Dava Ritchea
AFFILIATED MANAGERS GROUPAbout Dava Ritchea
Dava E. Ritchea is Chief Financial Officer of AMG, age 40, appointed effective April 1, 2024, with prior CFO roles at Sculptor Capital Management and Assured Investment Management; she holds a B.S. in Business Administration from Carnegie Mellon University . In 2024, AMG delivered EEPS of $21.36 (+10% YoY), GAAP diluted EPS of $15.13 (+4% YoY), and Adjusted EBITDA of $973.1 million (+4% YoY); AMG stock rose +12% over the 3-year period, outperforming the peer median of (3%) . These metrics drive incentive outcomes (nine quantitative scorecard metrics with equal weighting) that determine executive payouts, including the CFO’s .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Sculptor Capital Management Inc. | Chief Financial Officer; Partner Management Committee member | 2021–2024 | Led public company finance at an alternatives-focused manager; relevant to AMG’s growth focus in private markets and liquid alternatives . |
| Assured Investment Management LLC (f/k/a BlueMountain Capital Management) | Chief Financial Officer | 2017–2021 | Ran finance for multi-strategy alternatives manager; experience aligns with AMG’s exposure to alternatives . |
| Credit Suisse; Barclays Capital; Lehman Brothers | Investment banking and strategy roles | Earlier career | Capital markets and strategy foundation beneficial to AMG capital allocation and investor engagement . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | — | — | No current external public company directorships disclosed for Ritchea . |
Fixed Compensation
| Year | Base Salary ($) | Notes |
|---|---|---|
| 2024 | $375,000 | Pro-rated given April 1, 2024 start date. |
| 2024 Letter Terms | $500,000 | Offer letter sets annual base salary; eligible for 2024 incentive per Committee; equity grant to align and make-whole. |
- All other compensation (benefits and insurance) in 2024: $6,883 .
- No employment agreement; executives are covered by standard restrictive covenants (see Employment Terms) .
Performance Compensation
AMG uses a formulaic scorecard (100% quantitative) across nine metrics with equal weighting; Committee applies result to Target Total Payouts and a pre-set tiered mix between cash and equity awards .
| Metric (2024) | Weight | Target | Actual | Score |
|---|---|---|---|---|
| Annual Adjusted EBITDA ($mm) | 11.1% | $964 | $973 | 101% |
| Annual EEPS | 11.1% | $20.45 | $21.36 | 104% |
| EEPS/GAAP EPS Growth Percentile (3Y, vs. peers) | 11.1% | 50% | 77% | 154% |
| TSR: Absolute (1/3/5-year composite) | 11.1% | 10% | 12% | 121% |
| TSR: Relative (1/3/5-year composite) | 11.1% | Peer median (50%) | 50% | 100% |
| 3Y Rolling Yield on New Affiliate Investments | 11.1% | 12% | 14% | 115% |
| 3Y Rolling Adjusted Return on Capital | 11.1% | 10% | 14% | 145% |
| AUM from Strategic Target Areas | 11.1% | 44% | 46% | 104% |
| Employee Engagement Score | 11.1% | 75% | 89% | 118% |
| Overall Performance Assessment | — | — | — | 118% |
- CFO 2024 Annual Incentive Compensation outcome: $3.6 million .
- For CFO and General Counsel, 2024 Performance Assessment applied to 75% of Target Total Payout (given April 1 appointment/promotion) .
- Payout mix uses pre-set tiered formula; equity awards majority performance-based from 2024 (75% of formulaic equity) with 4-year performance/vesting .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | As of March 31, 2025, Ritchea beneficially owned no AMG common shares (—, less than 1%) . |
| Options | None reported for Ritchea; no options exercisable/unexercisable at 2024 year-end . |
| Unvested Performance RSUs | 22,260 unearned shares (initial awards) outstanding at 2024 year-end, market value $4,116,319, subject to performance . |
| Ownership Guidelines | 7x annual base salary for NEOs; executives encouraged to meet within 5 years; all NEOs and directors currently satisfy guidelines . |
| Equity Holding Policy | Non-CEO NEOs may not sell AMG shares unless vested, unrestricted holdings exceed 1x Total Annual Compensation; sales further limited until ≥3x Total Annual Compensation . |
| Hedging/Pledging | Prohibited for directors, officers, and employees (no margin, pledging, or net-short exposures) . |
Employment Terms
| Term | Provision |
|---|---|
| Start Date | Effective April 1, 2024; base salary $500,000 per offer letter; eligible for 2024 incentive; equity grant $3,500,000 as make-whole and alignment . |
| Contract | No individualized employment agreement for NEOs; program governed by equity plans and company policies . |
| Restrictive Covenants | Non-compete and non-solicit of employees up to 2 years; client non-solicit 1 year post-separation . |
| Change-of-Control | No individual CIC agreements; double-trigger required (CIC plus termination without cause/for good reason) for acceleration; at 2024 year-end, performance-based awards (incl. Ritchea’s) had no payable amount absent satisfying performance vesting . |
