Bradford S. Stone
Chief Financial Officer, Vice President and Treasurer at Flaherty & Crumrine PREFERRED & INCOME SECURITIES FUND
Executive
About Bradford S. Stone
Bradford S. Stone is Executive Vice President at Flaherty & Crumrine Incorporated and serves as Chief Financial Officer, Vice President, Treasurer, and a portfolio manager for Flaherty & Crumrine Preferred and Income Securities Fund (FFC). He joined Flaherty & Crumrine in May 2003 after a 20‑year Wall Street career, has been on the portfolio management team since 2006, and holds an A.B. in Economics from Dartmouth College and an M.B.A. from the Wharton School; he is 65 years old per the latest officer roster . As one of FFC’s two named portfolio managers, Stone’s track record is reflected in FFC’s average annual total returns as of 5/31/25: 1‑year NAV 10.9% and market price 15.1%; 5‑year NAV 5.7% and market price 2.4%; 10‑year NAV 6.1% and market price 4.9% . He is also a co‑owner and director of the Adviser, which managed approximately $4.07 billion as of January 31, 2025, aligning him with the franchise’s long‑term value and fee base .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Wall Street (unspecified firms) | Various roles (20‑year career prior to joining Flaherty & Crumrine) | 20 years prior to 2003 | Capital markets experience prior to joining F&C; details not disclosed |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Flaherty & Crumrine Incorporated (Adviser) | Director; Executive Vice President; Chief Financial Officer; co‑owner | Current (as of 2025) | Direct economic alignment via ownership; oversight of finance and firm operations |
| Flaherty & Crumrine Preferred & Income Securities Fund (FFC) | Chief Financial Officer, Vice President, Treasurer; Portfolio Manager | Officer since 2003; PM since 2006 | Co‑manages strategy; principal financial officer for the fund |
| Other Flaherty & Crumrine U.S. closed‑end funds (PFD, PFO, FLC, DFP) | Chief Financial Officer, Vice President, Treasurer | Officer roles since 2003 or fund inception | Cross‑fund finance leadership within complex |
Fixed Compensation
| Item | Disclosure |
|---|---|
| Base salary | Not disclosed in fund filings; the fund does not itemize officer salary |
| Target/actual bonus | Not disclosed in fund filings |
| Pension/SERP | Directors and executive officers of the Funds do not receive pension or retirement benefits from the Funds |
| Cash paid by the Fund to officers | No executive officer or person affiliated with a Fund received compensation from a Fund during FY 2023 in excess of $60,000; no officer‑level breakdown provided |
Fund proxies disclose director fees but not officer‑level salary/bonus/equity; officers serve the Fund but are employees of the Adviser. No detailed pay components for Stone are provided in fund filings .
Performance Compensation
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Not disclosed | — | — | — | — | — |
Fund filings do not disclose Stone’s incentive metrics, weighting, vesting, or payouts; no PSU/RSU/option detail is provided for officers .
Equity Ownership & Alignment
- Adviser ownership: The Adviser is owned by six principals including Bradford S. Stone, creating alignment to advisory fee growth and franchise value .
- FFC beneficial ownership: Individual officer holdings are not itemized; as a group, directors, nominees and executive officers owned less than 1% of each Fund at multiple year‑ends (see table) .
- Pledging/hedging: No disclosures found specific to Stone in fund filings searched.
- Stock ownership guidelines: Not disclosed for officers in fund filings.
| As‑of Date (Beneficial Ownership Table) | Group Ownership (Directors, Nominees, Executive Officers) |
|---|---|
| 12/31/2018 | Less than 1% of each Fund |
| 12/31/2019 | Less than 1% of each Fund |
| 12/31/2021 | Less than 1% of each Fund |
| 12/31/2022 | Less than 1% of each Fund |
Employment Terms
| Term | Disclosure |
|---|---|
| Employment start with Fund complex | Officer (CFO, VP, Treasurer) since 2003 |
| Portfolio management responsibilities | Member of portfolio management team since 2006; responsible for macroeconomic and quantitative research |
| Officer term | Each officer serves until a successor is elected and qualifies or until earlier resignation/removal |
| Contract term/expiration | Not disclosed |
| Severance/Change‑of‑control | Not disclosed |
| Non‑compete/Non‑solicit/Garden leave | Not disclosed |
| Clawback provisions | Not disclosed |
Performance & Track Record
| Metric | Value |
|---|---|
| Portfolio managers | R. Eric Chadwick and Bradford S. Stone |
| Adviser AUM | ~$4.07 billion as of Jan 31, 2025 |
| FFC average annual total returns (as of 5/31/25) | 1‑yr: NAV 10.9%, Price 15.1%; 5‑yr: NAV 5.7%, Price 2.4%; 10‑yr: NAV 6.1%, Price 4.9% |
| Advisory agreement review | Boards determined overall performance over time has been satisfactory and advisory fees reasonable; agreements approved/continued in 2025 |
| CFO certifications | Stone signed Section 302/906 certifications on N‑CSR (principal financial officer) |
Compensation Structure Analysis
- Lack of officer‑level disclosure: The fund complex provides detailed director compensation but not officer salary/bonus/equity, obscuring direct pay‑for‑performance linkages for Stone at the fund level .
- Alignment via Adviser ownership: Stone’s co‑ownership and executive role at the Adviser aligns incentives to sustained investment performance, stable AUM, and reputational capital rather than near‑term fund NAV premium/discount swings .
- No evidence of equity award repricings, tax gross‑ups, or clawbacks: None disclosed in fund filings reviewed .
Risk Indicators & Red Flags
- Insider transactions: No Form 4 or insider transaction disclosures for Stone surfaced in the fund filings searched; not typically disclosed for fund officers in these documents [Search scope: DEF 14A, N‑CSRS; none found].
- Pledging/hedging: No pledging or hedging disclosures specific to Stone found.
- Say‑on‑pay: Not applicable to the fund; however, FFC discloses proxy votes on other issuers’ say‑on‑pay in its N‑PX (not related to Stone) .
Investment Implications
- Pay alignment: Because officer compensation is not disclosed at the fund level and Stone is compensated via his Adviser role, the clearest alignment is through Adviser ownership and the durability of AUM/fees rather than explicit fund‑level incentive metrics; this can favor steady performance and risk management over short‑term NAV volatility .
- Retention: Long tenure (officer since 2003; PM since 2006) and co‑ownership of the Adviser suggest stable retention, though age 65 implies normal succession planning considerations; no employment agreement or severance terms are disclosed to assess change‑of‑control or exit economics .
- Execution: As co‑PM, Stone is tied to FFC outcomes; medium‑term performance has been competitive versus the benchmark at NAV over 5‑ and 10‑years, with strong 1‑year returns as of 5/31/25, supporting management credibility into current rate and credit cycles .
- Trading signals: No insider trading/vesting schedule data were found to indicate near‑term selling pressure; portfolio outcomes and fund premium/discount dynamics remain the primary trading levers rather than officer transactions in this structure .