Date: | Place: | Record Date: |
Thursday, June 6, 2024 at 10:00 a.m. Pacific Time | www.virtualshareholdermeeting. com/ERII2024 | April 8, 2024 |
By Order of the Board of Directors, | |
William W. Yeung | |
Chief Legal Officer and Corporate Secretary |
Important Notice Regarding the Availability of Proxy Materials for the Annual Stockholder Meeting |
To Be Held on June 6, 2024: This Proxy Statement, along with the 2023 Annual Report on Form 10-K for the fiscal year ended December 31, 2023, is available free of charge at the following website: www.proxyvote.com |
Page | ||
Sustainability | ||
Page | ||
Executive Compensation Framework | ||
Table of Contents |
Page | ||
December 31, 2023 | ||
Page | ||
Table of Contents |
Proxy Statement |
Proxy Summary |
Date and Time: | Virtual Meeting Access: |
Thursday, June 6, 2024, at 10:00 a.m., Pacific Time | www.virtualshareholdermeeting.com/ERII2024 |
Record Date: | Proxy Mail Date: |
April 8, 2024 | On or about April 22, 2024 |
Vote in Advance of the Meeting | |
Over the internet at www.proxyvote.com; or |
By telephone at 1-800-690-6903; or | By mail — sign, date and return the proxy card or voting instruction form mailed to you. |
Matter | Board Recommendation | Page | |||
1. | Election of six (6) Directors for a One-Year Term | FOR each Nominee | |||
2. | FOR | ||||
3. | FOR |
Name | Age (1) | Director Since | Principal Occupation | Independent | Roles and Committee Memberships (1) | |||||
Alexander J. Buehler | 48 | 2015 | President and CEO of Integrated Water Services | Yes | Audit (Chair), Compensation | |||||
Joan K. Chow | 63 | 2021 | Former Executive Vice President and Chief Marketing Officer of Conagra Foods | Yes | Compensation (Chair), Audit | |||||
Arve Hanstveit | 69 | 1995 | CFO of Foldstar, Inc. | Yes | Nominating and Corporate Governance (Chair), Audit | |||||
David W. Moon | 62 | 2023 | President and CEO of Energy Recovery, Inc. | No | ||||||
Colin R. Sabol | 56 | 2023 | Former President of Measurement & Control Solutions at Xylem | Yes | Compensation, Nominating and Corporate Governance | |||||
Pamela L. Tondreau | 64 | 2019 | Executive Vice President and Chief Legal Officer of onsemi | Yes | Board Chair, Compensation, Nominating and Corporate Governance | |||||
Revenues |
$128.3M |
2% increase from prior year |
Gross Margin |
67.8% |
171 basis point decrease from prior year |
Net Income |
$21.5M |
Proposal No. 1 – Election of Directors |
Director Nominees (Term Expiring in 2025) |
Alexander J. Buehler |
Joan K. Chow |
Arve Hanstveit |
David W. Moon |
Colin R. Sabol |
Pamela L. Tondreau |
Director Since | Name, Principal Occupation, and Other Information | |
February 2015 | Alexander J. Buehler Age 48 |
Director Since | Name, Principal Occupation, and Other Information | |
December 2021 | Joan K. Chow Age 63 |
Director Since | Name, Principal Occupation, and Other Information | |
January 1995 | Arve Hanstveit Age 69 |
Director Since | Name, Principal Occupation, and Other Information | |
July 2023 | David W. Moon Age 62 |
Director Since | Name, Principal Occupation, and Other Information | |
July 2023 | Colin R. Sabol Age 56 |
