Michael Linford
Chief Operating Officer at AFRM
Executive
About Michael Linford
Michael Linford is Chief Operating Officer of Affirm (since September 2024) and previously served as Chief Financial Officer from August 2018 to November 2024. He is 42 years old as of October 1, 2025 and has held senior roles across finance, M&A integration, and software operations at HPE/HP, Micro Focus, KKR, and McKinsey before joining Affirm . During his recent tenure as CFO/COO, Affirm’s FY2025 performance improved materially: GMV reached $36.7B (+38% YoY), revenue was $3.2B (+39% YoY), adjusted operating income rose to $778.1M, and GAAP net income was $52.2M versus a net loss in FY2024 . The value of a $100 investment in AFRM since its 2021 listing stood at $71.10 at FY2025 vs $31.07 at FY2024, indicating a sharp improvement year over year .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Hewlett Packard Enterprise (HPE) | CFO, HPE Software | Mar 2017 – May 2018 | Led finance for software business through portfolio and operational transition |
| HPE | VP, M&A Integration | 2015 – Mar 2017 | Drove transaction integration and synergy realization |
| Micro Focus | VP, License Verification & Strategic Deals | Sep 2017 – May 2018 | Commercial optimization and license compliance/value capture |
| HP Inc. | Various leadership roles | — | Finance/operational leadership in PC/printing ecosystem |
| KKR & Co. | Principal (Retail/Consumer PE) | — | Investing and value creation across consumer/retail |
| McKinsey & Company | Business Analyst | — | Strategy/operations in consumer, retail, energy |
External Roles
- None disclosed for public company directorships or committee roles for Linford .
Fixed Compensation
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Base Salary ($) | $475,000 | $475,000 | $500,000 |
| Target Bonus (% of salary) | — | 75% | 80% |
| Actual Annual Cash Incentive ($) | — | $464,443 | $562,860 |
Performance Compensation
Annual Cash Incentive Plan – FY2025
| Metric | Weight | Target | Actual | Payout Multiplier |
|---|---|---|---|---|
| Network Size (blended: active consumers, GMV, revenue less TC) | 50% | 100% | 106.7% | 133.7% |
| Total Revenue | 25% | $3.0B | $3.2B | 145.4% |
| Adjusted Operating Income | 25% | $506.5M | $778.1M | 150.0% |
| Total | 100% | — | 123.6% | 140.7% |
- Funding gate (GAAP operating income) at ≥$0 in Q4 FY2025; achieved .
- Linford (COO/former CFO) target opportunity 80% of base; actual payout was 140.7% of target, or $562,860 .
Long-Term Equity Awards
| Grant Year | Instrument | Grant Date | Quantity | Exercise Price | Vesting |
|---|---|---|---|---|---|
| FY2025 | Stock Options | 9/16/2024 | 127,877 | $44.06 | 25% at 1-year cliff; remainder monthly over 3 years (service-based) |
| FY2025 | RSUs | 9/16/2024 | 90,785 | — | 25% at 1-year cliff; remainder quarterly over 3 years (service-based) |
| FY2024 | Stock Options | 9/13/2023 | 459,627 | $23.35 | 25% at 1-year cliff; remainder monthly over 3 years (service-based) |
| FY2026 (structure change) | PSUs | 9/18/2025 | 44,488 | — | 3-year performance period (FY2026–FY2028); measures: Revenue less Transaction Costs growth 50%, Adjusted Op Inc growth 50%; payout 50%–200% of target at period end; cliff vest upon certification |
| FY2026 | RSUs | 9/18/2025 | 44,488 | — | Quarterly over 3 years beginning 12/1/2025 (service-based) |
Realized Activity (Liquidity/Pressure Signals)
| Category | FY 2024 | FY 2025 |
|---|---|---|
| Options Exercised (# / $ realized) | 130,000 / $5,929,300 | 400,000 / $25,439,680 |
| Stock Awards Vested (# / $ realized) | 52,271 / $1,595,796 | 54,475 / $2,522,131 |
Equity Ownership & Alignment
- Hedging prohibited by Insider Trading Policy (short sales, options, puts/calls, similar instruments). Pledging policy not specifically disclosed .
