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Allegra Driscoll

Executive Vice President, Chief Technology Officer at BREAD FINANCIAL HOLDINGS
Executive

About Allegra Driscoll

Executive Vice President and Chief Technology Officer at Bread Financial Holdings, Inc. (BFH); age 45; joined in January 2024 after senior technology leadership roles at American Express, Credit Suisse, and Goldman Sachs; B.A. in Computer Science from Barnard College, Columbia University . During BFH’s 2024 transformation, management highlighted tech platform enhancements, fraud mitigation, credit risk strategy, and automation with $100+ million 4-year run-rate savings, alongside stronger capital metrics (CET1 12.4% and tangible book value per share $46.97), aligning her mandate with operational efficiency and digital execution .

Past Roles

OrganizationRoleYearsStrategic Impact
American ExpressSVP, CIO – Global Commercial ServicesApr 2022–Jan 2024 Led technology for commercial services; execution on resiliency, security, and growth initiatives
American ExpressSVP, CIO – Corporate Systems; Head of Technology Strategy & TransformationJan 2020–Apr 2022 Drove technology strategy and transformation across corporate systems
Credit SuisseManaging Director; COO Global Markets Technology and IHC TechnologySep 2010–Dec 2019 Oversaw global markets technology operations and IHC technology; scaled complex platforms
Goldman SachsVarious technology leadership rolesMay 2001–Jul 2010 Progressively senior leadership positions across technology domains

External Roles

OrganizationRoleYearsNotes
CTO ForumAdvisory Board MemberNot disclosed Non-profit network of senior technology executives
Boscobel House and GardensDirectorNot disclosed Non-profit board service

Fixed Compensation

Component2024Notes
Base Salary (earned)$598,558 Annualized rate $625,000 set at hire
Target Annual Incentive (AIC)140% of base salary Applies to $625,000 base
AIC Paid (for 2024 perf, paid Feb 2025)$1,137,500 Final payout factor 130.00%
Stock Awards (ASC 718 grant-date value)$1,161,251 Mix of PBRSUs and TBRSUs granted Feb 15, 2024
Sign-on Cash Bonus (paid in 2024)$1,100,000 Part of $1,650,000 sign-on paid in Feb 2024, Jul 2024, Jan 2025; subject to repayment if leaving within 24 months (except termination without cause)
All Other Compensation$44,250 See perquisites detail below

Perquisites detail (included in 2024 “All Other Compensation”): executive life insurance $1,187; executive financial planning $5,072; individual supplemental disability premiums $3,715; plus employer 401(k) contribution $10,350 and medical/dental/disability premiums per plan .

Performance Compensation

AIC balanced scorecard (2024)

MetricWeightingNotes on Outcome
Pretax pre-provision earnings (PPNR)30% Included in core scorecard; company-wide core scorecard payout 107.77%
Average Loans10% Included in core scorecard 107.77%
Net Credit Losses (NCLs)10% Included in core scorecard 107.77%
Operating Leverage10% Included in core scorecard 107.77%
ERM Composite Metric10% Included in core scorecard 107.77%
Net Promoter Score (NPS)5% Included in core scorecard 107.77%
Performance on Critical SLAs5% Included in core scorecard 107.77%
Digital Engagement Composite5% Included in core scorecard 107.77%
Application Availability5% Included in core scorecard 107.77%
Associate Engagement5% Included in core scorecard 107.77%
Final core scorecard payout107.77%

Modifiers (added to core scorecard):

ModifierCriteriaOutcomePayout Adjustment
Strategic Modifier – Operational ExcellenceIncremental revenue and savings beyond budget; in-year and run-rate value >$20M; +10% on matrix +10.00%
Strategic Modifier – CFPB Late Fee Rule ReadinessReadiness for regulatory rule (strategic modifier) Included (specific % not separately disclosed) Included in total modifiers
Discretionary Consideration Framework (DCF)Macro impacts, tech transformation, balance sheet, regulatory issues, etc. +2.98% +2.98%
Total modifiers+22.23% +22.23%
Final AIC payout factor130.00% (core 107.77% + modifiers 22.23%) 130.00%

LTIC awards and performance metrics (granted Feb 15, 2024)

Award TypeMetricWeighting of LTICMeasurement PeriodPayout RangeVesting
PBRSUsReturn on Equity (ROE)60% of LTIC FY2024–FY2026 (annual goals averaged) 50%–150% of target Cliff vest Feb 2027, subject to performance and continued employment (exceptions for death, disability, qualifying retirements)
TBRSUsTime-based40% of LTIC N/AN/AVests ratably over three years

Grant sizes (Driscoll):

  • PBRSUs: 18,545 target shares; grant-date fair value $696,736
  • TBRSUs: 12,364 shares; grant-date fair value $464,515

Program design changes for 2025: PBRSUs re-designed to include ROTCE (75%), EPS (25%) and a ±10% rTSR modifier, reflecting shareholder feedback; measurement remains three-year .