Director Since | Name, Principal Occupation, and Other Information | |
July 2019 | Pamela L. Tondreau Age 64 |
Board Committee Memberships | ||||||||
Director | Age (1) | Audit | Compensation | Nominating & Corporate Governance | ||||
Alexander J. Buehler | 48 | Chair | Member | |||||
Joan K. Chow | 63 | Member | Chair | |||||
Arve Hanstveit | 69 | Member | Chair | |||||
Robert Yu Lang Mao | 80 | |||||||
David W. Moon | 62 | |||||||
Colin R. Sabol | 56 | Member | Member | |||||
Pamela L. Tondreau (2) | 64 | Member | Member | |||||
At Record Date | After Shareholders’ Meeting | ||||||
Total Number of Directors | 7 | 6 | |||||
Female | Male | Female | Male | ||||
Part I: Gender Identity | |||||||
Directors | 2 | 5 | 2 | 4 | |||
Part II: Demographic Background | |||||||
Asian | 1 | 1 | 1 | — | |||
White | 1 | 4 | 1 | 4 |
Audit Committee | |||
Compensation Committee | |||
Nominating and Corporate Governance Committee | |||
Retainer Fee | ||
$ | ||
Board Fees | ||
Cash Retainer | 50,000 | |
Equity Retainer (1) | 100,000 | |
150,000 | ||
Chair of the Board Fees (2) | ||
Cash Retainer | 50,000 | |
Equity Retainer (1) | 35,000 | |
85,000 | ||
Committee and Lead Independent Director Fees (2) (3) | ||
Lead Independent Director | 15,000 | |
Chair of the Audit Committee | 15,000 | |
Chair of the Compensation Committee | 10,000 | |
Chair of the Nominating & Corporate Governance Committee | 5,000 | |
Director | Fees Earned and Paid in Cash | Equity Awards (1) | Total | Unvested RSU Shares Held December 31, 2023 | ||||
($) | ($) | ($) | (#) | |||||
Alexander J. Buehler (2) (3) | 70,000 | 99,981 | 169,981 | 3,703 | ||||
Joan K. Chow (4) | 54,405 | 99,981 | 154,386 | 3,703 | ||||
Arve Hanstveit (3) (5) | 60,000 | 99,981 | 159,981 | 3,703 | ||||
Robert Yu Lang Mao (6) | 9,659 | 62,461 | 72,120 | 4,153 | ||||
David W. Moon (7) | 14,615 | 91,207 | 105,822 | 3,232 | ||||
Colin R. Sabol (8) | 24,038 | 91,207 | 115,245 | 3,232 | ||||
Pamela L. Tondreau (9) | 77,068 | 121,744 | 198,812 | 5,150 | ||||
Total | 309,785 | 666,562 | 976,347 | 26,876 | ||||
Proposal No. 2 – Non-Binding Advisory Vote on Executive Compensation |
Named Executive Officer | Title | |
David W. Moon (1) | President and Chief Executive Officer | |
Robert Yu Lang Mao (2) | Former President and Chief Executive Officer | |
Joshua Ballard | Chief Financial Officer | |
Rodney Clemente | Senior Vice President, Water | |
Farshad Ghasripoor | Chief Technology Officer | |
William W. Yeung | Chief Legal Officer | |
Base Salary Fixed pay to attract and retain talent, based on role, level of responsibilities and individual performance. |
Annual Incentives Variable pay to incentivize and recognize performance in areas of short-term strategic importance. (3) |
Long-Term Incentives Equity-based pay to incentivize and recognize performance in areas of long- term strategic importance, promote retention and stability, and align executives with shareholders. |
Corporate MBOs | Weight | ||
(%) | |||
1 – | Financial Performance — meet or exceed revenue target. | 40 | |
2 – | Financial Performance — meet or exceed adjusted operating income target. | 40 | |
3 – | CO2 — achieve market penetration targets. | 20 | |
