DEF 14A of Burford Capital Ltd
Filed Apr 3, 2025 · FY20240001714174-25-000070
RESOLUTIONS 1 THROUGH 6—ELECTION OF DIRECTORS
RESOLUTIONS 1 THROUGH 6—ELECTION OF DIRECTORS In accordance with the Company’s usual practice, members of the Board of Directors are elected for one-year terms and stand for re-election each year. The Board of Directors is unclassified and consists of six directors. All director nominees are members of the current Board of Directors and accordingly have been nominated by the Board of Directors for re-election at the 2025 AGM. Following their annual performance evaluation, the Board of Directors found that the performance of each director nominee continues to be effective and that each director nominee demonstrates commitment to the role, has sufficient time to meet his or her commitment to the Company and has individual experience, qualifications, skills and attributes that are relevant and beneficial to support the Board of Directors in fulfilling its duties. See “—Director nominees’ qualifications and attributes” and “—Director nominees’ biographies” for additional information about each director nominee, including the experience, qualifications, skills and attributes of each director nominee. Shareholders are being asked to vote on the election of the six director nominees, each for a one-year term expiring at the close of the next annual general meeting of the Company. The table below sets forth the names, ages and positions of the director nominees.
RESOLUTIONS 1 THROUGH 6—ELECTION OF DIRECTORS
| Name | Age | Position(s) | | Rukia Baruti Dames | 56 | Non-Executive Director | | Christopher Bogart | 59 | Co-Founder and Chief Executive Officer and Director | | Pamela Corrie | 67 | Non-Executive Director | | Robert Gillespie | 69 | Non-Executive Director | | Christopher Halmy | 56 | Non-Executive Director | | John Sievwright | 70 | Non-Executive Director |
Director nominees’ biographies
Director nominees’ biographies Set forth below are the biographies for each of the six directors nominated by the Board of Directors for re-election at the 2025 AGM.
Director nominees’ biographies
| John Sievwright, Non-Executive Chair of the Board of Directors Mr. Sievwright is an independent non-executive director, the Chair of the Board of Directors and the Chair of the Compensation Committee. He has served as a director on the Board of Directors since May 2020. Mr. Sievwright is the former Chief Operating Officer, International, of Merrill Lynch and had a 20-year career with Merrill Lynch with a range of global leadership positions, including Chief Operating Officer, Global Markets and Investment Banking; President and Chief Operating Officer, Merrill Lynch Japan; and Head of Global Futures and Options (during which time he also served as the President of the Futures Industry Association). Prior to Merrill Lynch, Mr. Sievwright held finance and accounting functions at Bankers Trust and the Bank of Tokyo. He began his career as an auditor at Ernst & Young LLP and qualified as a Chartered Accountant. Mr. Sievwright serves as a trustee and the chair of the audit committee for several Abrdn closed end funds and an Abrdn open end fund. He also serves as a non-executive director and the chair of the risk committee of Revolut Group Holdings Ltd (d/b/a as Revolut), a neobank and fintech company that offers banking services for individuals and businesses, and as the chair of the board of directors of Buyside Trading Solutions, a financial services company. Mr. Sievwright has previously served as the senior independent director and the chair of the audit and risk committee at ICAP plc (now NEX Group plc) and the senior independent director and the chair of the audit committee of FirstGroup plc. He has an MA in accountancy and economics from the University of Aberdeen. Mr. Sievwright’s extensive business experience and leadership roles at banks and financial services companies make him a valuable member of the Board of Directors. | | Christopher Halmy, Non-Executive Vice Chair of the Board of Directors Mr. Halmy is an independent non-executive director, the Vice Chair of the Board of Directors, the Chair of the Audit Committee and a member of the Compensation Committee. He has served as a director on the Board of Directors since May 2022. Mr. Halmy was most recently a Senior Advisor to McKinsey & Company from August 2019 to December 2024, focusing predominantly on auto lending. Prior to McKinsey & Company, Mr. Halmy was the Chief Financial Officer of Ally Financial Inc. (NYSE: ALLY), where he led the multinational initial public offering and was responsible for Ally Financial Inc.’s $25 billion investment portfolio. Before that, Mr. Halmy worked in various finance, accounting and treasury roles at Bank of America and JP Morgan. He began his career as a senior accountant at Deloitte. Mr. Halmy also serves as an independent member of the board of directors, the chair of the finance and investment committee and a member of the audit committee of Western Alliance Bancorporation (NYSE: WAL) and as the independent chair of the board of directors and the chair of the audit committee of Mercury® Financial LLC. He has previously served as an independent member of the board of directors of Mosaic Sustainable Finance Corp., a financing company focusing on residential solar energy, and an independent member of the board of directors of Spectrum Automotive Holdings Corporation prior to its sale in 2021. Mr. Halmy is a Certified Public Accountant and earned his MBA and undergraduate degrees from Villanova University. Mr. Halmy’s extensive experience in finance, accounting and treasury and professional background as the Chief Financial Officer of a large, publicly traded financial institution make him a valuable member of the Board of Directors. |
Director nominees’ biographies
| Rukia Baruti Dames, Non-Executive Director Dr. Baruti is an independent non-executive director and a member of the Compensation Committee and the Nominating and Corporate Governance Committee. She has served as a director on the Board of Directors since August 2022. Dr. Baruti is an experienced independent full-time arbitrator and is a qualified solicitor in England and Wales. She has served as an Advisory Board Member of the Tanzania International Arbitration Centre since 2023. Her career began in commercial law in the City of London in 1997. In 2006, she joined the international arbitration group at SJ Berwin LLP (later merged with King & Wood Mallesons), where she practiced arbitration and litigation until 2010. In 2011, Dr. Baruti founded Africa International Legal Awareness, a non-profit organization dedicated to advancing African involvement in the international legal community, where she was a managing director until 2018. She also co-founded the African Arbitration Association, a non-profit organization dedicated to promoting African arbitration practitioners, where she served as Secretary General from 2018 to 2022. Dr. Baruti holds a bachelor’s degree in international studies from Birkbeck College, University of London, an MA in diplomatic studies and international law from the University of Westminster and a PhD from the University of Geneva. Dr. Baruti’s extensive experience in international arbitration and litigation, legal advisory and governance make her a valuable member of the Board of Directors. | | Christopher Bogart, Co-Founder and Chief Executive Officer and Director Mr. Bogart is the co-founder and the Chief Executive Officer of Burford, and he also serves as a member of Burford’s Management Committee and Commitments Committee. He has served as a director on the Board of Directors since May 2020. Before co-founding Burford, Mr. Bogart held numerous senior executive positions with Time Warner: Executive Vice President and General Counsel of Time Warner Inc.; Chief Executive Officer of Time Warner Cable Ventures; and Chief Executive Officer of Time Warner Entertainment Ventures. Mr. Bogart came to Time Warner from Cravath, Swaine & Moore, where he was a litigator representing companies such as IBM, General Electric and Time Warner. He has also served as the Chief Executive Officer of Glenavy Capital LLC, an international investment firm whose projects included Churchill Ventures, a publicly traded media and technology investment vehicle of which he also served as the Chief Executive Officer, as well as Glenavy Arbitration Investment Fund, a pioneering litigation finance vehicle. He began his professional career as an investment banker with what is now JPMorgan Chase. Mr. Bogart is a member of the board of advisors of the RAND Institute for Civil Justice, a director of the International Legal Finance Association, a director of the Association of Litigation Funders of England and Wales, a member of the Board of Trustees of Hackley School, a private college preparatory school, the chair of the Zoning Board of Appeals of Briarcliff Manor, New York, and a member of the board of advisors of New York City’s Legal Aid Society. Mr. Bogart earned his law degree with distinction from the Faculty of Law of the University of Western Ontario, where he was the gold medalist. He clerked for the Chief Justice of Ontario. Mr. Bogart has been married to Ms. Elizabeth O’Connell, Burford’s Chief Strategy Officer, since 1992. Mr. Bogart’s extensive knowledge of Burford’s business and expertise in legal finance industry make him a valuable member of the Board of Directors. |
Director nominees’ biographies
| Pamela Corrie, Non-Executive Director Ms. Corrie is an independent non-executive director and a member of the Audit Committee and the Nominating and Corporate Governance Committee. She has served as a director on the Board of Directors since January 2024. Ms. Corrie has significant experience at the nexus of finance and law. She was most recently a Managing Director in the Financial Advisory division of Carl Marks Advisors, focused on restructuring matters from 2018 to 2023. For 12 years, she was a General Counsel at GE Capital Americas, where she served as the chief legal advisor to the risk organization in the corporate leasing and lending division and oversaw hundreds of restructurings, corporate ombudsman investigations, bankruptcies and litigations. She previously spent ten years practicing law at Weil, Gotshal & Manges, where she represented large corporate debtors in Chapter 11 proceedings as well as clients in all phases of restructuring, bankruptcy counseling and litigation. Ms. Corrie serves as a member of the boards of directors of Fossil Group, Inc. (NASDAQ: FOSL), a global consumer retail company, where she is a member of the audit, nominating and governance and strategic planning committees, and Joann Inc., the nation’s category leader in sewing and fabrics, where she is a member of the special committee, to which boards of directors she was appointed in her capacity as a restructuring professional. In addition, she serves as a member of the board of directors, the chair of the nominating and governance committee and a member of the audit, compensation and special committees of IFit Health and Fitness Inc., a global health and fitness platform. She also serves as a member of the boards of directors and a member of the special committees of each of AIG Financial Products and Guitar Center, Inc., the world's largest musical instruments store, to which boards of directors she was appointed in her capacity as a restructuring professional. Ms. Corrie has previously served on the boards of directors of numerous companies, primarily in her capacity as a restructuring professional, and was an independent trustee for a number of NexPoint and Highland funds. Ms. Corrie has a bachelor’s degree from Stanford University and earned her JD from the University of California, Los Angeles. Ms. Corrie’s extensive experience in corporate governance and restructuring, litigation and risk management and years of experience serving on the boards of directors of public and private companies make her a valuable member of the Board of Directors. | | Robert Gillespie, Non-Executive Director Mr. Gillespie is an independent non-executive director and the Chair of the Nominating and Corporate Governance Committee and a member of the Audit Committee. He has served as a director on the Board of Directors since May 2020. Mr. Gillespie had a lengthy career as an investment banker, spending more than 25 years at UBS and its predecessors in a range of senior positions, including Vice Chairman, Chief Executive Officer, EMEA, and Joint Global Head of Investment Banking, while also serving on the Group Managing Board and the Management Committee for many years. Mr. Gillespie started his career as a Chartered Accountant at PricewaterhouseCoopers. Mr. Gillespie is the chair of the board of directors and a member of the audit committee of the UK Export Finance, a ministerial department of the UK government that functions as the export finance agency, and also serves as the non-executive chair of the board of directors of Spirit Yacht Holdings Ltd. He has previously served as a non‐executive director of NatWest Group plc (formerly known as Royal Bank of Scotland plc) and certain of its principal subsidiary companies and was the chair of NatWest Group plc’s remuneration committee and a member of NatWest Group plc’s audit, risk and nominating and governance committees. In addition, Mr. Gillespie also served as the Director General of the UK Takeover Panel, a non-executive director of Citizens Financial Group Inc. and Ashurst LLP, a law firm, and as the non-executive chair of the board of directors of Boat Race Company Ltd., Somerset House Trust and the Council of Durham University, from which he graduated with a degree in economics. Mr. Gillespie’s extensive experience in finance, accounting, risk management and governance and years of experience serving on the boards of directors of both public and private companies make him a valuable member of the Board of Directors. |
Director nominees’ qualifications and attributes
Director nominees’ qualifications and attributes The Board of Directors is composed of individuals with diverse backgrounds and experience, who together enable the Board of Directors to oversee the Company’s strategy effectively. All director nominees have the following key attributes:
Director nominees’ qualifications and attributes
| •Strategic thinking •Business judgment •Leadership and expertise in their fields •High performance standards | •Integrity and accountability •Commitment and enthusiasm •Responsibility and courage |
Director nominees’ qualifications and attributes
The Company believes its directors bring a well-rounded variety of experience, qualifications, skills and attributes and represent a mix of deep knowledge of the Company’s business and fresh perspectives. The table below summarizes some of the attributes of each director nominee. See “—Director nominees’ biographies” for additional information on the director nominees, including their respective experience, qualifications and skills.
