Ravi Mohan
CREDIT ACCEPTANCEAbout Ravi Mohan
Ravi Mohan (age 52) is Chief Technology Officer at Credit Acceptance Corporation (CACC), joining in October 2022 after senior engineering and cloud roles at Datto, Oracle, and Adobe . He oversees technology and digital platforms; during his tenure, company-level performance has included GAAP net income of $247.9 million in 2024 and economic profit of $200.3 million, with value of a $100 investment at $106.09 in 2024 (vs peer index at $198.91) per “Pay Versus Performance” disclosure .
Company performance context (five fiscal years):
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| GAAP Net Income ($USD Millions) | $421.0 | $958.3 | $535.8 | $286.1 | $247.9 |
| Economic Profit ($USD Millions) | $471.3 | $574.1 | $476.6 | $260.5 | $200.3 |
| Total Shareholder Return ($ value of $100) | $116.40 | $148.00 | $107.24 | $120.40 | $106.09 |
| Peer Group TSR ($ value of $100) | $116.40 | $148.00 | $125.51 | $152.34 | $198.91 |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Datto, Inc. | SVP Engineering & CIO | Oct 2021 – Jun 2022 | Led Digital Experience, Technology, and Integration platforms for MSP-focused security/cloud software |
| Oracle Corporation | VP, SaaS Cloud Engineering | Dec 2018 – Oct 2021 | Led SaaS cloud engineering for enterprise IT products/services |
| Adobe Inc. | Head of Cloud Engineering Ops | Jun 2015 – Dec 2018 | Ran cloud engineering operations at diversified software company |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Not disclosed in proxy | — | — | No public company directorships disclosed for Mohan |
Fixed Compensation
| Item | 2022 | 2023 |
|---|---|---|
| Salary ($) | $92,308 (partial-year post hire) | $600,000 base salary set for 2023 |
| Annual cash bonus plan | Eliminated (no annual cash incentives in 2021–2024) | Eliminated (no annual cash incentives in 2021–2024) |
Notes:
- CACC’s executive pay design replaced annual cash incentives with higher base salaries and longer-term equity awards (options/RSUs) in the 2021–2024 program .
Performance Compensation
| Award Type | Grant Date | Units | Grant-Date Fair Value ($) | Vesting | Performance Metric | Strike | Expiration |
|---|---|---|---|---|---|---|---|
| RSUs | 10/24/2022 | 10,000 | $4,241,200 | Four equal annual installments beginning 10/24/2023 | Share price/time-based vesting (value proportionate to share price) | — | — |
| Stock Options | 10/24/2022 | 16,000 | $2,660,194 | Four equal annual installments beginning 10/24/2023 | Realizable value only if market price > exercise price | $424.12 | 10/24/2028 |
Program design highlights:
- Options and RSUs were granted to align realized value with shareholder wealth creation via share price appreciation; vesting is long-term to incentivize durable performance .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (as of Apr 10, 2023) | “—” (no shares reported) |
| Unvested RSUs (#) and value at 12/31/2022 | 10,000 RSUs; $4,744,000 (at $474.40 per share) |
| Unexercised options (#) and status | 16,000 unearned options |
| Option exercise price ($) | $424.12 |
| Option expiration | 10/24/2028 |
| Change-in-control accelerated vesting (if double trigger or not assumed) | $804,480 for unvested options; $4,744,000 for RSUs; total $5,548,480 (at 12/31/2022 close) |
| Hedging/Pledging | Hedging prohibited for execs and directors; pledging not specified in proxy |
| Ownership guidelines | Not disclosed in proxy for executives |
Insider selling pressure context:
- RSUs and options vest in equal annual installments beginning 10/24/2023, creating periodic settlement/exercise opportunities subject to CACC insider trading policies and blackout windows .
Employment Terms
| Term | Details |
|---|---|
| Role & start | Chief Technology Officer; joined October 2022 |
| Severance | No individual agreements for cash severance/benefits upon termination (including change in control) |
| Change-in-control | Double-trigger vesting if awards are assumed/substituted and executive is terminated without cause or resigns for good reason within 24 months; if not assumed, awards vest at change-in-control per plan; committee may cash out option spread at discretion |
| Clawback | 2025 policy: recoup erroneously awarded incentive compensation from current/former execs upon material restatement per SEC/Nasdaq rules ; 2023 policy: clawback where fraud/willful misconduct contributed to restatement |
| Hedging policy | Hedging of company securities prohibited for execs/directors |
| Insider trading policy | Policies govern purchase/sale/dispositions to promote compliance with insider trading laws and Nasdaq standards |
Investment Implications
- Alignment improving: Early in his tenure, beneficial ownership was not reported (“—”), but substantial unvested RSUs/options tie his compensation to long-term share price performance and vest over four years, enhancing alignment as awards deliver over time .
- Retention: The multi-year, equal-installment vesting of 10,000 RSUs and 16,000 options starting 10/24/2023 supports retention and reduces near-term attrition risk; however, absence of cash severance means retention relies more on equity rather than contractual severance .
- Trading signals: Annual vest dates (beginning 10/24/2023) create potential supply from settlements/exercises, subject to blackout and trading policies; monitor Form 4 activity around vest anniversaries within policy constraints .
- Change-in-control economics: The $5.55 million potential accelerated vesting value (as of 12/31/2022) indicates meaningful upside in a transaction scenario (especially if awards are not assumed), which could influence executive incentives in strategic events .
- Governance risk mitigants: Strong clawback and hedging prohibitions, plus double-trigger vesting, reduce misalignment and windfall risk; shareholders showed 98.4% approval of NEO compensation at the 2024 meeting, indicating broad support for pay design .