- Stock ownership guidelines: Executive Officers 3x annual base salary; CEO 5x; Directors 5x annual retainer .
| As of Date | Total Beneficial Ownership (Class A) | Notable Components |
|---|---|---|
| Sept 30, 2025 | 1,874,620 shares (less than 1%) | Includes 1,789,707 options exercisable; 33,010 options vesting within 60 days; 4,671 RSUs vesting within 60 days |
| Sept 30, 2024 | 2,273,067 shares (less than 1%) | Includes 2,082,503 options exercisable; 53,717 options vesting within 60 days; 11,283 RSUs vesting within 60 days |
Selected unvested holdings as of June 30, 2025 (retention/overhang):
- Unvested RSUs: 90,785 (grant 9/16/24) and 35,035 (grant 9/16/22), with disclosed market value at 6/30/25 .
- Unexercised/unvested options include series from grants 1/12/21, 9/16/22, 9/13/23, 9/16/24 (see Outstanding Equity Awards table) .
Employment Terms
- Roles: COO since September 2024; CFO August 2018–November 2024 .
- Officer Severance Plan (double-trigger on change-in-control):
- CIC + qualifying termination (or within 3 months pre-/12 months post-CIC): cash severance (100% of base salary for NEOs), pro‑rata target bonus, up to 12 months health benefits, and full acceleration of unvested time-based equity; CEO multiple is higher (150% of salary, 18 months benefits) .
- Non‑CIC termination (without cause): 50% of base salary and up to 6 months health benefits (NEOs) .
- Death/Disability: pro‑rata bonus (greater of target or actual), 12 months benefits, and 12 months acceleration for equity (performance awards at target) .
- Standard “cause”/“good reason” definitions included; no excise tax gross‑ups (payments cut back if needed to avoid 280G excise tax) .
Compensation Committee, Peer Group, Say‑on‑Pay
- Committee (independent): Jeremy Liew (Chair), Richard Galanti, Brian D. Hughes, Christa S. Quarles; adviser: Semler Brossy .
- Peer group (FY2025 decisions): Bill.com, Block, Box, Dropbox, HubSpot, MarketAxess, MongoDB, Okta, Opendoor, Paycom, Paylocity, Shopify, SoFi, Tradeweb, Twilio, Upstart, WEX, Zscaler .
- Say‑on‑Pay investor support: 96.0% for FY2023 (reported in 2024 proxy) and 93.9% for FY2024 (reported in 2025 proxy) .
Performance & Track Record
| Metric | FY 2024 | FY 2025 |
|---|---|---|
| GMV | $26.6B (+32% YoY) | $36.7B (+38% YoY) |
| Revenue | $2.3B (+46% YoY) | $3.2B (+39% YoY) |
| Adjusted Operating Income | $380.9M (vs. -$72.3M FY2023) | $778.1M |
| Net Income (Loss) | $(517.8)M | $52.2M |
- TSR proxy metric (value of $100 since listing) improved to $71.10 at FY2025 vs $31.07 at FY2024 .
Investment Implications
- Pay-for-performance alignment strengthening: FY2026 introduces PSUs with multi-year goals on revenue less transaction costs and adjusted operating income, with 50%–200% payout range, enhancing performance linkage vs. prior time-based equity for NEOs .
- Retention vs. selling pressure: Large unvested equity (options/RSUs) supports retention but creates periodic vesting events; Linford exercised 400k options in FY2025 ($25.4M realized), up from 130k in FY2024 ($5.9M), indicating meaningful liquidity activity that could contribute to episodic supply depending on 10b5‑1 plans and market windows .
- Governance mitigants: Double‑trigger CIC with full acceleration of time‑based equity (not single trigger), robust clawback policy, prohibition on hedging, no excise tax gross‑ups—collectively moderate risk of shareholder‑unfriendly outcomes .
- Ownership alignment: Executive ownership guideline at 3x salary and significant option exposure tie outcomes to shareholder value; beneficial ownership footnotes show substantial option-based exposure, though pledging policy is not specifically disclosed .
Net: Linford’s package has shifted toward higher at-risk, performance-based equity with PSU adoption, while FY2025 cash and equity outcomes reflect Affirm’s strong growth and profitability inflection. Watch for vesting/exercise calendars and PSU target rigor as key signals for compensation-quality and potential trading pressure .