Douglas W. Busk
CREDIT ACCEPTANCEAbout Douglas W. Busk
Douglas W. Busk, age 64, is Chief Treasury Officer of Credit Acceptance Corporation (CACC). He joined the Company in November 1996 as Vice President and Treasurer; served as CFO/Treasurer (Jan 2000–Aug 2001), President of Capital Services (Aug 2001), then resumed CFO/Treasurer (Dec 2001), became Senior Vice President and Treasurer (May 2004), and was appointed Chief Treasury Officer in July 2020 . Company performance context: in 2024, GAAP net income was $247.9 million and economic profit was $200.3 million; total shareholder return (Value of initial $100) stood at $106.09 for 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Credit Acceptance Corporation | Vice President & Treasurer | 1996–1999 | Corporate treasury leadership |
| Credit Acceptance Corporation | Chief Financial Officer & Treasurer | 2000–Aug 2001 | Oversaw finance and treasury |
| Credit Acceptance Corporation | President, Capital Services unit | Aug 2001 | Led Capital Services operations |
| Credit Acceptance Corporation | Chief Financial Officer & Treasurer | Dec 2001–May 2004 | Returned to CFO/Treasurer responsibilities |
| Credit Acceptance Corporation | Senior Vice President & Treasurer | May 2004–Jul 2020 | Senior finance/treasury leadership |
| Credit Acceptance Corporation | Chief Treasury Officer | Jul 2020–Present | Leads treasury strategy and capital management |
External Roles
- None disclosed in Company filings for Mr. Busk .
Fixed Compensation
| Year | Base Salary ($) | Annual Bonus | All Other Compensation ($) | Notes |
|---|---|---|---|---|
| 2023 | 640,000 | None (no annual cash award program) | 17,798 (includes $16,500 401(k) match and $1,298 profit-sharing) | Named Executive Officer in 2023 proxy |
Notes:
- CACC eliminated annual executive cash incentives in favor of higher base and long-term equity for the 2021–2024 program .
- Company uses a broad-based Profit Sharing Program (available to team members except the CEO); Busk received $1,298 for 2023 under this program .
Performance Compensation
| Instrument | Grant/Program | Quantity/Terms | Vesting / Expiration | Performance Linkage | 2023 Status/Values |
|---|---|---|---|---|---|
| Stock Options | 2021–2024 LTIP (granted 12/30/2020) | 46,000 options at $333.94 | Vest in 4 equal annual installments beginning 12/30/2021; expire 12/30/2026 | Stock price appreciation above strike (shareholder value creation) | As of 12/31/2023: 29,500 exercisable; 11,500 unexercised/unvested |
| RSUs (legacy) | Prior awards (settled 1/30/2023) | N/A | Settlement of 6,433 vested RSUs into shares on 1/30/2023 | N/A (legacy; settled) | Aggregate distribution value $2,886,809 (6,433 × $448.75) |
Additional program design:
- For 2021–2024, options provided incentive compensation; no additional equity was anticipated for existing NEOs during the period, except in limited cases .
- CACC emphasizes long-term equity tied to share price and uses Economic Profit as a company performance measure; profit-sharing for team members (excluding CEO) links pay to profitability .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 30,112 CACC shares as of April 8, 2024; less than 1% of shares outstanding (12,220,580) |
| Options (12/31/2023) | 29,500 exercisable; 11,500 unexercisable at $333.94; expiration 12/30/2026 |
| Change-in-Control (12/31/2023) | Potential acceleration value for unvested options: $2,286,085 (based on $532.73 stock price) |
| Hedging/Pledging | Hedging by executives/directors prohibited by policy . No specific disclosure on pledging in proxies reviewed. |
| Ownership Guidelines | No executive stock ownership guideline disclosure found for Busk in proxies reviewed. |
Employment Terms
| Term | Disclosure |
|---|---|
| Start date / Tenure | Joined Nov 1996; Chief Treasury Officer since July 2020 |
| Severance | No individual cash severance or benefits continuation agreements for NEOs (applies to executive program) |
| Equity on Termination | Unvested options/RSUs forfeited if employment terminates before vesting; Committee may waive/change restrictions |
| Change-in-Control | Double-trigger: if awards are assumed/substituted, vest upon termination without cause or resignation for good reason within 24 months; if not assumed/substituted, vest at change-in-control; Committee may cash out options at spread |
| Clawback | Dodd-Frank compliant clawback policy adopted (effective Oct 2, 2023; reaffirmed in 2025 proxy) |
| Hedging | Executive/director hedging prohibited |
Performance & Track Record
- Company performance context for incentive alignment: 2024 GAAP net income $247.9 million; Economic Profit $200.3 million; Company TSR value of $100 investment at $106.09 in 2024 .
- Operating role in treasury/IR: Busk featured on earnings calls and addressed capital/partner incentives (e.g., accelerated dealer holdback to better align dealer behavior at origination with later collection profitability) .
Compensation Committee & Governance Notes
- Compensation Committee members: independent directors; chaired by Scott J. Vassalluzzo .
- No use of compensation consultants or peer group comparisons in setting executive compensation .
- Say-on-pay approvals: 98.4% (2024 meeting); 97% (2023 meeting) .
Risk Indicators & Red Flags
- Positive governance features: double-trigger CIC vesting; clawback policy; hedging prohibition .
- No individual cash severance agreements reduce windfall risk at termination .
- No disclosures of pledging, tax gross-ups, or option repricing in reviewed filings .
Investment Implications
- Alignment: Long tenure and meaningful equity exposure (30,112 shares) plus 2020 option grant expiring in 2026 align Busk with long-term shareholder value creation (options only pay above $333.94) .
- Selling/Exercise Dynamics: Remaining 2020 option tranche was unvested at 12/31/2023 (11,500), with a four-year vest schedule beginning 12/30/2021 and option expiry on 12/30/2026—creating potential exercise-related trading windows ahead of expiration .
- Retention/Cost of Change: Absence of cash severance suggests lower change-in-leadership cost but also fewer guaranteed retention protections; equity is the primary retention lever via outstanding options .
- Program Stability: Company-level pay design is long-term and equity-centric with strong shareholder support (high say-on-pay approvals), a clawback, and no hedging—indicators of governance discipline supporting investor confidence .