Andrew E. Asch
ENCORE CAPITAL GROUPAbout Andrew E. Asch
Andrew E. Asch (age 51) serves as Senior Vice President, General Counsel, Government Affairs and Corporate Secretary at Encore Capital Group (ECPG). He has held the Company’s General Counsel role since August 2022, joined Encore in April 2010, and previously served as General Counsel of Midland Credit Management (MCM) from March 2016; he holds a B.A. in Political Science from UCLA and a J.D. from USC Gould School of Law . Company performance context for 2024: KCP Adjusted EBITDA was $1,337.2M (+20% YoY cash generation), 3-year average pre-tax ROIC was 8.7%, relative TSR for the 2022–2024 PSU cycle was at the 18th percentile (0% vest), and GAAP net income was -$139M, underscoring pay-for-performance discipline and negative discretion on bonuses . ECPG’s cumulative TSR per $100 over recent years was $135 (2024), $144 (2023), $136 (2022), $176 (2021), $110 (2020) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Encore Capital Group | Senior Vice President, General Counsel, Government Affairs and Corporate Secretary | Aug 2022 – present | Oversees legal and government affairs; corporate secretary responsibilities |
| Midland Credit Management (Encore subsidiary) | General Counsel | Mar 2016 – Aug 2022 | Led legal function for U.S. operations |
| Encore Capital Group | Joined Company | Apr 2010 | Various legal leadership roles |
| Roll International (The Wonderful Company) | Senior Counsel | Not disclosed | Corporate legal experience in diversified holding company |
| Katten Muchin Rosenman LLP | Attorney | Not disclosed | Private practice experience |
| Fulbright & Jaworski LLP | Attorney | Not disclosed | Private practice experience |
Fixed Compensation
| Component | 2023 | 2024 | Notes |
|---|---|---|---|
| Base Salary ($) | 400,007 | 428,007 | 7.0% increase; includes ~3.5% market adjustment plus merit |
| Target Bonus (% of Base) | — | 60% | KCP plan target |
| Actual Bonus Paid ($) | 245,032 | 305,080 | 2024 funded at 120% for non-CEO NEOs; Asch at 100% individual |
| All Other Compensation ($) | 30,757 | 12,716 | Includes 401(k) match ($10,350) and wellness/other items |
Performance Compensation
Annual Incentive (KCP) – 2024 Structure and Outcomes
| Metric | Weight | Target | Actual | Element Funding | Notes |
|---|---|---|---|---|---|
| KCP Adjusted EBITDA | 50% | $1,278.0M | $1,337.2M | 146.3% | Primary cash generation proxy |
| Strategic Initiatives | 20% | Milestones | Achieved (Committee-assessed) | 109.5% | Diversification/operational improvements |
| Consumer Experience | 15% | Call quality/CSAT/FOS overturn | Slightly below targets except call quality near max | 120.0% | Compliance + consumer outcomes |
| People Initiatives | 15% | Survey/retention | Between target and max | 152.0% | Talent outcomes |
| Risk Mgmt Adjustment | ±5% | — | 100% | 100.0% | Risk Committee assessment |
| Calculated Funding | — | — | — | 135.9% | Negative discretion to 120% for NEOs (100% CEO) |
Asch’s 2024 KCP target was $254,234 (60% of salary); actual payout was $305,080 (120% of target) after discretion and individual modifier at 100% .
Long‑Term Incentives (granted March 9, 2024)
| Award Type | Target Value ($) | Units | Vesting | Performance Framework |
|---|---|---|---|---|
| RSUs | 250,000 | 4,985 | 1/3 on Mar 9, 2025/2026/2027, continued service | Time-based |
| ROIC PSUs | 125,000 | 2,492 (target) | Cliff on Mar 9, 2027, continued service | 3-yr avg pre‑tax ROIC; 50% at threshold to 200% at max |
| TSR PSUs | 125,000 | 2,449 (target) | Cliff on Mar 9, 2027, continued service | Relative TSR vs S&P SmallCap 600 Financials; 0–150% vest, 100% cap if absolute TSR negative |
Recent performance cycle outcomes: 2022-granted ROIC PSUs and TSR PSUs paid 0% (ROIC 8.7% vs 11.4% target; TSR 18th percentile) .
