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Christopher L. Coccio

Executive Chairman at SONO TEK
Executive
Board

About Christopher L. Coccio

Executive Chairman since January 2024; previously Chief Executive Officer from April 30, 2001 to January 1, 2024; Director since June 1998; Chairman of the Board since August 2007 . Education: B.S.M.E. (Stevens Institute of Technology), M.S.M.E. (University of Colorado), Ph.D. in Chemical Engineering (Rensselaer Polytechnic Institute) . Age historically disclosed: 79 (2020), 80 (2021), 81 (2022), reflecting long-tenured leadership . Company performance under his leadership shows revenue rising from $15.1M (FY 2023) to $20.5M (FY 2025) and net income rising from $0.64M to $1.27M over the same period; SEC “pay-versus-performance” TSR snapshots show cumulative $100 investment values of $21.18 (FY 2022), $4.85 (FY 2023), and $0 (FY 2024–FY 2025), indicating volatility and recent pressure * * * * .

Past Roles

OrganizationRoleYearsStrategic Impact
General Electric CompanyEngineering, sales, marketing, management roles; P&L to $100M, 500 people1964–1996Led large-scale businesses across U.S.; deep operational and market experience
ASME Congressional Fellowship / U.S. Senate Energy CommitteeCongressional Fellow1976Policy exposure; energy sector insight
Management Consulting (self-founded)Principal1996 onwardStrategy advisory; leadership transition experience
NY State Assembly – Legislative Commission on Science & TechnologyLegislative Fellow1996–1998Technology policy; legislative interface
Accumetrics Associates, Inc.VP Business Development; Board of Advisors1998–2001Commercialization of digital wireless telemetry systems

External Roles

OrganizationRoleYearsNotes
U.S. Senate Energy CommitteeASME Congressional Fellow1976National policy exposure
NY State Assembly – Legislative Commission on Science & TechnologyLegislative Fellow1996–1998State-level technology governance
Accumetrics Associates, Inc.Board of Advisors1998–2001Product and market development oversight

Fixed Compensation

Summary of disclosed pay components for Dr. Coccio (selected fiscal years):

MetricFY 2018FY 2020FY 2021FY 2022FY 2024
Base Salary ($)150,000 150,000 150,000 150,000 193,800
Bonus ($)36,000 43,100 56,100 42,200 48,000
Stock Awards ($)0 0 0 0 0
Option Awards ($)55,534 0 54,520 15,000
All Other Compensation ($)3,485 3,862 4,122 5,766 7,300
Total ($)189,485 252,496 210,222 252,486 264,100

Notes:

  • “All Other Compensation” reflects company 401(k) contributions .
  • Bonuses are based on achievement of operating objectives; specific targets not disclosed .

Performance Compensation

MetricWeightingTargetActualPayoutVesting
Operating objectives (annual bonus)Not disclosedNot disclosedFY 2024 bonus: $48,000PaidCash (no vest)
Stock options (director grants)Not disclosedNot disclosed22,222 options granted in fiscal 2025Grant value $50,000Options; plan-level vesting terms apply
Equity plan design (2023 Plan)N/AN/ARSUs/options/SARs permitted; performance-based awards allowedN/AFlexibility in vesting under plan

Plan-level vesting and terms:

  • 2013 Plan: exercise price ≥ FMV; generally 1-year cliff, then cumulative installments over three years; 10-year term .
  • 2023 Plan: authorizes 2,500,000 shares; permits performance-based awards; flexible vesting; 10-year termination; change-in-control defined; board may amend/suspend/terminate; tax consequences disclosed .

Equity Ownership & Alignment

MetricFY 2019FY 2024FY 2025
Beneficial ownership (shares)490,241 366,658 370,555
Ownership % of shares outstanding3.2% (out of 15,301,613) 2.32% (out of 15,750,880) 2.35% (out of 15,727,702)
Shares held by spouse (included)2,000 4,000 4,000
Options currently exercisable (count)100,000 39,359 44,476
Recent director grant detail22,222 options at $4.12/sh (aggregate options 70,504 at FY-end)

Policies and practices:

  • Insider Trading Policy prohibits hedging/monetization, puts/calls/short sales by directors/officers/employees; designed to promote compliance with laws and listing standards .
  • No disclosure of pledged shares in beneficial ownership footnotes for Dr. Coccio in 2024/2025 proxies .
  • Stock ownership guidelines for executives/directors not disclosed in reviewed proxies.

