B. Bradford Martz
About B. Bradford Martz
B. Bradford Martz (age 53) is President & CEO of American Coastal Insurance Corporation (ACIC); he has served as President since July 2020, was CFO from October 2012 to January 2024, and became CEO in February 2025. He holds a B.S. in Finance (University of Colorado, Boulder) and an MBA (Northeastern University), is a Florida-licensed CPA, and has a Global CMA designation; prior roles include CFO positions in insurance companies dating back to 1996 . Under his leadership, ACIC reported a 2024 combined ratio of ~67.5% and strong Core Income After-Tax ROE used in pay metrics; in 2024 the Company TSR benchmark in the pay-versus-performance disclosure was 322.99, and Core ROBE was 57.4% . As CEO in 2025, Martz emphasized delivering combined ratios below the 65% target and year-over-year revenue and earnings growth, with Q2 and Q3 2025 releases citing improved net premiums earned and book value per share increases .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| American Coastal Insurance Corporation | CFO | Oct 2012 – Jan 2024 | Led finance through restructuring and exit of personal lines; established incentive plans and equity programs referenced in proxies . |
| American Coastal Insurance Corporation | President | Jul 2020 – Feb 2025 | Drove specialty commercial lines growth; focused on underwriting discipline and ROE targets reflected in AIP metrics . |
| American Coastal Insurance Corporation | CEO | Feb 2025 – present | Advanced market position, disciplined underwriting and value creation; maintained combined ratio below 65% target in 2025 quarters . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Bankers Financial Corporation | CFO (after progressive finance roles since 2001) | 2007 – 2012 | Oversight of insurance, warranty, agency and BPO operations; foundation for ACIC CFO tenure . |
| Bonded Builders Service Corporation | CFO | 1996 – 2001 | Led finance at a specialty insurer focused on new home warranties nationwide . |
Fixed Compensation
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $494,792 | $519,532 | $525,000 |
| AIP Target ($) | $495,000 | $414,537 | $360,000 |
| Actual AIP Paid ($) | $495,000 | $414,537 | $469,971 |
| 2025 Approved Changes (effective Feb 11, 2025 unless noted) | Amount |
|---|---|
| Base Salary | $700,000 |
| AIP Target | $700,000 |
| LTIP Target | $1,050,000 (from $725,000 prior) |
Performance Compensation
Annual Incentive Plan (AIP) Structure (Fiscal 2024)
| Metric | Weighting | Threshold | Target | Maximum | Actual (2024) | Payout Factor |
|---|---|---|---|---|---|---|
| Combined Ratio | 35% | 85% | 75% | 65% | ~67.5% (7.5 pts better than target) | Included in 100.5% weighted financial result |
| Core Income After-Tax ROE | 35% | 10% | 20% | 30% | 37.4% above target | Included in 100.5% weighted financial result |
| Individual Qualitative | 30% | — | 100% | — | 100% for NEOs | 30.0% |
| AIP Outcome (2024) | Target ($) | AIP Payout % of Target | AIP Paid ($) |
|---|---|---|---|
| B. Bradford Martz | $360,000 | 130.5% | $469,971 |
Long-Term Incentive Plan (LTIP) Design (Fiscal 2024 grants)
| Vehicle | % of Target Award | Vesting | Performance Metric | Notes |
|---|---|---|---|---|
| Options | 25% | Ratably over 3 years | — | Fair value via Black-Scholes; strike at grant date market price . |
| RSUs | 25% | Ratably over 3 years | — | Time-based vesting . |
| PSUs | 50% | 3 annual tranches | GAAP ROAE vs peer group median; 50–150% vesting band | Threshold is 750 bps below peer median; cap at 150% if 750 bps above; 2024 results drove maximum vesting of eligible tranches . |
PSU Vesting Outcomes (Earned in 2025 for prior grants)
| Grant Year | PSUs Eligible to Vest in 2025 | Tranche(s) Earned in 2025 | Earned Units |
|---|---|---|---|
| 2024 | 11,652 | First tranche (max) | 17,478 |
| 2023 | 25,404 | First and Second tranches (max) | 38,106; 38,106 |
| 2022 | 39,215 | Second and Third tranches (max) | 58,824; 58,823 |
Equity Ownership & Alignment
Beneficial Ownership (as of March 20, 2025)
| Holder | Shares Beneficially Owned | % of Outstanding | As-of Date |
|---|---|---|---|
| B. Bradford Martz | 284,141 | <1% | Mar 20, 2025 |
- Stock ownership guidelines: CEO 5× base salary; CFO 3×; other Section 16 officers 2×; pledged securities do not count; anti-hedging policy prohibits hedging by employees, officers, directors .
