Russell Hutchinson
Chief Financial Officer at ALLY
Executive
About Russell Hutchinson
Russell E. Hutchinson, age 50, is Ally’s Chief Financial Officer (since July 2023), overseeing finance, accounting, capital markets, treasury, IR, supply chain, and modeling/analytics. He holds a BSc in Engineering Physics (Queen’s University) and an MBA (University of Chicago Booth), and previously spent ~20 years in Goldman Sachs’ Investment Banking Division before serving as Goldman’s Chief Strategy Officer (2021–2022) and COO for Global M&A (Jan–Apr 2023) . Under the leadership team’s 2024 execution, Ally delivered Adjusted EPS of $2.35, Core ROTCE of 8.5%, $8.2B net revenues, and $39.2B consumer auto originations from 14.6M applications, while deposit customers grew to 3.3M and Corporate Finance achieved record core pre-tax income of $433M with 37% ROE .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Goldman Sachs | COO, Global M&A | 2023 (Jan–Apr) | Operational leadership for global M&A execution |
| Goldman Sachs | Chief Strategy Officer | 2021–2022 | Oversaw M&A, strategy and innovation for the firm |
| Goldman Sachs (IBD) | Managing Director, Financial Institutions | ~2001–2020 | Led advisory for financial services clients, including Ally |
| Boston Consulting Group | Associate Consultant | Early career | Strategy experience, analytical foundation |
External Roles
| Organization | Role | Years | Focus/Notes |
|---|---|---|---|
| The Studio Museum in Harlem | Board of Trustees (Member) | n/a | Cultural institution governance |
| Council on Chicago Booth | Member | n/a | School advisory to leadership |
| Charlotte Center City Partners | Board of Directors (Member) | n/a | Urban economic development |
Fixed Compensation
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Base Salary ($) | 346,154 | 750,000 | 750,000 (no change) |
| All Other Compensation ($) | 1,154,982 | 185,625 | — |
Notes: 2023 reflects partial year as CFO (joined July 2023). 2025 base approved unchanged .
Performance Compensation
- Structure and metrics:
- Annual incentive funded via a five-pillar scorecard (financial metrics and business indicators carry heavier weight; risk, consumer, cultural pillars balance “how” objectives). NEOs’ incentives are then allocated 40% cash and 60% equity (50% PSUs/50% RSUs) .
- PSUs: 3-year performance period; 2023/2024/2025 PSUs measure Core ROTCE (ex-OCI) with a relative TSR modifier; payout range 0–150% of target .
- 2022 PSU cohort vested at 32% of target (headwinds from higher rates reducing TSV, partially offset by strong Core ROTCE) .
| Item | 2023 | 2024 |
|---|---|---|
| Annual Cash Incentive/Bonus ($) | 1,800,000 | 1,600,000 (40% of 2024 actual incentive) |
| Stock Awards ($, RSU+PSU grant-date value) | 4,250,050 | 2,703,825 |
| Total Actual Incentive ($) | — | 4,000,000 (89% of $4.5M target; 40% cash/60% equity) |
| PSU Design | Core ROTCE (ex-OCI) + TSR modifier; 0–150% vesting after 3 years | Core ROTCE (ex-OCI) + TSR modifier; 0–150% vesting after 3 years |
| RSU Vesting | 3-year ratable for annual program; separate 100-share grant = 3-year cliff | 3-year ratable for annual program; 100-share grant = 3-year cliff |
Scorecard outcomes (company level) for 2024: below target on financial metrics (at low end of target ranges), at target on business indicators, above target on risk, consumer, and cultural; overall below-target pool funding .
Equity Ownership & Alignment
| Component | Amount | Notes |
|---|---|---|
| Common Shares Beneficially Owned | 42,636 | As of Mar 13, 2025 |
| Preferred Shares Beneficially Owned | 6,000 | As of Mar 13, 2025 |
| Stock-Settled Units (vested or vesting within 60 days) | — | As of Mar 13, 2025 |
| Unvested RSUs (settle in shares) | 185,585 | As of Mar 13, 2025 |
| PSUs (assumed at target; cash-settled) | 66,608 | As of Mar 13, 2025 |
| Implied Value of Total Exposure ($) | 9,924,349 | Based on $32.99 close on Mar 13, 2025 |
| Ownership % of Common Outstanding | ~0.014% | 42,636 ÷ 307,135,226 shares outstanding (Mar 13, 2025) |
- Vesting schedules and potential selling pressure:
- 2024 RSUs granted to Hutchinson: 35,886 units (plus a broad-based 100-RSU grant) vest in equal installments over three years; PSU target 35,886 units (cash-settled), performance/payout at 0–150% after 3 years .
