Jarrod Phillips
Ares ManagementAbout Jarrod Phillips
Jarrod Phillips is Partner and Chief Financial Officer of Ares Management Corporation, serving as CFO since August 2021 after joining Ares in January 2016 as Chief Accounting Officer; he also serves on the Ares Operating/Enterprise Risk Committees and holds a B.S. in Accounting (Virginia Tech) with an inactive CPA in California . He previously was a Partner at Deloitte & Touche LLP focused on financial services/asset management assurance and advisory, and he serves on the board of School On Wheels (formerly on the board of Safe & Sound) . Under his tenure as CFO, Ares’ revenues and EBITDA have expanded versus pre-2021 levels (see Company Performance table) while the company formalized clawback and anti-hedging/pledging policies and continued to emphasize equity-based pay alignment .
Past Roles
| Organization | Role | Years | Strategic Impact / Notes |
|---|---|---|---|
| Ares Management Corporation | Chief Financial Officer; Principal Financial & Accounting Officer | Aug 2021–present | Designated principal financial and accounting officer; appointed upon prior CFO’s termination . |
| Ares Management Corporation | Chief Accounting Officer | Jan 2016–Jul 2021 | Senior finance leadership prior to CFO promotion . |
| Deloitte & Touche LLP | Partner | Pre-2016 | Focused on financial services and asset management assurance/advisory . |
| Ares Acquisition Corporation / Ares Acquisition Corporation II | Chief Financial Officer | Since May 2020 (AAC); AAC II current | CFO of Ares-sponsored SPACs (AAC since May 2020; AAC II current) . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| School On Wheels (non-profit) | Director | Current | Board member supporting tutoring/mentoring for students experiencing homelessness . |
| Safe & Sound (non-profit) | Director | 2010–2021 | Former director focused on strengthening families/ending child abuse . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 750,000 | 750,000 | 750,000 |
| Cash Bonus ($) | 685,000 | 650,000 (65% cash; 35% in deferred units paid Jan 2024) | 650,000 (65% cash; 35% in deferred units paid Jan 2025) |
| All Other Compensation ($) | 53,014 | 47,370 | 67,939 |
| Total ($) | 2,447,087 | 4,077,449 | 9,412,580 |
Performance Compensation
Equity award grants and vesting
| Grant Date | Award Type | Units | Grant-Date Fair Value ($) | Vesting Terms |
|---|---|---|---|---|
| 1/20/2021 | Restricted Units (bonus portion) | 3,185 | 145,459 | Vests 1/20/2022, 1/20/2023, 1/20/2024 (1/3 each) . |
| 1/31/2021 | Restricted Units (service-based) | 10,000 | 451,600 | Vests 1/31 of 2023–2026 (1/4 each) . |
| 8/9/2021 | Restricted Units (promotion grant) | 20,000 | 1,476,200 | Vests 7/1 of 2023–2026 (1/4 each) . |
| 1/20/2022 | Deferred Units (bonus portion) | 2,907 | 217,473 | Vests 1/20/2023–2025 (1/3 each) . |
| 1/31/2022 | Restricted Units (service-based) | 10,000 | 741,600 | Vests 1/31 of 2024–2027 (1/4 each) . |
| 1/20/2023 | Deferred Units (bonus portion) | 4,413 | 335,079 | Vests 1/20/2024–2026 (1/3 each) . |
| 1/31/2023 | Restricted Units (service-based) | 10,000 | 811,800 | Vests 1/31 of 2025–2028 (1/4 each) . |
| 1/31/2023 | Restricted Units (service-based; Board-approved 60k over 2023–2025) | 20,000 | 1,483,200 | Vests 1/31 of 2025–2028 (1/4 each) . |
| 1/20/2024 | Deferred Units (bonus portion) | 2,997 | 348,941 | Vests 1/20/2025–2027 (1/3 each) . |
| 1/31/2024 | Restricted Units (service-based) | 20,000 | 1,483,200 | Vests 1/31 of 2026–2029 (1/4 each) . |
| 1/31/2024 | Restricted Units (service-based; additional) | 50,000 | 6,112,500 | Vests 1/31 of 2026–2029 (1/4 each) . |
| 1/2025 | Deferred Units (bonus portion for 2024) | 2,997 | — | Vests on anniversaries of grant (3 tranches through 2028) . |
- Bonus structure: CFO bonus is discretionary; 2023 bonus paid 65% in cash in Dec-2023 and 35% as deferred units in Jan-2024; 2024 bonus similarly 35% deferred in Jan-2025 .
