Alan Ellingson
DraftKingsAbout Alan Ellingson
Alan Ellingson, 45, is Chief Financial Officer of DraftKings, appointed effective May 1, 2024; he joined DraftKings in 2020 (VP FP&A), became SVP, Finance & Analytics in January 2023, and holds a BSc in Economics (University of Utah) and an MBA (Notre Dame Mendoza) . As CFO, he oversees accounting, tax, treasury, FP&A, internal audit, investor relations and analytics . Company performance during his first year as CFO included revenue growth of 30% year-over-year to $4,768 million in 2024, with adjusted EBITDA “significantly improved” versus 2023 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| DraftKings | Vice President, Financial Planning & Analysis | 2020–2022 | Built forecasting and performance management capabilities; expanded responsibilities across FP&A and treasury . |
| DraftKings | Senior Vice President, Finance & Analytics | Jan 2023–Apr 2024 | Directed finance analytics functions; foundational leadership pre-CFO . |
| DraftKings | Chief Financial Officer | May 2024–present | Leads accounting, tax, treasury, FP&A, internal audit, IR and analytics . |
| Iron Mountain Inc. | Vice President, Finance | 2012–2020 | Finance leadership in global operations support . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| None disclosed | N/A | N/A | No external public company directorships or roles disclosed in DKNG filings reviewed . |
Fixed Compensation
| Metric | 2024 |
|---|---|
| Base Salary ($) | $400,000 (effective May 1, 2024; $315,000 prior to May 1) . |
| Target Annual Bonus (%) | 80% of prior base salary pro-rated as SVP; 100% of CFO base salary pro-rated post-promotion; 100% thereafter . |
| Actual Annual Bonus Paid ($) | $0 (Revenue and Adjusted EBITDA thresholds not met) . |
| Notable Perquisites ($) | 401(k) match $10,350; financial planning services $10,471 . |
Performance Compensation
2024 Annual Bonus Plan (Company-wide metrics; equally weighted)
| Metric | Weight | Threshold | Target | Maximum | Actual | Payout |
|---|---|---|---|---|---|---|
| Revenue ($mm) | 50% | $5,005 (adjusted) | $5,081 (adjusted) | $5,455 (adjusted) | $4,768 | 0% . |
| Adjusted EBITDA ($mm) | 50% | $422 (adjusted) | $452 (adjusted) | $602 (adjusted) | $181 | 0% . |
| Total | 100% | — | — | — | — | 0% . |
2024 Equity Awards (Grant details and vesting)
| Award Type | Grant Date | Shares (#) | Fair Value ($) | Vesting Terms |
|---|---|---|---|---|
| Annual Refresh RSUs | 2/16/2024 | 11,868 | $528,957 | Equal quarterly installments over 4 years . |
| Annual Refresh PSUs (2025 metrics) | 2/12/2024 | 1,978 target | $176,318 (value within annual refresh table) | Eligible based on 2025 Normalized Net Revenue & Normalized Adjusted EBITDA . |
| Annual Refresh PSUs (2027 metrics) | 2/12/2024 | 1,978 target | $176,318 (value within annual refresh table) | Eligible based on 2027 Normalized Net Revenue & Normalized Adjusted EBITDA . |
| CFO Promotion RSUs | May 2024 | 68,963 | $2,866,102 | Equal quarterly installments over 4 years . |
| CFO Promotion PSUs (2025 metrics) | May 2024 | 22,987 target | $955,340 (half of $1,910,680) | Eligible based on 2025 metrics; minimum vesting 2 years . |
| CFO Promotion PSUs (2027 metrics) | May 2024 | 22,987 target | $955,340 (half of $1,910,680) | Eligible based on 2027 metrics; minimum vesting 2 years . |
Notes:
- The promotion grant price used to determine RSU/PSU counts was the average closing price in April 2024 .
- At maximum performance, Ellingson’s promotion PSUs would be valued at $3,821,360; annual refresh PSUs at $325,636 .
