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Jan Schott

Senior Vice President, Chief Financial Officer at Thermon Group Holdings
Executive

About Jan Schott

Jan L. Schott, age 55, was appointed Senior Vice President and Chief Financial Officer of Thermon Group Holdings (THR) effective October 14, 2024. She holds a B.B.A. in Accounting from Texas A&M University and is a certified public accountant, with prior CFO roles at TG Natural Resources and Texas Crude Energy and senior finance roles at Goodrich Petroleum and APA Corporation; Goodrich Petroleum filed for Chapter 11 in 2016. Thermon’s FY2025 performance under her finance leadership included revenue of $498.2 million (+1% YoY), net income of $53.5 million (+4% YoY), GAAP EPS $1.57 (+4% YoY), and Adjusted EBITDA $109.2 million (+5% YoY); Thermon’s pay-versus-performance table shows TSR value of $142.89 for a $100 investment from March 31, 2021 to FY2025.

Past Roles

OrganizationRoleYearsStrategic Impact
TG Natural ResourcesEVP & CFO2019–2024Led several multi‑billion financings; oversaw integration of a $3.0B acquisition
Texas Crude Energy LLCCFO2015–2019Implemented new ERP system; managed finance operations
Goodrich Petroleum (NYSE: GDP)Various roles incl. SVP & CFO8 years (through 2015)Senior finance leadership; company later reorganized under Chapter 11 in 2016
APA Corporation (NASDAQ: APA)Senior finance/accounting rolesNot disclosedHeld various senior roles (dates not disclosed)

External Roles

No public company board memberships or external directorships disclosed.

Fixed Compensation

ComponentFY2025 ValueNotes
Base Salary (rate)$450,000Established at hire effective Oct 14, 2024
Base Salary (paid FY2025)$207,123Pro‑rated from start date
Target Bonus % (STIP)75% of basePro‑rated for FY2025
Actual Bonus Paid (FY2025 STIP)$118,102~76% payout of pro‑rated target
Relocation Benefits$200,000$125,000 housing + $75,000 tax gross‑ups
Other Cash/PerksIncluded aboveNo employment contract; general benefits consistent with executives

Performance Compensation

FY2025 Short‑Term Incentive Plan (STIP) – Design and Outcome

MetricThresholdTargetMaximumActual FY2025Payout vs TargetWeightWeighted Payout
Revenue (USD mm)$485.8$539.8$593.8$491.655.4%30%16.6%
Adjusted EBITDA (USD mm)$104.8$116.4$128.0$108.465.7%60%39.4%
ESG (safety, turnover, diverse slates)1 target2 targets3 targets3 targets200.0%10%20.0%
Total100%76.0%
ExecutiveSTIP Target (Pro‑rated)Payout (~76%)
Jan Schott (SVP & CFO)$155,342$118,102

Notes:

  • FY2025 STIP metrics: Revenue, Adjusted EBITDA, and ESG; ESG comprised TRIR/LTIR, near‑miss/hazard reporting, case management; new hire turnover reduction; diverse candidate slates ≥90% of eligible roles.

Long‑Term Incentives (LTIP) – Program Design (Company‑wide FY2025)

Award TypeTarget WeightingPerformance MetricPurpose
RSUs (time‑vested)35%Time‑basedRetention and alignment
PSUs (performance‑vested)65%Adjusted EBITDA (35%); ROIC (30%)Profitability and capital efficiency; 3 one‑year goals, banked, vest at end of 3‑yr period
ExecutiveFY2025 LTIP ParticipationGrant DetailVesting
Jan Schott (SVP & CFO)Not in FY2025 PSU cyclesNew‑hire RSU grant: $450,000 fair value, 17,039 units on 11/1/2024Vests in equal one‑third installments annually on Nov 1, 2025/2026/2027

Equity Ownership & Alignment

ItemDetail
Beneficial Ownership (Record Date Jun 6, 2025)“—” (less than 1%) in beneficial ownership table
Unvested RSUs (as of Mar 31, 2025)17,039 units; market value $474,536 at $27.85/sh
Vested vs Unvested BreakdownAll 17,039 RSUs unvested at FY2025 year‑end; no unvested options listed for Schott
Stock Ownership GuidelinesSVP requirement: 2x annual base salary; 5‑year compliance window; performance awards/options excluded from calculation
Hedging/PledgingProhibited (no hedging or pledging; no margin accounts)
ClawbackDodd‑Frank compliant recoupment of incentive comp upon restatement

