The Urgent Need for Change and The Superior Path Forward slide image

The Urgent Need for Change and The Superior Path Forward

EVEN THOUGH HE'S UNQUALIFIED AND HAS FAILED TO CREATE VALUE, THE BOARD STILL REWARDS HIM Despite over $26 million in cumulative cash losses from poor inventory management, Mr. Bram's incentive compensation metrics specifically exclude these losses $ in millions Summary of 2018 Key Compensation Decisions Also, the Committee approved the calculation of the same performance metric that has been utilized since the 2016 Incentive Plan and is used to calculate certain components of both the short-term cash and long-term equity incentives. Consistent with prior years incentive plans, the 2019 Incentive Plan defined the "Performance Metric" as Adjusted I I EBITDA before incentives and excluding inventory gains and losses, metal price change gains and losses, inventory I cost adjustments, aged inventory adjustments, and manufacturing variances. $0.7 $1.1 $0.7 mbal $0.5 $21.8 $0.3 $11.9 $2.1 $7.1 2011 A PRIVET FUND Craig Bram's Annual Compensation vs. Annual Adjusted EBITDA $0.7 $11.0 2012A UPG STRONGER TOGETHER $10.0 2013A 2014A 2015A Annual Compensation $1.0 $1.4 $12.5 $34.1 $1.1 1. Note: 2011 Compensation excludes $1.1 million in stock option awards Source: Company filings $13.5 2016A 2017A 2018A 2019A Annual Adj. EBITDA 01. 02. 03. 04. 05. Meaningful Change is Required at Synalloy ! I $4.1 million in Incentive Compensation! -26.2 million in Cumulative Inventory Pricing Loss! 60
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