Rick Wessel
FirstCash HoldingsAbout Rick Wessel
Rick L. Wessel, age 66, is Vice-Chairman of the Board and Chief Executive Officer of FirstCash Holdings, Inc. (FCFS). He joined FirstCash in 1992, has been CEO since November 2006, a director since 1992, and previously served as Chairman (2010–2016), Vice-Chairman (2004–2010), President (1998–2016), CFO (1992–2002), and Secretary/Treasurer (1992–2006). Prior to FirstCash, he spent ~9 years at Price Waterhouse LLP . Under his tenure, FCFS delivered 2024 revenue of $3.388 billion (+8% YoY), GAAP diluted EPS of $5.73 (+19% YoY), adjusted EPS of $6.70 (+11% YoY), and adjusted EBITDA of $558 million (+9% YoY) . Over the 3-year period ending 12/31/2024, FCFS’s TSR was 44% versus a peer group median of -4% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| FirstCash Holdings, Inc. | Chief Executive Officer | 2006–present | Oversaw strong multi-year growth; 2024 revenue +8% YoY to $3.388B and adjusted EBITDA +9% YoY to $558M . |
| FirstCash Holdings, Inc. | Vice-Chairman | 2004–2010; 2016–present | Board leadership with independent Lead Director structure . |
| FirstCash Holdings, Inc. | Chairman | 2010–2016 | Board leadership through Cash America merger period . |
| FirstCash Holdings, Inc. | President | 1998–2016 | Executive leadership through store expansion; 2024 ended with 3,026 pawn stores after opening/acquiring 99 in the year . |
| FirstCash Holdings, Inc. | Chief Financial Officer | 1992–2002 | Built finance function during early growth . |
| FirstCash Holdings, Inc. | Secretary & Treasurer | 1992–2006 | Corporate governance roles . |
| Price Waterhouse LLP | Various positions | ~1983–1992 | 9 years in audit/finance prior to FCFS . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | — | — | No external public company directorships disclosed for Wessel in FCFS’s proxy . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| CEO Base Salary ($) | $1,258,660 | $1,321,593 | $1,424,457 (4% merit plus $50,000 in lieu of certain perqs) |
| All Other Compensation ($) | $95,316 | $113,385 | $125,017 (includes $97,696 personal aircraft use; $8,625 401k match; $9,920 health; $8,776 auto) |
Notes:
- Non-employee director fees do not apply to employee-directors like Wessel; he is compensated solely under executive plans .
- Perquisite reimbursement for club dues was discontinued in 2024/2025 for the CEO and other NEOs .
Performance Compensation
Annual Performance Incentive Program (APIP) – 2024
| Metric | Weighting | 2023 Actual | 2024 Target | 2024 Actual | Actual vs Target | CEO Payout Impact |
|---|---|---|---|---|---|---|
| Adjusted Diluted EPS ($) | 37.5% | 6.06 | 6.70 | 6.70 | 100.0% | Contributed to total APIP payout of 153% of salary ($2,176,748) |
| Adjusted EBITDA ($000) | 37.5% | 511,732 | 558,000 | 558,437 | 100.1% | See above |
| Net Revenue (Gross Profit) ($000) | 25.0% | 1,507,239 | 1,624,000 | 1,629,532 | 100.3% | See above |
| Total Award | — | — | — | — | — | 153% of salary; $2,176,748 |
APIP ranges: CEO 0–300% of salary; target 150% of salary; ranges unchanged YoY .
Long-Term Incentive Program (LTIP) – 2024 Grants
| Component | Weighting | Performance Period | Threshold | Target | Maximum | Vesting |
|---|---|---|---|---|---|---|
| Adjusted Net Income (P-Restricted Stock) | 25% | 1/1/2024–12/31/2026 | Not disclosed for competitive reasons | Not disclosed | Not disclosed | End of 3-year period |
| Relative TSR vs Peer Group (P-RS) | 25% | 1/1/2024–12/31/2026 | 25th percentile | 50th percentile | 75th percentile | End of 3-year period |
| Time-Based RS | 50% | Service through 12/31/2026 | — | — | — | Cliff vest 12/31/2026 |
2024 CEO LTIP awards at target: 36,669 time-based RS; performance-based target 36,670 shares split evenly across adj. net income and TSR components; threshold/maximum share opportunities per component detailed below .
| 2024 CEO LTIP Shares | Threshold | Target | Maximum |
|---|---|---|---|
| Adjusted Net Income (P-RS) | 4,584 | 18,335 | 27,503 |
| Relative TSR (P-RS) | 9,167 | 18,335 | 27,502 |
| Time-Based RS | — | 36,669 | — |
Historical LTIP 2022 cycle (3-year period ended 12/31/2024) paid at 150% of target for both adjusted net income and TSR; CEO vested 74,447 performance shares and 21,270 time-based shares on 12/31/2024 .