Employment Terms

ProvisionEconomics/TermsNotes
Severance Plan (non‑CIC)CFO multiple: 1x base salary paid over 12 months; pro‑rated annual bonus; lump‑sum COBRA premiums for 12 months; equity pro‑rated vesting on termination by Company not for cause/Good ReasonSchott designated participant at hire; severance multiple = one
Change‑in‑Control (CIC)CFO multiple: 2x base + annual bonus; pro‑rated bonus; COBRA premiums for 24 months; 100% vesting of unvested equity at greater of target or actual to date if qualifying termination within 24 months or if awards not assumedCompany‑wide plan terms; CIC equity treatment per 2020 LTIP and Severance Plan
CIC Illustrative Values (as of Mar 31, 2025)Base continuation $900,000; Bonus $310,685; Lump‑sum STI $155,342; COBRA $585; RSU acceleration $474,536; Total $1,841,148Assumes target PSU performance; Schott had no PSUs; RSUs valued at $27.85/sh
Anti‑hedging/Anti‑pledgingStrict prohibitions; annual certifications requiredAlignment safeguard
Clawback policyMandatory recoupment on restatementRisk control

Performance & Track Record Highlights (CFO Commentary/Execution)

  • FY2025 capital allocation: $20 million repurchases, $28.6 million debt repaid; liquidity $137 million; net leverage ~0.9x; proceeding to extend credit facility maturity.
  • FY2026 Q2 results: Revenue $131.7 million (+14.9%), Gross Margin 46.4%, Adjusted EBITDA $30.6 million (+28.6%), Adjusted EBITDA margin 23.2%; liquidity $129.1 million; raised FY2026 guidance to Revenue $506–$527 million, Adjusted EBITDA $112–$119 million, GAAP EPS $1.62–$1.77, Adjusted EPS $2.00–$2.15.
  • ERP investment: One‑time ~$$5 million technology spend (ERP) adjusted out of Adjusted EBITDA and EPS; majority in FY2026 with marginal roll‑forward to FY2027 for acquired entities.
  • Tariff mitigation: Gross impact estimated $16–$20 million; net impact ~$4–$6 million in FY2026 with pricing, footprint optimization, and supply chain actions.

Compensation Structure Analysis

  • Pay‑for‑performance: Cash bonus tied to Revenue, Adjusted EBITDA, and ESG; FY2025 payout at ~76% reflects below‑target top‑line and EBITDA, offset by over‑achievement on ESG.
  • Equity mix: New‑hire RSU (time‑vested) aligns retention and long‑term performance; Schott did not receive PSUs in FY2025 due to hire timing; company LTIP emphasizes 65% performance‑based PSUs (EBITDA/ROIC).
  • Ownership alignment: SVP guideline at 2x salary with 5‑year runway; unvested RSUs provide path to compliance; anti‑hedging/pledging policy strengthens alignment.
  • Severance economics: Market‑typical severance multiple (1x) with pro‑rated bonus; CIC terms at 2x with full vesting protect against transactional risk while maintaining double‑trigger alignment.

Risk Indicators & Red Flags

  • Prior bankruptcy involvement: Goodrich Petroleum Chapter 11 (2016) during Schott’s earlier career; not a current THR issue but relevant to diligence.
  • Equity selling pressure: Annual RSU vesting on Nov 1 (2025–2027) may create scheduled Form 4 activity; Company prohibits hedging/pledging which reduces misalignment risk.
  • Governance support: Strong say‑on‑pay approval (~97% in 2024), indicating shareholder acceptance of compensation design.

Say‑on‑Pay & Shareholder Feedback

  • 2024 say‑on‑pay: ~97% approval; HCMC Committee maintained program design; introduced ROIC PSUs in FY2024 following investor feedback emphasizing capital efficiency.

Equity Ownership & Beneficial Holdings Detail

HolderShares Beneficially Owned% of Outstanding
Jan Schott<1% (asterisk)

Employment Terms Summary (Equity & Severance Mechanics)

InstrumentTerm on Qualifying Termination (non‑CIC)Term on CIC (unassumed or qualifying termination)
RSUsPro‑rata vesting based on service time; remainder forfeited100% vest; cash‑out or settle at ≥ target performance
PSUsPro‑rated earned based on service; settle per original schedule100% vest; earned at ≥ target or actual performance to date

Investment Implications

  • Alignment and retention: Pro‑rated STIP plus a three‑year RSU vest creates predictable retention incentives; 2x salary ownership guideline will steadily build “skin‑in‑the‑game” over time. Watch annual vesting around Nov 1 for potential insider activity.
  • Execution signals: CFO’s focus on liquidity, repurchases, ERP modernization, and tariff mitigation supports margin durability; raised FY2026 guidance and improved Adjusted EBITDA margins signal confidence.
  • Risk controls: Strong clawback, anti‑hedging/pledging policies and say‑on‑pay outcomes reduce governance risk; prior exposure to a bankrupt issuer is historical but warrants general prudence in assessing complex financing strategies.
  • Trading watch‑outs: Tariff dynamics (net $4–$6 million headwind FY2026) and ERP timing may affect near‑term margins; monitor Q3/Q4 cadence vs guidance and backlog conversion.

Note: We searched for recent Form 4 insider filings to quantify vested/unvested holdings and transactions but did not retrieve additional insider trade data; analysis relies on proxy ownership tables and award disclosures.