Richard Deal
FAIR ISAACAbout Richard Deal
Richard S. Deal is Executive Vice President and Chief Human Resources Officer (CHRO) at FICO, serving in this role since November 2015; he joined FICO in 2001 after prior HR leadership roles at Arcadia Financial and consulting roles at U.S. Bancorp . As of September 30, 2025 he is 58 years old; education is not disclosed in company filings . FICO delivered strong performance in fiscal 2024: GAAP revenue $1.72 billion, net income $513 million, and diluted EPS $20.45; the company highlighted sustained ARR growth in the Platform business and strong Scores momentum . Performance metrics underlying the executive incentive plans for FY2024 were exceeded: Adjusted Revenue of $1,717.5 million and Adjusted EBITDA of $904.1 million (both above targets), and MSUs paid at maximum based on one-year rTSR outperformance versus the Russell 3000 (FICO TSR 125.78% vs. Russell 34.28%) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| U.S. Bancorp | Managed broad HR corporate and line consulting functions | 1993–1998 | Built foundational HR consulting expertise supporting large financial services operations . |
| Arcadia Financial, Ltd. | Vice President, Human Resources | 1998–2001 | Led HR for a consumer finance company, deepening industry and functional leadership experience . |
| FICO | Vice President, Human Resources | 2001–2007 | Scaled HR capabilities during growth and strategic pivots . |
| FICO | Senior Vice President, CHRO | 2007–2015 | Drove global HR strategy and organizational development . |
| FICO | Executive Vice President, CHRO | 2015–Present | Oversees global people strategy, engagement, and talent systems; executive leadership role . |
External Roles
No public company board roles or external directorships for Richard Deal are disclosed in FICO filings .
Fixed Compensation
| Metric | FY 2024 |
|---|---|
| Base Salary ($) | $400,000 |
| Target Bonus (% of Salary) | 50% |
| Actual Bonus Paid ($) | $275,000 |
Performance Compensation
| Component | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| PSUs (FY 2024 grant) | Adjusted Revenue | 50% | $1,675.0mm | $1,717.5mm | 200% of target; 3,382 units earned | 1/3 on 12/09/2024, remaining 2/3 annually on 12/09/2025 and 12/09/2026 . |
| PSUs (FY 2024 grant) | Adjusted EBITDA | 50% | $859.0mm | $904.1mm | 200% of target; 3,382 units earned | Same as above . |
| MSUs (FY 2024 grant, 1-year tranche) | rTSR vs Russell 3000 | 100% of MSU tranche | FICO TSR vs Index | FICO 125.78% vs Russell 34.28% | 200% of target; 1,128 units earned | Earned tranche vests on 12/09/2024; 2-year and 3-year tranches have interim earning and later vesting . |
| RSUs (FY 2024 grant) | Time-based (stock price linkage) | n/a | 1,691 units | n/a | n/a | Four equal annual installments starting 12/09/2024 . |
Additional MSU performance completions:
- FY22 MSUs (3-year performance period completed FY2024): 2,378 units earned .