Director nominees’ qualifications and attributes
| | Sievwright | Halmy | Baruti | Bogart | Corrie | Gillespie | | Background and Attributes | | | | | | | | Board Tenure (years) | 5 | 3 | 2.5 | 5 | 1 | 5 | | Gender | M | M | F | M | F | M | | Race / Ethnicity | | | | | | | | Black / African American | | | ✓ | | | | | White / Caucasian | ✓ | ✓ | | ✓ | ✓ | ✓ |
Director compensation
Director compensation The table below sets forth compensation for the Company’s directors for the year ended December 31, 2024, as calculated in accordance with the SEC rules.
Director compensation
| Director | Fees earned or paid in cash ($)(1) | Stock awards ($)(2) | Option awards ($) | Non-equity incentive plan compensation ($) | Change in pension value and nonqualified deferred compensation earnings ($) | All other compensation ($) | Total ($) | | Rukia Baruti Dames | 90,000 | 35,000 | — | — | — | — | 125,000 | | Christopher Bogart(3) | — | — | — | — | — | — | — | | Pamela Corrie(4) | 85,993 | 33,374 | — | — | — | — | 119,367 | | Robert Gillespie | 90,000 | 35,000 | — | — | — | — | 125,000 | | Christopher Halmy | 111,849 | 60,246 | — | — | — | — | 172,095 |
Director compensation
| Director | Fees earned or paid in cash ($)(1) | Stock awards ($)(2) | Option awards ($) | Non-equity incentive plan compensation ($) | Change in pension value and nonqualified deferred compensation earnings ($) | All other compensation ($) | Total ($) | | John Sievwright | 127,500 | 82,336 | — | — | — | — | 209,836 | | Hugh Steven Wilson(5) | 60,459 | 27,664 | — | — | — | — | 88,123 |
Director compensation
(1)Represents payment of cash fees for the year ended December 31, 2024 based on the GBP/USD exchange rate on the date of each quarterly payment. For Mr. Halmy, amount includes a portion of his cash fees in the aggregate amount of $55,925, receipt of which he elected to defer in accordance with the NQDC Plan. (2)Represents the grant date fair value for grants of the Company’s ordinary shares made effective as of June 4, 2024 (determined in accordance with the Financial Accounting Standards Board Accounting Standards Codification Topic 718 (“ASC Topic 718”)), excluding the effect of any estimated forfeitures of such awards. As of December 31, 2024, the non-executive directors held the following number of the Company’s ordinary shares that were granted under the NED Plan (as defined below): Ms. Baruti Dames, 4,959 ordinary shares; Ms. Corrie, 2,352 ordinary shares; Mr. Gillespie, 10,265 ordinary shares; Mr. Halmy, 9,736 ordinary shares; and Mr. Sievwright, 13,601 ordinary shares. (3)Mr. Bogart does not receive compensation for his service on the Board of Directors in addition to his compensation as the Company’s Chief Executive Officer. (4)For Ms. Corrie, cash fees and awards of the Company’s ordinary shares for service on the Board of Directors for the year ended December 31, 2024 were prorated due to her appointment to the Board of Directors on January 17, 2024. (5)For Mr. Wilson, cash fees and awards of the Company’s ordinary shares for service on the Board of Directors for the year ended December 31, 2024 were prorated due to his retirement at the close of the Company’s annual general meeting held on May 15, 2024. Cash fees include a fee in respect of service on the board of directors of the Company’s subsidiary, Burford Capital Holdings (UK) Limited, in the amount of $7,466. Cash fees For the year ended December 31, 2024, the Company’s independent non‐executive directors received cash fees for their service on the Board of Directors, the committees of the Board of Directors and, if applicable, the boards of directors of the Company’s subsidiaries. Each non-executive director received an annual cash fee (prorated for any partial service period during the fiscal year) of $90,000, with an additional cash fee of (i) $50,000 for service as the independent Chair of the Board of Directors, (ii) $15,000 for service as the independent Vice Chair of the Board of Directors, (iii) $20,000 for service as the Chair of the Audit Committee and (iv) $10,000 for service as the Chair of the Compensation Committee. The cash fees are paid quarterly in arrears, prorated for any partial service period and, if requested, converted into a director’s local currency at the exchange rate on the date of payment. NED Plan The Company has established the Burford Capital Limited 2021 Non‐Employee Directors’ Share Plan (as amended, supplemented or otherwise modified from time to time, the “NED Plan”), pursuant to which non-executive directors are eligible to receive grants of the Company’s ordinary shares in connection with their service on the Board of Directors, subject to transfer and sale restrictions until the earlier of (i) the third anniversary of the grant date or (ii) the date on which the director no longer serves as a member of the Board of Directors. Employee directors are not eligible for grants under the NED Plan. Each non-executive director received an annual grant of restricted ordinary shares (prorated for any partial service period during the fiscal year) equal to $35,000, with an additional grant of restricted ordinary shares equal to (i) $75,000 for service as the independent Chair of the Board of Directors and (ii) $40,000 for service as the independent Vice Chair of the Board of Directors. Setting non-executive director compensation The form and amount of non-executive director compensation is determined by the Chair of the Board of Directors upon the recommendation of the Company’s Chief Executive Officer. In establishing non-executive director compensation, the Company considers compensation levels for non-executive directors at US and UK public companies of comparable size and complexity. The Company’s employee directors do not receive additional compensation for their service as directors. The non-executive directors are not entitled to receive any compensation upon a termination of service on the Board of Directors, and no fees will be payable in respect of any unserved portion of the applicable term of service. The non-executive directors are entitled to reimbursement by the Company of reasonable expenses incurred in connection with the performance of their duties as directors of the Company. The non-executive directors may, in certain circumstances and at the Company’s expense, obtain independent professional advice in the furtherance of their duties as directors of the Company. Share ownership guidelines for non-executive directors To ensure that non-executive directors become and remain meaningfully invested in the Company’s ordinary shares, each non-executive director is expected to hold a minimum level of ownership of the Company’s ordinary shares equal to at least four times the base annual cash retainer payable to such non-executive director. For purposes of satisfying these requirements, a non-executive director’s holdings of the Company’s ordinary shares will include, in addition to ordinary shares held outright, any ordinary shares, restricted shares or restricted share units granted to such non-executive director as compensation for service on the Board of Directors, whether vested or unvested, and any ordinary shares or restricted share units held under a deferral or similar plan. The non-executive directors are required to retain ordinary shares received pursuant to their service on the Board of Directors until this minimum level of ownership is reached. The non-executive directors have five years from the latest of (i) the date they become subject to the Corporate Governance Guidelines, (ii) the date of a material change to the Corporate Governance Guidelines or (iii) the date of any increase in their annual cash retainer to attain this ownership threshold. These share ownership requirements are determined, and may be modified from time to time, by the Compensation Committee.
Compensation governance best practices
| What We Do | What We Do Not Do | | ✓ Balanced pay mix of long- and short-term compensation ✓ Alignment of executive compensation with the Company’s long-term business and share price performance ✓ Approximately 50% of long-term incentive awards granted to the Named Executive Officers under the LTIP historically and in the 2024 fiscal year were subject to performance-based vesting conditions ✓ Robust share ownership guidelines for executive officers and directors ✓ Restrictions on trading the Company’s ordinary shares during certain periods ✓ Robust clawback policies allowing recoupment of incentive-based compensation paid to executive officers ✓ Annual review of the Company’s compensation program to ensure it does not encourage excessive risk taking | ✗No excessive severance multiples ✗No single-trigger vesting of long-term incentive awards based on change in control ✗No Section 280G gross ups ✗No ordinary dividends paid on unvested RSU and/or PSU awards (each, as defined below) ✗No excessive perquisites or benefits ✗No automatic base salary increases ✗No defined benefit pension plans ✗No hedging, pledging or short-sale transactions in the Company’s ordinary shares |
Compensation governance best practices
| What We Do | What We Do Not Do | | ✓ Retain an independent compensation consultant reporting directly to the Compensation Committee ✓ Annual review of the Compensation Committee’s charter | |
Determining compensation
Despite the absence of a direct peer group of public companies, the Company nevertheless recognizes the importance of comparing the Company’s executive compensation design, elements and pay mix to those of other public companies to ensure that they are competitive and appropriately aligned with market practice. As such, the Compensation Committee reviews a group of companies that it considers the Company’s peer group for purposes of evaluating the overall performance of the Company and the performance of the Named Executive Officers even though the Company competes with the named peers neither for employees nor in business. The Compensation Committee also considers any peer groups developed by proxy advisory firms and specific industry surveys as additional reference points. Compensation decisions are not based solely on consideration of the peer group. Rather, the peer group serves as one point of reference among others to aid in understanding the competitive market for employees, including the Named Executive Officers, given the unique nature of the Company’s business. In addition, when determining the compensation design, elements and pay mix for the Named Executive Officers, the Company considers profits per partner at major US law firms as well as compensation of general counsel at major US corporations. With the assistance of the Compensation Consultant, the Compensation Committee approved the Company’s peer group in 2024 for purposes of setting executive officer compensation for the 2025 fiscal year.
Determining compensation
| Peer group | | | •Affiliated Managers Group, Inc. | •Moelis & Company | | •Artisan Partners Asset Management Inc. | •PennyMac Financial Services, Inc. | | •Blue Owl Capital Inc. | •PJT Partners Inc. | | •Esquire Financial Holdings, Inc. | •SoFi Technologies, Inc. | | •Houlihan Lokey, Inc. | •The Carlyle Group Inc. | | •Janus Henderson Group plc | •TPG Inc. | | •LegalZoom.com, Inc. | •Walker & Dunlop, Inc. |
Determining compensation
Comparable companies met the criteria of being generally headquartered in the United States and of being alternative or traditional asset managers, boutique investment banks, specialty finance firms and/or companies focused on the business of law. With the assistance of the Compensation Consultant, the Compensation Committee expects to review the Company’s peer group at least annually and adjust its composition as appropriate to reflect changes in the Company’s business and in the peer group companies and any other relevant factors. Pay mix The pay mix for the executive officers (including the Named Executive Officers) is intended to align executive compensation with the overall performance of the Company and its portfolio and emphasize long-term versus short-term compensation, with all compensation (other than base salary) being variable and subject to the Company’s performance. For the 2024 fiscal year, approximately 75% of the total compensation for the Chief Executive Officer was variable and long-term and approximately 54% of the total compensation of the other Named Executive Officers, on average, was variable and long-term.
