Azamat Yerdessov
Freedom HoldingAbout Azamat Yerdessov
Chief Executive Officer of Freedom Life since August 2018 and a member of Freedom Life’s Board of Directors since November 2018; prior experience spans trading operations and asset management leadership in Kazakhstan’s financial sector, with two master’s degrees in finance and an economics degree . Under his leadership, FRHC’s insurance segment revenue grew 98% year over year in FY2025 as insurance underwriting income rose 134% and customers increased from 534,000 to 1,170,000; company-wide revenues grew 105% in FY2024 and a further 23% in FY2025, though FY2025 net income declined versus FY2024 . FRHC links executive “compensation actually paid” to share price and emphasizes pay-for-performance; the company’s compensation philosophy targets long-term shareholder value creation with heavy use of variable equity .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| JSC BCC Invest | Led Trading Operations Department | 2008–2009 | Trading ops leadership in brokerage/asset mgmt |
| JSC Griffon Finance | Chairman of Management Board | 2009–2011 | Executive leadership in asset management |
| JSC Kazkommerts Securities | Management Board & Managing Director | 2014–2016 | Senior management in Kazakhstan capital markets |
| Freedom Life (FRHC subsidiary) | Chief Executive Officer | Since Aug 2018 | Scaled insurance footprint; segment revenue +98% YoY FY2025 |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Not disclosed | — | — | No public company directorships disclosed in proxy |
Fixed Compensation
| Metric | FY 2024 | Notes |
|---|---|---|
| Base Salary ($) | $445,930 | Paid in Kazakhstan tenge; USD amounts adjusted for FX |
| Actual Bonus Paid ($) | $0 | Short-term cash incentives discretionary in FY2024; no payout |
| All Other Compensation ($) | $74,287 | Social tax $42,262; travel allowance $32,025 |
| Pension/Deferred Comp | None | Company does not offer pension or deferred comp |
Performance Compensation
FY2024 Equity Awards
| Grant Date | Award Type | Shares (#) | Grant-Date Fair Value ($) |
|---|---|---|---|
| 3/1/2024 | Unrestricted common shares | 62,500 | Included in combined valuation |
| 3/1/2024 | Restricted common shares | 50,000 | Included in combined valuation |
| 3/1/2024 | Combined total (plan-based awards) | 112,500 | $7,749,000 |
Vesting Schedule and Conditions
| Vesting Date | Shares Scheduled | Conditions | Forfeiture Risk |
|---|---|---|---|
| Jan 25, 2025 | 25,000 | Continuous service; 20-day WACP must be ≥70% of grant-date price | If <70%, scheduled tranche forfeits automatically |
| May 18, 2025 | 2,000 | Continuous service; 20-day WACP must be ≥70% of prior vesting date WACP | If <70%, scheduled tranche forfeits automatically |
| Jan 25, 2026 | 25,000 | Same as above | Same as above |
| May 18, 2026 | 2,000 | Same as above | Same as above |
The company’s FY2024 long-term incentive design emphasizes stock price performance with multi-year vesting and strict price-threshold forfeiture, reinforcing long-term alignment and discouraging short-term risk-taking .
Stock Vested in FY2024
| Metric | FY 2024 |
|---|---|
| Shares Acquired on Vesting (#) | 64,500 |
| Value Realized on Vesting ($) | $4,551,765 (based on $70.57 close on 3/31/2024) |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership (Shares) | 54,000; less than 1% of outstanding |
| Unvested Shares at FY-end | 56,000; market value $3,951,920 using $70.57 close |
| Options Outstanding | None (no NEOs held options at 3/31/2024) |
| Hedging/Pledging Policy | Prohibited for directors and executive officers; legacy margin/pledge positions granted 1-year grace to unwind |
| Ownership Guidelines | Compensation Committee monitors executive stock ownership guidelines (details not disclosed) |
Employment Terms
| Topic | Disclosure |
|---|---|
| Contract Status | Standard statutorily required employment agreements with subsidiaries; at-will service to FRHC |
| Agreements Referenced (10-K Exhibits) | Employment Agreement No. 9 (2/8/2018) Freedom Life; Supplementary Agreement (1/3/2024) Freedom Life; Employment Agreement No. 23-533 (11/27/2023) Freedom Finance Global PLC |
| Severance/Change-in-Control | Company discloses “No Potential Payments upon Termination or Change in Control” for NEOs |
| Non-Compete/Non-Solicit | Not disclosed in proxy; agreements exist but terms not provided in filings cited |
| Clawback | Not specifically disclosed; governance emphasizes risk-aware pay practices |
Compensation Peer Group (FY2024)
| Peer Company | Ticker |
|---|---|
| Jefferies Financial Group Inc. | JEF |
| Interactive Brokers Group, Inc. | IBKR |
| Stifel Financial Corp. | SF |
| Rocket Companies, Inc. | RKT |
| Evercore Inc. | EVR |
| SoFi Technologies, Inc. | SOFI |
| Robinhood Markets, Inc. | HOOD |
| Houlihan Lokey, Inc. | HLI |
| Piper Sandler Companies | PIPR |
| Tradeweb Markets Inc. | TW |
| B. Riley Financial, Inc. | RILY |
| Oppenheimer Holdings Inc. | OPY |
| PJT Partners Inc. | PJT |
| Moelis & Company | MC |
| Victory Capital Holdings, Inc. | VCTR |
| MarketAxess Holdings Inc. | MKTX |
Risk Indicators & Red Flags
- Section 16(a) compliance note: initial Form 3 filing was late upon becoming an executive officer .
- No hedging/pledging allowed for executives; policy reduces alignment risk from collateralization or monetization strategies .
- No contractual severance or change-of-control protections disclosed for NEOs; retention depends on at-will terms and ongoing equity incentives .
Performance Context
| Company Metric | FY 2024 | FY 2025 |
|---|---|---|
| Total Revenue ($ billions) | ~$1.6 | ~$2.05 |
| Net Income ($ millions) | ~$375 | ~$84.5 |
| Insurance Segment Revenue ($ millions) | $341 | $683 |
Investment Implications
- Alignment: Heavy equity component with strict 70% stock-price vesting thresholds ties realized pay to long-term share performance; hedging/pledging ban strengthens alignment and reduces forced selling risk from margin calls .
- Vesting supply: Scheduled tranches in January 2025/2026 and May 2025/2026 could add sellable float post-vesting; automatic forfeiture if price thresholds aren’t met dampens near-term insider selling pressure .
- Retention economics: Absence of severance/change-in-control benefits and at-will status indicate retention relies on ongoing equity value creation and role satisfaction rather than contractual economics; watch subsequent grants and vesting outcomes for retention signals .
- Execution record: Insurance operations scaled materially under his leadership with segment revenue +98% YoY FY2025 and underwriting income +134%, suggesting strong operational execution even as consolidated net income normalized in FY2025; continued segment expansion is a lever for value creation .