Paul Cho
About Paul Cho
Paul Cho, 42, is Chief Accounting Officer (CAO) of Ares Capital Corporation (ARCC) since February 2024 and a Managing Director and CAO in Ares Management’s Finance and Accounting Department; he previously worked at Macias Gini & O’Connell LLP auditing state and local government entities and holds a B.A. in Economics from the University of California, Berkeley . ARCC filings show Cho as principal accounting officer signatory on ARCC’s 10-Q (May 1, 2024) and 10-K/A (March 22, 2024), confirming his role and tenure . ARCC discloses that executive officers (including Cho) do not receive direct compensation from ARCC, so individual pay-for-performance metrics or TSR-linked incentives at the ARCC level are not reported in ARCC proxies .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Macias Gini & O’Connell LLP | Auditor focused on state and local governments | Prior to 2008 | Public-sector audit experience; foundation for technical accounting leadership |
| Ares Management | Managing Director; Chief Accounting Officer, Finance & Accounting Department | 2008–present | Senior accounting leadership across Ares credit platforms; oversight beneficial to ARCC financial reporting integrity |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Ares Strategic Income Fund | Chief Accounting Officer | Current | Aligns accounting oversight with affiliated BDC platform |
| CION Ares Diversified Credit Fund | Vice President | Current | Supports broader Ares credit vehicle governance and controls |
| Ares Dynamic Credit Allocation Fund, Inc. | Vice President | Current | Extends cross-vehicle financial control responsibilities within Ares Credit |
| ARCC (Corporate officer roster) | Chief Accounting Officer | Since Feb 2024 | Listed among ARCC’s corporate officers in earnings materials |
Fixed Compensation
ARCC’s executive officers do not receive direct compensation from ARCC; they are employees/affiliates of Ares Management or the ARCC administrator. ARCC reimburses its administrator and pays fees to its investment adviser under the advisory and administration agreements; specific ARCC-level salary, bonus, or equity awards for executive officers are not disclosed in ARCC proxy statements.
- Policy: “Executive officers do not receive any direct compensation from the Company” .
- Governance: Audit committee performs compensation committee functions, including approving amounts payable to the adviser and administrator .
Performance Compensation
No ARCC-level performance compensation framework (e.g., RSUs/PSUs/options, metric weightings, targets, payouts) is disclosed for executive officers, as compensation is paid by Ares Management rather than ARCC.
- No NEO summary compensation table or ARCC equity grant disclosures for executive officers .
Equity Ownership & Alignment
| Date | Security | Amount | Ownership Form | Notes |
|---|---|---|---|---|
| 02/15/2024 | Common Stock | 270 shares | Direct (D) | Initial Form 3; no derivative holdings listed on Form 3 |
- Hedging and speculative trading policy: Prohibits executive officers and directors (and personnel of the adviser/administrator) from buying/selling puts or calls based on ARCC, short-selling ARCC stock, or entering into hedging/monetization transactions related to ARCC securities .
- Pledging: No explicit pledging prohibition was identified in retrieved disclosures; only hedging/monetization restrictions are specified .
Employment Terms
| Item | Detail |
|---|---|
| Start date at ARCC | Chief Accounting Officer since February 2024 |
| Role/authority | Principal accounting officer; signatory on ARCC’s 10-Q and 10-K/A filings |
| Term | Indefinite term as an officer |
| Compensation source | Paid by Ares Management/administrator; not directly by ARCC |
| Severance/change-in-control | Not disclosed at ARCC level for executive officers (compensation handled by Ares) |
| Clawback policy | NASDAQ/Exchange Act Section 10D-compliant; recovers incentive-based compensation Overpayment over prior 3 fiscal years upon restatement; applies to current/former executive officers; adopted prospectively |
| Hedging/short/derivatives policy | Prohibits hedging/monetization, short-selling, and puts/calls on ARCC securities (except Company-issued derivatives like convertibles) |
| Compensation governance | Audit committee acts as compensation committee under NASDAQ rules; approves adviser/administrator payments |
Investment Implications
- Alignment: The initial disclosure of 270 directly held shares indicates a limited ARCC-level equity stake; combined with strict anti-hedging rules, sell pressure from hedging/derivative strategies is constrained, but low disclosed ownership may temper alignment signaling at the ARCC entity level .
- Compensation transparency: Because ARCC does not directly compensate executive officers, salary/bonus/equity and performance metric weightings are set by Ares Management and are not visible to ARCC stockholders, limiting pay-for-performance assessment at the ARCC level .
- Retention risk: Employment and severance economics reside with Ares Management/administrator rather than ARCC, reducing visibility into retention levers and change-of-control protections at the ARCC entity level .
- Controls and execution: Cho’s long tenure within Ares and elevation to ARCC CAO in 2024, plus principal officer signatory status on key filings, are constructive for financial reporting oversight and continuity .