Douglas I. McCree
LM FUNDING AMERICAAbout Douglas I. McCree
Douglas I. McCree, age 60, has served as an independent director of LM Funding America, Inc. since its initial public offering in October 2015. He is Chief Executive Officer of First Housing Development Corporation of Florida (since 2004; with the firm since 2000) and previously held roles at Bank of America, including Senior Vice President, Affordable Housing Lending (1987–2000). He holds a B.S. in Economics from Vanderbilt University. The Board has determined he is independent under Nasdaq and SEC rules.
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Bank of America, N.A. | Various roles incl. SVP, Affordable Housing Lending | 1987–2000 | Banking/lending expertise relevant to credit, audit and risk oversight |
External Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| First Housing Development Corporation of Florida | Chief Executive Officer (with firm since 2000; CEO since 2004) | 2000–present (CEO since 2004) | Affordable housing finance leader; brings credit, risk, and governance perspective |
| Professional/civic boards (unspecified) | Director/Member | Not disclosed | General industry/community involvement (details not provided) |
Board Governance
- Independence: Board classifies McCree as an “independent director” under Nasdaq Rule 5605(a)(2) and SEC Rule 10A‑3(b)(1).
- Committee assignments:
- Audit Committee member (committee chaired by Andrew Graham; met 4 times in 2024).
- Compensation Committee Chair (committee members: McCree, Martin Traber, Frank Silcox; met 14 times in 2024).
- Nominating & Corporate Governance Committee: Not a member (committee chaired by Fred Mills; 6 meetings in 2024).
- Attendance and engagement: The Board held 8 meetings in 2024; all directors attended at least 75% of Board and committee meetings on which they served. Independent directors met in executive session periodically in 2024.
- Board leadership: CEO Bruce Rodgers also serves as Chairman; no Lead Independent Director disclosure.
- Policies: Code of Ethics and Corporate Governance Guidelines posted; anti‑hedging policy prohibits hedging/monetization by directors/officers.
Fixed Compensation
| Component | 2023 ($) | 2024 ($) | Notes |
|---|---|---|---|
| Annual cash retainer (earned) | 99,000 | 99,000 | Audit Committee members receive $99,000 vs. $66,000 standard; McCree is an Audit Committee member. |
| Option awards (earned) | — | — | Board waived annual option awards in FY2024; none reported for 2023 in table. |
Program structure (for context): Non‑employee directors receive annual cash retainer of $66,000 ($99,000 for Audit Committee members) plus annual stock options equal to the cash amount divided by grant‑date price; options vest 50% at 180 days and 50% at 1 year. For 2024, the Board waived annual option awards.
Performance Compensation
| Element | Metric(s) | Targets | Payout/Status |
|---|---|---|---|
| Performance-based director pay | None disclosed | N/A | No performance‑linked metrics for director compensation; structure is cash retainer and time‑vested options (2024 options waived). |
No director performance metrics (revenue/EBITDA/TSR/ESG) are disclosed for McCree; Compensation Committee oversees executive pay programs and engaged consultants in 2023 and 2024.
Other Directorships & Interlocks
| Category | Detail |
|---|---|
| Current public company boards | None disclosed for McCree. |
| Prior public company boards | None disclosed for McCree. |
| Interlocks (competitors/suppliers/customers) | None disclosed for McCree. |
| Board relationship optics | CEO (Bruce Rodgers) is Chair and is married to director Carollinn Gould; independence affirmed for McCree, but spousal relationship on board is a governance sensitivity. |
Expertise & Qualifications
- Domain expertise: Banking, affordable housing finance, credit risk, governance.
- Education: B.S., Economics, Vanderbilt University.
- Board value-add: Experience as CEO of a financial services firm; perspective on operations, financial reporting, and compliance.
Equity Ownership
| Measure | Amount | % of Outstanding | Notes |
|---|---|---|---|
| Total beneficial ownership | 30,986 shares | <1% | As of Aug 19, 2025. |
| Direct/common shares | 902 | — | Footnote (4). |
| Options exercisable (@ $35.70) | 2,101 | — | Currently exercisable. |
| Options exercisable (@ $3.54) | 27,966 | — | Currently exercisable. |
Company policy prohibits hedging/monetization transactions by directors. No pledging of shares was disclosed.
Governance Assessment
Key findings
- Committee leadership and workload: McCree chairs the Compensation Committee (14 meetings in 2024) and serves on the Audit Committee (4 meetings), signaling high engagement and centrality to pay and oversight.
- Independence and attendance: Classified independent; attended at least 75% of Board/committee meetings in 2024; independent directors met in executive session periodically.
- Pay structure and alignment: For 2024, McCree’s compensation was 100% cash ($99k) after the Board waived option grants; while reducing dilution, this also reduced equity alignment for the year. The standard program provides time‑vested options, not performance‑conditioned awards.
- Ownership: Beneficial ownership is <1% (30,986 shares/options), providing some alignment through equity but modest relative to outstanding shares.
Risk indicators and red flags
- Board independence optics: CEO is also Chair; a director on the Board is the CEO’s spouse. While independence determinations are disclosed (including for McCree), the combined CEO/Chair role and spousal relationship raise governance sensitivity around oversight and potential influence on board dynamics.
- Related‑party exposure at the company level: Ongoing services agreement with BLG/BLGAL (managed by director Carollinn Gould) at amended monthly fees, plus a historical termination fee; Audit Committee is responsible for related‑party approval. No McCree‑specific related party transactions disclosed.
- Director equity mix trend: Waiver of 2024 director option grants eliminates at‑risk equity for that year; while cost/dilution‑conscious, it may diminish long‑term alignment if repeated.
Signals supportive of investor confidence
- Active committee oversight: Compensation Committee used external consultants in 2023 and 2024; Audit Committee composed entirely of independent directors with a designated financial expert as chair (Andrew Graham).
- Policy framework: Published Code of Ethics, Corporate Governance Guidelines, and anti‑hedging policy; independent executive sessions held.
Overall implication
- McCree’s independence, committee leadership, and engagement support board effectiveness, especially in pay oversight. Primary governance sensitivities relate to board structure (CEO‑Chair) and related‑party arrangements involving another director; robust committee oversight and independent sessions partially mitigate these concerns. Continued transparency on director equity grants and related‑party reviews will be important for investor confidence.