Kenneth Shebek

About Kenneth Shebek

Kenneth Shebek is Vice President and Chief Information Officer (CIO) of Smith Micro Software (SMSI), a role he assumed in 2015 after joining the company in 2010 as Vice President of Operations; he oversees IT, quality engineering, customer support, and the Pittsburgh facility . He holds a B.S. in Mechanical Engineering from Pennsylvania State University and previously held operations and supply chain leadership roles at Tollgrade Communications, Ericsson, Marconi, Fore Systems (joined in 1994), and IBM . As of 2025, he is listed among executive/key executives but is not a named executive officer (NEO) in the proxy; the company’s pay program for executives emphasizes performance-based equity and cash incentives tied to revenue and operating expense achievement .

Company performance context (TSR and financials):

• Three-year TSR values (value of $100 initial investment): $43.21 (2022), $37.05 (2023), $19.73 (2024) .
• See annual and quarterly revenue/EBITDA tables below for trend context.

Past Roles

External Roles

No public company directorships or committee roles disclosed for Shebek.

Fixed Compensation

Historical NEO data shows Shebek’s compensation when he was a named executive officer in earlier years. Current-year detailed compensation for Shebek is not disclosed (he is not an NEO in 2024–2025).

Program changes affecting executives in recent years:

• 10% base salary reduction implemented March 14, 2023 for executive team (restoration contingent on achieving non-GAAP profitability) .
• Cash bonuses suspended from Q2 2023 through 2024; performance-based restricted stock granted in lieu of cash bonuses .

Performance Compensation

Company-wide executive incentives (including “other key executives”) shifted to performance RS grants tied to quarterly revenue and non-GAAP operating expense targets; vesting of RS awards mirrored these metrics in 2023–2024 .

Annual long-term equity grants to executives:

• Typical structure: 50% time-based monthly vesting; 50% performance-based (annual revenue and non-GAAP operating expense targets), with 25% vesting on determination date then monthly over 36 months upon achievement .

Equity Ownership & Alignment

• Outstanding equity (historical): As of 12/31/2016, Shebek held 6,250 options (exercise price $5.52, expiration 10/31/2022) and multiple unvested restricted stock tranches with performance/time-based structures (e.g., 10,920; 19,692; 33,981 shares in respective grant cohorts) .
• Hedging and pledging: Directors and employees are prohibited from hedging transactions (e.g., puts/calls) unless specifically approved in writing by the CFO or General Counsel; no such approvals were made .
• Change-of-control: Restricted stock awards under the Equity Plan become fully vested and unrestricted upon a “Change of Control” .

Employment Terms

• Role and tenure: SMSI executive/key executive since 2010; CIO since 2015 .
• Employment agreements: Company discloses that named executive officers generally do not have employment agreements (CEO has a separate retirement annuity), and executives serve at Board discretion; restricted stock accelerates on change-of-control .
• Salary actions: Executive team faced a 10% base salary reduction starting March 14, 2023, to be restored upon achieving non-GAAP profitability including restored compensation .

Performance & Track Record

Annual performance:

Quarterly performance (last 4 quarters):

Values with an asterisk were retrieved from S&P Global and may not include document citations. Values retrieved from S&P Global.

TSR context:

• Value of initial $100 investment based on TSR: $43.21 (2022), $37.05 (2023), $19.73 (2024) .

Investment Implications

• Pay-for-performance alignment: Executive compensation has shifted materially toward performance-based equity (RS in lieu of cash bonuses), directly linked to quarterly revenue and non-GAAP operating expense targets . This increases alignment but can heighten retention risk amid prolonged revenue declines.
• Insider selling pressure: No Form 4 transaction data for Shebek is disclosed in the proxies; hedging is prohibited, lowering pressure from risk-mitigation trades .
• Change-of-control dynamics: Broad-based RS acceleration on change-of-control can create overhang but also aligns executives with strategic outcomes .
• Performance headwinds: Revenues declined sharply from FY2022 to FY2024, and EBITDA remained negative across the last three fiscal years and four quarters, underscoring ongoing execution risk in achieving profitable growth .
• Cash comp constraints: The continuing 10% salary reduction and suspended cash bonuses (replaced by RS) may conserve cash but could strain executive retention or morale if equity remains out-of-the-money .

Notes and Sources

• Executive biography and roles:
• Historical compensation (2014–2016):
• Salary reduction (Item 5.02 8-K):
• Incentive metrics and vesting (2023–2024):
• Hedging policy:
• Change-of-control vesting:
• Beneficial ownership tables (NEOs/directors):
• TSR/pay vs performance:
• Annual performance (Revenue):
• Quarterly performance (Revenue):