Ernest Garcia III
Also at Carvana Co
About
Ernest Garcia III has been a driving force at CVNA since co-founding the company in 2012.
He has led the company as President and CEO from its inception, and later expanded his leadership by assuming the role of Chairman after the IPO in 2017, underscoring his commitment to shaping the company's strategic direction.
He holds a B.S. in management science and engineering from Stanford University, a credential that has supported his successful career in transforming automotive retail.
Before establishing CVNA, he honed his expertise by serving in several key roles at DriveTime Automotive Group, Inc., and as an associate in the Principal Transactions Group at RBS Greenwich Capital, developing financial models and strategies that have defined his approach to business and innovation.
$CVNA Performance Under Ernest Garcia III
Past Roles
| Organization | Role | Date Range | Details |
|---|---|---|---|
| DriveTime Automotive Group, Inc. | Vice President and Treasurer and Director of Quantitative Analytics | November 2009 - January 2013 | Responsible for development of consumer credit scoring models and their use in deal structuring and price optimization |
| DriveTime Automotive Group, Inc. | Managing Director of Corporate Finance | December 2008 - November 2009 | N/A |
| DriveTime Automotive Group, Inc. | Financial Strategist | January 2007 - December 2008 | N/A |
| RBS Greenwich Capital | Associate in the Principal Transactions Group | 2005 - 2006 | Focused on consumer-credit-based investments |
Fixed Compensation
| Component Name | Amount | Payment Schedule | Additional Details |
|---|---|---|---|
| Base Salary | $912,238 | Annual | Originally $930,000; voluntary salary waivers resulted in a received salary of $912,238 |
| All Other Compensation | $712 | As incurred | Solely attributable to cellphone expense |
Performance Compensation
Adjusted EBITDA PSUs
| Metric | Detail |
|---|---|
| Performance Metric | Positive Adjusted EBITDA |
| Target/Condition | Must achieve positive Adjusted EBITDA for a calendar quarter ending on or before December 31, 2023 |
| Vesting Condition | 50% of the PSUs vested upon filing a Quarterly Report confirming positive Adjusted EBITDA on July 19, 2023 |
| Vesting Schedule | Binary vesting based on the achievement of the performance metric; 50% vesting on the qualifying filing |
| Grant Date | February 22, 2023 |
| Number of PSUs Granted | 53,091 |
| Grant Date Fair Value | $534,626 |
| Threshold / Max Cap | No threshold or maximum level; vesting is contingent solely on achieving positive Adjusted EBITDA |
| Weight in Total Compensation | Represents 9.1% of total 2023 compensation |
Core Free Cash Flow PSUs
| Metric | Detail |
|---|---|
| Performance Metric | Positive Core Free Cash Flow |
| Target/Condition | Must file a Quarterly or Annual Report (Form 10-Q/10-K) reflecting positive Core Free Cash Flow on or before December 31, 2025 |
| Vesting Condition | PSUs will vest when the performance metric is met; condition has not yet been met |
| Vesting Schedule | Vesting contingent upon the filing of the qualifying report (either Form 10-Q or 10-K) |
| Grant Date | February 22, 2023 |
| Number of PSUs Granted | 53,091 |
| Grant Date Fair Value | $534,626 |
| Threshold / Max Cap | No threshold or cap level; vesting is binary based solely on meeting the performance metric |
| Evaluation Period | Up to December 31, 2025 |
Note: Time-based RSUs and Stock Options granted in 2023 are not performance-based and therefore are not included in this performance compensation summary.