Compensation structure and elements
Compensation structure and elements During the 2024 fiscal year, the principal elements of the compensation for the Named Executive Officers comprised their respective base salary, annual incentive bonus and long-term incentive compensation. In addition, the Named Executive Officers were eligible to receive carried interest allocations under the Phantom Carry Pools Arrangement and certain retirement benefits and perquisites as additional elements of their respective compensation. Base salary The Company pays each of the Named Executive Officers an annual base salary to provide a predictable level of income competitive for each of their respective roles and to enable the Company to attract and retain skilled executive talent. In general, the Company pays the Named Executive Officers fixed base salaries reflecting their respective positions and experience levels that neither vary due to individual performance nor are subject to automatic increases. The base salary for each of the Named Executive Officers was set in accordance with the terms of his or her respective employment arrangements and may be adjusted from time to time in accordance with such employment arrangements as determined by the Compensation Committee in connection with its annual compensation review. See “—Individual arrangements with Named Executive Officers” for additional information with respect to employment arrangements with the Named Executive Officers. Prior to the 2024 fiscal year, the Company had not increased the base salary for the Named Executive Officers since 2020. Following a review of executive compensation, the Company decided it was appropriate in light of the global economic environment, the Company’s growth and performance and the competitive market to increase base salary levels. The base salaries of Messrs. Bogart and Molot each increased to $1,400,000 for the 2024 fiscal year effective as of January 1, 2024 pursuant to the terms of the Bogart and Molot Employment Agreements, and the base salaries of Mr. Licht and Ms. O’Connell each increased to $600,000 for the 2024 fiscal year effective as of March 1, 2024 based on the determination made by the Compensation Committee. Ms. Will’s base salary for the 2024 fiscal year was already, and thus remained, at $600,000. In assessing and determining the base salary increases for each of Messrs. Bogart and Molot, the Compensation Committee considered historical practices related to their base salaries and other compensation. Among those considerations were that both Messrs. Bogart and Molot had been employees of the Company since 2012 when the Company acquired a privately held investment manager owned by Messrs. Bogart and Molot. In connection with that acquisition, Messrs. Bogart’s and Molot’s compensation arrangements were negotiated and established contractually and, from 2012 through 2018, each of Messrs. Bogart and Molot was paid varying base salary amounts (ranging from $1,500,000 to $1,900,000). In addition, the Company was contractually obliged to contribute an additional $100,000 annually towards a supplemental retirement plan for each of Messrs. Bogart and Molot. In 2019, each of Messrs. Bogart and Molot voluntarily reduced his base salary to $950,000 in recognition of the Company’s share performance decline and voluntarily forewent further contributions to the supplemental retirement plan. Messrs. Bogart and Molot agreed in subsequent years to continue the base salary reductions and foregone contributions given the economic effects of the global Covid-19 pandemic on the Company’s business. When the Bogart and Molot Employment Agreements were negotiated in late 2023, the Company’s performance and share price had largely rebounded under Messrs. Bogart’s and Molot’s stewardship and leadership. Therefore, the base salary increases set forth in the Bogart and Molot Employment Agreements were considered appropriate. While the base salary increases reflect an increase from the fiscal years 2022 and 2023, these base salary amounts are still substantially below historic levels prior to being voluntarily reduced in 2019 as described above. The Bogart and Molot Employment Agreements did not reinstate contributions to the supplemental retirement plan, which was subsequently terminated and balances merged into the NQDC Plan. Annual incentive bonus Messrs. Bogart’s and Molot’s annual incentive bonuses In connection with its anticipated transition to US domestic issuer status, the Company entered into the Bogart and Molot Employment Agreements. In considering the Bogart and Molot Employment Agreements, the Company sought to keep Messrs. Bogart’s and Molot’s overall compensation substantially in line with their historical compensation, while providing for a compensation structure more closely aligned with US market practices and, for annual incentive bonus opportunities, the Company’s practices in respect of its other Named Executive Officers. As such, beginning in the 2024 fiscal year, each of Messrs. Bogart and Molot transitioned from receiving a formulaic annual incentive bonus equal to 1.75% of the Company’s consolidated total revenues (less fair value gains) under the Prior Bogart and Molot Employment Agreements to an annual incentive bonus with a target bonus opportunity equal to 200% of the annual base salary. In addition, the Compensation Committee historically has determined to pay up to 50% of Messrs. Bogart’s and Molot’s annual incentive bonus amounts as a long-term incentive, 50% as restricted share units (“RSUs”) and 50% as performance-based RSUs (“PSUs”) granted under the LTIP, which all remain subject to continued vesting and performance conditions, as applicable, are capped at target achievement of performance goals for PSUs and serve to more closely align compensation with the Company’s performance while promoting retention. See “—Individual arrangements with Named Executive Officers—Bogart and Molot Employment Agreements” and “—Annual incentive bonus compensation decisions for 2024 fiscal year—Messrs. Bogart’s and Molot’s annual incentive bonus compensation decisions” for additional information with respect to the annual incentive bonus payable to Messrs. Bogart and Molot. Each of Messrs. Bogart and Molot may earn his annual incentive bonus based on achievement of performance goals considered by the Compensation Committee through a holistic review of the Company’s and individual performance for the fiscal year. The holistic review of the Company’s performance for the fiscal year allows the Compensation Committee flexibility to appropriately account for the unique nature of the Company’s business and create stronger linkage between annual incentive bonus amounts paid and the Company’s performance for the fiscal year (including, among other considerations, shareholder returns and share price performance). Other Named Executive Officers’ annual incentive bonuses As part of their respective compensation package, each of the other Named Executive Officers is eligible to receive an annual incentive bonus. As part of its assessment to determine the annual incentive bonus amounts for the other Named Executive Officers, the Compensation Committee considers the Company’s performance, including the factors described under “—Determining compensation”, and the Named Executive Officers’ performance. For the Named Executive Officers other than Messrs. Bogart and Molot, the Compensation Committee is assisted by Mr. Bogart, who evaluates and summarizes executive performance and makes recommendations to the Compensation Committee with respect to the annual incentive bonus amounts after consultation with Mr. Molot.
Compensation structure and elements
As a matter of policy, the Company does not provide a guaranteed annual incentive bonus to any of the other Named Executive Officers, does not establish specific performance metric targets upon which the annual incentive bonus would become payable and generally pays the same annual incentive bonus to each of the other Named Executive Officers (although, in the case of Mr. Licht, it took two years to equalize his compensation with that of his peers). See “—Individual arrangements with Named Executive Officers” and “—Annual incentive bonus compensation decisions for 2024 fiscal year—Other Named Executive Officers’ annual incentive bonus compensation decisions” for additional information with respect to the annual incentive bonus payable to Mr. Licht and Mmes. Will and O’Connell. Annual incentive bonus compensation decisions for 2024 fiscal year The annual incentive bonus amounts are determined based on the Compensation Committee’s holistic review of the Company’s overall performance, and the individual’s role in and contribution to such performance, during the relevant fiscal year and are reflected in the “Non-equity incentive plan compensation” column of the “—Summary compensation table” for the 2024 fiscal year. The highlights of the Company’s overall performance in the 2024 fiscal year under the leadership of the Named Executive Officers included: •Target realizations on new commitments were up significantly in the 2024 fiscal year as compared to the 2023 fiscal year, representing the highest level since the Company has started tracking it •Portfolio generated more than $3.6 billion of consolidated realizations and $3.3 billion of Burford-only realizations since inception through December 31, 2024 •ROIC of 108% on Principal Finance segment realizations in the 2024 fiscal year, considerably higher than the Company’s historical average of 87% and substantially above 60% in the 2023 fiscal year •Managing the transition to US domestic issuer reporting status •Issuing incremental US debt and obtaining positive ratings momentum from the rating agencies •Overseeing the global enforcement campaign in connection with the $16 billion judgment on the YPF-related assets Messrs. Bogart’s and Molot’s annual incentive bonus compensation decisions For the 2024 fiscal year, the Company paid each of Messrs. Bogart and Molot an annual incentive bonus of $1.5 million pursuant to the Bogart and Molot Employment Agreements. See “—Summary compensation table” for additional information with respect to the annual incentive bonus amounts paid to Messrs. Bogart and Molot for the 2024 fiscal year. The annual incentive bonus of $1.5 million for each of Messrs. Bogart and Molot for the 2024 fiscal year paid pursuant to the Bogart and Molot Employment Agreements—in a year of excellent performance—resulted in total compensation for each of Messrs. Bogart and Molot generally consistent with the compensation level for the 2023 fiscal year. See “—Messrs. Bogart’s and Molot’s annual incentive bonuses” for additional information about the Company’s intention with respect to the levels of these annual incentive bonuses for Messrs. Bogart and Molot. Other Named Executive Officers’ annual incentive bonus compensation decisions For the 2024 fiscal year, the Company paid an annual incentive bonus of $1.5 million to each of Mr. Licht and Mmes. Will and O’Connell, in each case, as determined and approved by the Compensation Committee. See “—Summary compensation table” for additional information with respect to the annual incentive bonus amounts paid to each of Mr. Licht and Mmes. Will and O’Connell for the 2024 fiscal year. In determining and approving the annual incentive bonus amounts for the 2024 fiscal year for each of Mr. Licht and Mmes. Will and O’Connell, the Compensation Committee considered in January 2025, in addition to the Company’s overall performance as set forth above, each of Mr. Licht’s and Mmes. Will’s and O’Connell’s individual performance and performance as a team as described below.
Elizabeth O’Connell
Elizabeth O’Connell •Oversaw all of the Company’s quantitative and data analytics activities, including an innovative development project to further harness the decision-making benefits of the Company’s proprietary data •In collaboration with the Company’s information technology function, supported various improvement initiatives designed to improve the Company’s use and management of data by automating processes and optimizing data integrity •In collaboration with other members of the Management Committee, formulated a strategic plan for the development of the Company’s non-US business and assumed an active role in implementing this strategic plan and managing the Company’s non-US business •Began to oversee and expanded the Company’s credit and financial analysis function Long-term incentive compensation Overview The long-term incentive compensation program for executive officers (including the Named Executive Officers) is an equity-based plan designed to reward such officers for the inherent value and price appreciation of the Company’s ordinary shares and relative outperformance by the Company in comparison to its peers over the long term. Furthermore, it is designed to motivate and reward executive officers to achieve multi-year strategic goals and to deliver sustained long-term value to the Company’s shareholders as well as to enable the Company to attract and retain skilled executive talent. The long-term incentive compensation is used to create a strong linkage between compensation and the long-term performance of the Company. The long-term incentive compensation granted to the Named Executive Officers consists of a mix of 50% RSUs and 50% PSUs that are awarded under the LTIP (or any successor plan thereto), and generally vest on the third anniversary of the grant date under the LTIP, subject to continued employment through the vesting date (and, for PSUs, subject to the determination by the Compensation Committee of the achievement of the applicable performance conditions). For PSUs, the Company’s practice is to provide awards with maximum vesting of 100% of the target amount of the Company’s ordinary shares granted. Messrs. Bogart and Molot do not receive separate grants of long-term incentive awards in addition to the RSUs and PSUs such executives have historically received in lieu of cash representing a portion of such executive’s annual incentive bonus, as described in “—Annual incentive bonus—Messrs. Bogart’s and Molot’s annual incentive bonuses”. However, the RSUs and PSUs that Messrs. Bogart and Molot have historically received in lieu of such portion of an annual incentive bonus amount have been subject to the same vesting and performance conditions (as applicable) as the RSUs and PSUs granted to the other Named Executive Officers, as described herein. PSUs granted to the Named Executive Officers vest based on the achievement of performance goals for the Company set forth in the applicable award agreement and the Compensation Committee considers individual contributions to the Company over the prior year for purposes of sizing such grants. With respect to PSUs granted prior to the 2024 fiscal year (the “Pre-2024 PSUs”), the Company used total shareholder return (“TSR”) and adjusted earnings per share (“Adjusted EPS”) growth as the relevant financial performance metrics to determine vesting levels, with each of TSR and Adjusted EPS weighted at 50% of the overall performance. For PSUs granted in the 2024 fiscal year with a performance period beginning in the 2024 fiscal year through the 2026 fiscal year (the “2024 PSUs”), TSR is the sole financial performance metric used to determine vesting levels. See “—Long-term incentive compensation decisions in the 2024 fiscal year—Grants of RSUs and PSUs in the 2024 fiscal year” for additional information with respect to the 2024 PSUs. In addition, satisfactory individual performance is required for the vesting of the Pre-2024 PSUs and the 2024 PSUs to occur. •TSR—For the Pre-2024 PSUs, the Company uses TSR as a performance goal to align executive officers’ (including the Named Executive Officers’) vesting of the Pre-2024 PSUs with shareholders’ interests and price appreciation of the Company’s ordinary shares over the three-year performance period. For the Pre-2024 PSUs, the Company measures TSR as the weighted average daily TSR, calculated as the change in the daily price of the Company’s ordinary shares weighted by the number of the Company’s ordinary shares traded during such day, over the three-year performance period (including any dividends paid over such period). •Adjusted EPS—For the Pre-2024 PSUs, the Company uses Adjusted EPS as a performance goal to align executive officers’ (including the Named Executive Officers’) compensation with building the long-term inherent value of the Company. The Company measures Adjusted EPS as the earnings per ordinary share over the three-year performance period (calculated in accordance with US GAAP), which is adjusted to remove amortization, depreciation, non-capitalized bond issuance costs, foreign exchange gains or losses and long-term incentive compensation including accruals. As applicable, achievement of the TSR and Adjusted EPS metrics is determined based on the percentage return or growth, which ranges from 0% to 8% per annum, of each metric over the relevant performance period and is determined on a straight-line basis such that, if achievement of TSR or Adjusted EPS is below the target goal for such metric, the calculated payout earned for such PSU financial performance metric is 0%. If achievement of TSR or Adjusted EPS is above the target goal for such metric, the calculated payout earned for such PSU financial performance metric is 100%, which is the maximum calculated payout attainable for each metric. Each of TSR and Adjusted EPS is assessed independently. Performance against applicable PSU financial performance metrics is measured annually and at the end of the three-year performance period. Consequently, achievement of a vesting criterion in any year during the relevant performance period will result in vesting such year’s pro rata share, and achievement of the three-year criterion will result in vesting all three years. Long-term incentive compensation decisions in the 2024 fiscal year PSU performance determination for 2021-2023 performance period The table below sets forth the threshold, target and actual percentages for the TSR and Adjusted EPS financial performance metrics and the calculated payout for Pre-2024 PSUs that vested in the 2024 fiscal year with the performance period from the 2021 fiscal year through the 2023 fiscal year.
