Renato Derraik
About Renato Derraik
Renato Derraik (age 53) is Chief Information and Digital Officer of Live Oak Banking Company (subsidiary of Live Oak Bancshares) and has served in this role since June 2021. He previously served as Chief Digital Officer at Ally Financial and spent ~15 years as an expert partner at McKinsey & Company focused on technology and digital transformations; his background also includes large-scale operating model work at Sprint . During his tenure, the company delivered 2024 net income of $77.5M (up $3.6M YoY), with loans up 17.3% and deposits up 14.5% . Total shareholder return (value of initial fixed $100) stood at $212 in 2024 (vs. $243 in 2023; $161 in 2022; $463 in 2021), and book value per share reached $22.12 in 2024 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Ally Financial Inc. | Chief Digital Officer | Not disclosed | Led digital innovation and transformation activities |
| McKinsey & Company | Expert Partner (Technology/Digital) | ~15 years (aggregate) | Drove large-scale digital, agile and operating model transformations globally |
| Sprint | Senior transformation work (not specified) | Not disclosed | Operating model and transformation experience cited |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| None disclosed | — | — | Company filings do not list external public company directorships for Derraik |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary (USD) | $550,000 | $594,231 | $604,616 |
| Annual Cash Bonus (USD) | $158,000 | $0 (no discretionary bonuses for 2023) | $45,000 (discretionary) |
| All Other Compensation (USD) | $44,594 | $48,738 | $51,730 |
| Total Compensation (USD) | $1,252,585 | $3,792,936 | $1,539,817 |
- 2025 base salary adjustments: The Compensation Committee did not approve any increase to Derraik’s 2025 base salary (CFO Phifer was increased; others unchanged) .
Performance Compensation
Annual Bonus (Cash)
| Year | Metric design | Target | Actual Payout | Notes |
|---|---|---|---|---|
| 2024 | Discretionary; Committee assessed Company/individual performance (no formula/weights) | Not applicable | $45,000 | Committee stated bonuses for NEOs (ex-CEO) were discretionary for 2024 |
| 2023 | Discretionary program; bonus decision | Not applicable | $0 | Committee paid no discretionary cash bonuses for 2023 |
Equity Awards (RSUs)
| Grant date | Instrument | Shares granted | Grant date fair value (USD) | Vesting cadence | Committee rationale |
|---|---|---|---|---|---|
| Feb 12, 2024 | Time-vested RSUs | 21,281 | $838,471 | 20% each Feb 12, 2025–2029 (continued service) | Continued leadership delivering tech roadmap aligned with priorities |
| Feb 13, 2023 | Time-vested RSUs | 89,615 | $3,149,967 | 20% each Feb 13, 2024–2028 | Leadership designing/delivering future-state architecture |
| Feb 14, 2022 | Time-vested RSUs | 7,900 | Included in 2022 stock awards $499,991 | 20% each Feb 14, 2023–2027 | Regular annual grant |
| Aug 10, 2021 | Time-vested RSUs (sign-on) | 125,000 | Included in 2021 stock awards $7,638,750 | 20% each Aug 10, 2022–2026 | Sign-on equity aligned with strategic role |
| Feb 2025 | Time-vested RSUs | 15,678 | $541,518 | 20% pro rata over 5 years (dates not enumerated) | Strategic leadership and continued execution |
- The company has no non-equity incentive plan for NEOs (no formulaic STI); RSUs are time-based (no PSU program disclosed) .