- Outstanding RSUs at 12/31/2024: 35,886 (2024 grant), plus prior 2023 grants (72,766 and 58,073) shown as unvested; these typically vest on each of the first, second, and third anniversaries of grant, creating staggered annual settlements over 2025–2027 .
- Ownership guidelines and restrictions:
- Stock ownership guidelines: CEO 6x base salary; other NEOs 3x base salary; until met, must retain 50% of net shares from equity awards .
- Anti-hedging and anti-pledging policies apply to executives and directors; personal trading restrictions include prohibitions on hedging and pledging .
Employment Terms
| Scenario | Cash Severance | Annual Incentive Severance | Equity Acceleration Value ($) | Outplacement |
|---|---|---|---|---|
| Termination Without Cause or Qualifying Termination | $750,000 (1x base) | — | 7,299,623 (unvested RSUs/PSUs as described) | $20,000 |
| Termination Following Change-in-Control | $1,500,000 (2x base) | $3,600,000 (2x annual cash incentive opportunity) | 7,299,623 | $20,000 |
| Death/Disability | — | — | 7,299,623 | — |
- Equity treatment:
- RSUs: if awards aren’t continued/assumed at CIC, they vest; if continued, double-trigger (CIC plus qualifying termination). Death/disability triggers vest; without cause/qualifying termination or retirement: vest on original schedules .
- PSUs: death/disability—deemed at target (if before end of period) or based on actual (if after); retirement/without cause/qualifying termination—vest, payout on original schedule (excess over target prorated for service if terminated without cause/qualifying termination). At CIC, if not continued/assumed, they vest; if continued, double-trigger .
- Employment agreements: NEOs are at-will; no individual employment contracts .
- Clawbacks: Ally adopted an NYSE 303A.14-compliant policy to recover erroneously awarded incentive-based compensation upon restatement; policy applies to executive officers and encompasses stock-price/TSR-based awards with reasonable-estimate methodology .
Related Policies, Governance, and Say-on-Pay
- AIP (amended and restated effective Jan 1, 2024) governs annual incentive pools, discretion, and alignment with control functions; no formulaic auto-payouts; awards can be cash or equity under the ICP .
- Insider trading policy requires blackout compliance, pre-clearance for covered persons, and bans hedging/pledging and short sales .
- 2024 Say-on-Pay received 91% support; directors averaged 97% support .
- Compensation philosophy emphasizes long-term equity, Core ROTCE as primary PSU metric, and TSR modifier; heavier equity weighting vs prior CEO for the current CEO; for NEOs, 40% cash / 60% equity mix .
Investment Implications
- Alignment: Hutchinson’s pay mix is majority at risk with multi-year equity (PSUs tied to Core ROTCE ex-OCI and TSR modifier), and Ally enforces stringent anti-hedging/pledging and ownership guidelines (3x salary for NEOs with 50% net share retention until met), indicating strong shareholder alignment .
- Vesting/supply: A visible ladder of RSU tranches (2023 and 2024 grants) vesting over 2025–2027 and cash-settled PSUs maturing after 3 years suggests manageable insider selling pressure; PSUs being cash-settled also reduce direct share issuance at vesting .
- Retention/transition risk: Explicit severance economics and double-trigger CIC equity protection reduce abrupt turnover risk; at-will status and scorecard-driven below-target pool funding in 2024 highlight continued performance accountability .
- Track record: As CFO during a difficult macro year, Ally maintained Core ROTCE of 8.5%, grew key franchises (Insurance premiums, engaged savers, Corporate Finance record income/ROE), and executed capital/risk actions—constructive for credibility on return expansion over time .