Elizabeth O’Connell
| PSU Financial Performance Metric | Threshold (0%) | Target (100%) | Actual | Weight | Weighted payout | Calculated payout | | TSR | 0% | 26% | 66% | 50% | 50% | 50% | | Adjusted EPS | 0% | 26% | 3,335% | 50% | 50% | 50% | | Total Payout | | | | | | 100% |
Elizabeth O’Connell
For the Pre-2024 PSUs vested in the 2024 fiscal year with the performance period from the 2021 fiscal year through the 2023 fiscal year, the Compensation Committee assessed and certified in January 2024 the achievement of the applicable financial performance metrics by the Company and individual-based performance metrics. In addition, for PSUs vested in the 2024 fiscal year with the performance period from the 2021 fiscal year through the 2023 fiscal year, the Compensation Committee determined that each of the Named Executive Officers attained satisfactory individual performance during the relevant performance period. Accordingly, PSUs vested in the 2024 fiscal year with the performance period from the 2021 fiscal year through the 2023 fiscal year vested at 100%. Grants of RSUs and PSUs in the 2024 fiscal year For the RSUs and PSUs granted in the 2024 fiscal year, the Compensation Committee granted to each of Mr. Licht and Mmes. Will and O’Connell an award of RSUs and PSUs with 10,274 ordinary shares underlying each award. Messrs. Bogart and Molot do not receive grants of long-term incentive compensation awards separate from or in addition to the long-term incentive compensation awards granted to them (if any) in respect of a portion of their annual incentive bonus compensation as determined by the Compensation Committee in its sole discretion for each fiscal year and matching notional RSUs (as defined below) made under the NQDC Plan. See “—Annual incentive bonus” and “—Other elements of compensation—Retirement benefits” for additional information with respect to the RSU and PSU awards and matching notional RSUs, respectively, granted to Messrs. Bogart and Molot. For the 2024 PSUs, the Compensation Committee determined that the 2024 PSUs will be earned (if at all) based on achievement of either of the applicable relative TSR-based goals measured based on the Company’s performance either (i) over the five-year period ending on the final day of the applicable performance period (the “Rolling TSR”) or (ii) annually for each year of the three-year performance period (the “Annual TSR”). Under the Rolling TSR, the Company’s TSR will be compared to the median TSR for a comparator group of companies that represent the FTSE AllShare index as of the earliest date of the performance period (i.e., January 1, 2020), with the 2024 PSUs vesting in full if the Company’s TSR is at or above the median TSR (and would not vest if below the median TSR) for the comparator group of companies during the performance period. Under the Annual TSR, the Company’s TSR will be compared to the median TSR for a comparator group of companies that represent the FTSE 350 Financial Services index as of the earliest date of the performance period (i.e., January 1, 2024), with the 2024 PSUs vesting in full if the Company’s TSR is at or above the median TSR (and would not vest if below the median TSR) for the comparator group of companies during the performance period. Achievement will be deemed to be 0% in the event neither TSR-based goal is achieved, and achievement will be deemed to be 100% in the event target level of performance of either TSR-based goal is achieved. The Compensation Committee believes it appropriate to condition the vesting of the 2024 PSUs on the achievement of either the Rolling TSR or the Annual TSR given the absence of a direct peer group of public companies and the difficulty of evaluating the Company’s performance in one-year increments due to the duration of the Company’s legal finance assets. Treatment of long-term incentive compensation upon termination or retirement In the event of a termination of employment due to death or disability, outstanding long-term incentive compensation awards to employees (including the Named Executive Officers, other than Messrs. Bogart and Molot) remain outstanding and vest pro rata on the scheduled vesting date (and, for PSUs, subject to the determination by the Compensation Committee of the achievement of the applicable performance conditions). In accordance with the terms of the Company’s retirement policy (the “Retirement Policy”), in the event of a retirement, outstanding long-term incentive compensation awards to employees (including the Named Executive Officers) remain outstanding and vest in full on the scheduled vesting date (and, for PSUs, subject to the determination by the Compensation Committee of the achievement of the applicable performance conditions). Employees (including the Named Executive Officers) are eligible for such treatment under the Retirement Policy upon their years of service (subject to a minimum requirement of eight years) and age combining to equal at least 75, subject to continued compliance with pre-existing non-compete and confidentiality covenants. As of December 31, 2024, none of the Named Executive Officers is eligible for retirement under the Retirement Policy. For each of Messrs. Bogart and Molot, subject to the terms of the LTIP, (i) in the event of a termination of employment due to death or “Disability” (as defined in the Bogart and Molot Employment Agreements), outstanding RSUs and PSUs vest in full on such termination date, with performance for outstanding PSUs determined based on actual level of achievement as of such termination date as determined by the Compensation Committee in accordance with the terms of the LTIP and (ii) in the event of a termination of employment by the Company without “Cause” or a resignation by Messrs. Bogart or Molot, as applicable, for “Good Reason” (each, as defined in the Bogart and Molot Employment Agreements), outstanding RSUs vest in full on such termination date and outstanding PSUs remain outstanding and vest based on actual level of achievement in accordance with the applicable PSU award agreement. For any other termination, except as provided in accordance with the Retirement Policy or pursuant to the terms of the LTIP, Messrs. Bogart’s and Molot’s outstanding long-term incentive compensation awards are forfeited for no consideration.
Other elements of compensation
Other elements of compensation Carried interest allocations Phantom Carry Pools Arrangement The Phantom Carry Pools Arrangement provides that eligible employees, as determined in the sole discretion of the Compensation Committee based on the recommendation of the Management Committee, receive a carried interest allocation that is payable in cash equal to a percentage of the Company’s realized net cash gains (excluding effects of unrealized gains and losses) on a Burford-only basis from certain pools of the Company’s legal finance assets, which are selected by the Company in its sole discretion but generally include all balance sheet legal finance assets, in a given calendar year (a “carry year”). At the beginning of each calendar year, the Compensation Committee uses its discretion to determine each Named Executive Officer’s eligibility to participate in the Phantom Carry Pools Arrangement for the prior calendar year. For example, in the beginning of the 2025 fiscal year, the Compensation Committee determined the Named Executive Officers’ eligibility to participate in the Phantom Carry Pools Arrangement for the 2024 carry year. This enables the Compensation Committee to consider both the Company’s and individual’s performance during the relevant carry year in determining the Named Executive Officers’ level of participation with respect to the carried interest allocations for such carry year. Under the Phantom Carry Pools Arrangement, an eligible Named Executive Officer receives a carried interest allocation for the applicable carry year until all legal finance assets from such carry year are fully resolved. The amount (whether an unrealized gain or loss) attributable to such legal finance assets is accrued on the Company’s consolidated financial statements until such time that the assets are resolved and cash becomes payable (if at all) to the Named Executive Officer under the Phantom Carry Pools Arrangement. Except for Messrs. Bogart and Molot, whose rights to carried interest allocation payments upon certain terminations are set forth in the Bogart and Molot Employment Agreements, each Named Executive Officer’s participation in the Phantom Carry Pools Arrangement terminates upon a termination of his or her employment for any reason (other than with respect to such Named Executive Officer’s retirement in accordance with the Retirement Policy). See “—Individual arrangements with Named Executive Officers—Bogart and Molot Employment Agreements” for additional information with respect to carried interest allocation payments provided upon certain terminations of employment for Messrs. Bogart and Molot. Pursuant to the Retirement Policy, the Named Executive Officers whose employment terminates in accordance with the Retirement Policy retain carried interest allocations awarded under the Phantom Carry Pools Arrangement as of his or her termination date until the carry years are fully resolved. Carried interest allocations under the Phantom Carry Pools Arrangement for the carry year of a Named Executive Officer’s retirement are prorated based on length of his or her service during such carry year. Payments in respect of contractual carried interest allocations Pursuant to the terms of the Bogart and Molot Employment Agreements, each of Messrs. Bogart and Molot is entitled to receive cash payments equal to (x) 3.75% of the Company’s realized net cash gains (excluding effects of unrealized gains and losses) on a Burford-only basis from the capital provision assets originated during the period beginning January 1, 2015 and ended on December 31, 2023, and (y) 3.00% of the Company’s realized net cash gains (excluding effects of unrealized gains and losses) on a Burford-only basis from the capital provision assets originated during the term of the Bogart and Molot Employment Agreements. In addition, pursuant to the terms of the O’Connell Employment Arrangement, Ms. O’Connell is entitled to receive cash payments equal to 0.3% of the Company’s realized net cash gains (excluding effects of unrealized gains and losses) on a Burford-only basis from the capital provision assets originated beginning January 1, 2015. In the event of a termination of the Bogart and Molot Employment Agreements (other than due to a termination by the Company for “Cause” or a voluntary resignation by Messrs. Bogart or Molot, as applicable, without “Good Reason” (each, as defined in the Bogart and Molot Employment Agreements)), each of Messrs. Bogart and Molot will continue to receive payments in respect of carried interest allocations until each eligible carry year is fully resolved (but not in respect of carried interest allocations relating to entirely new commitments made after the respective termination date). See “—Individual arrangements with Named Executive Officers—Bogart and Molot Employment Agreements” for additional information with respect to payments in respect of carried interest allocations for Messrs. Bogart and Molot. In the event of Ms. O’Connell’s termination of employment for any reason on or before the date on which payments in respect of carried interest allocations become payable, Ms. O’Connell will not be entitled to such payments. See “—Individual arrangements with Named Executive Officers—O’Connell Employment Arrangement” for additional information with respect to payments in respect of carried interest allocations for Ms. O’Connell. Carried interest allocation decisions for the 2024 fiscal year In January 2025, the Compensation Committee determined that each of the Named Executive Officers (except Messrs. Bogart and Molot, each of whom receive carried interest allocations in accordance with the Bogart and Molot Employment Agreements) was eligible to participate in the Phantom Carry Pools Arrangement for the 2024 carry year and will have a target carried interest allocation of 0.4% of the Company’s realized net cash gains (excluding effects of unrealized gains and losses) on a Burford-only basis for the 2024 carry year. See footnote 4 to the “Summary compensation table” for additional information with respect to payments in respect of carried interest allocations for the Named Executive Officers for the 2024 fiscal year. Retirement benefits The Company offers a defined contribution 401(k) retirement plan to its US-based employees, under which employees may make pre-tax or Roth after-tax contributions to a retirement savings account and the Company makes a corresponding matching contribution. See “Summary compensation table” for additional information with respect to the matching contributions made by the Company to the defined contribution 401(k) retirement plan on behalf of the Named Executive Officers. In addition, the Company maintains the NQDC Plan, under which a specified group of employees (including the Named Executive Officers) and non-employee directors may elect to defer payment of a portion of their compensation until future years. Participants in the NQDC Plan may elect to defer base salary, annual retainer, bonuses, cash payments under the Phantom Carry Pools Arrangement and long-term incentive compensation awards granted under the LTIP (or any successor plan thereto). The deferral period under the NQDC Plan is a minimum of three years (five years following grant in the case of RSUs and/or PSUs granted under the LTIP (or any successor plan thereto)), and deferral distributions may be elected to be received in a lump sum or in annual installments. During the deferral period, the participants may elect for their deferral account to be notionally invested in various mutual funds available under the
Individual arrangements with the Named Executive Officers
Subject to execution of a release, the Will Employment Agreement also provides that, upon a termination without “Cause” or for “Good Reason” (each, as defined in the Will Employment Agreement) or as a result of the Company’s non-extension of the Will Employment Agreement, Ms. Will will be entitled to continued payment of her then-current base salary and continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1987, as amended (“COBRA”), at the Company’s expense, in each case, for a 12-month period (or, solely for continued coverage, the earlier date that Ms. Will is no longer eligible for continued coverage under COBRA or otherwise becomes eligible for coverage with a subsequent employer). In addition, the Will Employment Agreement includes (i) perpetual confidentiality and non-disparagement covenants, (ii) one- and two-year post-employment client and employee, respectively, non-solicitation covenants and (iii) a one-year post-employment non-compete covenant. O’Connell Employment Arrangement Ms. O’Connell is a party to an agreement with the Company, effective as of January 1, 2020 (the “O’Connell Employment Arrangement”). Pursuant to the terms of the O’Connell Employment Arrangement, Ms. O’Connell is entitled to (i) an initial annual base salary of $500,000 (as may be increased from time to time), (ii) eligibility for an annual incentive bonus, (iii) eligibility to receive long-term incentive compensation awards under the LTIP (or applicable successor plan), (iv) a carried interest allocation of 0.3% of the Company’s realized net cash gains (excluding effects of unrealized gains and losses) on a Burford-only basis from the capital provision assets originated since January 1, 2015 and (v) participation in the Company’s employee benefits plans, programs and arrangements. The O’Connell Employment Arrangement also includes (i) perpetual confidentiality and non-disparagement covenants, (ii) a one-year post-employment client and employee non-solicitation covenant and (iii) a six-month post-employment non-compete covenant. The O’Connell Employment Arrangement does not include any severance obligations payable to Ms. O’Connell, except as the Company may determine in its sole discretion.
