Daniel E. Bachus
Grand Canyon EducationAbout Daniel E. Bachus
Daniel E. Bachus, age 54, has served as Grand Canyon Education, Inc. (GCE) Chief Financial Officer since July 2008. He holds a B.S. in Accountancy from the University of Arizona and an MBA from the University of Phoenix, and previously served as Deloitte audit senior manager and Apollo Education Group chief accounting officer/controller . In 2024, GCE delivered $1,033.0 million revenue and $340.0 million Adjusted EBITDA, above maximum incentive thresholds; total shareholder return based on an initial $100 was $171.00 vs the peer group’s $113.82, supporting strong pay-for-performance outcomes . 2024 Say‑on‑Pay support was 96%, and executive pay design emphasizes cash tied to revenue and Adjusted EBITDA plus five‑year, time‑vested equity .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Grand Canyon Education, Inc. | Chief Financial Officer | Jul 2008–present | Corporate finance leadership for education services; SEC reporting and investor relations |
| Loreto Bay Company | Chief Financial Officer | Jan 2007–Jun 2008 | Led finance at a real estate developer |
| Apollo Education Group, Inc. | Chief Accounting Officer & Controller | 2000–2006 | Enterprise accounting leadership at major postsecondary education provider |
| Deloitte & Touche LLP | Audit Senior Manager | 1992–2000 | Audit leadership and financial controls experience |
External Roles
No external public-company directorships or outside roles disclosed for Mr. Bachus in the proxy .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $390,000 | $390,000 | $390,000 |
| Target Bonus (% of Base) | 75.0% | 75.0% | 75.0% |
| Threshold/Max Bonus (% of Base) | 37.5% / 112.5% | 37.5% / 112.5% | 37.5% / 112.5% |
| Actual Bonus Paid ($) | $419,610 | $438,750 | $426,081 |
| Other Compensation ($) | $938 | $938 | $938 |
| Total Compensation ($) | $1,457,040 | $1,476,266 | $1,463,440 |
Notes:
- CEO/COO/CFO have not accepted base salary increases in over nine years .
- Perquisites limited to company-paid life insurance and 401(k) match where applicable; no tax gross‑ups .
Performance Compensation
| Component | Metric | Weighting | 2024 Threshold | 2024 Target | 2024 Max | 2024 Actual | Payout Rule | 2024 Payout Applied |
|---|---|---|---|---|---|---|---|---|
| Annual Cash Incentive | Revenue | 50% (of financial metric; financials = 100% of bonus) | $1,015.0m | $1,023.0m | $1,031.0m | $1,033.0m | 50%/100%/150% of target for threshold/target/max | 150.0% for revenue component |
| Annual Cash Incentive | Adjusted EBITDA | 50% (of financial metric) | $314.755m | $322.755m | $330.755m | $340.0m | 50%/100%/150% of target for threshold/target/max | 150.0% for EBITDA component |
| Bonus Outcome | Total | 100% financial | — | — | — | — | Straight-line interpolation; must meet both thresholds | NEOs elected to cap at 145.7% (vs max 150%) to match senior plan two‑cycle result |
| Long-Term Incentive | Time‑based Restricted Stock | 100% time-based | — | — | — | 4,950 shares granted (Jan 31, 2024) | Vests 20% annually over 5 years | Grant-date fair value $646,421 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership (Mar 31, 2025) | 110,253 shares; 0.4% of outstanding |
| Unvested Restricted Shares (Dec 31, 2024) | 18,752 shares; market value $3,071,578 at $163.80/share |
| Vesting Schedule (Restricted Stock) | Mar 1, 2025: 6,735; Mar 1, 2026: 5,198; Mar 1, 2027: 3,693; Mar 1, 2028: 2,136; Mar 1, 2029: 990 |
| Ownership Guidelines | NEOs: 3x base salary; compliance for all covered persons as of Dec 31, 2024 |
| Anti‑Hedging/Pledging | Hedging and short sales prohibited; pledging prohibited except rare pre‑approved exceptions with demonstrated capacity; margin accounts prohibited |
