Patrick Benton
UFP INDUSTRIESAbout Patrick Benton
Patrick M. Benton (age 55) is President of UFP Construction, LLC, a role he has held since January 1, 2020; he joined UFP Industries in 1993 and progressed through multiple operations leadership roles before leading the Construction segment . For 2024, Benton’s segment ROI was 31.77%, which drove his annual incentive outcomes . Company performance over his tenure shows net sales of $9,626.7M (FY22), $7,218.4M (FY23), and $6,652.3M (FY24) ; pay-versus-performance disclosures show Company TSR value of $242 for a $100 investment (2024), $268 (2023), $167 (2022) and cumulative PBOP of $646M (2024), $824M (2023), $1,189M (2022) .
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenue ($USD) | $9,626.7M | $7,218.4M | $6,652.3M |
| EBITDA ($USD) | $1,069.3M* | $778.2M* | $646.6M* |
*Values retrieved from S&P Global.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| UFP Industries | Operations VP, South Texas Region | 2008 | Advanced operational leadership in South Texas region |
| UFP Industries | EVP, UFP Eastern Division – North | 2014 | Expanded divisional oversight and execution |
| UFP Industries | President, UFP Northern Division | 2017 | Led divisional operations and growth |
| UFP Industries | President, UFP Construction, LLC | 2020–present | Leads Construction segment strategy and execution |
Fixed Compensation
| Component | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | $303,166 | $391,962 | $407,333 |
| Annual Cash Incentive Paid ($) | $800,000 | $816,000 | $817,500 |
| All Other Compensation ($) | $20,424 | $26,166 | $20,637 |
- 2025 salary set at $408,750 (+0.2% effective 02/01/2025) .
Performance Compensation
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Annual ROI (Segment) | 100% (pool-based) | Segment ROI threshold 8.5% | 31.77% (Construction) | $817,500 cash; $935,534 long-term equity allocated for 2024 | Cash capped at 2x base; excess paid in equity |
| Restricted Stock (LTI for 2024 performance; granted 02/20/2025) | N/A | N/A | N/A | 7,895 shares grant-date FV $842,002 | 5-year cliff vest; accelerates on death, disability, change-in-control |
| Performance Units (LTI for 2024 performance; granted 02/20/2025) | N/A | 877 target units | Earnout based on 3-year cumulative PBOP vs budget with 12% PBROI gate | 0–200% of target shares; grant-date FV $93,532 | 3-year performance period; payout at end of period |
- Pool mechanics: Segment pools contribute 1.8%–2.2% of pre-incentive operating profit based on ROI tiers; individual payments are subject to tiered reallocations above $1.0M/$1.5M to broaden participation .
- PSU discipline: FY2022 PSU cycle paid 0% to NEOs due to PBOP below threshold target ($2.734B) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 124,687 shares (includes deferred comp shares) |
| Ownership as % of shares outstanding | ~0.205% (124,687 / 60,824,418) |
| Deferred comp shares included | 11,584 shares |
| Options outstanding | None; zero option grants in recent years; 0 options exercised in 2024 |
| Stock ownership guidelines | Officers: $200,000; Independent directors: 7,500 shares |
| Hedging/pledging | Prohibited without prior approval; as of proxy date, no approvals granted |
Outstanding and Vesting Schedule (as of 12/28/2024)
| Grant Date | Vest Date | Unvested Restricted Shares | Market Value (@$112.21) |
|---|---|---|---|
| 02/20/2020 | 02/20/2025 | 23,697 | $2,659,040 |
| 02/27/2020 | 02/27/2025 | 787 | $88,295 |
| 02/25/2021 | 02/25/2026 | 822 | $92,264 |
| 02/17/2022 | 02/17/2027 | 27,536 | $3,089,815 |
| 05/02/2022 | 02/17/2030 | 8,603 | $965,343 |
| 02/27/2023 | 02/27/2028 | 25,795 | $2,894,457 |
| 03/02/2023 | 03/02/2028 | 559 | $62,704 |
| 02/27/2024 | 02/27/2029 | 11,751 | $1,318,580 |
| 02/29/2024 | 02/28/2029 | 446 | $50,010 |
- Near-term vesting (Feb 2025): ~24,484 restricted shares (02/20/2020 and 02/27/2020 grants) scheduled to vest, implying potential delivery-related selling pressure; FY-end pricing reference $112.21/share .
- PSU targets (not yet earned): 2022 cycle target units (3,059) shown as “unearned” as of FY-end but subsequently paid 0% for NEOs .
Employment Terms
| Topic | Terms |
|---|---|
| Employment agreement | None; NEOs do not have employment agreements |
| Severance (ERP) | For qualifying officers (≥20 yrs service; ≥10 yrs as officer): 150% of highest base salary over 3 years; discounted if separation before age 62; forfeited if competitor while benefits due |
| Change-of-control | Double trigger; two years of salary for Benton; quantified CoC severance $800,000; restricted stock acceleration $10,927,234; health/welfare $36,000 (totals shown) |
| Death/Disability/Retirement (illustrative, as of 12/28/2024) | Cash $508,921; restricted stock $10,927,234; health/welfare $36,000 |
| Clawback | Board-adopted policy to recoup incentive comp upon restatement; discretionary recoupment for misconduct |
| DCP (Deferred Comp) | 2024 deferral $70,000; employer match value $12,353; aggregate balance $1,238,567 at 12/31/2024 |
Compensation Peer Group and Say‑on‑Pay
- Peer group used for benchmarking and TSR comparisons: American Woodmark, Boise Cascade, Builders FirstSource, Gibraltar Industries, Greif, Louisiana‑Pacific, Masco, Patrick Industries, Simpson Manufacturing, Sonoco, Trex, Smurfit WestRock (successor to WestRock) .
- 2024 say‑on‑pay approval: ~83% support for NEO compensation .
Additional Governance and Trading Notes
- Insider reporting: Company disclosed certain late Form 4 filings, including Benton’s restricted share grants (Feb 27, 2024) and deferred stock issuance (Nov 29, 2024) .
- Anti‑hedging/pledging policy: no approvals to hedge or pledge executive/board stock as of proxy date .
Investment Implications
- Strong pay-for-performance alignment: Benton’s annual incentive is driven entirely by segment ROI with strict tiering and caps; long-term equity uses multi-year PBOP targets and a PBROI hurdle, evidenced by 0% PSU payout for the 2022 cycle .
- Upcoming vesting could create trading flow: ~24.5K restricted shares vest in Feb 2025 for Benton, implying potential delivery/related sales; anti‑pledging reduces forced selling risk .
- Equity-heavy mix and ownership: No options; significant unvested restricted stock across 2020–2024 grants supports retention; beneficial ownership of ~0.205% indicates alignment but still well below control thresholds .
- Change-of-control protections are moderate: Double-trigger, two years salary; large equity acceleration mainly reflects earned, unvested restricted stock—limiting cash severance inflation risk .
- Shareholder support and peer context: 83% say-on-pay support and a relevant peer set suggest compensation viewed as reasonable; ongoing macro softness in segments may pressure pool funding, keeping incentives sensitive to ROI execution .