Outstanding Equity Awards (as of Dec 31, 2024; market value at $13.46/share)
| Grant Date | Options Exercisable (#) | Options Unexercisable (#) | Exercise Price ($) | Expiration | RSUs Not Vested (#) | RSUs Market Value ($) | PSUs Unearned (#) | PSUs Market Value ($) |
|---|---|---|---|---|---|---|---|---|
| May 27, 2022 | 91,632 | 58,315 | 1.70 | 5/27/2032 | 30,654 | 412,603 | 40,870 | 825,165 |
| May 4, 2023 | 17,884 | 35,768 | 4.33 | 5/4/2033 | 26,476 | 356,367 | 52,952 | 1,069,101 |
| Apr 3, 2024 | — | 23,327 | 10.37 | 4/3/2034 | 18,212 | 245,134 | 36,432 | 735,562 |
Insider Activity and Potential Selling Pressure (2024)
| Activity | Shares | Value Realized ($) | Notes |
|---|---|---|---|
| Options Exercised | 25,000 | 247,984 | Exercised into common shares. |
| Shares Vested (RSU/PSU) | 162,510 | 1,936,415 | Gross vesting value at vest dates. |
| Shares Withheld for Taxes | 48,239 | 575,409 | Indicates net shares delivered lower than gross. |
| Section 16 Timing | — | — | One late Form 4 filing for Martz (May 14, 2024, four transactions) . |
Employment Terms
- Agreement: Employment agreement dated Oct 31, 2012, amended & restated Oct 1, 2020; auto-renewing one-year terms; terminable on 60 days’ notice; eligible for base salary and performance-based bonuses at Committee discretion .
- Severance: If terminated without cause or resigns for good reason, salary continuation for 12 months, prior year unpaid bonus, pro-rata current year bonus, COBRA per law; restrictive covenants include confidentiality, non-disclosure, non-solicit, and non-compete .
- Equity Treatment: RSUs/options accelerate only upon termination without cause or for good reason within 24 months post-change-of-control; PSUs vest at actual or target levels depending on timing relative to change-of-control .
Potential Payments (as of Dec 31, 2024; illustrative)
| Scenario | Salary Continuation ($) | Benefits ($) | Most Recent Annual Incentive Bonus ($) | Acceleration of Equity ($) |
|---|---|---|---|---|
| Termination without cause | 525,000 | — | 469,971 | — |
| Termination due to death | — | 15,186 | 469,971 | 2,767,322 |
| Termination due to disability | — | — | 469,971 | 2,767,322 |
| Retirement | — | — | — | 2,767,322 |
| Qualifying termination post change-of-control | — | — | — | 2,767,322 |
Performance & Track Record
| Metric | FY 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|
| Combined Ratio | 67.5% | 65% target achieved | 60.6% | 56.9% (Underlying 57.8%) |
| Net Premiums Earned ($mm) | — | 68.3 (+9.0% y/y) | 78.4 (+23.8% y/y) | 80.8 (+8.5% y/y) |
| Total Revenues ($mm) | 296.7 | 72.2 | 86.5 | 90.4 |
| Net Income from Continuing Ops ($mm) | 76.3 | 19.7 | 28.0 | 32.5 |
| Core Income ($mm) | — | 20.7 | 26.8 | 30.5 |
| Book Value per Share ($) | 4.89 | 5.40 | 6.00 | 6.71 |
Management commentary: Martz highlighted achieving the 65% combined ratio target and ROE >30% in Q1 2025; emphasized market share gains and credit rating upgrades in Q2; and strong underwriting with below-target combined ratios in Q3 .
