Erin J. Kerber
CREDIT ACCEPTANCEAbout Erin J. Kerber
Erin J. Kerber, age 45, serves as Chief Legal Officer, Chief Compliance Officer and Secretary of Credit Acceptance. She joined CACC in 2010 and assumed her current role in July 2021 after progressing through regulatory compliance and assistant general counsel positions; earlier, she practiced law at Dickinson Wright PLLC from 2003–2010 . Company performance during her tenure shows fluctuating TSR and profitability: the value of an initial $100 investment ended 2024 at $106.09, with GAAP net income of $247.9 million and economic profit of $200.3 million .
Company performance during Kerber’s tenure
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| TSR – value of $100 investment ($) | $78.25 | $155.47 | $107.24 | $120.40 | $106.09 |
| GAAP Net Income ($MM) | $421.0 | $958.3 | $535.8 | $286.1 | $247.9 |
| Economic Profit ($MM) | $471.3 | $574.1 | $476.6 | $260.5 | $200.3 |
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Credit Acceptance | Litigation Manager | 2010–2012 | Managed litigation portfolio and legal risk |
| Credit Acceptance | Director of Regulatory Compliance | 2012–2014 | Built regulatory compliance function |
| Credit Acceptance | Vice President – Regulatory Compliance | 2014–2018 | Led compliance programs; policy oversight |
| Credit Acceptance | SVP, Assistant General Counsel – Regulatory Compliance | 2018–2021 | Senior legal oversight of regulatory matters |
| Credit Acceptance | Chief Legal Officer, Chief Compliance Officer & Secretary | 2021–present | Executive leadership of legal/compliance; corporate secretary |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Dickinson Wright PLLC | Attorney | 2003–2010 | Litigation/compliance expertise foundational to CACC roles |
Fixed Compensation
Not individually disclosed in the DEF 14A as Kerber is not a named executive officer; the NEOs are Booth, Busk, Rostami, Smith, and Ulatowski .
Performance Compensation
- Company-wide incentive design emphasizes long-term equity (RSUs, options) tied to share price appreciation and the Company-Selected Measure (economic profit); weighting details for Kerber specifically are not disclosed .
Equity Ownership & Alignment
- Insider activity suggests periodic liquidity but continued alignment:
- On Feb 2, 2024, Kerber sold 4,875 shares at $582.08–$582.57; post-transaction direct holdings were 2,964 shares .
- A Form 4 was filed Dec 5, 2024 indicating transactions under a contract/plan (10b5‑1 checkbox ticked); specific amounts not captured in retrieved snippet .
- Ownership as % of shares outstanding: approximately 0.024% (2,964 ÷ 12,220,580 shares outstanding as of Apr 8, 2024) .
- Policies:
- Hedging prohibited for executives/directors; insider trading policy enforced .
- Incentive Plan restricts transfer/pledge of awards; no explicit pledging of common shares policy disclosed in proxy .
Insider transactions detail
| Date | Transaction | Shares | Price ($) | Direct shares after | % of outstanding |
|---|---|---|---|---|---|
| 2024-02-02 | Sale | 4,875 | $582.08–$582.57 | 2,964 | ~0.024% (2,964 ÷ 12,220,580) |
Employment Terms
- Appointment: succeeded retiring CLO/Secretary Charles A. Pearce; effective July 1, 2021 .
- Severance: Company states NEOs have no individual cash severance agreements; Kerber-specific severance not disclosed .
- Change-in-control treatment: double-trigger vesting for assumed/substituted awards; immediate vesting if not assumed; RSU program for 2025–2034 includes accelerated vesting of next three scheduled vestings upon qualifying termination post-CIC .
- Clawback: SEC/Nasdaq-compliant clawback policy to recoup erroneously awarded incentive compensation upon restatement; executives acknowledged in writing .
- Governance: As corporate secretary, routes shareholder communications to directors and audit chair, reinforcing governance controls .
Investment Implications
- Alignment: As CLO/CCO/Secretary, Kerber is a governance gatekeeper; hedging prohibitions and clawback strengthen alignment, while incentive programs link realized value to share price/economic profit .
- Selling pressure: 4,875-share sale at ~$582 in Feb 2024 reduces near-term personal exposure but remaining holdings and 10b5‑1 plan use temper adverse signaling; monitor for repeated sales near vesting dates to gauge pressure .
- Retention risk: No disclosed personal severance; equity programs provide long-dated vesting schedules (company RSUs commonly 10-year horizons for NEOs), suggesting strong retention architecture even if individual grants for Kerber are not disclosed .
- Governance quality: Say‑on‑pay support at 98.4% in 2024 and active compensation committee oversight indicate investor support of compensation design; stability reduces headline risk around executive pay .