Overall | 100 |
Base Salary | ||||
Named Executive Officer | 2023 | 2022 | ||
($) | ($) | |||
David W. Moon (1) | 550,000 | — | ||
Robert Yu Lang Mao (2) (3) | 555,240 | 535,600 | ||
Joshua Ballard (3) | 373,639 | 356,844 | ||
Rodney Clemente (3) | 353,310 | 337,428 | ||
Farshad Ghasripoor (3) | 316,266 | 302,050 | ||
William W. Yeung (3) | 333,144 | 321,360 | ||
Base Salary | x | NEO Target Bonus Percentage | x | NEO Individual Performance Objective Achievement |
Weight | Achievement | ||||
(%) | (%) | ||||
1 – | Financial Performance — meet or exceed revenue target. | 40 | 68 | ||
2 – | Financial Performance — meet or exceed adjusted operating income target. | 40 | 103 | ||
3 – | CO2 — achieve market penetration targets. | 20 | 67 | ||
Overall | 100 | 82 |
Financial Performance Target | Common or Unique Objective(s) Target | Total Attainment | |||||
Revenue | Adjusted Operating Income | ||||||
(%) | (%) | (%) | (%) | ||||
Weighting | 40 | 40 | 20 | 100 | |||
Achievement | |||||||
Joshua Ballard | 68 | 103 | — | 69 | |||
Rodney Clemente | 68 | 103 | 15 | 84 | |||
Farshad Ghasripoor | 68 | 103 | 20 | 89 | |||
William W. Yeung | 68 | 103 | 20 | 89 | |||
2023 AIP | ||||||||
Named Executive Officer | Target (1) | Target (1) | AIP Paid (2) | 2023 AIP Paid in 2024 | ||||
(%) | ($) | (%) | ($) | |||||
David W. Moon (3) | — | — | — | — | ||||
Robert Yu Lang Mao (4) | 100 | 555,240 | 82 | — | ||||
Joshua Ballard | 60 | 224,184 | 41 | 153,819 | ||||
Rodney Clemente (5) | 65 | 229,883 | 54 | 192,173 | ||||
Farshad Ghasripoor | 60 | 189,760 | 53 | 168,156 | ||||
William W. Yeung | 60 | 199,886 | 53 | 177,135 | ||||
Named Executive Officer | RSUs | Value | ||
(#) | ($) | |||
David W. Moon (1) (2) | 15,233 | 279,983 | ||
Robert Yu Lang Mao (3) | 46,707 | 1,298,829 | ||
Joshua Ballard (4) (5) | 29,704 | 832,756 | ||
Rodney Clemente (2) (4) (5) | 53,055 | 1,281,286 | ||
Farshad Ghasripoor (2) (4) (5) | 48,290 | 1,141,052 | ||
William W. Yeung (4) (5) | 23,680 | 659,389 | ||
Cash Compensation | •Additional 12 months of base salary upon termination | ||
•100% of participant’s target annual bonus in the year of the occurrence of the change of control | |||
COBRA Benefits | •Company paid coverage following first eligibility limited to the lower of 12 months or re-employment eligibility of a comparable plan with another employer | ||
Equity Compensation | •Immediate vesting of 100% of unvested equity awards upon termination | ||
Other Compensation | •Maximum of $10,000 of reasonable outplacement costs |
Named Executive Officer | Lump-Sum Payment (1) | Vesting of all Unvested Equity Compensation Awards (2) | COBRA Benefits for up to 12 Months (Medical, Dental and Vision Benefits) (3) | Maximum Outplacement Services Reimbursement | ||||
($) | ($) | ($) | ($) | |||||
David W. Moon (4) | — | — | — | — | ||||
Robert Yu Lang Mao (5) | — | — | — | — | ||||
Joshua Ballard | 605,664 | 757,372 | 38,141 | 10,000 | ||||
Rodney Clemente | 608,505 | 1,480,943 | 29,739 | 10,000 | ||||
Farshad Ghasripoor | 512,662 | 1,264,506 | 28,182 | 10,000 | ||||
William W. Yeung | 534,744 | 854,952 | 42,026 | 10,000 | ||||
