Paul Joachimczyk
SONOCO PRODUCTSAbout Paul Joachimczyk
Paul Joachimczyk, 53, was appointed Chief Financial Officer of Sonoco Products Company effective June 30, 2025; he previously served as CFO and Corporate Secretary at American Woodmark, with earlier finance leadership roles at TopBuild, Stanley Black & Decker, GE (Healthcare and Capital Markets), and began his career at EY as an auditor . He holds a B.B.A. in Accounting from the University of Wisconsin–Milwaukee and is a Certified Public Accountant . During his initial tenure at Sonoco, the company recorded Q3 2025 net sales of $2.1B (+57.3% YoY, largely from the Eviosys acquisition), GAAP operating profit of $195M, and adjusted FY2025 guidance of EPS $5.65–$5.75 and EBITDA $1.30–$1.35B; Joachimczyk emphasized cash flow, noting $292M operating cash flow in the quarter and targeted restructuring to address volume weakness .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Sonoco Products Company | Chief Financial Officer (effective June 30, 2025) | 2025–present | Principal financial officer; oversees audit, controllership, reporting, risk/insurance, FP&A, strategy and corporate development . |
| American Woodmark Corporation | SVP, CFO & Corporate Secretary; previously VP, CFO & Corporate Secretary; VP FP&A | SVP CFO & Corp Sec: Aug 2022–Jun 2025; VP CFO & Corp Sec: Jul 2020–Aug 2022; VP FP&A: Feb 2019–Jul 2020 | Led finance and corporate secretary functions at a major cabinet manufacturer; drove FP&A, reporting, and capital allocation . |
| TopBuild Corp. | Vice President of Finance & Corporate Controller | (not disclosed) | Finance leadership in construction services/distribution; controller oversight . |
| Stanley Black & Decker | Finance leadership positions | (not disclosed) | Operational finance leadership in diversified manufacturing . |
| GE (Healthcare & Capital Markets) | Finance leadership positions | (not disclosed) | Financial management across healthcare and capital markets segments . |
| Ernst & Young LLP | Financial Auditor | (career start; not disclosed) | External audit foundation . |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| American Woodmark Corporation | Corporate Secretary (while CFO) | 2020–2025 | Corporate governance responsibilities alongside CFO role . |
Fixed Compensation
| Component | Terms | Notes |
|---|---|---|
| Base salary | $750,000 annual | Set in offer letter . |
| Target annual bonus | 85% of base salary | Under Sonoco’s annual cash incentive plan . |
| One-time sign-on cash bonus | $1,000,000 | Subject to reimbursement if voluntary resignation or termination for cause within 24 months of hire . |
| One-time RSU grant | $1,000,000 grant-date value | Granted on start date; vests in substantially equal annual installments over 3 years; under 2019 Omnibus Incentive Plan . |
| Annual long-term incentive (from 2026 cycle) | Approx. $2,000,000 target (RSUs and PCSUs) | Participates on normal annual grant timing and mix . |
Performance Compensation
Annual Cash Incentive – Structure and 2024 Calibration (applies company-wide; CFO plan aligns to same framework)
| Metric | Weight | Threshold | Target | Maximum | Actual 2024 | Payout driver |
|---|---|---|---|---|---|---|
| Adjusted EBITDA ($000s) | 75% | $968,649 | $1,076,276 | $1,183,904 | $1,032,335 | Between threshold and target . |
| Operating Cash Flow ($000s) | 25% | $552,000 | $690,000 | $828,000 | $811,848 | Between target and maximum . |
| Total plan payout | — | — | — | — | — | 106.8% of target in 2024 company-wide . |
- In 2024, Sonoco changed annual metrics to Adjusted EBITDA (75%) and Operating Cash Flow (25%) for improved cash-focus; no discretionary payouts applied .
Long-Term Incentives – Design (PCSUs and RSUs)
| Instrument | Weight | Performance metrics / vesting | Targets | Vesting terms |
|---|---|---|---|---|
| PCSUs | 60% of LTI | 3-year cumulative Adjusted EPS growth (60%) and average 3-year ROIC (40%), with rTSR ±20% vs S&P Composite 1500 Materials | EPSGR: -0.7% (thr), 3.5% (tgt), 7.4% (max); ROIC: 10.00% (thr), 11.10% (tgt), 12.20% (max) | 0–200% of target shares; rTSR modifier can take to 220%; service through performance period; special CIC/termination handling per plan . |
| RSUs | 40% of LTI | Time-vested; retention-focused | — | Vest in equal installments on 1st, 2nd, 3rd anniversaries; standard deferred settlement options; dividend equivalents only after vesting (except certain special grants) . |
- 2022–2024 PCSU cycle vested at 200% of target based on above-max ROIC and BEPS performance; illustrates pay-for-performance calibration .
