Christopher Griffith
About Christopher Griffith
Christopher Griffith, age 49, is ACIC’s Chief Operating Officer and Chief Information Officer, roles he has held since July 2021 and October 2018, respectively. He has 25+ years of technology leadership experience, including CIO at Safety National, and holds a B.S. in Computer Science (University of South Carolina) and an Executive MBA (University of Missouri–Columbia) . Company performance context for his tenure: 2024 combined ratio was 67.5% vs 75% AIP target ; core income after-tax ROE was 37.4% above target (helped drive maximum PSU vesting) ; 2024 TSR on a $100 base reached $322.99 vs peer group $150.26, with net income of $75.7M .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Safety National Casualty Corp | Vice President & Chief Information Officer | Apr 2013 – Sep 2018 | Led data/digital initiatives; oversaw and developed 200+ IT professionals |
| Various (prior to Safety National) | Executive-level IT roles | Not disclosed | Senior technology leadership across industries |
External Roles
- No external public-company directorships or committee roles disclosed for Griffith in the proxy .
Fixed Compensation
| Component | 2024 | 2025 (effective Jan 1, 2025) | Notes |
|---|---|---|---|
| Base Salary | $460,000 | $480,000 | Annual review; set by Compensation & Benefits Committee |
| Target Annual Incentive (AIP) | $265,000 | Not disclosed | AIP targets and weights set annually |
| AIP Paid (Actual) | $345,951 | N/A | 2024 payout at 130.5% of target on metric achievement |
| Retention Payment (Dec 2022) | $207,900 | — | Subject to repayment if resignation or certain terminations before 12/31/2023 |
Performance Compensation
Annual Incentive Plan (AIP) – FY2024 Outcome
| Metric | Weight | Target | Actual/Payout Basis | Payout Contribution |
|---|---|---|---|---|
| Combined Ratio | 35% | 75% | 67.5% actual | Contributed to overall weighted outcome |
| Core Income After-Tax ROE | 35% | 20% | 37.4% above target (relative) | Contributed to overall weighted outcome |
| Qualitative Performance | 30% | 100% target | Committee awarded 100% of target | 30% of payout |
| Weighted Average (quantitative) | — | — | 100.5% | — |
| Total AIP Payout (% of Target) | — | — | 130.5% | $345,951 |
Long-Term Incentive Plan Design and 2024 Grants
| Vehicle | Grant Date | Terms | Size |
|---|---|---|---|
| Performance Stock Units (PSUs) | Apr 3, 2024 | 3 annual tranches; vesting based on GAAP ROAE vs peer median; 50–150% vesting range; max earned at +750 bps vs peer median | 19,286 target PSUs |
| RSUs | Apr 3, 2024 | Time-based; vest ratably over 3 years | 9,643 RSUs |
| Stock Options | Apr 3, 2024 | Vest ratably over 3 years; $10.37 strike; expire 4/3/2034 | 12,870 options |
PSU vesting results tied to 2024 performance:
- 2024 PSUs: first tranche earned at 150% (6,429 eligible; 9,644 earned) .
- 2023 PSUs: second tranche earned at 150% (13,972 eligible; 20,958 earned) .
- 2022 PSUs: third tranche earned at 150% (21,568 eligible; 32,352 earned); second tranche previously earned at 150% .
Equity Ownership & Alignment
Beneficial Ownership (as of March 20, 2025)
| Holder | Shares Beneficially Owned | % Outstanding |
|---|---|---|
| Christopher Griffith | 124,656 | <1% |
Outstanding Awards and Unvested Equity (as of Dec 31, 2024)
| Grant | Exercisable Options (#) | Unexercisable Options (#) | Strike | Expiration | Unvested RSUs (#) | Market Value RSUs ($) | Unearned PSUs (#) | Market Value PSUs ($) |
|---|---|---|---|---|---|---|---|---|
| May 27, 2022 | 29,148 | 32,073 | $1.70 | 5/27/2032 | 16,860 | $226,936 | 22,478 | $453,831 |
| May 4, 2023 | 9,836 | 19,672 | $4.33 | 5/4/2033 | 14,562 | $196,005 | 29,124 | $588,014 |
| Apr 3, 2024 | — | 12,870 | $10.37 | 4/3/2034 | 10,050 | $135,273 | 20,100 | $405,819 |
Notes:
- Market values reflect $13.46 share price on 12/31/2024 .