Equity Ownership & Alignment
Ownership Summary
| Item | Detail |
|---|---|
| Beneficial Ownership | 10,822 shares; <1% of outstanding |
| Shares Outstanding (Record Date) | 23,448,221 |
| Stock Ownership Guidelines (SVP) | 2x base salary; all NEOs met |
| Pledging/Hedging | Prohibited under insider trading policy |
| Option Usage | Company currently does not grant options |
Vested vs Unvested/Unearned Awards (as of Dec 31, 2024)
| Award | Units |
|---|---|
| RSU (2022 grant – remaining tranches) | 1,181; 680 |
| RSU (2023 grant – remaining tranches) | 2,663 |
| RSU (2024 grant – all tranches) | 4,985 |
| ROIC PSU (2023 grant – unearned) | 1,997 (target basis) |
| TSR PSU (2023 grant – unearned) | 964 (threshold basis shown) |
| ROIC PSU (2024 grant – unearned) | 2,492 (target basis) |
| TSR PSU (2024 grant – unearned) | 1,224 (threshold basis shown) |
Vesting timelines that could create supply: RSU installments on Mar 9, 2026 and Mar 9, 2027; PSU cliffs on Mar 9, 2026 (2023 grants) and Mar 9, 2027 (2024 grants), subject to performance .
Employment Terms
| Topic | Terms (Asch) |
|---|---|
| Employment Agreement | No formal U.S. employment agreement; covered by Executive Separation Plan |
| Severance (No CIC) | 1.5x base salary; pro‑rata bonus (if achieved); 18 months health benefits; 12 months continued vesting of unvested equity |
| Severance (With CIC) | 2x base salary; pro‑rata target bonus plus greater of 100% target or annualized actual; 24 months health; time‑based equity vests; performance equity vests pro‑rata on greater of target or to‑date performance (double‑trigger) |
| Definitions | Cause/Good Reason/Change of Control defined; CIC includes >50.1% voting power change, substantial asset sale, liquidation, or qualifying merger/reorg |
| Restrictive Covenants | Non‑solicitation 18 months; non‑disparagement; confidentiality; cooperation obligations |
| Clawbacks | Discretionary misconduct clawback and SEC 10D-compliant policy for erroneously awarded comp |
| Tax Gross‑ups | No excise tax gross‑ups; “best‑net” cutback provision |
Illustrative payout modeling (company estimates on 12/31/2024 prices): In a termination in connection with a CIC, Asch total value ~$2.08M; without cause/no CIC ~$1.21M . Fair market values use $47.77/share .
Investment Implications
- Pay-for-performance discipline: 2024 KCP funded at 135.9% on formula, but reduced to 120% for NEOs; 2022 PSU cycles paid 0% on both ROIC and TSR, aligning outcomes with under-target multi-year performance .
- Near-term selling pressure: RSU tranches vest each March (2026/2027) and PSU cliffs in 2026/2027 if performance is met, creating scheduled supply windows; pledging and hedging are prohibited, reducing forced-sale risk .
- Alignment and retention: As SVP, Asch is subject to 2x salary ownership requirements (met), has multi-year vesting, and double-trigger CIC protections that avoid single-trigger windfalls while providing retention in strategic scenarios .
- Governance risk appears contained: No option repricing, no excise tax gross-ups, robust clawbacks, and strong say-on-pay support (~98% in 2024) suggest shareholder-aligned design; separation non-solicit (18 months) mitigates talent leakage risk .
Context: 2024 operating momentum (record U.S. purchasing, +16% global collections, +20% cash generation) was offset by European restructuring, goodwill/asset impairments and negative GAAP earnings; compensation decisions incorporated these outcomes, including negative discretion on annual incentives .