Compensation Committee Analysis
- Committee composition: Kent G. Whittemore (Chair), Sherrill W. Hudson, Alec L. Poitevint; all independent under Nasdaq rules .
- Consultant: Pay Governance LLC; independence assessed, no conflicts; supports benchmarking and plan design .
- Philosophy and pay mix: Explicit “pay-for-performance”; ~61.6% of target compensation for NEOs (ex-CEO) tied to annual and long-term incentives; metrics include combined ratio, ROE, and GAAP ROAE vs peers for PSUs .
- Peer group (2024): GBLI, HIPO, HCI, UFCS, PLMR, UVE, KINS, DGICA, HRTG .
- Governance features: No option repricing without shareholder approval; clawback policy updated Nov 20, 2024; anti-hedging policy; no heightened CIC severance multiples .
Say-on-Pay & Shareholder Feedback
- 2022 say-on-pay approval ~98%; no changes to program in response .
- 2025 Annual Meeting outcomes (Proposal 3 - advisory approval of NEO compensation): For 32,203,753; Against 175,186; Abstained 28,825; Broker non-votes 8,991,388 .
- 2025 frequency vote: One-year 11,635,783; Two-years 79,080; Three-years 20,653,310; Abstained 39,591; Broker non-votes 8,991,388 .
Compensation Structure Analysis
- Year-over-year shifts: 2024 LTIP mix emphasized PSUs (50%) and added options/RSUs (25% each) with three-year vesting, increasing at-risk, performance-linked pay .
- Metric rigor: PSU threshold/maximum set relative to peer median ROAE with 750 bps bands; 2024 performance triggered maximum vesting of eligible PSU tranches, evidencing strong relative returns .
- Discretion: AIP qualitative at 30% paid at 100% of target for NEOs; financial components produced 100.5% weighted result, yielding 130.5% total payout for Martz .
- No repricing or tax gross-ups; clawback applicable for restatements/performance revisions .
Risk Indicators & Red Flags
- Hedging/Pledging: Anti-hedging policy in place; pledged securities not eligible for ownership guideline compliance .
- Option activity and vesting: Significant 2024 vesting and option exercises by Martz with tax-share withholding (potential near-term selling pressure around vesting windows) .
- Section 16 timeliness: One late Form 4 noted for Martz (May 14, 2024) .
- Related party transactions: None involving Martz since Jan 1, 2024 reported; broader historical transactions primarily relate to other insiders (e.g., AmCo merger) .
Expertise & Qualifications
- Credentials: CPA (Florida), Global CMA; B.S. Finance; MBA; extensive insurance finance and operating experience .
- Board-qualifying experience: Financial expert-level background and risk management oversight from CFO and President roles; now CEO .
Employment Terms (Detailed)
- Contract term: Auto-renewing one-year with 60-day notice; severance for termination without cause/good reason includes 12 months salary continuation, prior year bonus, pro-rata current year bonus; restrictive covenants (confidentiality, non-solicit, non-compete) .
- Change-of-control: Double-trigger acceleration for RSUs/options/PSUs within 24 months as specified; PSUs vest at actual or target depending on timing .
Investment Implications
- Alignment: High, via substantial performance-based equity (PSUs) with peer-relative ROAE targets, three-year vesting, and ownership guidelines; robust clawback and anti-hedging reduce misalignment risk .
- Retention risk: Moderate; 12-month salary severance and equity acceleration only upon qualifying terminations post-CIC (double-trigger) suggest balanced retention incentives without excessive guarantees .
- Trading signals: Concentrated vesting and prior option exercises indicate potential episodic selling pressure around vest dates; monitor Section 16 filings and vesting calendars (e.g., May and April grant anniversaries) .
- Performance linkage: AIP tied to combined ratio and ROE, with demonstrated below-target combined ratios and rising book value per share in 2025 under Martz, supporting pay-for-performance narratives and potential positive equity sentiment .