Erik Herzfeld
About Erik Herzfeld
Erik M. Herzfeld, age 52, is President and Portfolio Manager of Herzfeld Credit Income Fund, Inc. (NASDAQ: HERZ). He has served as Portfolio Manager of the Fund since 2007 and as President of Thomas J. Herzfeld Advisors, Inc. since 2016, and is nominated to serve as a Class II director of the Fund. Prior roles include quantitative research and trading at Lehman Brothers and JPMorgan, where he served as Vice President in New York and Asia. The Fund reported 16,908,652 shares outstanding as of September 30, 2025; Mr. Herzfeld beneficially owns 640,171 shares (3.79%), with additional shared voting/disposition power over 6,430,939 shares via advisory accounts managed by Thomas J. Herzfeld Advisors, Inc.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Lehman Brothers | Quantitative research and trading | Not disclosed | Sell-side quantitative research/trading experience applied to portfolio management |
| JPMorgan | Vice President; quantitative research and trading (New York and Asia) | Not disclosed | Global markets VP experience; quantitative execution across regions |
| Thomas J. Herzfeld Advisors, Inc. | President | 2016–present | Leads adviser to HERZ; oversight of fund strategy and operations |
| Herzfeld Credit Income Fund, Inc. | Portfolio Manager | 2007–present | Direct investment management responsibility for the Fund |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Strategic Incubation Partners, Inc. | Board role (title not disclosed) | Not disclosed | External governance/oversight experience |
| Jacob Zabara Family Foundation | Board role (title not disclosed) | Not disclosed | Philanthropic governance experience |
Fixed Compensation
- The Fund reports director compensation only; executive officer compensation is not disclosed by the Fund. Directors who are current employees or officers of the Fund’s investment adviser are not paid for their service as a director (e.g., Ms. Brigitta S. Herzfeld). Directors and executive officers do not receive pension or retirement benefits from the Fund.
- As Mr. Herzfeld is an employee and control person of the Adviser, he is an “interested person” under the 1940 Act. Compensation arrangements for his advisory role reside at Thomas J. Herzfeld Advisors, Inc. and are not detailed in the Fund’s proxy.
Performance Compensation
- Not disclosed in the latest DEF 14A. The proxy does not provide bonus targets, PSU/RSU grants, option awards, performance metric weightings, vesting schedules, or clawback provisions for executive officers.
Equity Ownership & Alignment
| Metric | Value | Notes |
|---|---|---|
| Shares outstanding | 16,908,652 | As of record date September 30, 2025 |
| Erik M. Herzfeld – beneficial shares | 640,171 | Sole voting/disposition power; per Form 4 dated July 2, 2025 |
| Erik M. Herzfeld – % of shares outstanding | 3.79% | Reported by the Fund |
| Shared voting/disposition power (T.J. Herzfeld & E.M. Herzfeld) | 6,430,939 | As portfolio managers of client advisory accounts at Thomas J. Herzfeld Advisors, Inc. |
| Combined % for shared block | 13.63% | Reported by the Fund |
| Execs and directors as a group | 7,181,444 (42.47%) | Aggregate beneficial ownership |
- No disclosure regarding hedging/pledging policies in the proxy; no mention of stock ownership guidelines or compliance status for executives.
Employment Terms
- Status: Mr. Herzfeld is an “interested person” due to his role and control person status at Thomas J. Herzfeld Advisors, Inc., the Fund’s investment adviser.
- Board nominee: The Board nominated Mr. Herzfeld to stand for election as a Class II director at the November 20, 2025 Annual Meeting. If elected, he would serve until his successor is elected and qualified.
- Governance context: Chairperson of the Board is an Independent Director (Cecilia L. Gondor). All Board committees (Audit; Nominating and Governance) are composed solely of Independent Directors; Board met four times in FY ended June 30, 2025 and each director attended ≥75% of meetings.
Investment Implications
- Alignment: A direct 3.79% stake plus shared power over a 13.63% block via advisory accounts indicates substantial economic alignment and influence; insider selling pressure risks are not assessable from the proxy due to lack of transaction detail beyond the Form 4 ownership statement.
- Compensation transparency: Executive pay-for-performance levers (salary/bonus/equity awards, metrics, vesting, severance, CoC terms, clawbacks) are not disclosed at the Fund level; investors should evaluate Adviser-level disclosures or Form ADV for incentives and conflicts.
- Governance/retention: Long-serving Portfolio Manager since 2007 with deep quantitative markets background suggests continuity of execution; independent committee structure provides oversight, but as an “interested” director and control person of the Adviser, related-party dynamics warrant monitoring.