Anthony Sharett
PATHWARD FINANCIALAbout Anthony Sharett
Anthony M. Sharett, age 48, is President of Pathward Financial, Inc. (Nasdaq: CASH) and Pathward, N.A. He has served as an executive officer since 2019 and as President since October 2021, after roles as EVP Chief Legal & Compliance Officer and General Counsel . He holds a J.D. from The Ohio State University Moritz College of Law and an undergraduate degree in Political Science from Ball State University; he also serves on nonprofit and advisory boards and is a member of Greater Phoenix Leadership . Under his tenure, Pathward delivered FY2024 EPS of $6.62 vs. $5.99 in FY2023, with net income of $168.4M and ROA of 2.20% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Pathward Financial, Inc. | President | 2021–present | Executive leadership of fintech-focused bank; optimization strategy execution |
| Pathward Financial, Inc. | EVP, Chief Legal & Compliance Officer; Corporate Secretary | 2020–2021 | Built governance, risk and compliance capabilities |
| Pathward Financial, Inc. | EVP, General Counsel | 2019–2020 | Led legal function during business model transition and rebranding |
| Nationwide Mutual Insurance Company | President, Nationwide Pet Insurance; Interim President, Nationwide Bank; other legal/business roles | 2016–2019 | P&L leadership and financial services experience |
| BakerHostetler | Partner; National Co-Leader, Financial Services Practice Group | pre-2016 | Financial services regulatory and legal leadership |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Greater Phoenix Leadership | Member | Not disclosed | Regional leadership network and civic engagement |
| Various nonprofits/advisory boards | Board roles | Not disclosed | Community impact and stakeholder engagement |
Fixed Compensation
Multi-year compensation positioning and cash incentive outcomes:
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | $500,000 | $520,000 | $540,000 |
| Target Annual Bonus (% of Salary) | 80% | 90% | 90% |
| Actual Annual Incentive Paid ($) | $384,000 | $612,612 | $619,995 |
| All Other Compensation ($) | $35,530 | $80,321 | $83,838 |
| Total Compensation ($) | $2,085,560 | $2,044,967 | $2,107,851 |
Notes:
- FY2024 bonus payout reflected strong results on Net Income and ROA financial metrics (weighted company payout 122%) and individual performance assessment .
Performance Compensation
Annual Incentive Design and Outcomes
| Fiscal Year | Metric | Weighting | Payout Basis | Payout Level | Total Payout Multiplier |
|---|---|---|---|---|---|
| FY 2024 | Net Income | Part of 70% financial component; split 45% NI/25% ROA | Company results vs. pre-set goals | 119% (NI) | 128% of target for Sharett |
| FY 2024 | ROA | Part of 70% financial component | Company results vs. pre-set goals | 129% (ROA) | — |
| FY 2024 | Strategic/Individual | 30% | Discretionary assessment of strategic and operational contributions | Not disclosed | — |
| FY 2023 | Net Income | 45% of total (within 70% financial) | Company results vs. goals | 132% | 131% of target for Sharett |
| FY 2023 | ROA | 25% of total (within 70% financial) | Company results vs. goals | 142% | — |
| FY 2022 | Net Income | 45% of total (within 70% financial) | Company results vs. goals | 90% | Not disclosed |
| FY 2022 | ROA | 25% of total (within 70% financial) | Company results vs. goals | 90% | — |
| FY 2022 | Strategic/Individual | 30% | Discretionary assessment | 110% for Sharett | — |
Design notes:
- Annual incentives are paid entirely in cash for NEOs; no discretionary plan deviations in FY2024 .
- FY2025 LTI plan adds three-year cumulative EPS goals at grant and three-year relative TSR metric (50/50 weighting), strengthening pay-for-performance .
