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Douglas M. Garis

Executive Vice President and Chief Financial Officer at Claritev
Executive

About Douglas M. Garis

Douglas M. Garis is Executive Vice President and Chief Financial Officer at Claritev (CTEV), appointed in August 2024; he is 40 years old and previously served as CFO of Oracle Health & Life Sciences, VP Finance and Global FP&A Leader at Cerner, an Operating Partner at Blue Rocket, and CFO of Integrated Openings Solutions, with earlier finance roles at Masonite, United Maritime Group, and PwC . His cash bonus plan is tied to revenue and adjusted EBITDA with equal weighting, and 2024 payouts were 70% of target for continuing NEOs, reflecting below-expectation company performance; long-term incentives emphasize equity with RSUs and options vesting over multi-year schedules . Company performance used in compensation decisions included adjusted EBITDA of $576.7 million in 2024 vs. $618.0 million in 2023, alongside negative TSR in 2024 and significant non-cash impairments that drove net loss, underscoring pay-for-performance sensitivity to stock price and EBITDA .

Past Roles

OrganizationRoleYearsStrategic Impact
Oracle Health & Life SciencesChief Financial OfficerJun 2022 – Apr 2024Finance leadership for Oracle Health & LS business
Cerner CorporationVP Finance, Global FP&A LeaderApr 2021 – Jun 2022Led global FP&A; performance planning and analytics
Blue Rocket IncorporatedOperating Partner – Pricing & Quantitative ScienceOct 2020 – Apr 2021Pricing strategy and quantitative insights
Integrated Openings SolutionsChief Financial OfficerFeb 2020 – Sep 2020Corporate finance and controls
Masonite; United Maritime Group; PwCVarious finance leadership rolesNot disclosedPrior finance and accounting experience

External Roles

OrganizationRoleYearsNotes
None disclosedNo current external public-company board roles disclosed in proxy

Fixed Compensation

ComponentDetail2024 Amount
Base salaryAnnual base salary set at $535,000$535,000 (year-end rate)
Target annual bonus100% of base; maximum 150% of baseTarget %, max disclosed
Sign-on bonus$250,000; forfeitable if terminated for cause or without good reason before 2nd anniversary of Aug 5, 2024$250,000
Earned base salary (prorated)Employed from Aug 1, 2024$195,481 (earned)
2024 actual bonus paid (NEIP)Paid March 2025 under annual plan$136,837

Performance Compensation

Equity Awards Granted (2024 Inducement)

Award TypeGrant DateUnitsExercise PriceGrant Date Fair ValueVesting Schedule
RSUsAug 5, 202489,285$1,000,00033.33% per year on 2nd, 3rd, 4th anniversaries of Aug 5, 2024 (i.e., Aug 5, 2026/2027/2028)
Stock OptionsAug 5, 2024122,549$11.20$1,000,00033.33% per year on Aug 5, 2026/2027/2028

Beginning in 2025, annual equity grants are at the Compensation Committee’s discretion commensurate with role; the company anticipates future long-term grants for Garis based on a multiple of year-end base salary (currently anticipated at 4x) .

Annual Cash Incentive Plan – 2024 Structure and Outcomes

MetricWeightingThreshold EligibilityTargetPayout Curve2024 Outcome
Revenue50%≥92% of target$1,021.1 million50% to 150% of target factor; max at +8% vs targetCompany-wide NEO payouts at 70% of target
Adjusted EBITDA50%≥90% of target$646.7 million50% to 150% of target factor; max at +10% vs targetCompany-wide NEO payouts at 70% of target

Equity Ownership & Alignment

ItemDetail
Beneficial ownership (as of Mar 7, 2025)37,669 shares; less than 1% of outstanding Class A common stock
Unvested RSUs (12/31/2024)89,285 units; market value $1,319,632 (based on $14.78 closing price)
Stock options outstanding (12/31/2024)122,549 unexercisable; exercise price $11.20; inducement grant
Ownership guidelinesC-Suite/EVP officers must hold shares ≥3x base salary; compliance expected within 5 years of becoming subject to guidelines
Hedging/pledging policyHedging prohibited; pledging requires General Counsel pre-clearance; margin purchases prohibited without pre-clearance

Employment Terms

ProvisionBaseline TermsChange-in-Control (CIC) Amendment (Feb 27, 2025)
Employment start dateAugust 1, 2024
Severance (without cause / for good reason)Cash equal to 1x base salary + target bonus, payable in 12 monthly installments; COBRA reimbursements up to 18 months; non-compete and non-solicit for 12 months post-termination; confidentiality/non-disparagement indefinite For termination without cause or resignation for good reason during one year post-CIC: 1.5x base salary + target bonus, payable in 18 monthly installments; health insurance reimbursements for duration of severance payments
Severance valuation example (12/31/2024)Estimated cash severance $1,070,000; COBRA $51,732; total $1,121,732 (baseline)
Sign-on bonus condition$250,000; forfeiture if terminated for cause or resigns without good reason prior to Aug 5, 2026
ClawbackAwards subject to reduction/cancellation/recoupment under Board policy and applicable law; repayment for restatements, mistakes, or detrimental activity

Performance & Track Record (Company metrics used in compensation decisions)

Metric ($ in thousands)FY 2023FY 2024
Adjusted EBITDA$618,045 $576,668
Net Income (Loss)$(91,697) $(1,645,831)
Free Cash Flow$62,868 $(10,507)
  • Narrative context: The company emphasized that adjusted EBITDA and stock price (TSR) are the most important performance drivers for compensation, with negative TSR in 2024 and below-expectation adjusted EBITDA contributing to reduced CAP and 70% of target bonus payouts for continuing NEOs .

Governance and Committee Context

  • Compensation Committee members: P. Hunter Philbrick (Chair), Anthony Colaluca, Jr., Julie D. Klapstein; charter available on company website .
  • Equity plan mechanics allow adjustments in certain events and provide for potential acceleration or cash-out upon change in control at the Committee’s discretion .

Investment Implications

  • Alignment: High at-risk pay through equity and performance-based cash aligns Garis with revenue and adjusted EBITDA outcomes; RSU and option inducements vest starting in 2026, reducing near-term selling pressure and supporting retention .
  • Ownership: Current beneficial ownership is <1% with robust stock ownership guidelines (3x salary) and a 5-year compliance window, indicating a multi-year build-up requirement; hedging is prohibited and pledging tightly controlled, which is positive for alignment and reduces hedging-related red flags .
  • Retention and CIC economics: Baseline severance is moderate at 1x salary+bonus; CIC amendment raises it to 1.5x salary+bonus for double-trigger terminations, which is market-consistent but may modestly increase deal-related retention costs; non-compete and non-solicit for 12 months help mitigate transition risk .
  • Performance sensitivity: 2024 payouts at 70% of target and negative TSR highlight tight linkage to financial outcomes; significant non-cash impairments and tighter cash conversion in 2024 underscore execution demands on cost discipline and capital structure under the CFO’s tenure .