Fred Reichheld
eXp World HoldingsAbout Fred Reichheld
Fred Reichheld, 73, is an independent director of eXp World Holdings (EXPI), serving since September 2023; he is a Fellow at Bain & Company and the creator of the Net Promoter system, with 45+ years as a leading expert on customer and employee loyalty . He holds a BA in Economics from Harvard University and an MBA from Harvard Business School . At EXPI, he serves on the Nominating & Corporate Governance, Compensation, and Sustainability Committees, and is classified as independent under Nasdaq and SEC rules .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Bain & Company, Inc. | Partner (1982), Bain Fellow (1999–present) | Joined 1977; Partner since 1982; Fellow since 1999 | Creator of the Net Promoter system; Founded Bain’s Loyalty practice; Served on Bain’s Worldwide Management, Nominating, and Compensation Committees |
External Roles
| Organization | Company Type | Role | Tenure/Committee |
|---|---|---|---|
| FirstService Corp. | Public | Director; Nominating & Corporate Governance Committee member | Director since 2015; current Nominating & Corporate Governance Committee member |
| Bilt, Inc. | Private | Director | Director since 2020 |
Board Governance
- Committee assignments (2024): Nominating & Corporate Governance (Member), Compensation (Member), Sustainability (Member) .
- Independence: The Board determined Mr. Reichheld and all members of the Nominating & Corporate Governance and Compensation Committees are independent under Nasdaq and SEC rules .
- Attendance and engagement: The Board held four meetings in 2024; all incumbent directors attended at least 75% of aggregate Board and applicable committee meetings, and each then-current director attended the 2024 Annual Meeting .
- Context for board power dynamics: The Chair and CEO roles are combined (Glenn Sanford), and Glenn Sanford (~27.19%) and Penny Sanford (~17.35%) reported a 13D/A to vote as a group, enabling substantial influence over director elections and other matters; they are expected to vote for each director nominee .
| EXPI Committees (2024) | Role | 2024 Meetings | Selected responsibilities |
|---|---|---|---|
| Nominating & Corporate Governance | Member | 6 | Board composition, governance, succession planning, ERM oversight, annual board evaluations |
| Compensation | Member | 6 | Executive and director compensation oversight, policies and practices |
| Sustainability | Member | 4 | Oversight of sustainability, charitable, environmental and social matters |
Fixed Compensation
| Item | Amount/Terms | Source |
|---|---|---|
| 2024 cash fees (director) | $200,002 | |
| 2024 option awards (director) | $0 | |
| 2024 stock awards (director) | $0 |
| Independent Director Compensation Policy (Structure) | Terms |
|---|---|
| Annual cash retainer | $200,000 (paid monthly) |
| Leadership stipends | Vice Chair $25,000; Audit Chair $50,000; Compensation Chair $25,000; Nominating & Corporate Governance Chair $25,000; Sustainability Chair $25,000 (paid monthly) |
| Initial equity grant | Stock option with ~$300,000 grant date fair value; vests monthly over 3 years, service-based |
| Ongoing annual equity from 4th year | Annual stock option grants with ~$100,000 grant date fair value; vests monthly over 3 years, service-based |
2024 peer review concluded independent director pay levels remained aligned with market (compared against HOUS, RMAX, FTHM, COMP, DOUG, RDFN, REAX) .
Performance Compensation
- Structure: Independent directors receive stock options structured to vest over time; no performance conditions or metrics are disclosed for director equity awards .
- 2024 director equity grant value: $0 for Mr. Reichheld (cash-only compensation in 2024) .
| Equity Instrument | Vesting | Performance Metrics | 2024 Grant Value |
|---|---|---|---|
| Stock options (director program) | Monthly over 3 years (service-based) | None disclosed | $0 (no 2024 grant) |
Other Directorships & Interlocks
- Compensation Committee interlocks: Current EXPI Compensation Committee members (Miles, Cahir, Reichheld) did not serve as EXPI officers in the past year; no executive officer (other than Sanford) served on another company’s compensation committee, and Sanford left EXPI’s Compensation Committee in May 2024 when Mr. Reichheld replaced him .
Expertise & Qualifications
- Net Promoter and loyalty leadership: Creator of NPS and founder of Bain’s Loyalty practice; frequent speaker and author (e.g., Winning on Purpose; The Ultimate Question 2.0) .
- Governance and talent: Service on Bain’s Worldwide Management, Nominating, and Compensation Committees demonstrates governance and compensation oversight experience .
- Education: BA in Economics (Harvard); MBA (Harvard Business School) .
Equity Ownership
| Ownership detail | Amount | Notes |
|---|---|---|
| Beneficial ownership (as of Jan 31, 2025) | 12,532 | Options exercisable within 60 days; less than 1% of shares outstanding |
| Options outstanding (as of Dec 31, 2024) | 25,063 | Outstanding options as of fiscal year-end 2024 |
| Shares pledged | None disclosed; company policy prohibits pledging by insiders (including directors) | Anti-hedging and anti-pledging policy |
| Related-party transactions | None for 2024 (>$120,000) | Company reported no related-party transactions in 2024 |
Governance Assessment
-
Positives
- Independent director serving on three key committees (Nominating & Corporate Governance, Compensation, Sustainability), adding governance, compensation, and ESG oversight depth .
- Attendance threshold met across Board/committee obligations during 2024; Board met four times and all incumbents attended ≥75%; directors attended the 2024 Annual Meeting .
- Compensation structure for independent directors is balanced and market-aligned; Mr. Reichheld received cash-only compensation in 2024, with service-vested options outstanding from prior grant, supporting alignment without pay anomalies .
- Policies prohibit hedging/pledging by directors; no related-party transactions reported for 2024 .
-
Watch items / potential red flags
- Concentrated voting influence: Combined CEO/Chair structure and a voting group between major holders Glenn and Penny Sanford materially influence director elections and governance agenda; this may constrain independent director leverage despite formal independence .
- No director-specific performance metrics or ownership guidelines disclosed for directors; alignment relies on service-based option grants per policy .
No director-level compliance issues, legal proceedings, or related-party exposures were disclosed for Mr. Reichheld in 2024; Section 16(a) delinquency items noted in the proxy were for other insiders (Glenn and Penny Sanford), not for Mr. Reichheld .