Daniel Drees
About Daniel Drees
Daniel Drees, 57, is President of AvidXchange. He joined the company in April 2018 and became President on January 25, 2023 after serving as Chief Growth Officer . He is a seasoned fintech executive with 25+ years across GE, Bank of America, Ally Financial, Capital One, and Fiserv, where he led the fraud and risk solutions business in 2017–2018; he holds a BS in Mechanical Engineering from Iowa State University . Company performance under the senior team in 2024: revenue grew 15.3% to $438,940k, GAAP EPS turned positive to $0.04, gross margin expanded 450 bps to 66.8%, and net cash from operations rose to $71.9m; TSR since the IPO reference date stood at $41.46 per $100 by year-end 2024 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Fiserv | Led fraud and risk solutions business | Jul 2017 – Mar 2018 | Enabled institutions to reduce fraud/compliance cost via automation and data analytics |
| General Electric | Senior roles (finance/operations) | Not disclosed | Generated growth at Fortune 500 scale |
| Bank of America | Senior roles (finance/operations) | Not disclosed | Generated growth at major financial institution |
| Ally Financial | Senior roles (finance/operations) | Not disclosed | Generated growth at major financial institution |
| Capital One | Senior roles (finance/operations) | Not disclosed | Generated growth at major financial institution |
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | $390,385 | $428,846 | $443,077 |
| Base Salary (policy table) | — | — | $445,000; +2.3% YoY |
| All Other Compensation ($) | $5,594 | $13,812 | $7,679 |
| Perquisites detail (FY 2024) | — | — | 401(k) match $7,454; credit monitoring $226; tax/financial planning $0 |
Performance Compensation
Annual Incentive Plan (AIP) – design and 2024 outcome
| Metric | Weight | Threshold | Target | Actual | Payout scale | Actual payout as % of Target |
|---|---|---|---|---|---|---|
| Revenue ($000s) | 55% | 441,884.0 | 456,884.0 | 438,940.0 | 50% at threshold; 100% at target; 125% at stretch; 150% max | 0% (below threshold) |
| Adjusted EBITDA ($000s) | 45% | 80,817.0 | 95,817.0 | 95,219.7 | 50% at threshold; 100% at target; 125% at stretch; 150% max | 98.1% |
| Individual AIP terms | FY 2024 Target | FY 2024 Payout | Payout % of Target |
|---|---|---|---|
| D. Drees (Target % of salary 100%) | $445,000 | $196,245 | 44.1% |
Notes: Adjusted EBITDA definition per proxy; payouts fully formulaic; maximum capped at 150% .
Long-term equity awards (grants and vesting)
| Grant type | Grant date | Shares/Options | Vesting schedule | Grant date FV ($) |
|---|---|---|---|---|
| RSU | 2/19/2021 | 5,104 | Service-based; 25% after 1 year then quarterly; eligible for accelerated vesting per employment agreement | Not separately disclosed |
| RSU | 3/16/2022 | 81,624 | Service-based; 25% after 1 year then quarterly; eligible for accelerated vesting per employment agreement | Not separately disclosed |
| RSU | 3/8/2023 | 183,786 | Service-based; 25% after 1 year then quarterly; eligible for accelerated vesting per employment agreement | Not separately disclosed |
| RSU | 3/6/2024 | 279,932 | 25% vests on 2/15/2025, then quarterly for 3 years | $3,454,361 |
| Stock options (outstanding at 12/31/2024) | Exercisable | Unexercisable | Strike ($) | Expiry |
|---|---|---|---|---|
| 6/14/2018 grant | 21,128 | — | 3.21 | 6/13/2028 |
| 6/14/2018 grant | 46,616 | — | 3.21 | 6/13/2028 |
| 3/20/2019 grant | 38,600 | — | 3.79 | 3/20/2029 |
| 10/1/2020 grant | 75,024 | — | 10.42 | 10/1/2030 |
| 2/19/2021 grant | 180,284 | 12,020 | 12.11 | 2/19/2031 |
| 3/16/2022 grant | 200,242 | 91,020 | 8.04 | 2/15/2032 |
| 3/8/2023 grant | 119,318 | 153,409 | 9.00 | 2/15/2033 |
2024 vesting/realization: RSUs vested 230,429 shares, value realized $2,647,717; no option exercises by Drees in 2024 .
Equity Ownership & Alignment
| Ownership as of April 28, 2025 | Number of shares | % of class |
|---|---|---|
| Total beneficial ownership (D. Drees) | 1,185,847 | <1% |
Breakdown (as of April 28, 2025):
- Directly owned: 367,876 shares
- Options exercisable within 60 days: 763,730 shares
- RSUs vesting within 60 days: 54,241 shares
Ownership guidelines and practices:
- Stock ownership guideline: 1x annual base salary for NEOs; 5-year phase-in; measured annually on Dec 1 using 30-trading day average; 100% post-tax retention requirement if short of guideline .