Equity Ownership & Alignment
| Policy/Item | Detail |
|---|---|
| Stock ownership guideline (CFO) | 3.0× annual base salary required . |
| Anti-hedging & anti-pledging | Hedging prohibited; pledging prohibited for shares required to meet ownership guidelines; all directors/NEOs in compliance as of Dec 31, 2024 . |
| Clawback policy | SEC/Dodd-Frank-compliant clawback to recoup erroneously paid incentive compensation for current/former Section 16 officers (effective Oct 2, 2023) . |
| Deferred comp and SERP | NQDC allows deferral of salary/bonus and equity; DC SERP annual contribution equals 10% of prior-year salary+bonus (75% cash account at 120% IRS LT rate; 25% deferred RSUs), vesting at age 55 with ≥5 years as executive officer . |
Employment Terms
| Term | Detail |
|---|---|
| Offer letter economics | Base $750k; 85% target bonus; $1.0M sign-on cash with 24-month clawback; $1.0M RSU on start; eligible for ~ $2.0M annual LTI from 2026 . |
| Change-in-Control Plan | Lump sum equals prorated current-year bonus (greater of target/actual) plus multiple of base+target bonus; CFOs (officers reporting to CEO) receive 2.0×; equity vesting per CIC rules; COBRA up to 18 months; up to $25k outplacement . |
| Executive Severance Plan | If terminated without cause or resign for good reason (non-CIC): salary continuation equal to 1.0× base; prorated actual bonus; continued benefits (12 months) and life insurance (6 months); certain RSUs/PCSUs continue to vest for 12 months subject to performance; up to $25k outplacement . |
| Restrictive covenants | Severance/CIC benefits subject to general release and continued compliance with restrictive covenants; includes “best net after-tax” provision under 280G/4999 . |
Performance Context Under Joachimczyk’s Tenure
| Period | Key items |
|---|---|
| Q3 2025 | Net sales $2.1B (+57.3% YoY, Eviosys acquisition); GAAP operating profit $195M; Joachimczyk guided FY2025 adjusted EPS to $5.65–$5.75, adjusted EBITDA $1.30–$1.35B, and operating cash flow $700–$750M amid volume weakness in EMEA metal/industrial; targeted restructuring to sustain cash generation . |
| FY2024 baseline | Adjusted EBITDA $1,035M; operating cash flow $834M; major portfolio moves: Eviosys acquisition and TFP sale agreed; transformation focus and deleveraging path set (guidance at the time: 2025 adjusted EPS $6.00–$6.20; adjusted EBITDA $1.30–$1.40B) . |
| 2025 portfolio actions | ThermoSafe sale closed for up to $725M; proceeds used to repay debt; leverage expected ~3.4× pro forma . |
Compensation Peer Group and Pay Governance
- Peer group for NEO compensation benchmarking includes Aptar, Avery Dennison, Ball, Berry Global, Crown, Greif, Graphic Packaging, O-I (Owens-Illinois), Packaging Corp of America, Pactiv Evergreen, Sealed Air, Silgan .
- Philosophy targets median (50th percentile) pay with substantial at-risk mix (CEO ~88% variable; other NEOs ~75% variable) and heavier weighting on long-term incentives; 2024 say-on-pay support was 96.5% .
Risk Indicators & Red Flags
- No disclosed family relationships or related-party transactions for Joachimczyk; appointment free of arrangements/understandings; no 404(a) transaction interests .
- Hedging/pledging prohibited; directors/NEOs in compliance as of Dec 31, 2024 .
- Tax gross-ups are generally not provided to NEOs; aircraft perquisite occasionally allowed, without tax gross-ups; exec life insurance ~3× base salary .
- Near-term volume softness and guidance reset in 2025 paired with targeted restructuring and deleveraging could elevate execution risk, though strong cash-focus and actions (asset sales) support liquidity .
Performance Compensation – Detailed Mechanics (Company-wide programs Joachimczyk participates in)
| Element | Metric | Weighting | Target setting | Vesting/settlement |
|---|---|---|---|---|
| Annual cash incentive | Adjusted EBITDA | 75% | Calibrated annually; 2024 target $1,076,276k; payout curve 50% at threshold, 200% at max | Cash paid post-year; 2024 payout 106.8% of target . |
| Annual cash incentive | Operating Cash Flow | 25% | 2024 target $690,000k; designed to heighten cash generation focus | Cash paid post-year; 2024 payout 106.8% of target . |
| PCSUs (3-yr) | Adjusted EPS growth | 60% | Threshold -0.7%, Target 3.5%, Max 7.4% over 3 years; rTSR modifier ±20% | Vests 0–200% (+/- rTSR) at end of cycle; service required; CIC/termination rules apply . |
| PCSUs (3-yr) | ROIC (avg 3-yr) | 40% | Threshold 10.00%, Target 11.10%, Max 12.20% | As above . |
| RSUs (3-yr) | Time-based | — | Grant-date fair value drives sizing (mix 60/40 PCSUs/RSUs typical) | 1/3 vesting on each of years 1–3; deferred settlement options possible . |
Investment Implications
- Strong pay-for-performance alignment: High variable pay and PCSU metrics (Adjusted EPS/ROIC with rTSR modifier) tie compensation directly to profitability, capital efficiency, and shareholder returns; annual plan’s Operating Cash Flow metric should reinforce deleveraging goals .
- Retention signals: $1M sign-on cash with 24-month clawback and $1M RSU with 3-year vesting reduce near-term attrition risk and insider selling pressure; upcoming ~$2M annual LTI from 2026 further anchors alignment .
- Execution watchpoints: 2025 guidance reset and targeted restructuring underscore execution risk in EMEA metal/industrial volumes; monitor cash conversion and synergy delivery from Eviosys, plus deleveraging pace (e.g., ThermoSafe proceeds applied to debt) for valuation support .
- Trading signals: Track Form 4 filings for initial RSU grants and any 10b5-1 plans post-hire; monitor quarterly cash flow versus Operating Cash Flow targets, and progress on net leverage targets (~3.4× post-ThermoSafe) for confirmation of improving financial flexibility .