Employment Terms

ItemTermSource
Executive rolesCEO (Apr 30, 2001–Jan 1, 2024); Executive Chairman since Jan 1, 2024
Severance agreements (Oct 20, 2017)If terminated other than for cause: two weeks of compensation per full year of service
Change-of-control agreements (Sep 1, 2007; Mar 5, 2008)Double trigger: if CoC followed by termination under certain circumstances, severance equals two years of prior-year base, commissions, and bonus
Clawback policyAdopted Nov 16, 2023 (Rule 10D-1/Nasdaq): recoup performance-based awards upon financial restatement or fraud/intentional misconduct contributing to restatement
Related party transactionsCompany reports no transactions with related persons in latest proxy

Board Governance and Director Service

  • Board service: Director since June 1998; Chairman since August 2007; Executive Chairman since January 2024 .
  • Independence: Coccio is an employee director and therefore not independent; board comprised of five independent and two non-independent directors (FY 2023 disclosure) .
  • Committees: Compensation (Mowbray—Chair; Strasburg; Riemer), Audit (Strasburg—Chair; O’Donnell; Haskell), Nominating (Riemer—Chair; O’Donnell); Coccio not listed as a committee member .
  • Board attendance: four board meetings; all directors attended ≥75% in FY 2021–FY 2023 period disclosures .
  • Director compensation: Non-employee directors received $2,000 per meeting (FY 2021) and $2,500 per meeting (FY 2025); employee directors receive no additional cash for board service .

Director compensation (FY 2025 snapshot):

  • Coccio: option awards $50,000 (22,222 options at $4.12/sh; aggregate options 70,504 at year-end); “All Other Compensation” $210,400 reflects salary ($160,000) and bonus ($43,000) tied to Executive Chairman role plus 401(k) contribution $7,400; total $260,400 .

Dual-role implications:

  • Board historically endorsed combined CEO/Chair structure as enhancing alignment and providing a “clear leader”; Coccio’s transition to Executive Chairman continues management–board bridge function while CEO role moved to Harshbarger in 2024, partially mitigating concentration of power yet maintaining influence given non-independence and long tenure .

Change-of-Control Economics (Estimated Payments if Triggered)

MetricFY 2019FY 2023FY 2024FY 2025
Severance upon CoC + termination (Coccio) ($)214,000 442,000 440,000 431,000

Notes:

  • Defined as two years of prior-year base+commissions+bonus .
  • Regular severance (no CoC): two weeks per full year of service .

Company Performance (Contextual)

MetricFY 2023FY 2024FY 2025
Revenues ($)15,058,203 19,699,886 20,504,381
EBITDA ($)1,193,859*1,779,651*1,710,575*
Net Income ($)635,905 1,441,463 1,273,414

*Values retrieved from S&P Global.

Pay-versus-performance TSR snapshots (initial fixed $100 investment):

  • FY 2022: $21.18; FY 2023: $4.85; FY 2024: $0; FY 2025: $0 .

Risk Indicators & Red Flags

  • Hedging/derivatives prohibited by policy; limits potential misalignment via shorting or monetization .
  • No disclosed pledged shares for Coccio in 2024/2025 proxies; footnotes list spouse holdings and exercisable options only .
  • Related party transactions: none reported in most recent proxy .
  • Equity award design updated via 2023 Plan; plan offers broad flexibility—monitor for any future repricing or accelerated vesting in practice; none disclosed in reviewed documents .

Compensation Structure Analysis

  • Mix: cash (salary+bonus) plus options; FY 2024 shows increased cash due to Executive Chairman role; option grant value in FY 2025 via director grant ($50,000) .
  • Bonuses discretionary against operating objectives; absence of disclosed weights/targets reduces transparency of pay-for-performance linkage .
  • Clawback (Rule 10D-1) adopted, improving governance alignment for any restatements or misconduct .

Employment & Contracts (Additional)

ProvisionDetailsSource
Insider TradingNo hedging/monetization; bans puts/calls/shorts
Equity Plan Capacity2,500,000 shares reserved (2023 Plan)
Plan Termination10 years from shareholder approval; amend/suspend/terminate permitted
Change-in-Control (plan definition)Ownership >50% via hostile tender or contested board turnover

Investment Implications

  • Alignment: Material personal stake (2.35% ownership; 44,476 exercisable options) and continued leadership as Executive Chairman support long-term orientation, while hedging prohibitions and clawback policy further align incentives; absence of pledged shares reduces forced-selling risk .
  • Incentive design: Bonus tied to “operating objectives” without disclosed metrics/weights; investor scrutiny warranted to ensure payouts correlate with objective performance, particularly given recent TSR weakness despite improving revenues/net income .
  • Retention/transition: Double-trigger CoC severance (two years of prior-year compensation) and tenure-based severance provide predictable exit economics; leadership transition to Harshbarger in 2024 retains Coccio’s influence and institutional knowledge but maintains non-independence on the board .
  • Trading signals: Option grant in FY 2025 ($4.12 strike) and aggregate options imply leverage to future upside; monitor Form 4 filings for exercises/sales and any subsequent amendments to 2023 Plan terms or accelerated vesting events, as none are disclosed to date .