Taylor Ritchie
About Taylor Ritchie
Taylor Ritchie, age 36, is Chief Financial Officer and Treasurer of Gladstone Investment Corporation (GAIN) since October 2024, following prior roles at the Company as Accounting Manager (Nov 2018–Jul 2020), Controller (Jul 2020–Jul 2022), and Controller & Director of Financial Reporting (since Jul 2022). He previously worked at Ernst & Young (2011–2018) as a Manager in Financial Services (Banking & Capital Markets), is a CPA licensed in Virginia, and holds a B.S. in Accounting and Finance from the University of Alabama (Summa Cum Laude) with memberships in AICPA and VSCPA . During fiscal 2025, Company investment performance included total investment income of $93.7 million (+7.3% YoY), net investment income of $28.1 million (+29% YoY), and a 5.65% total investment return; NAV per share rose to $13.55, supported by $63.2 million of realized gains (up 109% YoY) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Gladstone Investment Corporation | Accounting Manager | Nov 2018–Jul 2020 | Built internal accounting rigor during portfolio/asset growth |
| Gladstone Investment Corporation | Controller | Jul 2020–Jul 2022 | Led financial controls and reporting through market dislocation and recovery |
| Gladstone Investment Corporation | Controller & Director of Financial Reporting | Jul 2022–Oct/Nov 2024 | Oversaw SEC reporting and financial statements prior to CFO appointment |
| Gladstone Investment Corporation | Chief Financial Officer & Treasurer | Oct 2024 (effective Nov 8, 2024)–present | Transitioned to CFO amid increased realized gains and higher net investment income |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Ernst & Young | Manager, Financial Services (Banking & Capital Markets) | 2011–2018 | Led audits/assurance for complex financial institutions; foundation for public company CFO controls |
Fixed Compensation
- GAIN is externally managed; executive officers (including the CFO) receive no direct compensation from the Company. There is no Company equity incentive plan, and GAIN does not provide salaries, bonuses, stock-based awards, pensions, or perquisites to executives; compensation is paid by the affiliated Adviser/Administrator under external management agreements .
- Administrative fees (allocable overhead incl. CFO and support staff) paid to the Administrator were $1.9 million in FY2025 (vs. $1.8 million FY2024); advisory fees paid to the Adviser were ~$23.7 million in FY2025 net of credits .
Performance Compensation
- No performance-based compensation is disclosed for the CFO at the Company level (executive pay is outside the issuer under external management). For context on performance-related pay at GAIN, the Adviser’s incentive compensation is directly tied to Company performance via the Advisory Agreement:
| Metric | Target/Hurdle | Payout Formula | Period |
|---|---|---|---|
| Income-based incentive fee | Quarterly net investment income > 1.75% of prior-quarter net assets | 0% below hurdle; 100% of NII between 1.75% and 2.1875%; 20% of NII above 2.1875% | Quarterly |
| Capital gains-based incentive fee | Positive cumulative realized gains net of realized losses and unrealized depreciation | 20% of cumulative net gains, less prior capital gains fees | Annual/in arrears |
- FY2025 incentive fees paid to the Adviser totaled $12.3 million (income-based $4.8 million; GAAP-accrued capital gains-based $7.4 million), down from $21.0 million in FY2024, reflecting the Company’s performance and GAAP accrual methodology .
Equity Ownership & Alignment
| Holder | Shares Beneficially Owned | % of Shares Outstanding | Pledged Shares |
|---|---|---|---|
| Taylor Ritchie | 1,732 | <1% | None disclosed |
| Shares Outstanding (reference) | 36,897,283 (as of Jun 4, 2025) | — | — |
- Insider Trading Policy prohibits short sales and trading in options/derivatives on Company/Fund securities, reinforcing alignment by restricting hedging .
- No Company stock ownership guidelines for executives are disclosed; compliance status is not reported .
