Anthony Cutrone
MEDALLION FINANCIALAbout Anthony Cutrone
Anthony N. Cutrone is Executive Vice President and Chief Financial Officer of Medallion Financial Corp. (MFIN) since January 2022; he is a certified public accountant with a BBA in accounting from Hofstra University and previously held senior accounting and finance roles at Medallion and external firms . Company performance in 2024 included net income of $35.9 million ($1.52 per share), net interest income up 8% to $202.5 million, total loans up 12% to $2.5 billion, and total assets up 11% to $2.9 billion; the company also increased its dividend by 10% to $0.11 and repurchased 570,404 shares for $4.6 million, aligning the CFO’s incentives with growth and shareholder returns .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Medallion Financial Corp. | Executive Vice President & Chief Financial Officer | Jan 2022–present | Senior financial leadership across specialty finance platform |
| Medallion Financial Corp. | Director of Finance | May 2021–Dec 2021 | Finance oversight during scaling of consumer/commercial lending |
| Medallion Financial Corp. | Assistant Controller; Manager, Accounting & Financial Reporting | Oct 2007–Sep 2020 | Accounting, reporting systems and controls |
| Triplepoint Capital, LLC | Corporate Controller | Oct 2020–May 2021 | Corporate accounting leadership at external finance firm |
| Charles A. Barragato & Co., LLP (BDO USA, LLP) | Manager | Mar 2004–Oct 2007 | Audit/accounting management |
| BDO Seidman, LLP | Audit Senior | Oct 2001–Mar 2004 | Audit execution and client service |
External Roles
| Organization | Role | Years | Note |
|---|---|---|---|
| Triplepoint Capital, LLC | Corporate Controller | Oct 2020–May 2021 | External finance experience |
| Charles A. Barragato & Co., LLP (BDO USA, LLP) | Manager | Mar 2004–Oct 2007 | Accounting firm leadership |
| BDO Seidman, LLP | Audit Senior | Oct 2001–Mar 2004 | Public accounting foundation |
Fixed Compensation
Multi-year NEO compensation for Anthony N. Cutrone:
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | 375,000 | 393,750 | 393,750 |
| Stock Awards ($) | 199,995 | 468,755 | 492,188 |
| Nonequity Incentive Plan Compensation ($) | 800,554 | 984,375 | 611,459 |
| All Other Compensation ($) | — | 11,250 | 11,500 |
| Total ($) | 1,375,549 | 1,858,130 | 1,508,897 |
Base salary stability (committee decision): 2024 salary held flat vs 2023 for all NEOs, including Cutrone at $393,750 .
Performance Compensation
Annual STI (Cash) – 2024
| Item | Value |
|---|---|
| Target Incentive (% of Base Salary) | 125% |
| Scorecard Payout (% of Target) | 124.23% |
| Scorecard Payout ($) | $611,442 |
| Actual Payout ($) | $611,442 |
STI plan metrics spanned corporate, strategic, and segment results (e.g., Net Income Attributable to Shareholders, Diluted EPS, ROE, asset growth, Medallion Portfolio cash received, Medallion Bank total net income and ROA), with each NEO’s specific weighting determined by the Compensation Committee .
Long-Term Incentive (Equity) – 2024 Grants and Design
| Item | Details |
|---|---|
| Target LTI value | 125% of base salary allocated 50% RSAs and 50% PSUs |
| 2024 RSAs granted | 27,435 shares |
| 2024 PSUs target | 27,435 units (0–200% payout range) |
| RSA vesting | Ratable one-third installments, subject to continued employment; dividends subject to same vesting |
| PSU metrics & weights | 3-year cumulative PTI (50%) and 3-year average ROE (50%), performance period ending Dec 31, 2026, payout certified thereafter |
2024 Grants of Plan-Based Awards (Cutrone):
| Category | Grant Date | Threshold | Target | Maximum |
|---|---|---|---|---|
| Non-Equity Incentive ($) | 2/16/2024 | 246,094 | 492,188 | 984,375 |
| Equity Incentive – PSUs (#) | 2/16/2024 | 13,718 | 27,435 | 54,870 |
| Equity Incentive – RSAs (#) | 2/16/2024 | — | 27,435 | — |
| Grant Date Fair Value ($) | 2/16/2024 | — | 246,094 | — |
PSU performance curve:
| Performance Level | 3-Year Cumulative PTI (000s) | 3-Year Avg ROE | PSUs Earned (% of Target) |
|---|---|---|---|
| Max (130% of Target) | $249,600 | 14.30% | 200% |
| Target | $192,000 | 11.00% | 100% |
| Threshold (70% of Target) | $134,400 | 7.70% | 50% |
| Below Threshold | < $134,400 | < 7.70% | — |
2024 stock vested and option activity (Cutrone):
| Metric | 2024 |
|---|---|
| Options exercised (#) | — |
| Value realized on exercise ($) | — |
| Shares vested (#) | 18,350 |
| Value realized on vesting ($) | 146,433 |
Equity Ownership & Alignment
Beneficial ownership and composition:
| Item | Amount |
|---|---|
| Beneficially owned shares | 91,063 |
| Ownership % of outstanding | <1% |
| Direct common shares | 34,049 |
| Restricted common shares (unvested) | 57,014 |
| Options | None reported (dash in plan benefits) |
Unvested and performance awards status at 12/31/2024:
| Item | Count/Value |
|---|---|
| Unvested restricted shares | 55,453 shares |
| Unvested PSUs (incl. dividend equivalents) | 70,588 units |
| Mark-to-market value of unvested RS + PSUs (at $9.39 on 12/29/2024) | $1,435,423 |
| Future PSU tranches pending performance (not counted as beneficial ownership) | 2025: 42,321; 2026: 29,157; 2027: 29,421 |
Aggregate historical awards under the equity plan through 3/31/2025 show Cutrone with 258,812 shares subject to stock awards; no options attributed to him, consistent with current program emphasis on RSAs/PSUs .
