Richard Erickson
About Richard E. Erickson, M.D.
Independent Trustee (Class II) of First Trust Intermediate Duration Preferred & Income Fund (FPF) since the Fund’s inception; born 1951, with a career as an orthopedic surgeon and prior leadership experience as President of Wheaton Orthopedics. He previously practiced at Edward-Elmhurst Medical Group (2021–September 2023), led Wheaton Orthopedics (1990–2021), and has been a co-owner/director of a fitness center and a limited partner in two real estate companies. He has held multiple Board leadership roles across the First Trust Funds, including Lead Independent Trustee (2008–2009; 2017–2019) and currently serves as Chair of the Audit Committee (since January 1, 2023).
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Edward-Elmhurst Medical Group | Physician (Orthopedic Surgeon) | 2021–September 2023 | Clinical leadership background applicable to oversight disciplines |
| Wheaton Orthopedics | President; Physician and Officer | 1990–2021 | Executive leadership; operational and financial stewardship |
| Fitness Center (unnamed) | Co-owner and Director | Not stated | Business ownership experience |
| Two Real Estate Companies (LP interests) | Limited Partner | Not stated | Investment perspective |
External Roles
| Organization | Role | Tenure | Public Company Committees |
|---|---|---|---|
| None disclosed (past 5 years) | — | — | — |
Board Governance
- Independence: Serves as an Independent Trustee (Class II) for FPF; oversees 304 portfolios across the First Trust Fund Complex.
- Current committee leadership: Chair of the Audit Committee since January 1, 2023; prior chair roles include Nominating & Governance (2003–2007; 2014–2016), Valuation (June 2006–2007; 2010–2011; 2020–2022), and Audit (2012–2013); prior Lead Independent Trustee (2008–2009; 2017–2019); Executive Committee member (2008–2009; 2017–2022).
- Board structure: Unitary Board across First Trust closed-end and ETF/open-end funds; Board comprises six Independent Trustees and one Interested Trustee (Chairman). Independent Trustees are represented by independent legal counsel at Board and committee meetings (except the Dividend Committee).
- Leadership roles: Robert F. Keith currently serves as Lead Independent Trustee; Thomas R. Kadlec serves as Vice Lead Independent Trustee.
- Committee rotation: Chairs and Vice Chairs rotate periodically; next rotation scheduled effective January 1, 2026.
- Nominating policy: Mandatory retirement age of 75 for Independent Trustees; Nominating & Governance Committee will not consider new trustee candidates aged 72+ during the initial term.
Fixed Compensation
| Component | Amount | Notes |
|---|---|---|
| Annual retainer (Independent Trustees) | $285,000 | Effective January 1, 2024; allocated equally across First Trust Fund Complex |
| Closed-end fund annual fee (per fund) | $7,500 | Paid to each Independent Trustee per closed-end fund |
| Actively managed fund annual fee (per fund) | $2,000 | Paid per actively managed open-end fund |
| Target outcome fund annual fee (per fund) | $750 | Paid per target outcome ETF |
| Index fund annual fee (per fund) | $500 | Paid per index ETF |
| Chair – Audit Committee | $25,000 | Annual fee; pro rata allocation by net assets |
| Chair – Valuation Committee | $20,000 | Annual fee; pro rata allocation by net assets |
| Chair – Nominating & Governance | $20,000 | Annual fee; pro rata allocation by net assets |
| Vice Chair – Audit Committee | $15,000 | Annual fee; pro rata allocation by net assets |
| Lead Independent Trustee | $30,000 | Annual fee |
| Vice Lead Independent Trustee | Up to $25,000 | Annual fee (effective March 12, 2024) |
| FPF-specific compensation (FY ended Oct 31, 2024) | $7,540 | Amount paid to Erickson by FPF for the last fiscal year |
| Total compensation (First Trust Fund Complex, CY 2024) | $653,176 | Erickson’s total across 5 open-end, 7 variable insurance funds, 13 closed-end, and 282 ETF series (comp for some ETFs paid by advisor per agreements) |
| Retirement/pension | None | Funds have no retirement or pension plans |
- Reimbursement: Trustees are reimbursed for travel and out-of-pocket meeting expenses.
