Perry Beberman
About Perry Beberman
Perry S. Beberman, age 59, has served as Executive Vice President and Chief Financial Officer of Bread Financial (BFH) since July 2021; he previously spent over 15 years at Bank of America (most recently SVP and Finance Executive for Consumer and Wealth Management Lending Products from Oct 2019–Jun 2021) and more than 17 years at MBNA; he holds a B.S. in business administration and an MBA from the University of Delaware . Company performance markers during his tenure include strengthened capital and funding: CET1 ratio reached 12.4% at year-end 2024, tangible book value per share was $46.97, consumer deposits grew to $7.7B (43% of total funding), and the company repurchased nearly all of its convertible notes in 2024 ($306M principal) .
Bread Financial revenues and EBITDA (S&P Global data):
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($USD) | -$355,000,000* | $23,000,000* | -$226,000,000* |
| EBITDA ($USD) | N/A* | N/A* | N/A* |
| Values retrieved from S&P Global.* |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Bank of America | SVP & Finance Executive, Consumer and Wealth Mgmt Lending Products | Oct 2019–Jun 2021 | Led finance for large-scale consumer lending businesses, overseeing planning, forecasting and P&L to support disciplined growth and risk management . |
| Bank of America | Senior finance leadership roles across multiple units | 2005–2019 | Finance leadership across U.S. consumer and credit card businesses, supporting product economics and portfolio optimization . |
| MBNA | Finance leadership roles (strategic planning, forecasting, P&L) | ~1988–2005 (17+ years) | Built foundational expertise in credit card finance and controls pre-acquisition by Bank of America . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Ronald McDonald House of Greater Delaware | Finance Committee, Governance Committee, Advisory Committee member | Current | Oversight of finance and governance for a major nonprofit supporting families in medical crisis . |
| Reach Riverside Corp. | Treasurer; Chair, Finance Committee; Exec and Strategic Planning Committees | Current | Financial stewardship and strategic planning for community revitalization initiatives . |
| Christiana Care Health System | Finance Committee member | Current | Health system finance oversight supporting sustainable care delivery . |
Fixed Compensation
2024 fixed and cash incentive targets vs actuals:
| Component | FY 2024 Detail |
|---|---|
| Base Salary (annualized) | $665,000 |
| AIC Target (cash annual incentive) | $997,500 (plan-based awards) |
| Actual AIC Paid (Non-Equity Incentive Plan Compensation) | $1,296,750 |
| Implied AIC Payout vs Target (calc) | ~130% of target (1,296,750/997,500), based on values cited |
Multi-year summary (reported compensation):
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary ($) | $625,385 | $648,462 | $663,846 |
| Stock Awards (ASC 718) ($) | $1,597,947 | $1,171,000 | $1,826,278 |
| Non-Equity Incentive Plan Comp ($) | $1,188,905 | $1,100,775 | $1,296,750 |
| All Other Compensation ($) | $39,320 | $75,225 | $104,699 |
Notes:
- 2024 base salaries for NEOs were reviewed; Beberman’s annualized base increased 2.3% to $665,000 from $650,000 in 2023 .
- Perquisites available to NEOs include optional enhanced life insurance, supplemental disability, financial planning services, and an annual physical .
Performance Compensation
AIC (Annual Incentive Compensation) design and 2024 factors:
- Scored via a balanced scorecard; stockholder category weighting increased in 2024, and core scorecard capped at 100% unless financial metrics achieve at least 85% of target; strategic and DCF modifiers can adjust outcomes .
- Selected 2024 metrics and weights (Company-level): PPNR (30%), Average Loans (10%), Net Credit Losses (10%), Operating Leverage (10%), NPS (5%), Digital Engagement Composite (5%), Critical SLAs (5%), Application Availability (5%), ERM Composite (10%); strategic modifiers included CFPB late fee rule readiness and Operational Excellence .
PBRSU and TBRSU structure and 2024 grants (LTIC):
| Award Type | Metric | Weight in LTIC | Grant Date | Target Shares (#) | Vesting | Grant Date FV ($) |
|---|---|---|---|---|---|---|
| PBRSUs (Performance-Based RSUs) | ROE (three-year performance) | 60% | Feb 15, 2024 | 29,166 | 3-year cliff in Feb 2027, to extent earned | $1,095,767 |
| TBRSUs (Time-Based RSUs) | Time | 40% | Feb 15, 2024 | 19,444 | Ratable over 3 years | $730,511 |
Program updates effective for 2025 grants:
- PBRSUs re-designed to 75% ROTCE and 25% EPS, with a ±10% relative TSR modifier vs a defined peer group, reflecting investor feedback; payout range generally 50%–150% for PBRSUs, measured over three years .