Employment Terms
- Appointment: Taylor Ritchie was appointed CFO & Treasurer on October 15, 2024, effective November 8, 2024 .
- Contract: No Company employment agreement, severance, change-of-control terms, non-compete, or garden leave provisions are disclosed for the CFO (executive is employed by the affiliated Administrator rather than the Company) .
- Say-on-Pay: Not required/applicable given the external management model; Company does not provide executive compensation disclosures or votes .
Performance & Track Record
| Metric | FY2024 | FY2025 |
|---|---|---|
| Total Investment Income ($000s) | 87,306 | 93,662 |
| Net Investment Income ($000s) | 21,777 | 28,095 |
| Realized Gains ($000s) | 30,256 | 63,184 |
| Net Realized + Unrealized Gain ($000s) | 63,528 | 37,224 |
| NAV per Share (End of Year) | $13.43 | $13.55 |
| Total Investment Return | 25.52% | 5.65% |
- Drivers in FY2025: +$6.4 million increase in total investment income (+7.3% YoY) led by dividend/success fee income; NII up 29% YoY; realized gains +109% YoY, offset by net unrealized depreciation due to portfolio marks and non-accrual loans; weighted-average yield on interest-bearing investments was 13.9% (vs. 14.4% FY2024) .
Risk Indicators & Red Flags
- Pledging/Hedging: No pledged shares disclosed for Ritchie; hedging via derivatives and short sales prohibited under the Insider Trading Policy .
- Legal/Investigations: No legal proceedings involving the CFO are disclosed in Company filings reviewed; no executive departures around earnings tied to the CFO (table of contents and legal proceedings sections indicate none).
- Governance/Conflicts: External management structure concentrates fee economics with Adviser/Administrator (100% indirectly owned by David Gladstone), which may dilute direct pay-for-performance alignment for Company executives employed outside the issuer; fees and credits are described extensively in filings .
Compensation Structure Analysis
- Shift in cash vs equity: At the issuer level, there is no executive cash or equity compensation—pay is external; Company has no equity incentive plan for executives, eliminating issuer-level RSU/PSU/option vesting mechanics and related selling pressure .
- Performance metrics: Adviser incentives are explicitly tied to net investment income hurdles and realized capital gains, aligning the external manager’s compensation with core performance levers (NII and exits), while the CFO’s compensation is not disclosed and is likely embedded in administrative overhead rather than variable pay tied to Company TSR/NAV .
- Repricing/modification of equity awards: Not applicable—no Company equity awards .
Past 8-K Executive Events (for tenure/transition context)
- CFO transition: Appointment effective Nov 8, 2024; preceding CFO resignation announced Oct 10, 2024 .
- Subsequent 8-Ks were signed by Taylor Ritchie in his capacity as CFO/Treasurer (e.g., Nov 15, 2024; Dec 4, 2024), indicating full assumption of SEC-reporting responsibilities .
Investment Implications
- Alignment: With only 1,732 shares (<1% ownership) and no Company equity incentive plan, direct CFO equity alignment is limited at the issuer level; however, hedging restrictions and insider trading policies reduce misalignment risk .
- Retention risk: CFO compensation and severance economics are not disclosed at the issuer level due to external management; retention signals are neutral in filings—no retention bonuses or change-of-control terms reported .
- Trading signals: Absence of vesting schedules and option exercises reduces predictable insider selling pressure; no pledging disclosed for the CFO mitigates collateral-risk red flags .
- Performance linkage: Company performance and Adviser incentive fees are tied to NII and realized gains—areas that fall within the CFO’s reporting/controls remit; FY2025 increases in investment income and realized gains support positive execution under the new CFO, though unrealized depreciation and non-accruals introduce portfolio mark risks .
Key monitoring: (1) Continued NII momentum vs hurdle rate thresholds, (2) realized gains cadence and exit environment, (3) portfolio credit quality/non-accruals, and (4) any future disclosures on CFO compensation at the Administrator that might alter retention/alignment.