PSU Performance Metrics (Ellingson-specific awards)
| Grant | Metric Set | Weighting | Measurement Period | Payout Range |
|---|---|---|---|---|
| 2024 Annual Refresh PSUs | 2025 Normalized Net Revenue & Normalized Adjusted EBITDA | Not disclosed | FY2025 | 0–200% typical company scale; specific for PSU sets per plan . |
| 2024 Promotion PSUs | 2025 & 2027 Normalized Net Revenue & Normalized Adjusted EBITDA | Not disclosed | FY2025 and FY2027 | Target to maximum opportunity subject to plan terms . |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 180,181 Class A shares (<1% of Class A) . |
| Breakdown | 175,871 shares owned outright; plus 4,310 shares underlying options/RSUs vesting within 60 days . |
| 2024 Stock Vested | 29,255 shares; value realized $1,125,043 . |
| Option Exercises (2024) | None . |
| Pledging | No pledged shares disclosed for Ellingson (pledging disclosed for other NEOs only) . |
| Ownership Guidelines | Executive officers: 3x base salary; RSUs count at 100% once service-only condition applies . |
| Compliance Status | As of Dec 31, 2024, all NEOs subject to the policy met requirements . |
| Clawback Policy | Adopted Oct 31, 2023; effective Dec 1, 2023 per NASDAQ listing requirement . |
Employment Terms
| Provision | Ellingson Terms |
|---|---|
| Agreement Date / CFO Effective Date | March 17, 2024; May 1, 2024 . |
| Base Salary | $315,000 until May 1, 2024; $400,000 thereafter . |
| Target Annual Bonus | 80% of prior base (SVP, pro-rated); 100% of CFO base (pro-rated in 2024); 100% thereafter . |
| Annual Equity Incentive (from 2025) | Minimum aggregate target value $2,500,000; 50% Time-Based RSUs (quarterly vesting over 4 years), 50% PSUs (≥2-year vesting) . |
| Initial Promotion Equity | $3,000,000 RSUs (quarterly vesting over 4 years); $2,000,000 PSUs (50% tied to 2025 metrics, 50% tied to 2027 metrics) . |
| Severance (No CIC) | 1x base salary; pro‑rata annual bonus based on actual performance; 12 months benefits; pro‑rata vesting of time-based and PSUs based on actual performance . |
| Severance (CIC within 18 months post / 3 months pre) | 1.5x base salary + target bonus; 18 months benefits; vesting of all unvested equity at target for incomplete performance periods . |
| Death/Disability | Full vesting of time-based awards; performance awards vest based on actual performance; options exercisable 12 months . |
| Non‑Compete | 12 months post‑termination; global restricted area; exceptions if termination without cause under Massachusetts Act; settlement-forfeiture provisions for RSUs on breach . |
| Non‑Solicit | 12 months post‑termination . |
| Arbitration / Venue | JAMS Employment Arbitration Rules in Boston; Massachusetts law; jury waiver (except certain exhibits) . |
| 280G Treatment | “Cutback” to avoid excise tax (Reduced Amount); no tax gross‑up . |
| Indemnification | Separate indemnification agreement executed March 17, 2024 . |
| Related Party Transactions | None requiring Item 404(a) disclosure . |
Investment Implications
- Pay-for-performance alignment: Ellingson’s 2024 bonus paid $0 on missed company thresholds; forward equity mix emphasizes PSUs tied to revenue and adjusted EBITDA in 2025/2027, supporting performance linkage .
- Supply overhang versus alignment: Quarterly RSU vesting through 2028 and annual equity refresh create steady equity issuance; 2024 vesting realized $1.125 million, but no pledging disclosed for Ellingson and he meets 3x salary ownership guidelines, limiting misalignment risk .
- Retention and change-in-control economics: Double-trigger CIC at 1.5x salary+target bonus with full vesting at target for incomplete performance periods; non-compete and non-solicit covenants are robust, while 280G cutback avoids shareholder-unfriendly tax gross-ups .
- Governance risk mitigants: Company clawback policy effective Dec 1, 2023; arbitration framework; separate indemnification agreement—collectively strengthening governance and legal resiliency .