Michael K. Parks
About Michael K. Parks
Michael K. Parks, 65, has been an independent Class II director of Ares Capital Corporation (ARCC) since 2019, with his current term expiring in 2027 . He brings deep finance and governance experience, including Managing Director roles at BlackRock’s Private Markets group (2015–2018), Crescent Capital Group (2011–2013), and TCW (from 2000), as well as prior executive leadership at Aurora National Life (CEO/President/CIO, 1996–Oct 2000) and earlier roles at Salomon Brothers (1981–1992) . He served as volunteer CEO/President of FlyawayHomes (Jan 2019–Jan 2024) and is currently a director there and at The People Concern in Los Angeles; he holds a B.A. in Philosophy from Haverford College . Parks serves on ARCC’s Audit Committee and is designated an “audit committee financial expert,” evidencing strong technical oversight credentials .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| BlackRock, Inc. (Private Markets) | Managing Director | 2015–2018 | Private markets leadership |
| Crescent Capital Group | Managing Director | 2011–2013 | Credit investing leadership |
| Trust Company of the West (TCW) | Managing Director | 2000–2011 | Parent of Crescent prior to spin; credit investing |
| Aurora National Life Assurance Co. | CEO/President/CIO; various executive roles | 1993–2000 (CEO/President/CIO 1996–Oct 2000) | Insurance investment/operations leadership |
| Salomon Brothers Inc. | Various positions | 1981–1992 | Capital markets experience |
External Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| FlyawayHomes | Director; CEO/President (volunteer) | Director current; CEO/President Jan 2019–Jan 2024 | Affordable supportive housing initiatives |
| The People Concern (non-profit) | Director | Current | Homeless services governance |
| El Paso Electric Company (NYSE) | Director; Chairman of the Board | 1996–2015; Chair 2012–2015 | Board leadership |
| E*Trade Financial Corp. (NASDAQ) | Director; Audit Committee Chair | 2003–2012 | Audit oversight leadership |
| Aurora National Life Assurance Co. | Director | 1992–2003 | Board governance |
Board Governance
- Independence: The Board affirmatively determined Parks is independent under the Investment Company Act/NASDAQ standards .
- Committee assignments:
- Audit Committee member; designated “audit committee financial expert” .
- Co-Investment Committee member (independent-only committee under SEC exemptive order) .
- Leadership context: Board co-chairs are “interested” directors (Ares executives); lead independent director is Eric B. Siegel, who chairs executive sessions at least annually .
- Engagement/attendance: In 2024 the Board held 8 meetings; Audit Committee 6; Nominating & Governance 2; Co-Investment 22; all directors then in office attended ≥75% of Board and committee meetings .
| Committee | Role | Notes |
|---|---|---|
| Audit Committee | Member | “Audit committee financial expert” designation |
| Co-Investment Committee | Member | Reviews co-investments under exemptive order |
Fixed Compensation
| Year | Fees Earned or Paid in Cash ($) | Detail |
|---|---|---|
| 2024 | 248,000 | Independent directors received $200,000 annual retainer; $2,500 per Board meeting; $1,000 per committee meeting; chair/lead premiums apply to others |
No equity grants, options, or performance-based pay are disclosed for directors; interested directors receive no ARCC director pay .
Performance Compensation
| Component | Status | Notes |
|---|---|---|
| Bonus/Performance cash | None disclosed | Director compensation presented solely as cash fees |
| Stock awards (RSUs/PSUs) | None disclosed | No equity award line items in director table |
| Options | None disclosed | No option grants disclosed |
| Performance metrics tied to pay | Not applicable | Directors compensated via fixed fees |
| Clawback policy | Adopted by Board (applies to executive incentive comp) | Director fees not subject to incentive clawback |
Other Directorships & Interlocks
| Company | Current/Prior | Potential Interlock/Conflict |
|---|---|---|
| El Paso Electric (NYSE) | Prior (Chair 2012–2015) | No current ARCC interlock disclosed |
| E*Trade Financial (NASDAQ) | Prior (Audit Chair) | No current ARCC interlock disclosed |
| Aurora National Life Assurance | Prior | No current ARCC interlock disclosed |
| FlyawayHomes | Current Director | Non-profit/mission-oriented; no ARCC transaction disclosed |
| The People Concern | Current Director | Non-profit; no ARCC transaction disclosed |
Expertise & Qualifications
- Audit committee financial expert designation indicates advanced accounting/financial reporting literacy .
- Extensive board leadership and audit oversight (Chair of E*Trade Audit Committee; Chair of El Paso Electric Board) .
- Deep credit/investments background across BlackRock Private Markets, Crescent Capital, TCW and insurance CIO experience .
- Public company governance experience relevant to BDC oversight .
Equity Ownership
| Metric | Mar 5, 2025 | May 13, 2025 |
|---|---|---|
| Shares beneficially owned | 32,037 | 32,734 |
| Percent of class | <1% (based on 681,588,467 shares) | <1% (based on 694,181,754 shares) |
| Dollar range of equity securities | Over $100,000 | Over $100,000 (as of Mar 5, 2025 baseline) |
| Pledging/hedging | Prohibited by policy | Prohibited by policy |
| Ownership guidelines | Directors must hold ≥2.5x annual cash retainer; all directors in compliance as of Mar 5, 2025 | Compliance status affirmed as of Mar 5, 2025 |
Insider Trades
| Item | Disclosure |
|---|---|
| Section 16(a) compliance (2024) | Company believes directors complied; exception noted only for Jim Miller’s initial Form 3, not Parks |
| Form 4 transactions | Not detailed in proxy; no Parks exceptions disclosed |
Governance Assessment
- Strengths: Independent director; Audit Committee member and “audit committee financial expert,” enhancing financial oversight . Strong ownership alignment (>$100k position) and compliance with stock ownership guidelines; pledging/hedging prohibited by policy . Prior public board leadership and audit chair experience supports committee effectiveness . Attendance threshold met; active participation across committees .
- Watch items: ARCC’s Board is co-chaired by “interested” Ares executives, and ARCC relies on an external adviser/administrator, creating inherent related-party dynamics; however, independent-only committees (Audit, Nominating & Governance, Co-Investment) oversee valuation, related-party reviews, and co-investment approvals under the SEC exemptive order . No director equity grants or pay at risk; alignment is via ownership guidelines rather than performance-linked director compensation .
Related-party and conflicts framework: Audit Committee reviews and approves related-party transactions; Co-Investment Committee oversees exemptive order compliance; BDC statute imposes transaction restrictions with Ares affiliates .