Cash Compensation | •Additional 6 months of base salary upon termination | ||
COBRA Benefits | •Company paid coverage following first eligibility limited to the lower of 6 months or re-employment eligibility of a comparable plan with another employer | ||
Equity Compensation | •Immediate vesting of 25% of unvested equity awards upon termination | ||
•Extension of post-termination exercise period of vested stock options from 3 months to 6 months |
Named Executive Officer | Lump-Sum Payment (1) | Vesting of 25% of all Unvested Equity Compensation Awards (2) | COBRA Benefits for up to 6 Months (Medical, Dental and Vision Benefits) (3) | |||
($) | ($) | ($) | ||||
David W. Moon (4) | — | — | — | |||
Robert Yu Lang Mao (5) | — | — | — | |||
Joshua Ballard | 189,270 | 189,343 | 19,071 | |||
Rodney Clemente | 178,972 | 370,236 | 14,870 | |||
Farshad Ghasripoor | 160,207 | 316,127 | 14,091 | |||
William W. Yeung | 167,108 | 213,738 | 21,013 | |||
Stockholders Holding more than 5% of Common Stock | Shares Beneficially Owned (1) | Percent of Class (2) | ||
(#) | (%) | |||
BlackRock, Inc. (3) | 4,950,433 | 8.6 | ||
50 Hudson Yards New York, NY 10001 | ||||
Brown Capital Management, LLC (4) | 4,356,963 | 7.6 | ||
1201 North Calvert Street Baltimore, MD 21202 | ||||
FMR LLC (5) | 4,122,663 | 7.2 | ||
245 Summer Street Boston, MA 02210-1133 | ||||
The Vanguard Group, Inc. (6) | 2,955,709 | 5.2 | ||
100 Vanguard Boulevard Suite V26 Malvern, PA 19355 | ||||
Directors, Named Executive Officers, and Current Group | Number of Shares Owned Directly and Indirectly | Number of Shares Exercisable or Vested within 60 days after April 8, 2024 | Total Shares Beneficially Owned (1) | Percent of Class (2) | ||||
(#) | (#) | (#) | (%) | |||||
Arve Hanstveit (7) | 923,352 | 68,390 | 991,742 | 1.7 | ||||
Robert Yu Lang Mao (8) | 278,928 | 142,382 | 421,310 | 0.7 | ||||
Joshua Ballard | 14,129 | 330,700 | 344,829 | 0.6 | ||||
William W. Yeung (9) | 22,351 | 186,136 | 208,487 | 0.4 | ||||
Alexander J. Buehler | 19,619 | 103,558 | 123,177 | 0.2 | ||||
Farshad Ghasripoor (10) | 50,764 | 65,987 | 116,751 | 0.2 | ||||
Rodney Clemente | 11,365 | 54,268 | 65,633 | 0.1 | ||||
Pamela L. Tondreau | 17,969 | 34,114 | 52,083 | * | ||||
David W. Moon (11) | 19,250 | 3,232 | 22,482 | * | ||||
Joan K. Chow (12) | 8,654 | 3,703 | 12,357 | * | ||||
Colin R. Sabol (13) | 3,000 | 3,232 | 6,232 | * | ||||
All named executive officers and directors as a group (11 persons) | 1,369,381 | 995,702 | 2,365,083 | 4.1 | ||||
Named Executive Officer | Year | Salary | Stock Award (1) | Option Award (2) | Non-Equity Incentive Compensation (3) | All Other Compensation (4) | Total | |||||||
($) | ($) | ($) | ($) | ($) | ($) | |||||||||
David W. Moon | (5) | 2023 | 84,615 | 279,983 | — | — | 618 | 365,216 | ||||||
President and Chief Executive Officer | ||||||||||||||
Robert Yu Lang Mao | (6) | 2023 | 470,999 | 1,298,829 | — | — | 23,643 | 1,793,471 | ||||||
Former President and Chief Executive Officer | 2022 | 534,016 | — | 999,997 | 473,454 | 25,698 | 2,033,165 | |||||||
2021 | 514,423 | — | 1,000,771 | 463,500 | 28,239 | 2,006,934 | ||||||||
Joshua Ballard | 2023 | 372,897 | 832,756 | — | 153,819 | 22,277 | 1,381,748 | |||||||