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Total Beneficial Ownership | 885,056 shares; 1.99% of outstanding (based on 44,364,566 shares) . |
| Shares Pledged as Collateral | Pledged; amount drawn ~13% of total value of pledged shares as of 4/17/2025 (lines of credit) . |
| Executive Stock Ownership Guideline | 5x salary; current multiple 83.7x salary (compliant) . |
| Insider Trading/Hedging/Pledging Policy | Hedging prohibited; pledging may be permitted case-by-case; Wessel’s pledge permitted given financial capacity and compliance with guidelines . |
| Unvested RS (CEO) as of 12/31/2024 | 36,669 time-based (vest 12/31/2026) . |
| Unvested RS (CEO) as of 12/31/2024 | 38,174 time-based (vest 12/31/2025) . |
| Performance RS at threshold (CEO) | 13,751 (2024 grant; vest 12/31/2026) . |
| Performance RS at target/threshold (CEO) | 23,859 (2023 grant; vest 12/31/2025) . |
Employment Terms
| Term | Details |
|---|---|
| Severance (non-CIC) | Cash severance capped at 50% of sum of current salary + average cash bonus over past 3 years (senior exec policy) . |
| Change-in-Control | Double-trigger severance and equity benefits upon involuntary termination following a CIC; includes two-year non-compete and non-solicitation . |
| Clawback Policy | Updated to comply with Nasdaq Rule 10D-1; applies to incentive comp paid in 3 prior years if financial restatement; adopted 10/25/2023 . |
| Tax Gross-Ups | Not provided for severance or any other benefits . |
| Hedging/Pledging | Hedging prohibited; pledging generally prohibited but may be granted case-by-case; Wessel permitted pledge . |
Historical agreements (context): Older Wessel agreements included one-year non-compete and narrower “good reason” terms; severance examples disclosed in 2013–2016 proxies. Note current Company-wide severance framework governs senior executives today .
Board Governance
- Role and independence: Wessel is Vice-Chairman and CEO; he is not independent under Nasdaq/SEC guidelines; all committee members are independent .
- Board leadership: Chairman is Daniel R. Feehan; Lead Independent Director is Mikel D. Faulkner; independent directors hold executive sessions after regular meetings .
- Committee memberships: Audit (Chair Berce), Compensation (Chair Graves), Nominating/Governance (Chair Owen); Wessel does not sit on these committees .
- Board/committee attendance: Each director attended at least 75% of meetings in 2024; Wessel attended last year’s Annual Meeting .
- Director compensation: Non-employee director program includes $100,000 cash, annual RS awards (e.g., 1,213 shares granted 1/31/2024, vested 12/31/2024), plus chair/lead independent supplements; employee-directors like Wessel do not receive director fees .
Compensation Peer Group and Say-on-Pay
- 2024 peer group spans pawn/consumer finance, lease-to-own/services, and specialty retail; includes EZCORP, Bread Financial, OneMain, Enova, Upbound Group, Western Union, Academy Sports, Advance Auto Parts, Burlington, Five Below, Sally Beauty, Signet, among others .
- 2024 say-on-pay support was 97% approval; strong multi-year support cited .
- 2025 peer group change: remove The Aaron’s Company (privatized); add Foot Locker, Inc. .
Performance Compensation Structure Analysis
- Year-over-year pay mix: Heavy emphasis on at-risk compensation—APIP 100% performance-based; LTIP 50% performance-based, 50% time-based; salary is the only substantial fixed element .
- Metrics rigor: APIP uses three measures (adjusted EPS, adjusted EBITDA, net revenue) with caps/floors; LTIP uses cumulative adjusted net income and relative TSR with 0–150% payout scaling; historical performance cycles show disciplined outcomes (e.g., 2019 paid zero, 2021–2022 paid at 150%) .
- Governance protections: Double-trigger CIC; clawback; no excise tax gross-ups; robust ownership guidelines .
Equity Ownership & Alignment – Additional Detail
| Item | Value |
|---|---|
| Beneficial ownership (CEO) | 885,056 shares; 1.99% . |
| Shares outstanding | 44,364,566 as of 4/17/2025 . |
| Director ownership guideline | 5x annual cash retainer; employee-directors not subject but would meet if calculated at 5x salary . |
Related Party Transactions (context)
- The Company repurchased shares from AFF Services, Inc., controlled by former director Douglas Rippel’s trust, at negotiated discounts relative to market averages (720,950 shares at $117.90 on 5/22/2024; 300,000 shares at $113.43 on 2/11/2025) .
Risk Indicators & Red Flags
- Pledging: Wessel’s pledged shares securing lines of credit (drawn amounts ~13% of total value) represent a governance risk to alignment if margin calls occur, though the Company cites his financial capacity and guideline compliance in permitting the pledge .
- Hedging: Prohibited for all insiders .
- Option repricing/tax gross-ups: Not present .
- Say-on-pay: Strong support reduces immediate governance risk .
Investment Implications
- Alignment: Wessel’s large ownership (1.99%) and extremely high ownership multiple (83.7x salary) create strong alignment with shareholders, and incentive design ties pay to adjusted EPS, EBITDA, net revenue, and multi-year TSR outcomes .
- Performance linkage: 2024 APIP paid near target on all three metrics; multi-year LTIP demonstrated rigorous payout scaling with cycles paying zero (2019) and max (2021–2022), indicating a structure sensitive to sustained performance rather than one-off results .
- Overhang/vesting cadence: Significant unvested time-based and performance RS awards vesting on 12/31/2025 and 12/31/2026 could create potential supply near vest dates; retention effects are strong given three-year cliffs and performance hurdles .
- Governance mitigants vs dual role: CEO + Vice-Chairman dual role is mitigated by separation from Chairman, presence of a Lead Independent Director, and fully independent committees; independence concerns are acknowledged and addressed structurally .
- Pledging risk: Wessel’s pledge is a monitoring point; while permitted case-by-case and supported by financial capacity, it introduces incremental risk in volatile markets .
Block quotes:
Compensation structure balances short-term earnings (EPS/EBITDA/net revenue) and long-term cumulative adjusted net income and relative TSR, with capped payouts and clawbacks designed to manage risk while aligning with shareholder returns .
Strong 2024 operational delivery and multi-year TSR outperformance underpin APIP and LTIP outcomes; say-on-pay at 97% suggests investor acceptance of the design and outcomes .