- Anti-hedging/anti-pledging: Company prohibits short sales, options, hedging, margin accounts; pledging only permitted in very limited, pre-approved circumstances .
- Rollover in merger: Drees entered into a rollover agreement contributing Company shares in exchange for Topco units at closing, aligning equity with new parent .
Employment Terms
| Provision | Base case (no CIC; qualifying termination) | Change in control window (3 months before to 18 months after CIC; qualifying termination) |
|---|---|---|
| Severance pay | 6 months base salary | 12 months base salary + pro rata target bonus at 100% |
| COBRA | Reimbursement during severance period | Reimbursement during transaction severance period |
| Equity acceleration | Pre–Aug 26, 2021 options: full acceleration; other time-based awards: 12 months acceleration | Full acceleration of pre–Aug 26, 2021 options; full acceleration of other time-based awards |
| Good reason (post-CIC) | Not applicable | Material base salary reduction, material modification to remote work arrangement, failure of successor to assume agreement |
Merger equity treatment (Oct 15, 2025):
- Vested options: cashed out at $10 less strike, times shares .
- Unvested options: converted to Post-Closing Cash Awards equal to shares × max($10 − strike, 0); subject to original vesting and acceleration upon qualifying termination .
- Vested RSUs: cashed out at $10 per share .
- Unvested RSUs: converted to Post-Closing Cash Awards equal to shares × $10, subject to original service vesting/acceleration conditions .
- Equity plans/ESPP terminated at closing; the company deregistered and delisted thereafter .
Retention Bonus Program (merger-related):
- Drees retention award: $378,000; payable in cash or Topco restricted units; vests in three equal annual tranches on the first three anniversaries of closing; unvested amounts payable/vest upon severance-qualifying termination with release .
Deferred Compensation Plan:
- Drees aggregate balance as of Dec 31, 2024: $563,520; 2024 earnings $64,780; prior contributions $440,036 .
- Plan terminated effective immediately after closing; payments accelerated to be made within 12 months of termination .
Multi-year Compensation Summary (NEO table excerpt – D. Drees)
| Year | Salary ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive ($) | All Other Compensation ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2022 | 390,385 | 2,100,000 | 899,741 | 425,972 | 5,594 | 3,821,691 |
| 2023 | 428,846 | 2,940,561 | 1,260,764 | 532,266 | 13,812 | 5,176,249 |
| 2024 | 443,077 | 3,454,361 | — | 196,245 | 7,679 | 4,101,362 |
Performance Compensation – Metric Table (detail for plan governance)
| Metric | Weighting | Targeting approach | Vesting/Payment |
|---|---|---|---|
| Revenue | 55% | Absolute revenue targets approved Q1 each year | Paid annually; formulaic scaled payout |
| Adjusted EBITDA | 45% | Absolute EBITDA targets approved Q1 each year; non-GAAP definition disclosed | Paid annually; formulaic scaled payout |
| RSUs | n/a | Service-based; award sizing by role, market, internal equity | 4-year vest: 25% after first year then quarterly |
| Stock options (CEO only in 2024) | n/a | n/a for Drees; options granted to CEO only in 2024 | n/a for Drees |
Equity Ownership & Vesting Status (as of 12/31/2024)
| Instrument | Unvested quantity | Market value ($) |
|---|---|---|
| RSUs (2021 grant) | 5,104 | 52,775 |
| RSUs (2022 grant) | 81,624 | 843,992 |
| RSUs (2023 grant) | 183,786 | 1,900,347 |
| RSUs (2024 grant) | 279,932 | 2,894,497 |
Option exercisability summary (12/31/2024): total exercisable across grants detailed above; aggregate options exercisable within 60 days of April 28, 2025 were 763,730, with additional unexercisable tranches scheduled per grant terms .
Investment Implications
- Pay-for-performance alignment: 2024 bonus paid at 44.1% of target due to revenue under threshold and near-target EBITDA, demonstrating tight linkage to financial outcomes .
- Retention risk mitigants: Drees has change-in-control double-trigger severance, COBRA, and full acceleration on time-based awards upon qualifying termination in a CIC window; plus a $378,000 retention bonus vesting over three years post-close—factors that reduce near-term attrition probability post-merger .
- Insider selling pressure: 2024 RSU vesting delivered $2.65m in realized value, but Drees had no option exercises; following the merger, equity awards are cash-settled per schedule, and the company is deregistered—reducing potential market selling dynamics and aligning payout timing to service conditions .
- Alignment safeguards: Ownership guidelines (1x salary), robust clawback policy, and prohibitions on hedging/pledging (with narrow exceptions) support long-term alignment and limit misalignment risks .
- Execution track record context: Under the senior team, 2024 saw strong gross margin expansion (+450 bps), positive GAAP EPS, and significantly higher operating cash flow—supportive of value creation narratives alongside disciplined compensation governance .