Jeffrey Gonzales
About Jeffrey Gonzales
Jeffrey M. Gonzales (age 40) is Chief Financial Officer and Treasurer of Ares Commercial Real Estate Corporation (ACRE) since August 2024; he also signs ACRE’s SEC filings in this capacity. He is a Managing Director in Ares’ Finance and Accounting Department, previously worked in Deloitte’s Financial Services Assurance practice, holds a B.S. in Accounting from Santa Clara University, and is a CPA . In Q3 2025, ACRE reported GAAP net income of $4.7 million, Distributable Earnings of $5.5 million, and the CFO highlighted ~$173 million of available capital and nearly $500 million of year‑to‑date repayments bolstering liquidity .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Ares Management | Managing Director, Finance & Accounting | 2013–present | Finance leadership within Ares; supports ACRE and affiliates . |
| Deloitte & Touche LLP | Financial Services Assurance Practice | Before 2013 | Advised on financial statement presentation, complex transactions, and new accounting pronouncements, primarily for asset management clients . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Ares Management | Managing Director, Finance & Accounting | 2013–present | Concurrent with ACRE CFO role . |
Fixed Compensation
Note: ACRE is externally managed; ACRE reimburses the Manager for the allocable share of the CFO’s cash compensation based on time spent. Amounts below reflect ACRE’s reimbursement (not total pay from Ares) .
| Year | Base salary ($) | Target bonus % | Actual bonus paid ($) | Source/Notes |
|---|---|---|---|---|
| 2024 | 189,526 | Not disclosed | 131,807 | Reimbursed to Manager for CFO’s time on ACRE . |
Performance Compensation
Equity awards (RSUs)
| Grant date | Instrument | Shares granted | Grant date fair value ($) | Vesting schedule |
|---|---|---|---|---|
| Dec 20, 2024 | RSUs | 25,000 | 159,750 | Vest in three equal annual installments on Jan 1, 2026, 2027, 2028, subject to continued service . |
- 2024 equity determination: Awards were discretionary; the Compensation Committee considered stock performance, return on equity, investment activity, financing facility management, operations/policies, and individual performance; no fixed metric weightings or PSUs disclosed .
Outstanding/vested equity
| As of 12/31/2024 | Unvested RSUs (#) | Market value ($) | 2024 RSUs vested (#) | 2024 value realized on vesting ($) |
|---|---|---|---|---|
| Jeffrey M. Gonzales | 46,166 | 271,918 | 6,250 | 64,620 |
| Based on $5.89 close on 12/31/2024 . | Value based on closing price at vest dates . |
Vesting cadence and upcoming dates (insider selling pressure lens)
- Prior grants and vesting structure (per 12/31/2024 outstanding table) :
- 2021: 2,166 RSUs vested on Jan 1, 2025 .
- 2022: 6,000 RSUs – one‑half vested on Jan 1, 2025; remaining one‑half vests Jan 1, 2026 .
- 2023: 13,000 RSUs – one‑third vested on Jan 1, 2025; remaining two‑thirds vest on Jan 1, 2026 and Jan 1, 2027 .
- 2024: 25,000 RSUs – three equal installments on Jan 1, 2026, 2027, 2028 .
- Implication: Known annual vest dates (January 1 each year) may create predictable windows of potential selling pressure as shares vest, subject to blackout policies and individual decisions .
Options
- No stock options have been granted by ACRE to date .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 50,751 shares as of March 26, 2025; <1% of outstanding shares (54,856,977) . |
| Unvested equity | 46,166 RSUs outstanding as of 12/31/2024 . |
| Stock ownership guidelines | CFO must own at least 32,000 shares; directors/executives have met or are on track within grace periods . |
| Hedging/pledging | Hedging, short sales, derivative transactions, margin accounts, and pledging prohibited without prior approval under Insider Trading Policy . |
| Clawback | NYSE‑compliant clawback adopted Oct 31, 2023; 3‑year lookback on incentive‑based comp upon restatement . |
| Say‑on‑pay sentiment | ~90% approval at 2024 annual meeting (for 2023 compensation program) . |
Employment Terms
- Structure: As an employee of Ares (the external Manager), the CFO receives compensation from Ares; ACRE reimburses the allocable portion for time spent on ACRE. ACRE does not maintain a traditional cash severance program for the CFO; equity awards are issued by ACRE and governed by award agreements .
- Change‑in‑control and separation treatment:
- Change in Control: Compensation Committee may adjust awards as needed, provided no substantial adverse economic impact; no automatic single‑trigger acceleration disclosed .
- Death/Disability: RSUs fully vest .
- Change of Manager Event: RSUs fully vest .
- Termination by Ares Operations LLC without Cause: RSUs that would have vested in the next 12 months accelerate .
Acceleration value illustration (assuming event on 12/31/2024; $5.89 stock price):
| Scenario | Accelerated value ($) |
|---|---|
| Termination without Cause (Ares Operations LLC) | 55,955 |
| Death or Disability | 271,920 |
| Change of Manager Event | 271,920 |
- Management Agreement context: ACRE pays a 1.5% of stockholders’ equity base management fee and potential incentive fee (none incurred in 2024); agreement expired April 25, 2025 and auto‑renews annually unless terminated; ACRE reimburses certain personnel costs including CFO based on time allocation .
Performance & Track Record (under current CFO tenure)
| Metric (Q3 2025) | Value |
|---|---|
| GAAP net income | $4.7 million |
| Distributable Earnings | $5.5 million |
| Available capital (as of Sep 30, 2025) | ~$173 million (cash and available financing proceeds) |
| YTD loan repayments (through Q3) | Nearly $500 million |
| New loan commitments (subsequent to Q3 end) | $271 million |
| Common dividend declared | $0.15 per share for Q4 2025 |
- CFO commentary emphasized liquidity strengthening and portfolio repositioning (reducing risk‑rated and office loans), supporting increased investment activity .
Compensation Committee & Governance Notes
- Committee members: Messrs. April, Browning, Skinner (Chair) .
- Consultant: Ferguson Partners Consulting engaged to advise on long‑term equity framework; committee reviewed industry practices and strategy .
- Insider Trading Policy: Prohibits hedging, speculative trading, margin, pledging without prior approval .
- Stock ownership guidelines: CEO 100,000 shares; CFO 32,000 shares; 6‑year grace period for executives .
Investment Implications
- Alignment: Gonzales exceeds the CFO ownership guideline (50,751 owned vs. 32,000 required), with additional unvested RSUs; hedging/pledging constrained by policy; NYSE‑compliant clawback in place—favorable alignment and governance profile .
- Pay‑for‑performance: Cash compensation reimbursed by ACRE is modest and time‑based; equity is the primary at‑risk component, but awards are discretionary time‑vested RSUs (no disclosed PSU metrics), reducing direct linkage to objective targets; however, the committee considered stock performance and ROE in setting grants .
- Selling pressure: Annual January 1 vesting dates for multiple RSU tranches (2026–2028) may create recurring windows of potential selling; monitor Form 4s around early January each year for flow signals .
- Retention/COC risk: No traditional severance multiples; equity accelerates on death/disability and Change of Manager Event; limited 12‑month vest acceleration on without‑cause termination by Ares Operations LLC—moderate retention via unvested equity with defined triggers .
- Execution: CFO’s liquidity focus (available capital, repayments) supports portfolio repositioning and investment capacity; sustained progress here underpins dividend stability and credit performance—key drivers for a mortgage REIT’s valuation and risk profile .
Sources: 2025 DEF 14A (executive bios, compensation, equity, policies, governance), and Q3’25 8‑K/press materials (results, CFO commentary) .