Forthcoming Vesting and Potential Selling Pressure
| Grant | Remaining unvested at 12/31/2024 | Next vest dates |
|---|---|---|
| Aug 10, 2021 (125,000 RSUs) | 50,000 | 20% tranches on Aug 10, 2025 and Aug 10, 2026 |
| Feb 14, 2022 (7,900 RSUs) | 4,740 | 20% tranches on Feb 14, 2025–2027 |
| Feb 13, 2023 (89,615 RSUs) | 71,692 | 20% tranches on Feb 13, 2025–2028 |
| Feb 12, 2024 (21,281 RSUs) | 21,281 | 20% tranches on Feb 12, 2025–2029 |
- Aggregate unvested RSUs for Derraik at 12/31/2024: 147,713 (market value $5,842,049 based on 12/31/2024 close) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Shares beneficially owned (Jan 31, 2025) | 37,444 shares; less than 1% of outstanding |
| Shares beneficially owned (Jan 31, 2024) | 12,928 shares; less than 1% of outstanding |
| Unvested RSUs outstanding (12/31/2024) | 147,713 units; market value $5,842,049 |
| Stock options | None outstanding for Derraik |
| Hedging policy | Hedging prohibited for employees/directors |
| Pledging policy | Pledging permitted with pre-clearance and collateral requirements; not indicated for Derraik |
| Ownership guidelines | No stock ownership guidelines for executives/directors; Board believes interests are aligned via existing ownership |
Employment Terms
- Employment status: NEOs, including Derraik, serve at the discretion of the Board; no employment agreements are in place .
- Severance: No predefined severance multiples; any severance is negotiated case-by-case (example: not applicable to Derraik, but practice described) .
- Change-in-control (CIC): Double-trigger for time-based awards; unvested time-based RSUs accelerate only if employment is terminated within 12 months after a “Corporate Transaction” for reasons other than Cause; no single-trigger vesting disclosed .
- Clawback: SEC/NYSE-compliant clawback policy applies to incentive-based compensation (effective for awards received on/after Oct 2, 2023) .
- Perquisites: Executive aircraft hours disclosed for CEO and President; no specific aircraft perquisite allocation disclosed for Derraik .
- Say-on-Pay: Shareholder support at 76.45% in 2024 and 85.8% in 2023; Committee noted results in ongoing program design/decisions .
Compensation Structure Analysis
- Cash vs equity mix: Derraik’s compensation is dominated by time-vested RSUs (large grants in 2021–2024), aligning value with stock performance but without explicit performance conditions .
- Shift from options to RSUs: Company has not granted stock options since 2016; all recent equity is in RSUs (lower risk than options) .
- Performance linkage: Annual cash bonuses are discretionary with no formulaic financial metrics or weightings; equity is time-based (no PSUs), weakening pay-for-performance precision .
- Peer benchmarking: No external compensation consultant or benchmarking was used for 2023–2024 decisions .
- Ownership alignment: No ownership guidelines; however, Derraik holds meaningful unvested RSUs and increasing beneficial ownership, which partially aligns incentives .
Risk Indicators & Red Flags
- Pledging permitted: Company allows pledging by insiders with oversight; while Derraik is not disclosed as pledging, the policy itself is a governance risk if collateral calls force sales during stress .
- No performance-vesting equity: All RSUs are time-based; absence of PSUs may reduce alignment with multi-year financial/TSR outcomes .
- No ownership guidelines: Lack of formal minimum-hold requirements may weaken long-term alignment signals .
- Clawback in place and hedging prohibited: These mitigate some behavioral risks .
Investment Implications
- Near-term selling pressure: Approximately 147.7k unvested RSUs scheduled to vest in annual tranches through 2029 create periodic liquidity events; monitor Form 4s around Feb 12–14 and Aug 10 windows for sales (tranche schedules and balances above) .
- Retention: Absence of employment agreements plus substantial unvested RSUs suggests retention relies on ongoing equity vesting; CIC treatment is double-trigger, limiting windfalls and tying outcomes to continued service .
- Pay-for-performance: Discretionary cash bonus structure and time-based RSUs limit direct linkage to measurable financial/TSR metrics; expect investors to focus on Company KPIs (loan/deposit growth, NIM, credit costs) versus explicit executive scorecards when assessing alignment .
- Governance watch items: The permissive pledging policy (even with controls) and lack of ownership guidelines are notable; continued engagement on these topics could improve alignment optics .
Supporting Company performance context: 2024 net income rose to $77.5M (+4.8% YoY), loans grew 17.3% to $10.58B, deposits grew 14.5% to $11.76B; TSR metric (fixed $100) was $212 in 2024 with book value per share at $22.12 .