Richard Erickson
About Richard E. Erickson
Independent Trustee (Class I) of First Trust Senior Floating Rate Income Fund II (“FCT”) since fund inception; year of birth 1951; current term expires at the Fund’s 2026 annual meeting of shareholders. Dr. Erickson is Audit Committee Chair (since January 1, 2023) and oversees 312 portfolios across the First Trust Fund Complex; professional background includes orthopedic surgeon roles and healthcare practice leadership. He is classified as an Independent Trustee under the Investment Company Act and exchange listing rules, and attended at least 75% of Board and committee meetings in the most recent fiscal year.
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Edward-Elmhurst Medical Group | Physician | 2021 to September 2023 | Clinical leadership experience |
| Wheaton Orthopedics | Physician and Officer; President | 1990 to 2021 | Practice management and oversight |
| Fitness center (unnamed) | Co-owner and Director | Not disclosed | Business ownership and governance |
| Two real estate companies (unnamed) | Limited Partner | Not disclosed | Investment oversight experience |
External Roles
| Organization | Role | Tenure | Notes |
|---|---|---|---|
| Other public company boards | None disclosed | N/A | No other trusteeships/directorships reported in past 5 years |
| First Trust Fund Complex | Trustee across funds | Since inception of relevant funds | Oversees 312 portfolios as part of unitary board structure |
Board Governance
- Committee assignments (current):
- Audit Committee: Chair; member
- Nominating & Governance Committee: Member
- Valuation Committee: Member
- Board structure and leadership:
- Unitary board across the First Trust Fund Complex; Lead Independent Trustee: Robert F. Keith; Vice Lead Independent Trustee: Thomas R. Kadlec
- Independence and engagement:
- Independent Trustee under the 1940 Act and exchange listing rules; Audit Committee comprised solely of independent directors
- Each Trustee attended at least 75% of Board and applicable committee meetings in the last fiscal year
- Historical governance roles:
- Prior service as Lead Independent Trustee (2008–2009; 2017–2019), Executive Committee member (2008–2009; 2017–2022), Chair of Nominating & Governance (2003–2007; 2014–2016), Chair of Valuation (2006–2007; 2010–2011; 2020–2022), Chair of Audit (2012–2013)
Fixed Compensation
| Element | Amount | Effective Date/Period | Notes |
|---|---|---|---|
| Annual retainer (Independent Trustees) | $285,000 | Effective January 1, 2024 | Allocated equally across funds in complex |
| Per fund fee (closed-end funds) | $7,500 per fund per year | Current | Additional to retainer; paid per fund |
| Audit Committee Chair fee | $25,000 per year | Current | Allocated pro rata based on fund net assets |
| Travel & out-of-pocket reimbursement | Yes | Current | Reimbursed across funds |
| Actual Trustee Compensation | FCT (last fiscal year) | FTHY (last fiscal year) | Total across First Trust Fund Complex (CY 2024) |
|---|---|---|---|
| Richard E. Erickson | $8,566 | $8,613 | $653,176 |
Notes: The Funds have no retirement or pension plans; the Interested Trustee and executive officers receive no compensation from the Funds for serving in such capacities.
Performance Compensation
- No performance-linked director compensation disclosed; compensation structure consists of fixed retainer, per-fund fees, and committee chair/leadership stipends, with no stated revenue/EBITDA/TSR or ESG-based metrics for Independent Trustees.
| Performance-linked metrics for Independent Trustees | FY last fiscal year |
|---|---|
| None disclosed | None disclosed |
Other Directorships & Interlocks
- No other public company directorships or trusteeships disclosed for the past five years.
- Committee interlocks not indicated; Audit Committee independence affirmed under exchange rules.
Expertise & Qualifications
- Clinical and operating leadership as an orthopedic surgeon and practice president (Wheaton Orthopedics) supports risk oversight and operational judgment.
- Extensive fund governance experience across 312 portfolios; prior leadership as Lead Independent Trustee and multiple committee chairs indicates deep board process knowledge.
- Current Audit Committee Chair since January 1, 2023, overseeing financial reporting, controls, and auditor interactions.
Equity Ownership
| Holding | Shares | Dollar Range | % of FCT Shares Outstanding |
|---|---|---|---|
| FCT common shares (as of December 31, 2024) | 391 | $1–$10,000 | ~0.0015% (391 / 25,983,388) |
| Aggregate range across First Trust Fund Complex | N/A | Over $100,000 | N/A |
- Stock ownership policy: Independent Trustees are expected, within three years of becoming a Trustee, to invest at least one year’s annual retainer across the First Trust Fund Complex; individual compliance status not disclosed.
- Pledging/hedging: Not disclosed.
- Group ownership: Trustees, nominees, and executive officers as a group owned 1,166 FCT shares (<1%).
Governance Assessment
-
Strengths:
- Independence and active governance: Independent Trustee with leadership as Audit Committee Chair; Audit Committee comprised of independent directors; at least 75% meeting attendance in the last fiscal year.
- Experience density: Long-tenured trustee across a large complex with prior lead and chair roles, suggesting familiarity with valuation, audit, and nominating governance processes.
- Ownership policy: Board expectation that Independent Trustees build meaningful positions across the complex (≥ one year’s retainer within three years).
-
Alignment and risks:
- Alignment in FCT specifically is modest: 391 shares (~0.0015% of outstanding), which may limit direct fund-specific economic exposure; aggregate complex exposure is “Over $100,000” but below the fixed retainer amount.
- Capacity considerations: Unitary board oversight across 312 portfolios can introduce bandwidth challenges despite efficiency benefits cited by the Board.
-
RED FLAGS to monitor:
- Near-term rotation/retirement risk: Mandatory retirement age of 75 for Independent Trustees; Dr. Erickson (born 1951) is Class I with term expiring at the 2026 annual meeting—potential Audit Committee leadership transition risk around that timeframe.
- No related-party transactions or advisor/underwriter securities holdings were disclosed for Independent Trustees or immediate family—no red flag indicated here.