Chief Financial Officer | (7) | 2022 | 355,788 | 149,993 | 349,996 | 218,385 | 22,558 | 1,096,720 | ||||||
(7) | 2021 | 342,735 | — | 375,244 | 205,871 | 21,091 | 944,941 | |||||||
Rodney Clemente | (8) | 2023 | 352,608 | 1,281,286 | — | 192,173 | 19,067 | 1,845,133 | ||||||
Senior Vice President, Water | (8) | 2022 | 336,430 | 324,985 | 174,998 | 221,248 | 18,013 | 1,075,675 | ||||||
2021 | 324,087 | 174,989 | 175,138 | 194,670 | 17,132 | 886,015 | ||||||||
Farshad Ghasripoor | (9) | 2023 | 315,637 | 1,141,052 | — | 168,156 | 30,600 | 1,655,445 | ||||||
Chief Technology Officer | 2022 | 301,156 | 162,497 | 162,498 | 191,647 | 30,722 | 848,521 | |||||||
2021 | 290,107 | 162,494 | 162,624 | 174,259 | 26,133 | 815,617 | ||||||||
William W. Yeung | 2023 | 332,732 | 659,389 | — | 177,135 | 26,413 | 1,195,669 | |||||||
Chief Legal Officer | (10) | 2022 | 320,409 | 299,976 | 150,006 | 213,447 | 27,147 | 1,010,984 | ||||||
2021 | 308,654 | 137,492 | 137,606 | 185,400 | 21,433 | 790,585 | ||||||||
Named Executive Officer | Year | Insurance Premiums | 401(k) Match | Other (a) | Total | |||||
($) | ($) | ($) | ($) | |||||||
David W. Moon | 2023 | 442 | — | 176 | 618 | |||||
Robert Yu Lang Mao | 2023 | 13,743 | 9,900 | — | 23,643 | |||||
2022 | 16,250 | 9,150 | 298 | 25,698 | ||||||
2021 | 19,058 | 8,700 | 481 | 28,239 | ||||||
Joshua Ballard | 2023 | 13,110 | 8,991 | 176 | 22,277 | |||||
2022 | 13,110 | 9,150 | 298 | 22,558 | ||||||
2021 | 11,910 | 8,700 | 481 | 21,091 | ||||||
Rodney Clemente | 2023 | 8,565 | 9,900 | 601 | 19,067 | |||||
2022 | 8,565 | 9,150 | 298 | 18,013 | ||||||
2021 | 7,951 | 8,700 | 481 | 17,132 | ||||||
Farshad Ghasripoor | 2023 | 21,424 | 9,000 | 176 | 30,600 | |||||
2022 | 21,424 | 9,000 | 298 | 30,722 | ||||||
2021 | 17,301 | 8,700 | 132 | 26,133 | ||||||
William W. Yeung | 2023 | 16,513 | 9,900 | — | 26,413 | |||||
2022 | 16,513 | 9,150 | 1,484 | 27,147 | ||||||
2021 | 12,252 | 8,700 | 481 | 21,433 | ||||||
Year | Principal Executive Officer (1) | Other Named Executive Officers (2) | Value of Initial Fixed $100 Investment Based On: | Net Income | Operating Income | |||||||||||
Summary Compensation Table | Compensation Actually Paid (3) | Summary Compensation Table | Compensation Actually Paid (4) | Total Shareholder Return (5) | Peer Group Total Shareholder Return (6) | |||||||||||
($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||
(In thousands, except value of initial fixed investment which are presented in whole dollars) | ||||||||||||||||
2023 | ||||||||||||||||
2022 | ||||||||||||||||
2021 | ||||||||||||||||
2020 |
Deductions | Adjustments | |||||||||||||
Year | Summary Compensation Table | Stock Awards Granted in the Year | Fair Value of Equity Awards Granted in the Year and Unvested at Year End | Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards | Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year | Total Adjustments from Amounts Presented in the Summary Compensation Table * | Total Compensation * | |||||||
($) | ($) | ($) | ($) | ($) | ($) | ($) | ||||||||
(In thousands) | ||||||||||||||
2023 | ( | ( | ( | |||||||||||
2022 | ( | ( | ( | |||||||||||
