Dallas-based Capital Southwest Corp. (NASDAQ: CSWC ) will have a new CEO soon. The asset manager and venture capitalist says Chairman, President, and Chief Executive Officer Gary L. Martin will resign effective June 17 and be replaced by new President and CEO Joseph B. Armes, who currently serves as CEO of family investment vehicle JBA Investment Partners.
Martin joined Capital Southwest in 1972 as chief financial officer.
In a filing with the SEC, Capital Southwest disclosed that it will be paying Armes an annual base salary of $430,000, plus:
- An annual cash bonus of up to 150% of base salary.
- 7,500 stock options vesting over five years.
- 1,250 shares of restricted stock.
- 6,000 "phantom stock options," which allow Armes to benefit from an appreciation in Capital Southwest's stock price (if it happens) as if he had exercised stock options and sold stock for a profit -- but do not require him to go through with the actual mechanics of such exercise and sale.