Clawback policies
Clawback policies The Company maintains a clawback policy, effective as of October 2, 2023, that sets forth the circumstances under which the Company will be required to recover, and the Company’s executive officers will be required to forfeit or repay, erroneously awarded incentive compensation to the Company in accordance with the listing standards of the NYSE (the “Clawback Policy”). The Clawback Policy requires recoupment of excess incentive compensation paid to the Company’s executive officers if amounts paid were based on material noncompliance with any financial reporting requirement that causes an accounting restatement, without regard to any fault or misconduct on the part of an executive officer. In addition, cash and long-term incentive compensation awards granted under the LTIP (including awards deferred under the NQDC Plan) are subject to clawback provisions for the recovery (on a pre-tax basis) of erroneously awarded incentive-based compensation received by current or former executive officers for up to five years from the vesting date in the following circumstances: (i) a material financial misstatement or miscalculation of the Company’s audited financial accounts; (ii) the assessment of any performance condition on vesting which was based on error, misleading information or inaccurate assumption; or (iii) the gross misconduct of a participant.
Policies and practices related to the grant of certain equity awards
Policies and practices related to the grant of certain equity awards The Company has historically not granted (and did not grant in the 2024 fiscal year) any stock options, stock appreciation rights or similar instruments with option-like features and has no policies or practices to disclose pursuant to Item 402(x)(1) of Regulation S-K.
SUMMARY COMPENSATION TABLE
SUMMARY COMPENSATION TABLE The table below sets forth the various elements of the compensation earned by the Named Executive Officers during the 2024, 2023 and 2022 fiscal years.
SUMMARY COMPENSATION TABLE
| Name and Principal Position | Year | Salary ($)(1) | Bonus ($) | Stock awards ($)(2) | Option awards ($) | Non-equity incentive plan compensation ($)(3) | Change in pension value and nonqualified deferred compensation earnings ($) | All other compensation ($)(4)(5) | Total ($) | | Christopher Bogart Co-Founder and Chief Executive Officer | 2024 | 1,400,000 | — | 853,868 | — | 1,500,000 | — | 7,993,914 | 11,747,782 | | | 2023 | 950,000 | — | — | — | 2,000,000 | — | 8,777,836 | 11,727,836 | | | 2022 | 950,000 | — | 430,091 | — | — | — | 4,351,060 | 5,731,151 | | Jonathan Molot Co-Founder and Chief Investment Officer | 2024 | 1,400,000 | — | 841,398 | — | 1,500,000 | — | 7,805,210 | 11,546,608 | | | 2023 | 950,000 | — | 543,317 | — | 2,000,000 | — | 8,560,197 | 12,053,514 | | | 2022 | 950,000 | — | 429,452 | — | — | — | 4,168,041 | 5,547,493 | | Jordan Licht(6) Chief Financial Officer | 2024 | 583,333 | — | 289,418 | — | 1,520,000 | — | 218,829 | 2,611,580 | | | 2023 | 500,000 | — | 238,169 | — | 1,300,000 | — | 157,874 | 2,196,043 | | | 2022 | 161,218 | — | 709,857 | — | 1,000,000 | — | 17,200 | 1,888,275 | | Aviva Will President | 2024 | 600,000 | — | 289,418 | — | 1,520,000 | — | 710,433 | 3,119,851 | | | 2023 | 600,000 | — | 238,169 | — | 1,520,000 | — | 244,103 | 2,602,272 | | | 2022 | 600,000 | — | 300,680 | — | 1,350,000 | — | 221,133 | 2,471,813 | | Elizabeth O’Connell Chief Strategy Officer | 2024 | 583,333 | — | 289,418 | — | 1,520,000 | — | 612,873 | 3,005,624 | | | 2023 | 500,000 | — | 238,169 | — | 1,520,000 | — | 548,226 | 2,806,395 | | | 2022 | 500,000 | — | 237,146 | — | 1,250,000 | — | 198,721 | 2,185,867 |
SUMMARY COMPENSATION TABLE
(1)Represents base salaries earned for the respective fiscal year. (2)Represents the aggregate grant date fair value of the matching notional RSUs granted under the NQDC Plan in the respective fiscal year (determined in accordance with the ASC Topic 718), excluding the effect of any estimated forfeitures of such awards as set forth below: a.for the 2024 fiscal year, (i) $853,868 for Mr. Bogart and (ii) $841,398 for Mr. Molot; b.for the 2023 fiscal year, $543,317 for Mr. Molot; and c.for the 2022 fiscal year, (i) $430,091 for Mr. Bogart, (ii) $429,452 for Mr. Molot and (iii) $63,534 for Ms. Will. In addition, represents the aggregate grant date fair value of RSUs and PSUs granted under the LTIP (for PSUs, assuming achievement of the applicable performance conditions as determined by the Compensation Committee) in the respective fiscal year (determined in accordance with the ASC Topic 718), excluding the effect of any estimated forfeitures of such awards as set forth below: a.for the 2024 fiscal year, $289,418 for each of Mr. Licht and Mmes. Will and O’Connell; b.for the 2023 fiscal year, $238,169 for each of Mr. Licht and Mmes. Will and O’Connell; and c.for the 2022 fiscal year, (i) $709,857 for Mr. Licht representing his initial grant upon commencement of employment and (ii) $237,146 for each of Mmes. Will and O’Connell (each of whom elected to defer receipt of 100% of her respective RSUs and PSUs in accordance with the NQDC Plan). (3)Represents an annual incentive bonus earned for the respective fiscal year, including a portion of a Named Executive Officer’s respective annual incentive bonuses for which such Named Executive Officer elected to defer receipt in accordance with the NQDC Plan as set forth below: a.for the 2024 fiscal year, (i) $1,500,000 for Mr. Bogart, (ii) $1,500,000 for Mr. Molot and (iii) $1,140,000 for Ms. O’Connell; and b.for the 2022 fiscal year, $550,000 for Ms. Will. For the 2023 fiscal year, Messrs. Bogart and Molot each received a one-time discretionary annual incentive bonus in the amount of $2,000,000 in addition to the formulaic annual incentive bonus (as provided for the 2023 fiscal year pursuant to the Prior Bogart and Molot Employment Agreements), which has been included in the “Non-equity incentive plan compensation” column since such bonus amount is substantially similar in nature to the annual incentive bonuses granted to other Named Executive Officers and the Company believes presenting such amounts together leads to a better holistic understanding of its compensation and annual incentive bonus structure, which is intended to align the interests of the Named Executive Officers with the long-term interests of the Company and its shareholders as well as reflect the overall performance of the Company’s business and portfolio. See “Compensation structure and elements—Annual incentive bonus” for additional information with respect to annual incentive bonus payments. (4) Represents additional payments to the Named Executive Officers for the 2024 fiscal year as set forth in the table below:
SUMMARY COMPENSATION TABLE
| Name | 401(k) matching contributions ($)(a) | Medical health plan costs ($)(b) | Carried interest allocations ($)(c) | Other benefits ($)(d) | Total ($) | | Christopher Bogart | 13,800 | 30,599 | 7,692,971 | 256,544 | 7,993,914 | | Jonathan Molot | 13,800 | — | 7,692,971 | 98,439 | 7,805,210 | | Jordan Licht | 13,800 | 30,599 | 170,597 | 3,833 | 218,829 | | Aviva Will | 13,800 | 30,599 | 662,201 | 3,833 | 710,433 | | Elizabeth O’Connell | 13,800 | — | 594,804 | 4,269 | 612,873 |
SUMMARY COMPENSATION TABLE
a.Represents matching contributions made by the Company to the defined contribution 401(k) retirement plan on behalf of the Named Executive Officers. The Company makes these matching contributions on behalf of all employees who elect to participate in the Company’s 401(k) retirement plan. b.Represents premiums paid by the Company on behalf of the Named Executive Officers under the Company’s medical health plans. The Company pays these premiums on behalf of all employees who elect to participate in the Company’s medical health plans. Ms. O’Connell is covered under a family plan as Mr. Bogart’s spouse as a result of his enrollment in the Company’s medical health plans, and neither Ms. O’Connell nor Mr. Bogart receive separate or additional contributions from the Company due to such coverage. Ms. O’Connell does not receive any contributions from the Company in connection with her waiver of individual medical coverage. c.Represents payments of cash amounts in respect of carried interest allocations for the 2024 fiscal year as set forth below: i.$7,692,971 for Mr. Bogart pursuant to the Bogart Employment Agreement, which amount includes $4,421,486 of carried interest allocations deferred under the NQDC Plan; ii.$7,692,971 for Mr. Molot pursuant to the Molot Employment Agreement, which amount includes $3,528,698 of carried interest allocations deferred under the NQDC Plan; iii.$170,597 for Mr. Licht pursuant to the Phantom Carry Pools Arrangement; iv.$662,201 for Ms. Will pursuant to the Phantom Carry Pools Arrangement; and v.$594,804 for Ms. O’Connell pursuant to the O’Connell Employment Arrangement, which amount includes $226,091 of carried interest allocations deferred under the NQDC Plan. See “Compensation structure and elements—Other elements of compensation—Carried interest allocations” for additional information with respect to payments in respect of carried interest allocations. d.Represents: i.for Mr. Bogart, payment of (1) $3,825 for the Company’s contributions to Mr. Bogart’s health savings account and payment of premiums for Mr. Bogart’s life insurance and long-term disability insurance (with the Company making such contributions on behalf of all employees who elect to participate in the Company’s eligible medical health plans), (2) $235,511 in respect of tax preparation services, including reimbursement of taxes resulting therefrom (see “Compensation structure and elements—Other elements of compensation—Perquisites” for additional information), and (3) $17,208 as reimbursements for costs related to technology equipment and services and connectivity services, subscriptions to business journals and publications and annual fees in connection with professional memberships and travel services; ii.for Mr. Molot, payment of (1) $93,671 in respect of tax preparation services, including reimbursement of taxes resulting therefrom (see “Compensation structure and elements—Other elements of compensation—Perquisites” for additional information) and (2) $4,768 for waiver of medical coverage; iii.for Mr. Licht, payment of $3,833 for the Company’s contributions to Mr. Licht’s health savings account and payment of premiums for Mr. Licht’s life insurance and long-term disability insurance (with the Company making such contributions on behalf of all employees who elect to participate in the Company’s eligible medical health plans); iv.for Ms. Will, $3,833 for the Company’s contributions to Ms. Will’s health savings account and payment of premiums for Mr. Will’s life insurance and long-term disability insurance (with the Company making such contributions on behalf of all employees who elect to participate in the Company’s eligible medical health plans); and v.for Ms. O’Connell, $4,269 as reimbursements for costs related to technology equipment and services and connectivity services and annual fees in connection with professional memberships. Because Mr. Bogart and Ms. O’Connell have jointly filed taxes as husband and wife, Ms. O’Connell indirectly receives, at no additional aggregate incremental cost to the Company, a personal benefit from the tax preparation services provided to Mr. Bogart. In addition, Ms. O’Connell indirectly receives, at no additional aggregate incremental cost to the Company, a personal benefit in connection with technology equipment and services and connectivity services provided to Mr. Bogart. (5) For each of Messrs. Bogart’s and Molot’s amounts set forth for the fiscal years 2023 and 2022, includes the aggregate value paid in respect of such Named Executive Officer’s entitlement under the Prior Bogart and Molot Employment Agreements during the respective fiscal year equal to 1.75% of the Company’s total revenues (excluding effects of unrealized gains and losses) on a consolidated basis reported in the Company’s audited consolidated financial statements, including: a.for the 2023 fiscal year, a portion equal to $2,479,575 was paid in the form of 84,917 RSUs and 84,917 PSUs on March 22, 2024 (with the number of RSUs and PSUs determined by dividing $2,479,575 by the average closing price per ordinary share on the NYSE over the three-day trading period preceding the grant date) as disclosed in the “—Grants of plan-based awards” and the “—Outstanding equity awards at fiscal year-end” tables; and b.for the 2022 fiscal year, a portion equal to $1,458,625 was paid in the form of 107,568 RSUs and 107,569 PSUs on March 22, 2023 (with the number of RSUs and PSUs determined by dividing $1,458,625 by the average closing price per ordinary share on the NYSE over the three-day trading period preceding the grant date) as disclosed in the “—Outstanding equity awards at fiscal year-end” table. These amounts have been included in the “All other compensation” column since they are inextricably linked to Messrs. Bogart’s and Molot’s receipt of carried interest payments in the respective fiscal year, and the Company believes presenting such amounts together leads to a better holistic understanding of its compensation structure and the Phantom Carry Pools Arrangement, which are intended to align the interests of the Named Executive Officers with the long-term interests of the Company and its shareholders as well as reflect the overall performance of the Company’s business and portfolio. (6) Mr. Licht commenced employment with the Company on September 6, 2022.
