Paul Heary
About Paul Heary
Paul M. Heary is Chief Financial Officer of Taylor Devices, Inc., appointed effective January 1, 2023 (joined the company September 2022). He is 55 years old in the 2025 proxy and holds BS (Accounting) and MBA degrees from SUNY Buffalo; he previously held CPA and CMA certifications . During his tenure, Taylor Devices’ financial performance has remained robust: FY 2023–FY 2025 revenues rose from $40.2M to $46.3M*, EBITDA from $8.3M to $11.4M*, and net income from $6.3M to $9.4M*, while the company-disclosed TSR index (value of a fixed $100 investment) moved from $198 (FY 2023) to $526 (FY 2024) to $393 (FY 2025) . Values with asterisk retrieved from S&P Global.*
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Multisorb Filtration Group | Chief Financial Officer | 2016–2022 | Guided company through sale by private equity owner in 2018; led finance for leader in sorbent technology serving pharma, food, industrial markets . |
| Carleton Technologies (d.b.a. Cobham Mission Systems) | Senior Finance Director | 2006–2016 | Senior finance leadership at aerospace/defense technology leader; prior roles at Carleton included engineering/business development in broader management context . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Multisorb Filtration Group | Chief Financial Officer | 2016–2022 | Key finance lead through strategic sale; operational oversight in active packaging industry . |
| Carleton Technologies (d.b.a. Cobham Mission Systems) | Senior Finance Director | 2006–2016 | Finance leadership supporting growth and operations at defense contractor . |
Fixed Compensation
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Salary ($) | $165,000 | $231,000 | $238,000 |
| Contracted Base Salary ($, Employment Agreement) | — | $238,000 (agreement baseline) | $245,140 (updated) |
- Employment Agreement: auto-renews annually; base salary set by Board discretion; eligible for incentive bonus based on Company performance .
- Initial on-boarding terms (Jan 2023 8‑K): base salary $220,000; eligible for management bonus policy and annual 7,000-share stock option award .
Performance Compensation
| Incentive Type | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| Annual Cash Bonus (FY 2023) | Company net income pool (aggregate ≤15% of net income across participants) | Not disclosed | Not disclosed | – | $116,135 | Cash |
| Annual Cash Bonus (FY 2024) | Company net income pool (aggregate ≤15%) | Not disclosed | Not disclosed | – | $237,054 | Cash |
| Annual Cash Bonus (FY 2025) | Company net income pool (aggregate ≤15%) | Not disclosed | Not disclosed | – | $150,981 | Cash |
| Stock Options (Grant 2023) | Fixed annual grant | N/A | 7,000 options | 7,000 @ $19.955 (grant-date 4/18/2023) | Grant-date FV $47,017 | Exercisable; expires 4/18/2033 |
| Stock Options (Grant 2024) | Fixed annual grant | N/A | 7,000 options | 7,000 @ $46.9926 (4/18/2024) | Grant-date FV $121,433 | Exercisable; expires 4/18/2034 |
| Stock Options (Grant 2025) | Fixed annual grant | N/A | 7,000 options | 7,000 @ $30.55 (fixed grant date 4/18/2025) | Grant-date FV $79,980 | Exercisable; expires 4/18/2035 |
- Management Bonus Policy cap: the Compensation Committee may approve aggregate bonus payments up to 15% of fiscal-year net income .
- Option timing policy: grants occur on a fixed schedule (April 18), priced at fair market value; CFO included alongside directors; policy avoids timing around MNPI .
Equity Ownership & Alignment
| As-of Date | Shares Owned | % of Outstanding | Options Exercisable | Options Unexercisable |
|---|---|---|---|---|
| Aug 26, 2024 | 22,820 | 0.69% | 14,000 | 0 |
| Aug 18, 2025 | 29,820 | 0.89% | 21,000 | 0 |
- Shares outstanding: 3,118,627 (record date Aug 26, 2024) and 3,147,193 (record date Aug 18, 2025), per proxy .
- Hedging policy: company prohibits hedging and derivative trading by directors and officers; no pledging disclosure identified .
Option Schedule Detail (Exercisable)
| Tranche | Shares | Exercise Price | Grant Date | Expiration |
|---|---|---|---|---|
| 2023 Grant | 7,000 | $19.9550 | 04/18/2023 (plan schedule) | 04/18/2033 |
| 2024 Grant | 7,000 | $46.9926 | 04/18/2024 | 04/18/2034 |
| 2025 Grant | 7,000 | $30.5500 | 04/18/2025 | 04/18/2035 |
Employment Terms
- Effective dates and role: appointed CFO January 1, 2023; joined September 2022 .
- Agreement structure: auto-renewal each year; either party may decline renewal with 90 days’ notice before term end .
- Severance: if terminated without Cause (or non-renewal by Company), 12 months base salary continuation plus up to 12 months COBRA premium reimbursement; no severance if non-renewal by executive .
- Restrictive covenants: 12-month non-compete post-termination in geographies where the Company made sales in prior five years .
- Base salary under agreement: $238,000 (2024 proxy baseline) and updated to $245,140 (2025 proxy baseline) .
- Clawback: awards subject to Company’s Recovery of Erroneously Awarded Compensation policy and applicable exchange rules .
- D&O insurance and indemnification: company maintains D&O coverage and indemnity agreements with expense advancement .
Company Performance (context for pay-for-performance)
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenues ($) | $40,199,354* | $44,582,807* | $46,292,725* |
| EBITDA ($) | $8,281,521* | $11,177,065* | $11,358,399* |
| Net Income ($) | $6,287,358* | $8,998,762* | $9,413,136* |
Values retrieved from S&P Global.*
- Pay vs Performance TSR index (value of fixed $100 investment): $198 (FY 2023), $526 (FY 2024), $393 (FY 2025) .
Related Party Transactions and Governance
- Related party transactions: none required to be disclosed for fiscal 2025; none disclosed for fiscal 2024 .
- Compensation Committee: independent directors Carey, Burgess, Armenat; met three times in FY 2025 and FY 2024; administers stock option plans .
Risk Indicators & Red Flags
- Hedging/derivatives prohibited for insiders (reduces misalignment risk); no pledging disclosure identified .
- No repricing allowed under stock option plan without shareholder approval (limits shareholder-unfriendly practices) .
- Section 16(a) compliance timely for FY 2025 and FY 2024 (reduces disclosure risk) .
Investment Implications
- Pay-for-performance alignment: CFO cash bonus is tied to a pool capped at 15% of Company net income; equity is granted via fixed annual stock options at FMV with immediate exercisability and long-dated expirations, linking upside to shareholder returns while avoiding repricing and timing games .
- Retention risk: Employment agreement features modest severance (12 months base salary + COBRA) and a 12-month non-compete; no disclosed CIC cash multiples, suggesting limited parachute economics and good governance balance .
- Ownership alignment: Heary holds 0.89% of outstanding shares (including 21,000 exercisable options), with no hedging permitted and no pledging disclosed—supportive of alignment; near-term selling pressure appears low given 2033–2035 expirations, though exercises may occur if options are in-the-money .
- Execution track record: Prior CFO role during a successful PE-backed sale (Multisorb) and senior finance leadership in aerospace/defense provide relevant expertise for cost control and capital allocation in TAYD’s niche industrial markets .