Navigating Executive Compensation at Twin Disc, Incorporated

Twin Disc, Incorporated, a leader in the General Industrial Machinery & Equipment sector, has shown notable variations in executive compensation over the past few years. The company's financial health and strategic goals are often mirrored through the lens of its executive pay structures, primarily focusing on long-term incentives that align management's interests with shareholders'.


Jeffrey S. Knutson, serving as Vice President – Finance, CFO, Treasurer, and Secretary, illustrates significant trends in executive compensation from 2022 to 2024. In 2024, his total compensation reached $1,208,521, which included a base salary of $398,564 and a hefty stock award component of $516,632. Notably, his incentive plan compensation was $257,045, reflecting a strategic focus on performance-based rewards. This was a rising trend compared to 2023, where his total compensation was $1,113,200, with a comparable structure of a $380,928 salary and a slightly higher stock award of $536,605^1^.

In 2022, although Mr. Knutson's total compensation was reported at $1,130,878, it notably lacked stock awards, option awards, and incentive plan compensation, highlighting a strategic shift in the company's remuneration approach. The absence of these components in 2022 implies an evolution towards rewarding performance more heavily in subsequent years^2^. This shift aligns with Twin Disc's broader strategy of reinforcing executive retention and performance alignment through stock-based compensation, as it helps harmonize the management's focus with long-term shareholder interests.

Interestingly, a contrast appears when comparing these figures with earlier compensation data from 2020, where key executives such as James E. Feiertag and John H. Batten received an emphasis on base salary and, in Mr. Batten's case, a significant stock award totaling $1,109,281. This approach appeared less performance-centered, with minimal representation of incentive-based compensation during that period^3^. Such contrasts underscore incremental changes, emphasizing performance metrics in more recent compensation policies.

The strategic evolution in executive compensation is mirrored in Twin Disc’s market performance. As per the current financial snapshot, the company's share price stands at $11.26, showcasing stability but under pressure with changes of -0.03, a decrease of 0.26%. Furthermore, the company’s year-high is capped at $18 and a year-low at $10.22, presenting a fluctuating yet grounded trajectory over the recent year^4^. The Price-to-Earnings (P/E) ratio of 16.56 and an EPS of 0.68 signal a growth-oriented outlook, while maintaining a careful balance in aligning compensation with performance.

Overall, Twin Disc, Incorporated’s shift towards performance-based compensation reflects a broader industrial trend seeking to tie executive rewards closely to shareholder returns and company performance. This strategic intent appears well-aligned with the company’s moderate yet steady share performance, reinforcing a focus on sustainable growth and financial prudence.

1. “Twin Disc, Incorporated Compensation Data 2023 and 2024,” SEC Filing, accessed [here](https://www.sec.gov/Archives/edgar/data/100378/000143774924029097/0001437749-24-029097-index.htm).
2. “Twin Disc, Incorporated Compensation Data 2022,” SEC Filing, accessed [here](https://www.sec.gov/Archives/edgar/data/100378/000143774922022028/0001437749-22-022028-index.htm).
3. “Twin Disc, Incorporated Compensation Data 2020,” SEC Filing, accessed [here](https://www.sec.gov/Archives/edgar/data/100378/000143774920019534/0001437749-20-019534-index.htm).
4. “Twin Disc, Incorporated Stock Performance,” Financial Data Snapshot, accessed via Market Indexes.