Stock vested in 2024 (realized values and tax withholding):
| Item | Amount |
|---|---|
| RSUs Vested (shares) | 17,061 |
| Shares Withheld for Taxes | 7,304 |
| Value Realized on Vesting ($) | $725,794 |
Equity Ownership & Alignment
- Beneficial ownership as of Mar 20, 2025: 32,343 shares (less than 1%) .
- Outstanding equity at FY2024-end: unvested TBRSUs of 33,750 and 15,914 shares (market values $2,060,775 and $971,709), and unearned PBRSUs of 37,965 and 29,166 shares (market values $2,318,143 and $1,780,876) .
- Ownership guidelines: executives must maintain an investment in BFH equal to a multiple of base salary; shares owned outright and 70% of unvested TBRSUs count; must hold at least 50% of net shares from vesting until in compliance; expected to reach thresholds within five years; as of 3/31/2025, all current NEOs, other than new hire Driscoll, are in compliance .
- Hedging/pledging prohibited; no margin accounts; pre-clearance and trading-window requirements apply .
- No related party transactions since the beginning of 2024; policy requires Audit Committee approval of any future related-party transactions .
- Company currently does not grant stock options to NEOs; recent equity has been RSUs and PBRSUs .
Employment Terms
- Appointment: Named EVP & CFO, effective July 6, 2021; initial compensation included $600,000 base salary, a 2021 AIC target at 150% of base (guaranteed at 100% for 2021), and make-whole awards (cash and equity) including PBRSUs with ROE and rTSR modifier (3-year performance period to 2023) .
- Contracts/severance: No employment, severance or separate change-in-control agreements for executive officers; Company relies on plan terms .
- Change-in-control and equity: Double-trigger acceleration for equity (CIC plus qualifying termination within 12 months); estimated payout for Beberman’s unvested equity, assuming target and a Dec 31, 2024 event using $61.06 share price, was $6,358,789 .
- Clawbacks: Comprehensive clawback (recoupment) policy compliant with Exchange Act §10D and NYSE 303A.14 .
- Tax gross-ups: No excise tax gross-ups for executives .
- Non-compete/non-solicit: Not disclosed in the 2025 proxy.
Investment Implications
- Pay-for-performance alignment: AIC uses a broad-based scorecard heavily weighted to stockholder financial metrics (PPNR 30% and multiple credit/capital/risk KPIs), while LTIC is majority performance-based via PBRSUs; 2025 PBRSUs add EPS and a relative TSR modifier, improving direct linkage to earnings growth and shareholder returns .
- Retention and selling pressure: Significant unvested equity (e.g., 49,664 TBRSUs and 67,131 PBRSUs at FY24-end) creates multi-year vesting overhang; 2024 RSU vesting led to 7,304 shares withheld for taxes, not open-market sales; hedging/pledging bans and ownership-hold rules mitigate misalignment and short-term selling incentives .
- Downside protections and risk: No individual severance/CIC cash protections (reducing entrenchment risk); however, double-trigger equity acceleration yields material value upon a qualifying CIC termination (indicative figure $6.36M at 12/31/24), which can support retention through change events .
- Governance and investor feedback: 2024 say-on-pay support was ~82%; the committee engaged widely and implemented 2025 PBRSU design changes incorporating EPS and a TSR modifier—likely supportive of sustained investor backing if financial execution persists .
- Execution track record as CFO: Management commentary highlights prudent growth, capital strengthening, deposit growth, and cost discipline through 2022–2024 cycles—factors that support bonus payouts and performance equity prospects when targets are achieved .
Overall: Beberman’s pay mix and evolving PBRSU metrics tie compensation more tightly to ROE/ROTCE, EPS and relative TSR, while stringent ownership and no-hedging/pledging policies reinforce alignment; retention risk is moderate given no cash severance but meaningful unvested equity and CIC double-trigger protection, with near-term supply from vesting largely constrained by hold requirements and tax-withholding mechanics rather than discretionary selling .