- Stock ownership guidelines: Other Section 16 officers must hold 2x base salary; unearned PSUs/options and pledged securities do not count toward compliance . Compliance status for Griffith is not disclosed .
- Anti-hedging policy prohibits hedging transactions; clawback policy updated Nov 20, 2024 .
- Insider selling pressure indicator: Griffith exercised 70,000 options in 2024, realizing $569,534 .
Employment Terms
- Employment agreement entered Oct 1, 2018; amended and restated Oct 1, 2020; auto-renews annually each Oct 1 unless 60–90 days’ notice is given .
- Severance for termination without cause or resignation for good reason: 12 months’ base salary continuation; prior-year earned bonus; pro rata current-year AIP based on actual performance; COBRA as provided by law .
- Equity on termination without cause: RSUs and PSUs unvested generally forfeited; restricted stock awards vest in full; vested options exercisable up to 3 months post-termination (or earlier expiration) .
- Change-in-control (double trigger within 24 months): RSUs vest immediately; PSUs vest at actual for completed portion and target for uncompleted portion; all options vest and are exercisable up to 3 months post-termination (or expiration) .
- Restrictive covenants: confidentiality, non-disclosure, non-solicitation, and non-compete required for separation benefits; non-compete duration not specified in proxy .
Performance & Track Record (Company context)
| Metric | 2023 | 2024 |
|---|---|---|
| Total net revenues from continuing operations ($000s) | $264,400 | $296,657 |
| Net income attributable to ACIC ($000s) | $309,911 | $75,718 |
| Combined ratio (continuing ops) | 60.9% | 67.5% |
| Book value per share | $3.61 | $4.89 |
| TSR – Value of $100 investment | $227.00 | $322.99 |
| Peer Group TSR – Value of $100 | $96.60 | $150.26 |
Highlights:
- 2024 net revenues increased $32.3M YoY on premium growth and investment income; expenses rose (losses/LAE, G&A) .
- Strategic reshaping: sale of Interboro Insurance Company closed Apr 1, 2025, exiting personal lines .
Compensation Structure Analysis
- Pay mix skewed to at-risk: for NEOs, 61.6% of target compensation linked to AIP/LTIP; design tied to ROE, EPS, gross premiums earned, and combined ratio .
- Year-over-year equity grants rising for Griffith: Stock awards $192,500 (2022), $272,250 (2023), $300,000 (2024); options $82,500 (2022), $90,750 (2023), $100,000 (2024) .
- AIP payout at 130.5% of target in 2024 signals strong metric achievement and potential cash comp uplift despite combined ratio rising YoY .
- PSUs use GAAP ROAE vs peer median; 2024 achieved maximum vesting (150%) across multiple tranches, a positive alignment with shareholder returns .
Risk Indicators & Red Flags
- Section 16 filing timeliness: one Form 4 for Griffith filed May 14, 2024 reported late by the company; minor process risk .
- Clawback policy updated to align with current rules; anti-hedging policy in place; equity plan prohibits option repricing without shareholder approval .
- No pledging of Griffith’s shares disclosed; pledged securities do not count toward ownership guidelines .
Compensation Peer Group & Say-on-Pay
- 2024 peer group used for compensation and PSU ROAE benchmarking includes GBLI, HIPO, HCI, UFCS, PLMR, UVE, KINS, DGICA, HRTG .
- Say-on-pay approval: ~98% support in 2022; next say-on-pay on 2025 ballot with Board recommending triennial frequency .
Investment Implications
- Strong incentive alignment: 2024 AIP and PSU outcomes reflect emphasis on profitability (combined ratio, ROE) and peer-relative ROAE; expect continued equity issuance pressure from multi-tranche PSU vesting and three-year RSU/option schedules .
- Ownership alignment: Griffith’s beneficial stake is modest (<1%), but sizable unvested PSUs/RSUs/options and recent 70,000 option exercise indicate both alignment through future vesting and potential selling supply around vesting and exercises .
- Retention and severance: Auto-renewing contract with 12-month salary severance and pro rata bonus supports retention; double-trigger CIC accelerations could be value-relevant in corporate events .
- Execution focus: Company’s move to specialty commercial lines and improved TSR vs peers, alongside metric-driven incentives, reduces execution risk; however, the higher combined ratio in 2024 vs 2023 warrants monitoring of underwriting discipline and AIP target setting .