GRANTS OF PLAN-BASED AWARDS
GRANTS OF PLAN-BASED AWARDS The table below sets forth grants of plan-based awards, except as otherwise noted, under the LTIP to the Named Executive Officers during the 2024 fiscal year.
GRANTS OF PLAN-BASED AWARDS
| | | | | Estimated future payouts under non-equity incentive plan awards | | | Estimated future payouts under equity incentive plan awards | | | All other stock awards: Number of shares of stock or units (#)(2) | All other option awards: Number of securities underlying options (#) | Exercise or base price of option awards (#) | Grant date fair value of stock and option awards ($)(3) | | Name | Grant date | Approval date | Grant type | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#)(1) | Maximum (#) | | | | | | Christopher Bogart Co-Founder and Chief Executive Officer(4) | 03/22/2024 | — | Matching Notional RSUs | — | — | — | — | — | — | 55,991 | — | — | 853,868 | | | 03/22/2024 | 01/31/2024 | PSUs | — | — | — | — | 84,917 | — | — | — | — | 1,128,547 | | | 03/22/2024 | 01/31/2024 | RSUs | — | — | — | — | 84,917 | — | — | — | — | 1,263,565 | | Jonathan Molot Co-Founder and Chief Investment Officer(4) | 03/22/2024 | — | Matching Notional RSUs | — | — | — | — | — | — | 55,174 | — | — | 841,398 | | | 03/22/2024 | 01/31/2024 | PSUs | — | — | — | — | 84,917 | — | — | — | — | 1,128,547 | | | 03/22/2024 | 01/31/2024 | RSUs | — | — | — | — | 84,917 | — | — | — | — | 1,263,565 | | Jordan Licht Chief Financial Officer | 03/22/2024 | 01/31/2024 | PSUs | — | — | — | — | 10,274 | — | — | — | — | 136,541 | | | 03/22/2024 | 01/31/2024 | RSUs | — | — | — | — | 10,274 | — | — | — | — | 152,877 | | Aviva Will President | 03/22/2024 | 01/31/2024 | PSUs | — | — | — | — | 10,274 | — | — | — | — | 136,541 | | | 03/22/2024 | 01/31/2024 | RSUs | — | — | — | — | 10,274 | — | — | — | — | 152,877 | | Elizabeth O’Connell Chief Strategy Officer | 03/22/2024 | 01/31/2024 | PSUs | — | — | — | — | 10,274 | — | — | — | — | 136,541 | | | 03/22/2024 | 01/31/2024 | RSUs | — | — | — | — | 10,274 | — | — | — | — | 152,877 |
GRANTS OF PLAN-BASED AWARDS
(1)Represents the number of the Company’s ordinary shares that will vest (i) for PSUs, on the third anniversary of the grant date (subject to the determination by the Compensation Committee of the achievement of the applicable performance conditions) and (ii) for RSUs, on the third anniversary of the grant date, in each case, subject to the Named Executive Officer’s continued employment through such date. (2)Represents matching notional RSUs, rounded to the nearest whole share, granted by the Company in respect of compensation deferred by the applicable Named Executive Officer and notionally invested in the Company’s ordinary shares in accordance with the NQDC Plan that vest on the second anniversary of the grant date and are settled upon distribution in accordance with the NQDC Plan. See the table and accompanying footnotes under “—Nonqualified deferred compensation” for additional information with respect to the grants under the NQDC Plan. (3)Represents the applicable grant date fair value (determined in accordance with ASC Topic 718, excluding the effect of any estimated forfeitures) for awards (as applicable) of (i) RSUs and PSUs (for PSUs, assuming achievement of the applicable performance conditions as determined by the Compensation Committee) and (ii) matching notional RSUs. (4)For each of Messrs. Bogart and Molot, RSUs and PSUs (and the respective values attributable thereto) represent the portion of their respective annual incentive bonus in respect of the 2023 fiscal year delivered in the form of equity-based awards at the election of the Compensation Committee, which will vest on the third anniversary of the applicable grant date, subject to continued employment through such date (and, for PSUs, subject to achievement of the applicable performance conditions). See “Individual arrangements with Named Executive Officers” and “Long-term incentive compensation—Grants of RSUs and PSUs in the 2024 fiscal year” for additional information with respect to the annual incentive bonus payable to Messrs. Bogart and Molot.
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END The table below sets forth outstanding equity awards under the LTIP and matching notional RSUs under the NQDC Plan for the Named Executive Officers as of December 31, 2024.
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
| | | | Option Awards | | | | | Stock Awards | | | | | Name | Grant date | Grant type | Number of securities underlying unexercised options (# exercisable) | Number of securities underlying unexercised options (# unexercisable) | Equity incentive plan awards: Number of securities underlying unexercised unearned options (#) | Option exercise price ($) | Option expiration date | Number of shares of units or stock that have not vested (#)(1) | Market value of shares or units of stock that have not vested ($)(2) | Equity incentive plan awards: Number of unearned shares, units or other rights that have not vested (#)(3) | Equity incentive plan awards: Market or payout value of unearned shares, units or other rights that have not vested ($)(4) | | Christopher Bogart Co-Founder and Chief Executive Officer(5) | 03/22/2024 | PSUs | — | — | — | — | — | — | — | 84,917 | 1,082,692 | | | 03/22/2024 | RSUs | — | — | — | — | — | — | — | 84,917 | 1,082,692 | | | 03/22/2024 | Matching Notional RSUs | — | — | — | — | — | 55,991 | 713,885 | — | — | | | 03/22/2023 | PSUs | — | — | — | — | — | — | — | 107,569 | 1,371,505 | | | 03/22/2023 | RSUs | — | — | — | — | — | — | — | 107,568 | 1,371,492 | | | 04/05/2022 | PSUs | — | — | — | — | — | — | — | 74,819 | 953,942 | | | 04/05/2022 | RSUs | — | — | — | — | — | — | — | 74,819 | 953,942 | | Jonathan Molot Co-Founder and Chief Investment Officer(5) | 03/22/2024 | PSUs | — | — | — | — | — | — | — | 84,917 | 1,082,692 | | | 03/22/2024 | RSUs | — | — | — | — | — | — | — | 84,917 | 1,082,692 | | | 03/22/2024 | Matching Notional RSUs | — | — | — | — | — | 55,174 | 703,469 | — | — | | | 09/22/2023 | Matching Notional RSUs | — | — | — | — | — | 17,706 | 225,752 | — | — | | | 06/22/2023 | Matching Notional RSUs | — | — | — | — | — | 22,754 | 290,114 | — | — | | | 03/22/2023 | PSUs | — | — | — | — | — | — | — | 107,569 | 1,371,505 | | | 03/22/2023 | RSUs | — | — | — | — | — | — | — | 107,568 | 1,371,492 | | | 04/05/2022 | PSUs | — | — | — | — | — | — | — | 74,819 | 953,942 | | | 04/05/2022 | RSUs | — | — | — | — | — | — | — | 74,819 | 953,942 | | Jordan Licht Chief Financial Officer | 03/22/2024 | PSUs | — | — | — | — | — | — | — | 10,274 | 130,994 | | | 03/22/2024 | RSUs | — | — | — | — | — | — | — | 10,274 | 130,994 | | | 03/22/2023 | PSUs | — | — | — | — | — | — | — | 18,437 | 235,072 | | | 03/22/2023 | RSUs | — | — | — | — | — | — | — | 18,437 | 235,072 | | | 09/30/2022 | PSUs | — | — | — | — | — | — | — | 51,606 | 657,977 | | | 09/30/2022 | RSUs | — | — | — | — | — | — | — | 51,606 | 657,977 |
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
| Aviva Will President | 03/22/2024 | PSUs | — | — | — | — | — | — | — | 10,274 | 130,994 | | | 03/22/2024 | RSUs | — | — | — | — | — | — | — | 10,274 | 130,994 | | | 03/22/2023 | PSUs | — | — | — | — | — | — | — | 18,437 | 235,072 | | | 03/22/2023 | RSUs | — | — | — | — | — | — | — | 18,437 | 235,072 | | | 04/05/2022 | PSUs | — | — | — | — | — | — | — | 13,441 | 171,373 | | | 04/05/2022 | RSUs | — | — | — | — | — | — | — | 13,441 | 171,373 | | Elizabeth O’Connell Chief Strategy Officer | 03/22/2024 | PSUs | — | — | — | — | — | — | — | 10,274 | 130,994 | | | 03/22/2024 | RSUs | — | — | — | — | — | — | — | 10,274 | 130,994 | | | 03/22/2023 | PSUs | — | — | — | — | — | — | — | 18,437 | 235,072 | | | 03/22/2023 | RSUs | — | — | — | — | — | — | — | 18,437 | 235,072 | | | 04/05/2022 | PSUs | — | — | — | — | — | — | — | 13,441 | 171,373 | | | 04/05/2022 | RSUs | — | — | — | — | — | — | — | 13,441 | 171,373 |
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
(1)Represents matching notional RSUs granted by the Company in respect of compensation deferred by the Named Executive Officers and notionally invested in the Company’s ordinary shares in accordance with the NQDC Plan that vest on the second anniversary of the first day of the open election period during which the employee’s deferred amounts are credited and are settled upon distribution in accordance with the NQDC Plan. See the table and accompanying footnotes under “—Nonqualified deferred compensation” for additional information with respect to the grants under the NQDC Plan. (2)Represents the market value of the matching notional RSUs based on the closing price of $12.75 per ordinary share of the Company’s ordinary shares on the NYSE on December 31, 2024, which was the last trading day for the 2024 fiscal year. (3)Represents the number of ordinary shares expected to vest on the third anniversary of the applicable grant date based on satisfaction of the applicable service- and performance-based vesting conditions (for PSUs, assuming achievement of the applicable performance conditions). (4)Represents the market value of the Company’s ordinary shares subject to outstanding RSUs and PSUs (for PSUs, assuming achievement of the applicable performance conditions) based on the closing price of $12.75 per ordinary share of the Company’s ordinary shares on the NYSE on December 31, 2024, which was the last trading day for the 2024 fiscal year. (5)For each of Messrs. Bogart and Molot, RSUs and PSUs (and the respective values attributable thereto) represent the portion of their respective annual incentive bonus in respect of the fiscal year immediately prior to the fiscal year in which the grant date occurs that were delivered in the form of equity-based awards at the election of the Compensation Committee and that are expected to vest on the third anniversary of the applicable grant date based on satisfaction of the applicable service- and performance-based vesting conditions (for PSUs, assuming achievement of the applicable performance conditions). See “Individual arrangements with Named Executive Officers” and “Long-term incentive compensation—Grants of RSUs and PSUs in the 2024 fiscal year” for additional information with respect to the annual incentive bonus payable to Messrs. Bogart and Molot.