Long-Term Incentives (RSAs and PSUs)
| Fiscal Year | Award Type | Grant Date Fair Value ($) | Target/Units | Vesting | Performance Metric/Status |
|---|---|---|---|---|---|
| FY 2024 | Performance-Contingent RSAs | $432,020 | 8,618 shares | Ratable over Oct 16, 2024–2026, subject to capital goal | Minimum annual capital goal achieved (Basel III ≥8%) |
| FY 2024 | PSUs | $431,998 | 8,729 target units | Cliff vest Oct 16, 2026 (3-year) | EPS FY2024 achieved at 121% of target; 3-year average TBD |
| FY 2023 | Performance-Contingent RSAs | Not disclosed by value here | 7,032 shares; vest Oct 16, 2024–2025 | Ratable over three years | Capital goal contingent |
| FY 2023 | PSUs | Not disclosed by value here | 13,171 target units; vest Oct 16, 2025 | Cliff vest after 3-year period | EPS FY2023 149%; FY2024 121%; FY2025 TBD |
| FY 2022 | PSUs (earned FY2024) | — | 7,014 target; 8,414 earned (120%) | Vested Nov 7, 2024 | 3-year average 120% (EPS: 2022 90%, 2023 149%, 2024 121%) |
Vesting realized:
- FY2024 stock vested for Sharett: 8,935 shares; realized value $467,465 .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 38,340 shares (0.16% of outstanding as of Dec 31, 2024) |
| Vested vs. Unvested | Unvested RSAs: 8,618 (FY2024 tranche) and 7,032 (FY2023); Unvested PSUs: 9,348 (FY2024), 13,171 (FY2023) |
| Ownership Guidelines | Executives must hold equity at specified multiple of salary; Sharett target 3x |
| Compliance Status | Sharett at 3.6x excluding PSUs; 7.2x including PSUs (informational) |
| Pledging/Hedging | Prohibited for directors and officers; no pledging of shares reported |
Employment Terms
| Provision | Terms (President/Executive Committee) |
|---|---|
| Employment Agreement | NEOs do not have employment agreements; at-will employment |
| Severance (no CoC) | 12 months of installments equal to 100% of base + 100% of target bonus; 1 year medical benefits; continued vesting of unvested equity awards (except awards granted within 6 months); $10,000 outplacement |
| Severance (with CoC; termination within 24 months) | Lump sum equal to 100% of base + 100% of target bonus; 1 year medical benefits; full vesting of unvested equity; $10,000 outplacement; 2023 plan awards use double-trigger for accelerated vesting |
| Non-solicit | 12 months post-termination (customers, employees, third parties) |
| Potential Payments Estimate (as of 9/30/2024) | Termination without cause: total $4,208,015 (cash $1,026,000; equity vesting $3,140,954; medical $31,061; outplacement $10,000) |
Company Performance (context for pay-for-performance)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($) | $293,807,000 * | $313,350,000* | $298,588,000* |
| Net Income ($) | $156,386,000 | $163,615,000 | $168,357,000 |
| EBITDA ($) | N/A | N/A | N/A |
Values retrieved from S&P Global.*
Additional FY2024 highlights: Net interest income +17% YoY; ROA 2.20%; EPS $6.62; share repurchases 1,520,001 at $52.70 average .
Governance, Clawbacks, Say-on-Pay, and Peer Group
- Clawback policies: Recovery for accounting restatements (Rule 10D-1 compliant) and “detrimental conduct” including time-vested equity; effective Oct 2, 2023 .
- Insider Trading: Hedging, short sales, margin purchases, and pledging prohibited for insiders .
- Say-on-Pay: Over 97% approval in 2024; 97.7% average over last three years .
- Compensation benchmarking peer group (FY2024): ACI Worldwide, Atlanticus, Axos Financial, Customers Bancorp, CURO Group, Enova International, Equity Bancshares, Green Dot, Lending Club, Live Oak Bancshares, MoneyGram, The Bancorp, Triumph Financial, World Acceptance, WSFS Financial .
- Related party transactions: None in FY2024 .
- Section 16: No Sharett delinquency noted; CEO and former CFO had late filings reported .
Performance Compensation – Detailed Metrics Table (FY2024 Focus)
| Component | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| Annual Incentive | Net Income | Part of 70% financial component; split NI 45% / ROA 25% | Not disclosed | Company achieved strong results | 119% (metric level) | Cash bonus paid; Sharett total bonus multiplier 128% |
| Annual Incentive | ROA | Part of 70% financial component | Not disclosed | ROA strong vs targets | 129% (metric level) | Cash bonus paid |
| Annual Incentive | Strategic/Individual | 30% | Not applicable | Discretionary assessment | Not disclosed | Cash bonus paid |
| PSUs | EPS (3-year) | 100% of PSU metric (FY2024) | FY2024 EPS target set at grant (numbers not disclosed here) | $6.62 EPS | 121% (FY2024 metric) | Cliff vest Oct 16, 2026 |
| RSAs | Capital Goal | RSA vesting contingent on annual capital ≥ 8.0% | ≥8% (minimum goal) | Achieved FY2024 | Earned FY2024 tranche | Ratable vesting Oct 16, 2024–2026 |
Investment Implications
- Alignment: Sharett’s compensation is heavily at-risk, tied primarily to Net Income, ROA, and multi-year EPS; FY2025 adds a relative TSR PSU metric, improving external-market alignment and reducing overreliance on internal accounting targets .
- Retention and selling pressure: Significant unvested PSUs and RSAs through 2026 and guideline compliance at 3.6x salary reduce near-term forced selling risk; pledging/hedging prohibitions lower alignment red flags. FY2024 vesting of 8,935 shares suggests routine tax-related dispositions may occur around vest dates, but no pledging and no related-party transactions reported .
- Severance economics: Change-in-control terms are moderate (1x salary+bonus for President; full equity vesting with double-trigger under 2023 plan), limiting excessive parachute risk while preserving retention through adverse scenarios .
- Execution track record: Company performance improved with EPS growth, stable ROA, and net interest income expansion; incentive payouts (128% in FY2024) are consistent with disclosed outperformance, supporting pay-for-performance .
- Governance quality: Strong say-on-pay support, robust clawbacks, and prohibition on hedging/pledging reduce governance and compensation risk; peer benchmarking reflects fintech/payments focus .