2021 | ( | |||||||||||||
2020 | ( | ( |
Deductions | Adjustments | |||||||||||||
Year | Summary Compensation Table | Stock Awards Granted in the Year | Fair Value of Equity Awards Granted in the Year and Unvested at Year End | Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards | Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year | Total Adjustments from Amounts Presented in the Summary Compensation Table * | Total Compensation * | |||||||
($) | ($) | ($) | ($) | ($) | ($) | ($) | ||||||||
(In thousands) | ||||||||||||||
2023 | ( | ( | ( | |||||||||||
2022 | ( | ( | ( | ( | ||||||||||
2021 | ( | |||||||||||||
2020 | ( | ( |
Estimated future payouts under non-equity incentive plan awards | All other stock awards: Number of shares of stock or units | All other option awards: Number of securities underlying options | Base price of stock awards or fair value of option awards | Grant date fair value of stock and option awards (1)(2) | ||||||||||||
Named Executive Officer | Grant Date | Threshold | Target | Maximum | ||||||||||||
($) | ($) | ($) | (#) | (#) | ($/Sh) | ($) | ||||||||||
David W. Moon (3) | 10/24/23 | — | — | — | 15,233 | — | 18.38 | 279,983 | ||||||||
Robert Yu Lang Mao (4) (5) | 1/30/23 | — | (5) | — | 14,012 | — | 21.41 | 299,997 | ||||||||
7/25/23 | — | — | — | 32,695 | — | 30.55 | 998,832 | |||||||||
Joshua Ballard (4) | 1/30/23 | — | 224,184 | — | 8,173 | — | 21.41 | 174,984 | ||||||||
7/25/23 | — | — | — | 21,531 | — | 30.55 | 657,772 | |||||||||
Rodney Clemente (4) (6) | 1/30/23 | — | 229,883 | — | 8,173 | — | 21.41 | 174,984 | ||||||||
7/25/23 | — | — | — | 23,120 | — | 30.55 | 706,316 | |||||||||
10/24/23 | — | — | — | 21,762 | — | 18.38 | 399,986 | |||||||||
Farshad Ghasripoor (4) (6) | 1/30/23 | — | 189,760 | — | 7,589 | — | 21.41 | 162,480 | ||||||||
7/25/23 | — | — | — | 18,939 | — | 30.55 | 578,586 | |||||||||
10/24/23 | — | — | — | 21,762 | — | 18.38 | 399,986 | |||||||||
William W. Yeung (4) | 1/30/23 | — | 199,886 | — | 7,006 | — | 21.41 | 149,998 | ||||||||
7/25/23 | — | — | — | 16,674 | — | 30.55 | 509,391 | |||||||||
Option Awards (1) | Stock Awards (1) | ||||||||||||||
Named Executive Officer | Date of Grant | Number of Securities Underlying Unexercised Options Exercisable | Number of Securities Underlying Unexercised Options Unexercisable | Option Exercise Price | Option Expiration Date | Number of shares or units of stock that have not vested | Market value of shares or units of stock that have not vested (2) | ||||||||
(#) | (#) | ($) | (#) | ($) | |||||||||||
David W. Moon | (3) | 7/10/23 | 3,232 | 60,891 | |||||||||||
(4) | 10/24/23 | 15,233 | 286,990 | ||||||||||||
— | — | 18,465 | 347,881 | ||||||||||||
Robert Yu Lang Mao | (5) | 2/6/15 | 44,456 | — | 3.53 | 2/6/25 | |||||||||
(5) | 6/23/15 | 53,392 | — | 2.92 | 6/23/25 | ||||||||||
(5) | 6/23/16 | 15,327 | — | 8.60 | 6/23/26 | ||||||||||
(5) | 6/22/17 | 16,726 | — | 7.71 | 6/22/27 | ||||||||||
(5) | 6/14/18 | 15,879 | — | 8.49 | 6/14/28 | ||||||||||
(5) | 6/13/19 | 21,303 | — | 9.98 | 6/13/29 | ||||||||||
(6) | 5/20/20 | 9,317 | 23,294 | 7.79 | 5/20/30 | ||||||||||
(6) | 5/20/20 | 2,083 | 5,209 | 7.79 | 5/20/30 | ||||||||||