OPTION EXERCISES AND STOCK VESTED
OPTION EXERCISES AND STOCK VESTED The table below sets forth awards of the Company’s ordinary shares that vested in respect of the 2024 fiscal year for each of the Named Executive Officers. No option awards have ever been granted to, or were exercised during the 2024 fiscal year by, the Named Executive Officers.
OPTION EXERCISES AND STOCK VESTED
| | Stock awards | | | | Name | Type of award | Number of shares acquired on vesting (#)(1) | Value realized on vesting ($)(2) | | Christopher Bogart Co-Founder and Chief Executive Officer | RSUs | 112,805 | 1,801,496 | | | PSUs | 112,805 | 1,801,496 | | | Matching Notional RSUs(3) | 46,800 | 745,991 | | Jonathan Molot Co-Founder and Chief Investment Officer | RSUs | 112,805 | 1,801,496 | | | PSUs | 112,805 | 1,801,496 | | | Matching Notional RSUs(3) | 46,730 | 744,882 | | Jordan Licht Chief Financial Officer | RSUs | — | — | | | PSUs | — | — | | | Matching Notional RSUs(3) | — | — | | Aviva Will President | RSUs | 23,962 | 382,665 | | | PSUs | 23,962 | 382,665 | | | Matching Notional RSUs(3) | 6,841 | 104,714 | | Elizabeth O’Connell Chief Strategy Officer | RSUs | 21,056 | 336,264 | | | PSUs | 21,056 | 336,264 | | | Matching Notional RSUs(3) | — | — |
OPTION EXERCISES AND STOCK VESTED
(1)Represents the number of the Company’s ordinary shares acquired on vesting of the applicable award type for each Named Executive Officer (for PSUs, based on performance achieved for the applicable performance cycle, as determined by the Compensation Committee). For Messrs. Bogart and Molot and Mmes. Will and O’Connell, such numbers include RSUs and PSUs, the settlement of which such Named Executive Officer elected to defer in accordance with the NQDC Plan, equal to (i) 225,610 ($3,602,992) for each of Messrs. Bogart and Molot, (ii) 46,796 ($747,332) for Ms. Will and (iii) 42,112 ($672,529) for Ms. O’Connell. (2)Represents the aggregate value realized on the vesting of the Company’s ordinary shares based on the closing trading price of the Company’s ordinary shares on the applicable vesting date (or the immediately prior closing trading price, if the vesting date occurred on a market holiday or weekend). (3)Represents matching notional RSUs that vested during the 2024 fiscal year, which remain in the Named Executive Officers’ respective accounts in the NQDC Plan in accordance with the terms thereof. See the table and accompanying footnotes under “—Nonqualified deferred compensation” for additional information with respect to the grants of matching notional RSUs under the NQDC Plan.
NONQUALIFIED DEFERRED COMPENSATION
NONQUALIFIED DEFERRED COMPENSATION The table below sets forth a summary of nonqualified deferred compensation for the Named Executive Officers for the 2024 fiscal year.
NONQUALIFIED DEFERRED COMPENSATION
| Name | Type of plan | Executive contributions in last fiscal year ($)(1) | Company contributions in last fiscal year ($)(2) | Aggregate earnings in last fiscal year ($)(3) | Aggregate withdrawals / distributions ($)(4) | Aggregate balance at last fiscal year-end ($)(5) | | Christopher Bogart Co-Founder and Chief Executive Officer | NQDC | 10,643,940 | 853,868 | (1,317,147) | (1,950,282) | 16,213,115 | | | SRA | — | — | 88,747 | — | — | | Jonathan Molot Co-Founder and Chief Investment Officer | NQDC | 9,921,721 | 841,398 | (1,432,422) | (1,952,040) | 17,899,900 | | | SRA | — | — | 93,233 | — | — | | Jordan Licht Chief Financial Officer | NQDC | — | — | — | — | — | | Aviva Will President | NQDC | 747,332 | — | (85,612) | (477,960) | 1,413,369 | | Elizabeth O’Connell Chief Strategy Officer | NQDC | 2,038,620 | — | (128,078) | — | 1,912,693 |
NONQUALIFIED DEFERRED COMPENSATION
(1)Represents compensation for the 2024 fiscal year, the receipt of which was deferred or elected to be deferred under the NQDC Plan. The table below sets forth the deferred amount of each of the Named Executive Officers’ compensation (by type) earned or vested in the 2024 fiscal year.
NONQUALIFIED DEFERRED COMPENSATION
| Name | Non-Equity Incentive Plan Compensation ($) | Carried Interest ($) | RSUs and PSUs ($)(a) | Transfer from SRA ($) | Total executive contributions in last fiscal year ($) | | Christopher Bogart | 1,500,000 | 4,421,486 | 3,602,992 | 1,119,462 | 10,643,940 | | Jonathan Molot | 1,500,000 | 3,528,698 | 3,602,992 | 1,290,031 | 9,921,721 | | Jordan Licht | — | — | — | — | — | | Aviva Will | — | — | 747,332 | — | 747,332 | | Elizabeth O’Connell | 1,140,000 | 226,091 | 672,529 | — | 2,038,620 |
NONQUALIFIED DEFERRED COMPENSATION
a.Represents the aggregate value realized on the vesting of the Company’s ordinary shares based on the closing trading price of the Company’s ordinary shares on the applicable vesting date (or the immediately prior closing trading price, if the vesting date occurred on a market holiday or weekend), with respect to the deferred RSUs and PSUs. (2)Represents the aggregate grant date fair value (determined in accordance with ASC Topic 718, excluding the effect of any estimated forfeitures) of matching notional RSUs granted by the Company under the NQDC Plan. See “—Other elements of compensation—Retirement benefits” for additional information with respect to the NQDC Plan. (3)Represents all earnings on nonqualified deferred compensation balances for each of the Named Executive Officers during the 2024 fiscal year. On April 1, 2024, each of Messrs. Bogart’s and Molot’s SRA was merged into the NQDC Plan and terminated. Amounts disclosed for the SRA for each of Messrs. Bogart and Molot reflect the aggregate earnings as of May 31, 2024. (4)Represents amounts that were deferred in prior fiscal years in accordance with the NQDC Plan and distributed to the Named Executive Officers in the form of the Company’s ordinary shares as follows (in each case, after giving effect to any tax withholding): 85,310 ordinary shares to Mr. Bogart, 82,874 ordinary shares to Mr. Molot and 20,552 ordinary shares to Ms. Will. (5)Includes each Named Executive Officer’s account balance for fiscal years prior to the 2024 fiscal year for which no disclosure was previously made or required to be made as a result of the Company’s status as a “foreign private issuer” prior to its transition to US domestic filer status.
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL The Named Executive Officers, other than Messrs. Bogart and Molot and Ms. Will, are not entitled to severance, and none of the Named Executive Officers (other than Messrs. Bogart and Molot) is entitled to any change in control benefits. Upon any termination of employment (other than for cause), each of the Named Executive Officers will receive any earned and unpaid compensation (including with respect to annual incentive bonuses) and vested balances under applicable benefit plans (including the NQDC Plan). The Company does not provide any automatic (i.e., “single trigger”) change in control benefits to employees. The table below assumes that the triggering event(s) occurred on the last business day of the 2024 fiscal year.
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL
| | | Prior to a change in control | | | | On or following a change in control | | | | | Name | Payment type | “Disability” ($) | Involuntary termination without “Cause” ($) | Resignation for “Good Reason” ($) | Death ($) | “Disability” ($) | Involuntary termination without “Cause” ($) | Resignation for “Good Reason” ($) | Death ($) | | Christopher Bogart Co-Founder and Chief Executive Officer | Cash Payment(1) | 9,259,150 | 9,259,150 | 9,259,150 | 9,259,150 | 13,888,725 | 13,888,725 | 13,888,725 | 13,888,725 | | | Long-Term Incentive Compensation(2) | 7,530,150 | 7,530,150 | 7,530,150 | 7,530,150 | 7,530,150 | 7,530,150 | 7,530,150 | 7,530,150 | | | Total(3) | 16,789,300 | 16,789,300 | 16,789,300 | 16,789,300 | 21,418,875 | 21,418,875 | 21,418,875 | 21,418,875 | | Jonathan Molot Co-Founder and Chief Investment Officer | Cash Payment(1) | 9,259,150 | 9,259,150 | 9,259,150 | 9,259,150 | 13,888,725 | 13,888,725 | 13,888,725 | 13,888,725 | | | Long-Term Incentive Compensation(2) | 8,035,600 | 8,035,600 | 8,035,600 | 8,035,600 | 8,035,600 | 8,035,600 | 8,035,600 | 8,035,600 | | | Total(3) | 17,294,750 | 17,294,750 | 17,294,750 | 17,294,750 | 21,924,325 | 21,924,325 | 21,924,325 | 21,924,325 | | Jordan Licht Chief Financial Officer | Cash Payment | — | — | — | — | — | — | — | — | | | Long-Term Incentive Compensation | — | — | — | — | — | — | — | — | | | Total | — | — | — | — | — | — | — | — | | Aviva Will President | Cash Payment(1) | — | 600,000 | 600,000 | — | — | 600,000 | 600,000 | — | | | Long-Term Incentive Compensation | — | — | — | — | — | — | — | — | | | Total | — | 600,000 | 600,000 | — | — | 600,000 | 600,000 | — | | Elizabeth O’Connell Chief Strategy Officer | Cash Payment | — | — | — | — | — | — | — | — | | | Long-Term Incentive Compensation | — | — | — | — | — | — | — | — | | | Total | — | — | — | — | — | — | — | — |
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL
(1)For each of Messrs. Bogart and Molot, represents a lump sum cash payment equal to two times (or, within two years following a change in control, three times) the sum of (i) $1,400,000 (representing their respective annual base salaries) and (ii) $3,229,575 (representing the average annual bonus during the immediately preceding two calendar years (excluding one-time discretionary annual incentive bonus amounts)), pursuant to the Bogart and Molot Employment Agreements, in each case, in effect as of December 31, 2024. For Ms. Will, represents continued base salary payments for a 12-month period. (2)Represents the aggregate value of matching notional RSUs and outstanding RSUs and PSUs (for PSUs, assuming achievement of the applicable performance conditions as determined by the Compensation Committee), in each case, that vest on certain terminations in accordance with the Bogart and Molot Employment Agreements and determined based on the closing price of $12.75 per ordinary share of the Company’s ordinary shares on the NYSE on December 31, 2024, which was the last trading day for the 2024 fiscal year. (3)Each of Messrs. Bogart and Molot is entitled to receive additional compensation upon a termination of employment by the Company without “Cause”, due to “Disability” or death or upon a resignation for “Good Reason” (each, as defined in the Bogart and Molot Employment Agreements) in the form of continued payments in respect of carried interest allocations from the Company’s legal finance assets originated beginning January 1, 2015 and ending on a date that is on or prior to Messrs. Bogart’s or Molot’s, as applicable, termination date. The Company has not assigned a value to such benefit as such value cannot be reasonably estimated. See “—Individual arrangements with the Named Executive Officers—Bogart and Molot Employment Agreements” for additional information with respect to Messrs. Bogart’s or Molot’s benefits upon termination.
