Jonathan Molot
About Jonathan Molot
Jonathan Molot, 58, is Burford Capital’s Co-Founder and Chief Investment Officer, chairing the Commitments Committee and overseeing the firm’s investment portfolio; he co-founded Burford in October 2009 and has been an employee since the 2012 internalization of the investment manager . He holds a BA magna cum laude from Yale and a JD magna cum laude from Harvard Law School, clerked for Justice Stephen Breyer, practiced at Cleary Gottlieb and Kellogg Hansen, founded Litigation Risk Solutions, and is a Professor of Law at Georgetown, with prior teaching at Harvard and GW; he served on the Obama-Biden transition and as a senior advisor at Treasury . Under leadership of the NEOs, Burford reported FY2024 consolidated net income of $230M, Burford-only net income of $146M, consolidated realizations of $907M, and consolidated net realized gains of $440M; PSUs for the 2021–2023 cycle vested at 100% with TSR of 66% and Adjusted EPS growth of 3,335% versus 26% targets . Molot beneficially owns 9,795,823 shares, or 4.46% of outstanding, evidencing strong alignment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Litigation Risk Solutions | Founder | — | Created litigation risk transfer solutions for funds and banks, foundational to Burford’s legal finance capability . |
| US Department of the Treasury | Senior Advisor | — | Policy advisory at start of Obama Administration; informs risk and policy judgment in complex recoveries . |
| Obama-Biden Presidential Transition | Counsel to Economic Policy Team | — | Structured legal-economic perspectives during a critical transition, reinforcing regulatory and policy acumen . |
| Cleary Gottlieb; Kellogg Hansen | Attorney | — | High-end litigation practice experience; deep expertise in complex disputes and litigation strategy . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Georgetown University Law Center | Professor of Law | — | Academic leadership in litigation risk/finance; pipeline for talent and thought leadership . |
| Harvard Law School; GW Law | Lecturer/Instructor | — | Advanced instruction on litigation risk and finance; extends influence and network . |
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | $950,000 | $950,000 | $1,400,000 |
| Target Bonus Structure | Prior agreement: 1.75% of consolidated total revenues less fair value gains | Prior agreement: 1.75% of consolidated total revenues less fair value gains | 200% of base salary target; up to 50% payable in LTIP awards at Committee discretion |
| Actual Cash Bonus ($) | — | $2,000,000 | $1,500,000 |
Performance Compensation
| Metric (PSU Cycle) | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| TSR (2021–2023) | 50% | 26% cumulative (cycle) | 66% | 100% | Annual pro rata + full at 3 years |
| Adjusted EPS (2021–2023) | 50% | 26% cumulative (cycle) | 3,335% | 100% | Annual pro rata + full at 3 years |
| TSR (2024–2026 PSUs) | 100% | Targets per award agreement | — | — | Vests at 3 years subject to performance |
Grants and vesting mix: RSUs and PSUs generally vest on the third anniversary; for Molot, up to 50% of annual incentive may be delivered as LTIP awards, with PSUs capped at target .
Equity Ownership & Alignment
- Share ownership guidelines for CIO: 6x base salary; 5-year compliance window; retain 100% of net shares until met; all NEOs satisfied or on track as of 12/31/24 .
- Anti-hedging/pledging: Directors and executive officers are prohibited from hedging, margining, short sales, and pledging Burford securities .
- Options: Company historically has not granted options; none granted or exercised in FY2024 .
| Beneficial Ownership | Shares | % Outstanding |
|---|---|---|
| Jonathan Molot | 9,795,823 | 4.46% |
| Outstanding Equity Awards at 12/31/2024 (Molot) | Units | Market Value ($) |
|---|---|---|
| 03/22/2024 PSUs | 84,917 | $1,082,692 |
| 03/22/2024 RSUs | 84,917 | $1,082,692 |
| 03/22/2024 Matching Notional RSUs (NQDC) | 55,174 | $703,469 |
| 03/22/2023 PSUs | 107,569 | $1,371,505 |
| 03/22/2023 RSUs | 107,568 | $1,371,492 |
| 06/22/2023 Matching Notional RSUs (NQDC) | 22,754 | $290,114 |
| 09/22/2023 Matching Notional RSUs (NQDC) | 17,706 | $225,752 |
| 04/05/2022 PSUs | 74,819 | $953,942 |
| 04/05/2022 RSUs | 74,819 | $953,942 |
Nonqualified Deferred Compensation (FY2024)
| Component | Amount ($) |
|---|---|
| Executive Contributions (total) | $9,921,721 |
| — Non-Equity Incentive Deferred | $1,500,000 |
| — Carried Interest Deferred | $3,528,698 |
| — RSUs/PSUs Deferred (value realized on vesting) | $3,602,992 |
| — Transfer from SRA | $1,290,031 |
| Company Contributions (Matching Notional RSUs) | $841,398 |
| Aggregate Earnings | $(1,432,422) |
| Aggregate Withdrawals/Distributions | $(1,952,040) |
| Aggregate Year-End Balance | $17,899,900 |
| Shares Distributed in FY2024 (prior-year deferrals) | 82,874 shares |
Recent insider activity and potential selling pressure: In March 2025, Molot allocated over $17.5M in aggregate insider investments across executives via the NQDC plan, including Molot’s allocations of 565,041 notional shares; detailed PDMR forms show multiple allocations of fully vested and unvested notional ordinary shares due to vest in 2027, signaling net insider accumulation rather than sales .