Equity Ownership & Alignment

Beneficial Ownership (as of March 20, 2025)

HolderShares Beneficially OwnedPercent of Shares Outstanding
Allegra S. Driscoll1,293 Less than 1%
Shares outstanding basis48,141,920

Stock ownership guidelines and holding requirements:

  • Executives must hold a multiple of base salary; includes shares owned outright and 70% of unvested TBRSUs; must hold at least 50% of net shares from vesting until guideline met; expected to reach within five years .
  • As of March 31, 2025, all current NEOs are in compliance with holding requirements, and all NEOs except Driscoll (joined Jan 2024) are in compliance with ownership guidelines; Driscoll has up to five years to comply .

Insider trading, hedging, pledging:

  • Hedging, short sales, options on BFH stock prohibited; holding in margin accounts or pledging is prohibited .

Outstanding Equity (as of December 31, 2024)

Award TypeUnvested / Unearned SharesMarket Value at $61.06
TBRSUs (time-based)12,364 $754,946
PBRSUs (performance-based, target)18,545 $1,132,358 (payout subject to ROE performance)

Vesting pressure and selling:

  • No RSU vestings reported for Driscoll in 2024 (new hire), limiting near-term selling pressure; other NEO vesting table shows “—” for Driscoll .
  • TBRSUs vest ratably over three years; PBRSUs cliff vest in Feb 2027, performance-dependent .

Employment Terms

TermDetail
Start date and roleJoined BFH as EVP & CTO in Jan 2024
Base salaryInitial annual base $625,000
Annual Incentive (AIC)Eligible; target 140% of base
2024 LTIC grant$1,100,000 grant-date value; mix of TBRSUs/PBRSUs with terms consistent with other NEOs
Sign-on bonus$1,650,000 paid $550k (Feb 2024), $550k (Jul 2024), $550k (Jan 2025); subject to repayment if departure within 24 months of Jan 16, 2024 (except termination without cause)
Deferred compensationEligible to participate; executives may defer up to 50% salary and incentive; accounts credit interest rate set by CHCC; unfunded
Severance / CIC agreementsNo employment, severance or separate change-in-control agreements; standard plan terms apply
Equity CIC treatmentDouble-trigger: if not assumed at change-in-control or if terminated without cause/for good reason within 12 months post-CIC, unvested awards fully vest; estimated payout for Driscoll assuming target at 12/31/2024 price: $1,887,304
Clawback policyCompliant with Exchange Act Section 10D and NYSE Section 303A.14; recoupment upon accounting restatements due to material noncompliance
Hedging/pledgingProhibited; trading windows required; pre-clearance for insiders

Investment Implications

  • Alignment: Pay mix is heavily performance-based (AIC tied to PPNR, credit, ERM, customer/tech metrics; PBRSUs tied to ROE; TBRSUs for retention), with strong governance guardrails (clawback; no hedging/pledging; double-trigger CIC) supporting pay-for-performance and risk discipline .
  • Retention: Significant unvested equity (PBRSUs cliff vest Feb 2027; TBRSUs over three years) plus sign-on bonus clawback through Jan 2026 suggests low near-term voluntary attrition risk and limited insider selling pressure before vesting schedules roll-forward .
  • Trading signals: Ownership is modest (1,293 shares) while unvested awards are sizeable; absence of options and prohibition on hedging/pledging reduces leveraged or hedged exposure; monitor RSU vest timelines for potential sales windows starting in 2025–2026 .
  • Execution: Company-level 2024 achievements in technology modernization and operational excellence with quantified savings and strong capital metrics indicate favorable context for CTO-led initiatives; 2025 PBRSU metric enhancements (ROTCE, EPS, rTSR modifier) increase alignment with shareholder returns and earnings power .