Termination/vesting economics (Phillips-specific)
- Equity acceleration: Unvested restricted units scheduled to vest within 12 months accelerate upon termination without cause; upon death/disability, 50% of then-unvested restricted units vest. For the special 20,000-unit awards in 2023 and 2024, unvested units generally forfeit on termination, with 50% vesting upon death/disability; “Partner” title at termination enables 12-month vesting catch-up for scheduled tranches .
- Illustrative value at 12/31/2024: If terminated without cause or due to death/disability on 12/31/2024, accelerated restricted units would have been valued at $3,761,888 or $11,175,019, respectively, based on $177.03 closing price on 12/31/2024 .
Equity Ownership & Alignment
Beneficial ownership (Class A common and subject units)
| As of Record Date | Jarrod Phillips Beneficially Owned Shares |
|---|---|
| April 14, 2023 | 121,445 |
| April 5, 2024 | 185,814 |
| April 7, 2025 | 244,931 |
Stock vested (realized value)
| Year | Shares Vested | Value Realized on Vesting ($) |
|---|---|---|
| 2022 | 13,258 | 1,038,683 |
| 2023 | 20,243 | 1,734,807 |
| 2024 | 19,753 | 2,455,504 |
Hedging/pledging and clawback
- The insider trading policy prohibits hedging/short-selling and prohibits holding in margin accounts or pledging company securities without prior approval; no exceptions disclosed for executives .
- Clawback policy adopted in line with NYSE/Exchange Act Section 10D; applies to incentive-based compensation received on/after Oct 2, 2023; as of proxy dates, no recoveries were required .
Employment Terms
| Topic | Disclosure |
|---|---|
| Cash severance; change-in-control cash | Not provided; “Other than as set forth below, our NEOs are not entitled to any additional payments or benefits upon termination or change in control”; value delivery for CFO is via equity acceleration terms above . |
| Equity acceleration (Phillips) | Without cause: scheduled 12-month tranches accelerate; death/disability: 50% of unvested accelerates; special 2023/2024 20k grants forfeit unless death/disability (50%); “Partner” title clause for 12-month vesting window . |
| Options outstanding | Other NEOs did not receive option awards in the years shown . |
| Pension/SERP | None; the Company has no pension plans . |
| Ownership guidelines (execs) | Not disclosed in reviewed proxies; separate director ownership guidelines exist (3x cash retainer) . |
| 401(k)/Charitable match | 401(k) match up to $10,350 (2024) with 3-year vest; charitable match up to $3,000 (Phillips utilized) . |
Company Performance Context (for Pay-for-Performance linkage)
| Metric | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|---|
| Revenues ($) | 1,735,494,000* | 4,112,658,000* | 3,043,164,000* | 3,595,368,000* | 3,839,357,000* |
| EBITDA ($) | 354,808,000* | 982,194,000* | 1,035,551,000* | 1,151,772,000* | 1,151,718,000* |
Values retrieved from S&P Global.*
Additional Governance and Committee Process Notes
- Korn Ferry reviewed and advised on multi-year equity grant framework (vesting provisions, stock-price targets, dilution/burn rate vs peers) leading to Board-approved multi-year grants in 2021; performance conditions for CEO/Co-President awards vested in 2021; Phillips’ equity consists of time-based restricted units and bonus-related deferred units (no PSUs disclosed for CFO) .
Investment Implications
- Alignment: Phillips’ equity-based pay rose materially in 2024 (grants of 20,000 and 50,000 restricted units plus 2,997 deferred units) with vesting concentrated in 2026–2029, driving medium-term retention alignment and creating predictable vesting windows .
- Selling pressure: Recent vesting volume (≈20k shares in 2023 and ≈19.8k in 2024) demonstrates annual liquidity events; continued vesting of 2021–2024 grants and 2025 deferred units may contribute to periodic supply around scheduled vest dates .
- Downside protection: Absence of disclosed cash severance/CIC multiples limits termination payout risk; clawback, anti-hedging and anti-pledging provisions reduce governance risk and mitigate misalignment concerns .
- Ownership trajectory: Beneficial ownership increased from 121,445 (2023) to 244,931 (2025), indicating growing “skin in the game” as equity vests and new awards are granted .
- Performance backdrop: Revenues and EBITDA are significantly above 2020–2021 levels; 2024 revenues grew versus 2023 while EBITDA held roughly flat, consistent with awarding additional time-based equity to support retention across a larger platform scale*.
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