CEO PAY RATIO
CEO PAY RATIO Pursuant to and in accordance with Item 402(u) of Regulation S-K, the following disclosure summarizes the relationship between the annual total compensation of the median employee from among the Company’s employees (other than the Company’s Chief Executive Officer) and the annual total compensation of the Company’s Chief Executive Officer, in each case, for the 2024 fiscal year: •The annual total compensation of the median employee (other than the Company’s Chief Executive Officer), calculated in accordance with Item 402(c) of Regulation S-K, was $313,592 for the 2024 fiscal year •The annual total compensation of the Company’s Chief Executive Officer, calculated in accordance with Item 402(c) of Regulation S-K and as reported in the “—Summary compensation table” in this Proxy Statement, was $11,747,782 for the 2024 fiscal year •The ratio of the annual total compensation of the Company’s Chief Executive Officer to the annual total compensation of the median employee (other than the Company’s Chief Executive Officer) was 37 to 1 for the 2024 fiscal year The pay ratio set forth above reflects analysis of the Company’s global workforce of 159 employees (not including the Company’s Chief Executive Officer) as of December 31, 2024 (including non-US and temporary employees but excluding independent contractors). The Company determined the annual total compensation of the median employee (other than the Company’s Chief Executive Officer) for the 2024 fiscal year in accordance with the requirements of Item 402(c) of Regulation S-K consistent with the calculation of the annual total compensation of the Company’s Chief Executive Officer as reported in the “—Summary compensation table” in this Proxy Statement. Base salaries were annualized for employees (other than temporary employees) starting employment during the 2024 fiscal year but not adjusted for part-time status. Any payments in local currency were consistently converted using the GBP/USD exchange rate of 1.2784, EUR/USD exchange rate of 1.0798 or USD/SGD exchange rate of 0.7449, as applicable, in each case, as of December 31, 2024. Neither cost-of-living adjustments nor exclusions were applied. The pay ratio set forth above is a reasonable estimate calculated in a manner consistent with the SEC rules based on the Company’s payroll and employment records and the methodology described above. The SEC rules for identifying the median compensated employee and calculating the pay ratio based on such employee’s annual total compensation allow companies to adopt a variety of methodologies, to apply certain exclusions and to make reasonable estimates and assumptions that reflect their compensation practices. As a result, the pay ratio set forth above may not be comparable to the pay ratio reported by other companies (even those companies in a related industry or of a similar size and scope), as other companies may have different employment and compensation practices and may utilize different methodologies, exclusions, estimates and assumptions in calculating their own pay ratios. The information set forth in this “—CEO pay ratio” section was developed and is provided solely to comply with specific legal requirements. The Company does not use the information set forth in this “—CEO pay ratio” section in managing its businesses.
PAY VERSUS PERFORMANCE
PAY VERSUS PERFORMANCE As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as amended, and Item 402(v) of Regulation S-K, set forth below is information about the relationship between executive “compensation actually paid” (as determined in accordance with Item 402(v) of Regulation S-K) to (i) the Company’s principal executive officer (the “PEO”) and (ii) the Company’s other non-PEO Named Executive Officers (determined as an average, as set forth below), in each case, during the 2024 fiscal year, the 2023 fiscal year and the 2022 fiscal year and the Company’s financial performance. See “Executive compensation” for additional information with respect to the Company’s compensation philosophy and processes and compensation structure and elements. The calculation of “compensation actually paid” is not reflective of how the Compensation Committee assesses compensation of the Named Executive Officers. The values of equity-based awards may not reflect actual economic benefit that will be received due to uncertain market value and vesting schedules, among other factors.
PAY VERSUS PERFORMANCE
| Fiscal year | Summary compensation table total for PEO(1) ($) | Compensation actually paid to PEO(2) ($) | Average summary compensation table total for non-PEO NEOs(1)(3) ($) | Average compensation actually paid to non-PEO NEOs(2)(3) ($) | Value of initial fixed $100 investment based on: | | Net income ($) | Net realized gains/(losses) for Principal Finance segment ($) | | | | | | | Total shareholder return ($) | Peer group total shareholder return(4) ($) | | | | 2024 | 11,747,782 | 10,353,388 | 5,070,916 | 4,490,662 | 82 | 109 | 229,583,000 | 327,174,000 | | 2023 | 11,727,836 | 19,336,976 | 4,914,556 | 6,793,242 | 193 | 116 | 718,199,000 | 187,376,000 | | 2022 | 5,731,151 | 4,664,352 | 3,023,362 | 2,565,418 | 78 | 84 | 97,459,000 | 134,473,000 |
PAY VERSUS PERFORMANCE
(1)Mr. Bogart was the PEO and Messrs. Molot (the Company’s Chief Investment Officer) and Licht (the Company’s Chief Financial Officer) and Mmes. Will (the Company’s President) and O’Connell (the Company’s Chief Strategy Officer) were the non-PEO Named Executive Officers during the 2024 fiscal year, the 2023 fiscal year and the 2022 fiscal year. (2)Amounts in these columns have been calculated in accordance with the requirements of Item 402(v) of Regulation S-K and do not reflect compensation actually earned, realized or received. The table below sets forth the adjustments prescribed by Item 402(v) to the applicable “Total” column in the “Summary compensation table” to determine the “Compensation actually paid” amounts. In addition, all amounts presented below for non-PEO Named Executive Officers are averages of the non-PEO Named Executive Officers group. (3)Amounts for the 2022 fiscal year for non-PEO Named Executive Officers do not include any compensation for Mr. Kenneth Brause, the Company’s former Chief Financial Officer who ceased serving as the Company’s Chief Financial Officer on September 5, 2022. The exclusion of Mr. Brause’s compensation from these calculations is in connection with the Company’s transition to US domestic reporting status and due to his individualized compensation not being previously disclosed and not being required to be disclosed by the Company prior to such transition to domestic reporting status.
PAY VERSUS PERFORMANCE
| Fiscal year | Summary compensation table total for PEO ($) | Deduct: Stock awards for PEO(i) ($) | Add: Year-end value of unvested equity awards granted during year for PEO(ii) ($) | Increase/(decrease) in value of unvested equity awards granted in prior years for PEO ($) | Add: Value of equity awards granted and vested during year for PEO ($) | Increase/(decrease) in value of equity awards granted in prior years which vested during year for PEO ($) | Deduct: Equity awards that failed to vest during year for PEO ($) | Add: Dividends for PEO ($) | Total (compensation actually paid to PEO) ($) | | 2024 | 11,747,782 | (3,333,443) | 2,879,269 | (1,039,608) | — | 99,389 | — | — | 10,353,388 | | 2023 | 11,727,836 | (1,458,625) | 6,099,134 | 3,144,257 | — | (175,626) | — | — | 19,336,976 | | 2022 | 5,731,151 | (1,821,722) | 1,600,970 | (846,047) | — | — | — | — | 4,664,352 |
PAY VERSUS PERFORMANCE
| Fiscal year | Summary compensation table total for non-PEO NEOs ($) | Deduct: Stock awards for non-PEO NEOs(i) ($) | Add: Year-end value of unvested equity awards granted during year for non-PEO NEOs(ii) ($) | Increase/(decrease) in value of unvested equity awards granted in prior years for non-PEO NEOs ($) | Add: Value of equity awards granted and vested during year for non-PEO NEOs ($) | Increase/(decrease) in value of equity awards granted in prior years which vested during year for non-PEO NEOs ($) | Deduct: Equity awards that failed to vest during year for non-PEO NEOs ($) | Add: Dividends for non-PEO NEOs ($) | Total (compensation actually paid to non-PEO NEOs) ($) | | 2024 | 5,070,916 | (1,047,307) | 913,703 | (479,393) | — | 32,742 | — | — | 4,490,662 | | 2023 | 4,914,556 | (679,112) | 1,428,254 | 1,255,409 | — | (125,865) | — | — | 6,793,242 | | 2022 | 3,023,362 | (767,192) | 733,575 | (406,844) | — | (17,484) | — | — | 2,565,418 |
PAY VERSUS PERFORMANCE
i.Amounts in this column for Messrs. Bogart and Molot represent the sum of (x) the aggregate grant date fair value of the matching notional RSUs granted under the NQDC Plan in the applicable fiscal year set forth in the “Stock awards” column of the “—Summary compensation table” and (y) the portion of their annual incentive bonus for the applicable fiscal year paid in the form of RSUs and PSUs (for PSUs, assuming achievement of the applicable performance conditions as determined by the Compensation Committee), as set forth in footnote 5 to the “All other compensation” column in the “—Summary compensation table”. For additional information with respect to Messrs. Bogart’s and Molot’s annual incentive bonus paid in the form of RSUs and PSUs (at the election of the Compensation Committee), see “Executive compensation—Compensation discussion and analysis—Individual arrangements with Named Executive Officers—Bogart and Molot Employment Agreements” and “Executive compensation—Compensation discussion and analysis—Compensation structure and elements—Long-term incentive compensation”. Amounts in this column for Mr. Licht and Mmes. Will and O’Connell represent the aggregate grant date fair value of RSUs and PSUs granted under the LTIP (for PSUs, assuming achievement of the applicable performance conditions as determined by the Compensation Committee) set forth in the “Stock awards” column of the “—Summary compensation table”. ii.Amounts in this column represent the respective share-based awards granted to the PEO and each of the non-PEO Named Executive Officers disclosed in the “Deduct: stock awards for PEO” and “Deduct: stock awards for non-PEO NEOs”, respectively, and corresponding footnote multiplied by the closing price of $12.75 per ordinary share of the Company’s ordinary shares on the NYSE on December 31, 2024, which was the last trading day for the 2024 fiscal year. (4)The peer group for these purposes is the S&P Small Cap 600 Financials index.
Relationship between “compensation actually paid” and performance measures
Relationship between “compensation actually paid” and performance measures The graph below shows the relationship between the “compensation actually paid” to the PEO and the average of the “compensation actually paid” to the non-PEO Named Executive Officers (in each case, with “compensation actually paid” calculated as set forth above in accordance with Item 402(v) of Regulation S-K) during the 2024 fiscal year, the 2023 fiscal year and the 2022 fiscal year and the net realized gains/(losses) for the Principal Finance segment over the same period. The graph below shows the relationship between the “compensation actually paid” to the PEO and the average of the “compensation actually paid” to the non-PEO Named Executive Officers (in each case, with “compensation actually paid” calculated as set forth above in accordance with Item 402(v) of Regulation S-K) during the 2024 fiscal year, the 2023 fiscal year and the 2022 fiscal year and the Company’s cumulative TSR measured starting from December 31, 2021 for each covered fiscal year. The graph below also shows the relationship between the Company’s TSR performance and the TSR performance of the peer group in the “pay versus performance” table above (which is the S&P Small Cap 600 Financials index) over the same period.
Relationship between compensation actually paid and net income/(loss)
Relationship between compensation actually paid and net income/(loss) The Company is a finance and asset management company focused on the business of law and manages a portfolio of legal finance assets funded primarily by the Company’s balance sheet. The legal finance assets comprising the Company’s portfolio are Level 3 assets for purposes of determining their fair value, which the Company reports on a quarterly basis. Quarterly fluctuations in the fair value of the legal finance assets drive the Company’s capital provision income/(loss), which is the primary source of the Company’s consolidated revenues. As a result, the Company’s net income/(loss) is subject to significant volatility from period to period resulting from a range of inputs to the Company’s fair value methodology, and any correlation between the Company’s net income/(loss) and executive compensation levels is coincidental. In any given period, the “compensation actually paid” to the PEO and the non-PEO Named Executive Officers is more closely tied to (i) the net realized gains/(losses) generated by the Company’s portfolio, which are listed as the Company-selected financial performance measure in the “pay versus performance” table above, and (ii) the change in price of the Company’s ordinary shares. To align the compensation of the PEO and the non-PEO Named Executive Officers with the performance of the Company’s legal finance portfolio, a significant portion of their respective total compensation is awarded as long-term incentive compensation, which is tied directly to the cash profits generated by the Company’s legal finance portfolio. While long-term incentive compensation is accrued in the Company’s consolidated financial statements based on fair value gains/(losses) resulting from the quarterly portfolio valuation process (i.e., capital provision income/(loss)), that compensation is only paid upon the realization of those fair value gains/(losses) and receipt of cash proceeds. Therefore, the payment of long-term incentive compensation is more closely related to the cash-based metric of net realized gains/(losses), and only when those realized gains have been definitively settled in cash. In addition, to align the interests of the PEO and the non-PEO Named Executive Officers with those of the Company’s shareholders, a significant portion of their respective total compensation is comprised of equity-based awards that vest and/or are deferred over multiple years. As a result, the “compensation actually paid” to the PEO and the non-PEO Named Executive Officers, as calculated in accordance with Item 402(v) of Regulation S-K, is significantly driven by movements in the Company’s share price that occur after the grant date of such share-based awards.
Non-employee director compensation limits
Non-employee director compensation limits Under the 2025 Omnibus Incentive Compensation Plan, in any fiscal year, a non-employee director may not be paid cash compensation or be granted Awards, with respect to his or her service as a director, having an aggregate value greater than (i) $1,500,000, in the case of any non-employee director who also serves as the Chair of the Board of Directors, and (ii) $750,000, in the case of any other non-employee director.