576,000 |
| All Other Compensation | $100,326 | $90,800 | $71,415 |
2024 employer contributions detail:
- 401(k): $22,425
- ESOP: $6,055
- SERP: $33,280
Performance Compensation
| Component | Metric | Weighting | Target | Actual 2024 Payout |
|---|---|---|---|---|
| Annual Incentive – Financial | Adjusted EPS (YoY improvement) | 75% of Financial | 100% payout | 142.4% payout |
| Annual Incentive – Financial | Adjusted Free Cash Flow Conversion | 25% of Financial | 100% payout | 142.4% payout |
| Annual Incentive – MBO | Market growth, ops improvement, sustainability/culture, tech readiness | 30% total | 100% payout | 98.6% payout |
| Metric (USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Non-Equity Incentive (Actual Bonus Paid) | $399,607 | $169,968 | $473,894 |
| Target Bonus (Plan Dollar Target) | — | — | $366,720 |
| Company Policy – Target Bonus % | — | — | Approximately 32%–39% of expected total cash compensation (program design) |
Long-term PSUs framework and outcomes:
- 2024 grant: performance period 1/1/2024–12/31/2026; metrics: ROIC (67%) and Organic Sales Growth (33%); payout 0–200% of target .
- 2021 grant (performance 2021–2023): 68.3% payout; shares issued Nov 2024 .
- 2022 grant (performance 2022–2024): 50.7% payout; shares to be issued Nov 2025 subject to time-based conditions .
Equity Awards (Grants)
| Award Type | Grant Date | Shares/Units | Grant Date Fair Value | Vesting | Performance Metrics |
|---|---|---|---|---|---|
| Standard Restricted Stock | 10/23/2024 | 2,553 | $59,893 | 3-year cliff; vests Nov 9 of year including 3rd anniversary | — |
| Long-Term Retention Restricted Stock | 10/23/2024 | 2,553 | $56,396 | Age-based: 25% at age 60; 25% at 63; balance at 65 | — |
| PSUs (Target) | 10/23/2024 | 2,553 | $59,893 | 3-year performance period; time-vest schedule thereafter | ROIC (67%), Organic Sales Growth (33%) |
| Per-share valuation | — | — | $23.46 (standard/PSUs), $22.09 (long-term retention) | — | — |
Outstanding Equity Awards (as of 12/31/2024)
| Grant | Type | Unvested/Unearned Shares | Market Value (12/31/24) |
|---|---|---|---|
| 9/24/2019 | Long-Term Retention RS | 2,500 | $77,450 |
| 9/29/2020 | Long-Term Retention RS | 2,500 | $77,450 |
| 9/21/2021 | Long-Term Retention RS | 2,500 | $77,450 |
| 9/22/2022 | Long-Term Retention RS | 2,500 | $77,450 |
| 10/25/2023 | Long-Term Retention RS | 2,000 | $61,960 |
| 10/23/2024 | Long-Term Retention RS | 2,553 | $79,092 |
| 10/25/2023 | Standard RS | 2,000 (unvested) | $61,960 |
| 10/23/2024 | Standard RS | 2,553 (unvested) | $79,092 |
| 10/25/2023 | PSUs (unearned) | 2,000 | $61,960 |
| 10/23/2024 | PSUs (unearned) | 2,553 | $79,092 |
| 2024 Stock Vested | RS/PSUs vested | 3,366 shares; value $117,743 (2,000 RS + 1,366 PSUs) | — |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership (4/4/2025) | 29,655 shares; <1% of outstanding |
| Ownership Guidelines (Executives) | CFO required to own shares equal to 100% of base salary; mandatory two-year post-vest holding (except long-term retention awards) |
| Hedging/Pledging | Prohibited for directors and employees, including officers |
| Vested vs Unvested | Significant unvested long-term retention RS (age-based) and standard RS; PSUs subject to performance/time vesting |
Insider transactions and selling pressure indicators:
- 11/11/2024: Sold 1,485 shares at $34.97; Form 4 filing (code “S” sale) .
- 11/10–11/2025: Acquired 1,014 shares at $0 upon PSU vesting; sold 1,356 shares at a weighted avg $38.30 to cover withholding taxes; post-transaction direct holdings 37,468; ESOP 640 .
- 10/30/2025: Form 4 indicating restricted stock grant under 2025 Omnibus Plan (administrative record) .
Employment Terms
| Term | Detail |
|---|---|
| Start Date & Tenure | CFO since September 2019; Age 48 |
| Severance Agreement | None; only COO James J. Burke holds a severance/change-in-control agreement |
| Change-in-Control (Equity) | Unvested equity vests upon change-in-control if no replacement award or if stock not trading; performance awards vest at target if not previously earned; replacement awards must provide accelerated vesting on termination without cause within two years |
| Clawback | NYSE-compliant clawback covering 3 prior years on restatements; applies to current and former executive officers |
Estimated benefits upon termination following a change in control (as of 12/31/2024):
| Component | Amount (USD) |
|---|---|
| Severance Compensation Agreement Amount | $— (none) |
| SERP Amount | $1,484,971 |
| Early Vesting of Restricted Stock | $653,864 |
| Other | $— |
| Total | $2,138,835 |
Compensation Governance and Peer Benchmarking
- Stock Ownership Guidelines with post-vest holding; limited perquisites; clawback policy; anti-hedging/pledging .
- Say-on-Pay approval: 99% in 2024, indicating strong shareholder support .
- Peer groups used for benchmarking: 2024 peers include Dorman, Modine, CTS, etc.; updated 2025 peers include Astec, Atmus, Enpro, Gentherm, Kimball Electronics, Motorcar Parts of America, etc. .
Investment Implications
- Pay-for-performance alignment: Annual bonus driven by Adjusted EPS and Adjusted FCF Conversion with above-target financial payout (142.4%) and near-target MBO components; long-term PSUs tied to ROIC and Organic Sales Growth (payouts of 68.3% for 2021 cohort and 50.7% for 2022 cohort signal measured performance) .
- Retention: Significant age-based long-term retention RS grants (vesting at 60/63/65) suggest durable retention incentives; mandatory two-year hold further aligns long-term ownership .
- Insider selling pressure: Recent small sales clustered around annual vesting dates and include tax-withholding transactions (1,356 shares at $38.30 on 11/11/2025 to cover taxes), limiting directional signal; direct beneficial ownership remains modest (<1% of shares outstanding) .
- Governance risk profile: No individual severance/change-in-control agreement for CFO; clawback, anti-hedging/pledging, and strong say-on-pay support reduce governance risk; change-in-control equity vesting is plan-governed with replacement award provisions and double-trigger protection for replacement awards .