Employment Terms
- Contract: Employment agreement expires December 31, 2028; auto-renews annually absent notice; identical terms for Bogart and Molot .
- Compensation under agreement: Base salary $1,400,000; target bonus 200% of salary (up to 50% deliverable in LTIP awards); carried interest cash payments equal to 3.75% of realized net cash gains (2015–2023 originations) and 3.00% for assets originated during the agreement term .
- Severance: Without cause/for good reason outside CoC—cash equal to 2x (salary + average prior two-year bonus, including RSU/PSU in-lieu amounts), plus Non-Cash Severance (full RSU vesting; PSUs remain outstanding and vest based on actual achievement; continued carry payments) and 3-year technology services; during CoC period—cash equals 3x the same cash severance, plus Non-Cash Severance and 3-year technology services .
- Restrictive covenants: 12-month post-employment non-compete and non-solicit; 24 months solely upon resignation without good reason; perpetual confidentiality .
Potential payments if event occurred 12/31/2024
| Scenario | Cash ($) | Long-Term Incentive ($) | Total ($) |
|---|---|---|---|
| Prior to Change in Control (Molot) | $9,259,150 | $8,035,600 | $17,294,750 |
| On/Following Change in Control (Molot) | $13,888,725 | $8,035,600 | $21,924,325 |
Performance & Track Record
| Metric (FY2024) | Amount |
|---|---|
| Consolidated Net Income | $230M |
| Burford-only Net Income | $146M |
| Consolidated Realizations | $907M |
| Consolidated Net Realized Gains | $440M |
| Burford-only Proceeds from Capital Provision Assets | $648M |
| ROIC on Principal Finance Realizations | 108% (vs. ~87% long-term avg; 60% in FY2023) |
Operational highlights: Execution on US domestic issuer transition; addition to Russell 3000/2000; successful debt offering at tighter spreads; enforcement progress on $16B YPF-related judgment .
Related Party Transactions
| Item | Detail |
|---|---|
| Commitments to Burford Private Funds | $1,000,000 to Burford Opportunity Fund B LP (employee commitments total ~$4.6M across employees) . |
| Holdings of Debt Securities | $500,000 aggregate principal of 6.125% bonds due 2025 . |
Compensation Peer Group and Benchmarking
- Peer group used for comparison (2024 review for 2025 compensation): Affiliated Managers Group, Artisan Partners, Blue Owl, Esquire Financial, Houlihan Lokey, Janus Henderson, LegalZoom, Moelis, PennyMac, PJT Partners, SoFi, Carlyle, TPG, Walker & Dunlop .
- Legal market benchmarks: Among top-25 AmLaw firms, average/median profits per equity partner ~$5.4M; among top-10, average ~$6.8M and median ~$6.5M; Fortune 100 top general counsel average ~$9.1M and median ~$7.0M (2022 data) .
Governance, Clawbacks, and Trading Restrictions
- Clawback policy (effective Oct 2, 2023) requires recoupment of excess incentive comp upon material noncompliance requiring a restatement; LTIP/NQDC awards subject to five-year recovery for material misstatements, erroneous performance assessments, or gross misconduct .
- Insider trading policy: Pre-approval required; quarter-end blackout periods; company may impose additional restrictions; anti-hedging, -pledging, and margin prohibitions for directors/EOs .
- No ordinary dividends on unvested RSUs/PSUs; no excessive severance multiples; no Section 280G gross-ups; no defined benefit pension plans .
Investment Implications
- Alignment: 4.46% ownership, strict anti-hedging/pledging, 6x salary ownership guideline, and recent insider accumulation via NQDC collectively indicate high skin-in-the-game and reduced misalignment risk .
- Retention and succession: Strong retention economics (2x–3x severance with continued carry and vesting) and non-compete terms suggest low near-term departure risk but meaningful cost if separation occurs in a CoC scenario .
- Pay-for-performance: Transition from formulaic revenue-based bonus to a 200% target with committee discretion and PSU focus (TSR-only for 2024–2026) tightens linkage to shareholder returns; historical PSU vesting at 100% on TSR/EPS underscores past value creation but elevates future outcome sensitivity to TSR .
- Trading signals: March 2025 insider investments by Molot and peers via deferred compensation point to management confidence; lack of insider selling pressure and prohibited pledging reduce overhang risk .