| Clawbacks | Company policy and NYSE-compliant clawback effective Oct 16, 2023; recoupment on material restatement for incentive-based pay over last 3 fiscal years . |
Equity Grants and Vesting Schedules
| Grant | Grant Date | Type | Shares (Threshold/Target/Max) | Vesting | Performance Conditions |
|---|---|---|---|---|---|
| Initial Long-Term Performance Achievement Award (3-year) | May 6, 2024 | Performance RSUs | 16,695 / 25,043 / — | Cliff vest March 5, 2027 | Average ROE over 3-year period (Dec 31, 2026); 50% payout at ≤11%; 60–150% between 12–22%; 100% at 16–17% . |
| Initial Long-Term Performance Achievement Award (5-year) | May 6, 2024 | Performance RSUs | 5,565 / 8,348 / — | Cliff vest March 5, 2029 | Average ROE over 5-year period (Dec 31, 2028) with same payout schedule; grant values assume midpoint ROE . |
| Initial Grant Fair Values | May 6, 2024 | — | $2,625,000 (3-year) and $875,000 (5-year) | — | Make-whole/alignment per offer; subject to continued employment and CIC/death/disability exceptions . |
Fixed Compensation (Detail)
| Year | Salary ($) | Cash Bonus ($) | Stock Awards ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|
| 2024 | $375,000 | $1,594,000 | $3,500,000 | $6,883 | $5,475,883 |
| Offer Letter Terms (2024) | $500,000 | Eligible per Committee | $3,500,000 (alignment/make-whole) | — | — |
Performance & Track Record
- AMG 2024 outcomes: EEPS $21.36 (+10% YoY), Adjusted EBITDA $973.1mm (+4% YoY), GAAP diluted EPS $15.13 (+4% YoY); alternatives EBITDA contribution increased to ~50%; ~36% share count reduction since 2019 .
- Shareholder alignment: say-on-pay support 97% in 2024 (98% in 2023; 97% in 2022) .
- Executive program enhancements: increased performance equity to 75% of equity mix; extended vesting/performance period to 4 years; added 4-Year Cumulative EEPS as second metric for performance awards .
Compensation Structure Analysis
- Increased at-risk equity mix and longer-duration vesting (4- and 5-year cliff) enhances retention and alignment; addition of EEPS metric raises rigor of long-term payout conditions .
- Streamlined metrics to nine (89% financial), equal weighting, targets pre-set with thresholds and caps; relative measures (earnings rank, TSR) mitigate macro impacts .
- No employment/CIC agreements (no golden parachutes); double-trigger acceleration; robust clawback policy; anti-hedging/pledging .
Risk Indicators & Red Flags
- Pledging/hedging prohibited; insider trading policy robust .
- No tax gross-ups; no option repricing; equity awards subject to minimum vesting of one year .
- As of 2024 year-end, Ritchea’s performance awards had no payable acceleration without metrics being achieved; mitigates windfall risk .
Equity Ownership & Alignment (Detail)
| Item | 2024 Year-End Status |
|---|---|
| Performance RSUs (unearned) | 22,260 shares, $4,116,319 market/payout value (subject to performance); no time-based RSUs reported for Ritchea . |
| Options | None . |
| Beneficial Ownership (3/31/2025) | — shares; group totals show executives/directors 1,220,389 shares (4.2%) . |
| Guidelines Compliance | All NEOs and directors satisfy ownership guidelines; NEO guideline is 7x salary; additional equity holding thresholds constrain sales . |
Employment Terms (Detail)
| Topic | Policy |
|---|---|
| Non-compete/Non-solicit | Up to 2-year non-compete and non-solicit of employees; 1-year client non-solicit post-separation . |
| CIC Acceleration | Double-trigger; performance awards require satisfaction of conditions; at 2024 year-end, no amount payable for Ritchea’s performance awards . |
| Retirement Treatment | Qualifying awards continue to vest per schedule; options exercisable up to 2 years post-exercisability or until expiration; subject to covenants . |
Investment Implications
- Alignment/Retention: Multi-year cliff vesting (to 2027 and 2029) and performance hurdles (Average ROE and added EEPS) reduce near-term selling pressure and support retention through critical growth initiatives; equity holding policy further constrains sales until ownership thresholds are met .
- Pay-for-Performance Linkage: With 89% of scorecard metrics financial and rigorous thresholds/caps, CFO incentives are tightly tied to earnings quality and capital allocation outcomes; 2024 overall score of 118% yielded a measured CFO incentive outcome of $3.6 million .
- Governance Quality: No CIC/golden parachute agreements, strong clawback, anti-hedging/pledging, and high say-on-pay support (97%) indicate investor-friendly compensation governance, lowering headline risk .
- Execution Risk: Performance-vest awards imply continued delivery on EEPS/ROE targets; any shortfall would directly reduce realized compensation, aligning downside for executives with shareholders .