Performance Compensation
| Metric/Instrument | Status | Evidence |
|---|---|---|
| Annual bonus (cash) | Not disclosed; no bonus indicated | Compensation section shows fixed retainer and per-fund/role fees only |
| Stock awards (RSUs/PSUs) | Not disclosed; none indicated | No equity award disclosure in Trustee Compensation section |
| Options | Not disclosed; none indicated | No option award disclosure in Trustee Compensation section |
| Performance metrics (TSR, EBITDA, ESG) | Not disclosed | No performance-tied components referenced |
| Clawbacks / COI provisions | Not disclosed for Trustees | Not discussed in compensation section |
Other Directorships & Interlocks
| Category | Detail |
|---|---|
| Public company boards (current/past 5 years) | None |
| Interlocks (competitors/suppliers/customers) | None disclosed |
| Advisor/Service provider holdings | Independent Trustees and immediate family members did not own any class of securities of First Trust Advisors L.P., sub-advisors, principal underwriters, or their affiliates as of December 31, 2024, and did not trade in such during the last fiscal year. |
Expertise & Qualifications
- Medical and organizational leadership: Decades-long leadership of a medical practice (President, Wheaton Orthopedics; practice physician), followed by orthopedic practice at Edward-Elmhurst Medical Group.
- Deep fund governance experience: Extensive chairmanship across Audit, Valuation, and Nominating & Governance committees; Lead Independent Trustee responsibilities in multiple periods.
- Executive committee tenure: Periods serving on the Executive Committee, reflecting trust in crisis/transactional governance.
- Fund complex oversight: Oversees 304 portfolios in a unitary board structure, indicating broad exposure to valuation, reporting, liquidity, and risk oversight across vehicles.
Equity Ownership
| Fund/Complex | Dollar Range | Shares | Date |
|---|---|---|---|
| FPF (First Trust Intermediate Duration Preferred & Income Fund) | $0 | 0 | As of December 31, 2024 |
| Aggregate across First Trust Fund Complex | Over $100,000 | Not disclosed | As of December 31, 2024 |
- Ownership guidelines: Independent Trustees are expected within three years of becoming an Independent Trustee to invest across the First Trust Fund Complex an aggregate amount at least equal to one year’s annual retainer (allocation suited to personal needs).
- Advisor/sevice provider securities: Independent Trustees and immediate family members did not own, directly or indirectly, any class of securities of First Trust Advisors or any sub-advisor/principal underwriter affiliates as of December 31, 2024.
- Group holdings in FPF: Trustees and executive officers, as a group, beneficially owned 1,969 FPF shares as of December 31, 2024 (<1% of shares outstanding).
Governance Assessment
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Strengths
- Extensive committee leadership (Audit Chair currently; prior Valuation and Nominating & Governance) suggests strong command of financial reporting, valuation controls, and board processes.
- Independent Trustee under a unitary board model with independent legal counsel at meetings (except Dividend Committee), enhancing oversight quality and independence processes.
- Clear rotation and retirement policies (chairs rotate; mandatory retirement at 75; candidate age limits) promote refreshment and reduce entrenchment risk.
- No holdings in advisor or sub-advisor securities by Independent Trustees/families reduce related-party conflicts.
-
Risks / RED FLAGS
- Zero FPF share ownership by Erickson may signal low fund-specific alignment, despite aggregate complex holdings above $100,000.
- High aggregate compensation from the First Trust Fund Complex ($653,176 in CY 2024) combined with advisor-led board chairmanship (Interested Trustee James A. Bowen is CEO of First Trust Advisors L.P. and Board Chair) raises potential optics of dependence on complex-level fees versus single-fund alignment; mitigated by independent counsel and lead/vice lead structures.
- Approaching mandatory retirement window (born 1951) could create near-term board transition risk; succession/rotation will be key.
RED FLAG: No personal FPF share ownership ($0; 0 shares) as of December 31, 2024, despite board-set expectations for aggregate complex ownership—may reduce direct fund alignment.
RED FLAG: Structural conflict potential with an Interested Trustee (Advisor CEO) serving as Board Chair—even with independent trustee majority and counsel—warrants continued monitoring of committee independence and rotation efficacy.
Signal: Committee chair rotation slated for January 1, 2026—monitor for changes to Audit leadership and impacts on financial reporting oversight continuity.