(6) | 2/1/21 | 7,980 | 55,865 | 13.96 | 2/1/31 | ||||||||||
(6) | 1/28/22 | 64,822 | 70,459 | 18.99 | 1/28/32 | ||||||||||
(9) | 1/30/23 | 14,012 | 263,986 | ||||||||||||
(8) | 7/25/23 | 32,695 | 615,974 | ||||||||||||
(5) | 10/26/23 | 4,153 | 78,243 | ||||||||||||
251,285 | 154,827 | 50,860 | 958,203 | ||||||||||||
Option Awards (1) | Stock Awards (1) | ||||||||||||||
Named Executive Officer | Date of Grant | Number of Securities Underlying Unexercised Options Exercisable | Number of Securities Underlying Unexercised Options Unexercisable | Option Exercise Price | Option Expiration Date | Number of shares or units of stock that have not vested | Market value of shares or units of stock that have not vested (2) | ||||||||
(#) | (#) | ($) | (#) | ($) | |||||||||||
Joshua Ballard | (7) | 8/13/18 | 186,393 | — | 9.27 | 8/13/28 | |||||||||
(7) | 1/31/19 | 20,800 | — | 7.60 | 1/31/29 | ||||||||||
(7) | 1/31/20 | 53,295 | 1,134 | 10.21 | 1/31/30 | ||||||||||
(7) | 2/1/21 | 44,092 | 18,156 | 13.96 | 2/1/31 | ||||||||||
(7) | 7/26/21 | 3,840 | 2,516 | 20.86 | 7/26/31 | ||||||||||
(7) | 1/28/22 | 22,687 | 24,661 | 18.99 | 1/28/32 | ||||||||||
(8) | 3/7/22 | 5,274 | 99,362 | ||||||||||||
(9) | 1/30/23 | 8,173 | 153,979 | ||||||||||||
(8) | 7/25/23 | 21,531 | 405,644 | ||||||||||||
331,107 | 46,467 | 34,978 | 658,985 | ||||||||||||
Rodney Clemente | (7) | 1/31/20 | 13,107 | 611 | 10.21 | 1/31/30 | |||||||||
(7) | 2/1/21 | 23,742 | 9,777 | 13.96 | 2/1/31 | ||||||||||
(7) | 1/28/22 | 11,343 | 12,331 | 18.99 | 1/28/32 | ||||||||||
(9) | 1/31/20 | 4,285 | 80,729 | ||||||||||||
(9) | 2/1/21 | 6,268 | 118,089 | ||||||||||||
(9) | 1/28/22 | 6,912 | 130,222 | ||||||||||||
(8) | 3/7/22 | 5,274 | 99,362 | ||||||||||||
(9) | 1/30/23 | 8,173 | 153,979 | ||||||||||||
(8) | 7/25/23 | 23,120 | 435,581 | ||||||||||||
(10) | 10/24/23 | 21,762 | 409,996 | ||||||||||||
48,192 | 22,719 | 75,794 | 1,427,958 | ||||||||||||
Farshad Ghasripoor | (7) | 2/2/17 | 1,119 | — | 10.19 | 2/2/27 | |||||||||
(7) | 1/31/20 | 26,648 | 567 | 10.21 | 1/31/30 | ||||||||||
(7) | 2/1/21 | 22,046 | 9,078 | 13.96 | 2/1/31 | ||||||||||
(7) | 1/28/22 | 10,533 | 11,450 | 18.99 | 1/28/32 | ||||||||||
(9) | 1/31/20 | 3,979 | 74,964 | ||||||||||||
(9) | 2/1/21 | 5,820 | 109,649 | ||||||||||||
(9) | 1/28/22 | 6,418 | 120,915 | ||||||||||||
(9) | 1/30/23 | 7,589 | 142,977 | ||||||||||||
(8) | 7/25/23 | 18,939 | 356,811 | ||||||||||||
(10) | 10/24/23 | 21,762 | 409,996 | ||||||||||||
60,346 | 21,095 | 64,507 | 1,215,312 | ||||||||||||
Option Awards (1) | Stock Awards (1) | ||||||||||||||
Named Executive Officer | Date of Grant | Number of Securities Underlying Unexercised Options Exercisable | Number of Securities Underlying Unexercised Options Unexercisable | Option Exercise Price | Option Expiration Date | Number of shares or units of stock that have not vested | Market value of shares or units of stock that have not vested (2) | ||||||||
(#) | (#) | ($) | (#) | ($) | |||||||||||
William W. Yeung | (7) | 6/20/16 | 46,331 | — | 8.95 | 6/20/26 | |||||||||
(7) | 2/2/17 | 21,867 | — | 10.19 | 2/2/27 | ||||||||||
(7) | 2/1/18 | 31,807 | — | 7.50 | 2/1/28 | ||||||||||