| Insider Selling Pressure Indicators | Annual vesting dates on March 1 over 2025–2029; company prohibits hedging/short sales; any sales around vesting likely subject to blackout/trading policy; no pledges disclosed |
Employment Terms
| Provision | Key Terms |
|---|---|
| Agreement Term | Five-year term for NEO employment agreements |
| Severance (without Cause / for Good Reason) | Cash equal to 12 months base salary + 100% of target bonus (paid over 12 months); 12 months COBRA premiums; partial acceleration to next vest date |
| Change‑in‑Control | Double trigger required; on qualifying termination within 12 months of CIC: full vesting acceleration; same severance cash and benefits as above |
| Non‑Compete / Non‑Solicit | 12 months post‑employment; scope includes education services and any business where executive had significant involvement; restrictions on soliciting employees and business relations |
| Clawback | Revised policy effective Oct 25, 2023 to comply with SEC/Nasdaq; mandatory recovery of erroneously awarded incentive compensation in restatement scenarios |
Potential Payments (Daniel E. Bachus as of Dec 31, 2024)
| Scenario | Cash Payment ($) | Benefits ($) | Equity Acceleration ($) |
|---|---|---|---|
| Termination without Cause / for Good Reason | $682,500 | $25,807 | $1,103,193 |
| Same, following a Change in Control | $682,500 | $25,807 | $3,071,578 |
Compensation Structure Analysis
- Mix and trends: CFO cash pay (base + bonus) is performance driven with stable base ($390k) and annual bonus outcomes tied to company revenue and Adjusted EBITDA; equity consists solely of five‑year, time‑vested restricted stock grants (no options) .
- Alignment safeguards: Stock ownership guidelines (3x salary) with compliance; prohibitions on hedging/short sales/pledging; double‑trigger CIC; no single‑trigger acceleration; limited perqs; no tax gross‑ups .
- Peer and shareholder context: Executive compensation cited as below peers, with 2024 Say‑on‑Pay at 96% approval; TSR outperformed custom peer group in 2024; Compensation Committee independent and may engage external consultant (Mercer not used in 2024) .
Say‑on‑Pay & Shareholder Feedback
- Advisory vote approval: 96.0% support in 2024; Committee retained approach into 2025 .
- Anti‑pledging/hedging and ownership guidelines embedded in governance .
Performance & Track Record
- 2024 results tied to incentives: Revenue $1,033.0m and Adjusted EBITDA $340.0m exceeded maximum levels; NEOs voluntarily capped bonus payout at 145.7% to align with senior plan’s two‑cycle result .
- Business highlights: Enrollment growth (servicing ~127,150 students and 22 university partners) and margin expansion amid competitive/regulatory pressures .
- TSR context: GCE’s 2024 value of $100 investment was $171.00 vs peer group $113.82 .
Equity Grant Detail (2024)
| Grant Date | Shares Granted | Grant‑Date Fair Value ($) | Vesting |
|---|---|---|---|
| Jan 31, 2024 | 4,950 | $646,421 | 20% annually over 5 years |
Investment Implications
- Pay‑for‑performance alignment is strong: annual cash tied 100% to revenue and Adjusted EBITDA, and five‑year vesting equity supports retention and long‑term value creation .
- Retention risk appears contained: severance equals 1x salary+target bonus with partial acceleration; double‑trigger CIC requirements avoid windfalls; ownership guidelines and anti‑hedging/pledging policies reinforce alignment .
- Trading signals: annual vesting events each March 1 (2025–2029) with disclosed share counts could create predictable liquidity windows subject to insider trading policy; no pledging permitted and hedging prohibited .
- Governance quality: high Say‑on‑Pay support and independent Compensation Committee; executive compensation said to be below peers, which can mitigate pay inflation risk while preserving incentive intensity .