Employment Terms
Key terms of CFO employment agreement (effective Jan 1, 2022; auto-renewing rolling two-year term):
- Base salary: $375,000, reviewed annually, may increase but not decrease .
- Discretionary bonus eligibility consistent with similarly situated executives .
- Severance (termination without cause/for good reason): lump sum equal to 15 months base salary plus company-paid health benefits for 12 months; all unvested options/RS/PSUs vest immediately (PSUs vest based on determinable performance as of most recent quarter end) .
- Disability: continued base salary and health benefits for 3 months .
- Change in control (agreement not assumed and not offered similar terms): severance above plus greater of cash portion of prior year’s annual bonus or current year’s target cash bonus, and equity vesting as above .
- Restrictive covenants: non-solicitation during employment and 12 months thereafter .
Modeled potential payments (as of 12/31/2024):
| Scenario | Severance ($) | Other Benefits ($) |
|---|---|---|
| Termination without cause / good reason | 492,188 | 1,467,469 (equity vesting value) |
| Disability | 98,438 | 8,011 |
| Change in control – termination/COC not assumed | 1,476,563 | 1,467,469 (equity vesting value) |
Compensation Structure Analysis
- Mix shifted to RSAs/PSUs: 50/50 split in 2024 grants with target LTI 125% of salary; PSUs range 0–200% based on PTI/ROE over 3 years, reinforcing pay-for-performance linkage .
- STI alignment: 2024 STI payout at 124.23% of target reflects corporate/segment metrics achievement with balanced scorecard construction by the Compensation Committee .
- No 2024 base salary increases for NEOs, indicating discipline on fixed pay vs at-risk compensation .
- Equity acceleration under severance/COC (double-trigger equivalent if agreement not assumed/offered similar terms) creates potential selling pressure upon vesting but maintains alignment through performance-conditioned PSUs .
Risk Indicators & Red Flags
- Equity acceleration at termination/COC, including PSUs based on determinable performance, can front-load realized equity value in adverse scenarios; modeled “Other Benefits” include $1.47 million of equity vesting value as of 12/31/2024 .
- No disclosure of pledging or hedging policies for Cutrone in the cited sections; program relies on RSAs/PSUs rather than options for CFO, reducing leverage risk .
Equity Ownership & Alignment – Compliance/Guidelines
- Stock ownership guidelines and compliance status not disclosed in the cited sections; beneficial ownership <1%, with substantial unvested equity and PSUs tying outcomes to sustained performance .
Performance & Track Record
- Company 2024 performance milestones (record interest income, net interest income growth, assets/loans growth, dividend increase, buybacks, gains realization) support the CFO’s execution narrative in specialty finance and bank segment oversight .
Investment Implications
- Strong pay-for-performance architecture: STI tied to corporate/segment metrics and LTI PSUs tied to PTI/ROE over 3 years create direct alignment; 2024 STI payout at 124.23% indicates targets were set near achievable levels and met/exceeded in key areas .
- Retention risk appears contained: auto-renewal rolling two-year term with severance of 15 months base salary and 12 months health benefits (and equity acceleration) provides meaningful protection; non-solicitation for 12 months mitigates immediate competitive risk .
- Insider selling pressure: RSA cliff/ratable vesting and PSU certification post-2026 imply scheduled vesting events; modeled equity acceleration values suggest potential liquidity events under termination/COC but normal-course vesting and modest ownership (<1%) limit market impact absent broader leadership transitions .
- Alignment: No options and a heavy RS/PSU mix reduce leverage-driven behavior; PSU thresholds and maximums require sustained PTI/ROE, which should be monitored vs 2024 baseline performance to gauge likely PSU payout outcomes at certification .