(7) | 1/31/19 | 30,293 | — | 7.60 | 1/31/29 | ||||||||||
(7) | 1/31/20 | 22,547 | 480 | 10.21 | 1/31/30 | ||||||||||
(7) | 2/1/21 | 18,654 | 7,682 | 13.96 | 2/1/31 | ||||||||||
(7) | 1/28/22 | 9,723 | 10,570 | 18.99 | 1/28/32 | ||||||||||
(9) | 1/31/20 | 3,367 | 63,434 | ||||||||||||
(9) | 2/1/21 | 4,925 | 92,787 | ||||||||||||
(9) | 1/28/22 | 5,924 | 111,608 | ||||||||||||
(8) | 3/7/22 | 5,274 | 99,362 | ||||||||||||
(9) | 1/30/23 | 7,006 | 131,993 | ||||||||||||
(8) | 7/25/23 | 16,674 | 314,138 | ||||||||||||
181,222 | 18,732 | 43,170 | 813,322 | ||||||||||||
Option Awards | Stock Awards | |||||||
Named Executive Officer | Number of shares acquired on exercise | Value realized on exercise | Number of shares acquired on vesting | Valued realized on vesting (1) | ||||
(#) | ($) | (#) | ($) | |||||
Robert Yu Lang Mao (2) | 361,399 | 2,491,737 | — | — | ||||
Joshua Ballard | 15,000 | 214,212 | 7,983 | 179,459 | ||||
Rodney Clemente | 31,373 | 593,803 | 17,705 | 393,597 | ||||
Farshad Ghasripoor | 51,131 | 1,040,375 | 14,374 | 317,158 | ||||
William W. Yeung | — | — | 14,963 | 333,022 | ||||
Proposal No. 3 – Ratification of Appointment of Independent Registered Public Accounting Firm |
2023 | 2022 | ||
($) | ($) | ||
Audit Fees (1) | 1,093,105 | 1,019,105 | |
Tax Fees (2) | 57,750 | 47,959 | |
All Other Fees (3) | 66,895 | 1,895 | |
Total | 1,217,750 | 1,068,959 | |
OTHER MATTERS |
Proposal No. | Vote | Board Voting Recommendation | Routine or Non- Routine (1) | Discretionary Voting by Broker Permitted? | Vote Required for Approval | Impact of Abstention | Impact of Broker Non-votes (Uninstructed Shares) | |||||||
1 | Election of the director nominees | FOR | Non- routine | No | Plurality (2) | No impact | No impact | |||||||
2 | Advisory, non- binding approval of executive compensation | FOR | Non- routine | No | Majority of shares present or represented by proxy and entitled to vote | Has the same effect as a vote against | No impact | |||||||
3 | Ratification of independent public accountants | FOR | Routine | Yes | Majority of shares present or represented by proxy and entitled to vote | Has the same effect as a vote against | Broker has the discretion to vote | |||||||
•the Company’s belief that its pressure exchanger technology has demonstrated potential to grow in other verticals, including CO2 refrigeration; |
•the Company’s belief that there are strong prospects for greater growth; |
•the Company’s anticipation of a 10th year of growth in its water business; |
•the Company’s revenue expectations for 2024; |
•the Company’s belief that customers are starting to embrace the PX Q400; |
•the Company’s expectations that up to half of its mega project desalination revenue will come from the PX Q400 in 2024; |
•the Company’s aim to potentially double its wastewater revenue, which could comprise up to 10% of our overall water sales; |
•the Company’s estimates for the number of new installations of the PX G1300; and |
•the Company’s belief that it is poised for decades of innovation and delivering financial and environmental value to its customers, investors and stakeholders. |
ANNUAL REPORT |