- FY23 MSUs (2-year performance period completed FY2024): 1,662 units earned .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Direct/Indirect Share Ownership | Richard S. Deal Revocable Trust holds 49,314 shares . |
| Beneficial Ownership (instruments counted for ownership table) | RSUs 2,666; PSUs 5,112; MSUs 5,168 . |
| Outstanding Unvested/Unearned Awards (as of 9/30/2024) | RSUs: 12/10/2020 (728), 12/10/2021 (1,783), 12/09/2022 (1,869), 12/09/2023 (1,691); MSUs earned: 12/09/2021 (2,378), 12/09/2022 (3,324), 12/09/2023 (3,382); Unearned MSUs: 845 on 12/09/2023 tranche . |
| Stock Options (Exercisable/Unexercisable) | None; no options would accelerate for Deal . |
| Ownership Guidelines | EVPs must hold shares valued at least 5× salary; only outright shares and unvested time-based vesting vehicles count (options and unachieved performance awards excluded). Compliance: all execs met or are making acceptable progress . |
| Hedging/Pledging | Hedging and short sales prohibited under insider trading policy; no pledging language disclosed in proxy . |
Employment Terms
| Term | Provision |
|---|---|
| Employment Start (FICO) | Joined 2001; EVP CHRO since November 2015 . |
| Severance (Non‑CoC) | Lump sum equal to 1× (base salary + last annual cash incentive); 12 months COBRA benefits . |
| Change‑of‑Control | Double‑trigger: same cash + benefits as above; equity acceleration/earning per award terms . |
| Potential Payments (Illustrative at 9/30/2024) | Termination without cause or Good Reason: $700,332 total ($675,000 cash, $25,332 benefits); CoC termination: $38,873,007 including accelerated RSUs ($11,799,110), PSUs ($17,546,098), MSUs ($8,827,467) . |
| Clawbacks | NYSE-required clawback for restatements; supplemental clawback for specified misconduct and post-employment restrictions violations covering all annual/long-term incentives and severance . |
| Non‑compete/Non‑solicit | Not disclosed in proxy; standard proprietary and post-employment agreements referenced under supplemental clawback . |
Performance & Track Record
- Leadership outcomes: Deal’s FY2024 Participant Performance Factor was 110%, recognizing execution of a “people first” strategy, elevated engagement, strong talent pipelines, historically low turnover, effective talent management programs, and employer brand strengthening through high-value workforce programs and external recognition .
- Incentive outcomes reflect strong company performance: PSUs earned 200% based on revenue/EBITDA beats; MSUs earned at 200% on rTSR outperformance (FICO one-year TSR 125.78% vs Russell 34.28%) .
- Company performance context: FY2024 GAAP revenue $1.72B (+13% YoY), net income $513M, diluted EPS $20.45 (+21% YoY), with Platform ARR >30% YoY growth each quarter .
Compensation Peer Group (Benchmarking)
Peer group used for compensation analysis includes: ACI Worldwide, ANSYS, Aspen Technology, Black Knight, Broadridge Financial Solutions, Cadence Design Systems, DocuSign, Equifax, FactSet Research Systems, Guidewire Software, Jack Henry & Associates, Manhattan Associates, MSCI, Palantir Technologies, Pegasystems, PTC, Splunk, TransUnion, Verisk Analytics, Zendesk .
Say‑on‑Pay & Shareholder Feedback
- FY2024 say‑on‑pay received 58% support; LDCC outreach to investors led to program changes for 2025: reduce max individual performance factor in annual incentive to 150% and update MSU comparator to S&P 500 with target at 55th percentile; LDCC committed to avoid one‑time awards absent extraordinary circumstances .
Compensation Structure Analysis
- Increased performance emphasis: Two‑thirds of long‑term incentives are performance‑based (PSUs/MSUs), above peer averages; PSUs use steep payout slope to enhance accountability; MSUs align outcomes with stockholder experience .
- Ownership alignment strengthened: Options excluded from guideline compliance; expanded clawbacks including time‑based equity and severance in misconduct scenarios .
- Limited perquisites and gross‑ups: Company policy restricts tax gross‑ups to spousal travel/relocation; in FY2024 Deal had $11,955 of tax gross‑ups tied to spousal travel; other compensation items included 401(k) match $13,200 and spousal travel $18,680 .
Investment Implications
- Alignment: High weighting to performance‑based equity (PSUs/MSUs) and strict ownership/clawback policies create strong pay‑for‑performance alignment; rTSR outperformance drove max MSU payouts, signaling robust shareholder value capture .
- Retention risk vs. acceleration: Deal’s severance is modest (1× salary+bonus) absent change‑of‑control, but CoC economics include substantial equity acceleration and earning, which could influence executive retention/succession dynamics in strategic scenarios .
- Governance signals: LDCC’s response to low 2024 say‑on‑pay and 2025 program tightening (lower individual cap; S&P 500 comparator; 55th percentile target) suggests reduced payout dispersion risk and stronger external benchmarking—positive for predictability and investor confidence .
- Monitoring: Track future MSU structure under S&P 500 comparator and individual incentive caps; monitor any Form 4 activity and equity vesting events for potential selling pressure and guideline compliance.