Alan Rappaport
About Alan Rappaport
Alan Rappaport (born 1953) is an Independent Trustee of PIMCO Dynamic Income Opportunities Fund (PDO), serving since the fund’s inception and currently designated as a Class III trustee . He has substantial senior executive experience in financial services, including leadership roles at Bank of America’s Private Bank and U.S. Trust, and academic appointments at NYU Stern and Stanford GSB . He also serves on multiple committees across the PIMCO-managed closed-end fund complex and chairs the Performance Committee, reflecting strong oversight credentials .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Private Bank of Bank of America | Chairman & President | 2001–2008 | Led private banking; precursor to U.S. Trust; senior operating oversight |
| U.S. Trust | Vice Chairman | 2001–2008 | Executive leadership of trust and wealth management operations |
| Roundtable Investment Partners | Advisory Director (formerly Vice Chairman) | 2009–2018 | Investment oversight, advisory governance |
| NYU Stern School of Business | Adjunct Professor | 2011–2020 | Finance education, practitioner-led instruction |
| Stanford Graduate School of Business | Lecturer | 2013–2020 | Graduate-level instruction; industry expertise |
External Roles
| Organization | Role | Tenure | Notes |
|---|---|---|---|
| Victory Capital Holdings, Inc. | Director | Since 2013 | Public asset manager board service |
| Allianz Funds | Trustee | 2010–2021 | Mutual fund complex governance |
| Virtus Closed-End Funds | Chairman of Board of Trustees | 2021–2023 | Oversight of CEF governance |
| American Museum of Natural History | Trustee | 2005–2015 | Non-profit governance |
| NYU Langone Medical Center | Trustee; Board of Overseers member | 2007–2016 | Healthcare institution governance |
Board Governance
- Board composition: 7 trustees; 5 are Independent Trustees (~71% independent) with an Independent Chair; Independent Trustees meet outside management and are advised by independent counsel .
- Committees: Audit Oversight, Governance & Nominating, Valuation Oversight, Contracts (all Independent-only), and Performance (all trustees) .
| Committee | Membership (Rappaport) | Chair | Mandate |
|---|---|---|---|
| Audit Oversight | Member | E. Grace Vandecruze | Oversees accounting/audit; selects auditors; pre-approves audit and eligible non-audit services |
| Governance & Nominating | Member | Deborah A. DeCotis | Board governance, trustee nominations, trustee compensation structure review |
| Valuation Oversight | Member | E. Grace Vandecruze | Oversees valuation policies; Manager designated as Valuation Designee under Rule 2a-5 |
| Contracts | Member | Sarah E. Cogan | Reviews adviser/sub-adviser/admin/underwriter contracts and fees |
| Performance | Chair | Alan Rappaport | Reviews fund performance and changes in Manager philosophy/approach/personnel |
| PDO Board & Committee Meetings (FY ended Jun 30, 2024) | Count | Attendance |
|---|---|---|
| Board – Regular | 4 | Each trustee attended ≥75% of Board and committee meetings served |
| Board – Special | 6 | Each trustee attended ≥75% of Board and committee meetings served |
| Audit Oversight Committee | 4 | Each trustee attended ≥75% |
| Governance & Nominating Committee | 4 | Each trustee attended ≥75% |
| Valuation Oversight Committee | 4 | Each trustee attended ≥75% |
| Contracts Committee | 3 | Each trustee attended ≥75% |
| Performance Committee | 5 | Each trustee attended ≥75% |
Fixed Compensation
- Independent Trustee compensation: $275,000 annual retainer for service across the PIMCO-managed funds, payable quarterly .
- Committee chair fees (annual): Independent Chair $100,000; Audit Chair $35,000; Performance Chair $15,000; Valuation Chair $10,000; Contracts Chair $30,000 .
- Rappaport is Performance Committee Chair, implying base $275,000 + $15,000 = $290,000 total for 2024 (matches reported total) .
| Pay Element | Amount | Notes |
|---|---|---|
| Base retainer (Independent Trustee) | $275,000 | PIMCO-Managed Funds boards; paid quarterly |
| Performance Committee Chair | $15,000 | Annual; paid quarterly |
| Total 2024 Fund Complex Compensation | $290,000 | Reported total for calendar year 2024 |
| Reimbursement | Meeting expenses | Standard reimbursement policy |
| Per-Fund Compensation (FY ended Jun 30, 2024) | Amount |
|---|---|
| PDO | $17,240 |
| PTY | $21,579 |
| PCM | $956 |
| PAXS | $8,003 |
| PCN | $7,439 |
The Governance & Nominating Committee periodically reviews and recommends trustee compensation structures and levels to the Board for approval, reinforcing governance oversight of pay .
Performance Compensation
- No equity awards, options, bonuses, or performance-tied compensation are disclosed for trustees; compensation is cash-based retainer and committee chair fees .
| Award Type | Metrics | Weighting | Vesting | Notes |
|---|---|---|---|---|
| Stock awards (RSUs/PSUs) | None disclosed | N/A | N/A | Not part of trustee pay at the Funds |
| Option awards | None disclosed | N/A | N/A | Not part of trustee pay at the Funds |
| Cash bonus | None disclosed | N/A | N/A | Trustee compensation is fixed per retainer/committee roles |
Other Directorships & Interlocks
| Company/Institution | Sector | Role | Potential Interlock/Conflict Consideration |
|---|---|---|---|
| Victory Capital Holdings, Inc. | Asset management (public) | Director | Asset manager exposure; monitor for fund-adviser conflicts (none disclosed) |
| Allianz Funds | Asset management (mutual funds) | Trustee (former) | Prior mutual fund governance experience |
| Virtus Closed-End Funds | Asset management (CEFs) | Chairman (former) | CEF governance leadership |
To the Funds’ knowledge, Independent Trustees did not knowingly own beneficially securities of the Funds’ investment adviser or principal underwriter or their control affiliates as of the record date, reducing direct related-party ties .
Expertise & Qualifications
- Senior financial services leadership (Private Bank of Bank of America, U.S. Trust) .
- Investment oversight roles (Roundtable Investment Partners) .
- Academic credentials with practitioner teaching at NYU Stern and Stanford GSB .
- Extensive closed-end/mutual fund governance across multiple complexes .
Equity Ownership
| Fund | Dollar Range Beneficially Owned (as of Record Date) | Aggregate Dollar Range Across Family of Investment Companies |
|---|---|---|
| PDO | $50,001–$100,000 | Over $100,000 |
| PAXS | $50,001–$100,000 | Over $100,000 |
| PCM | $1–$10,000 | Over $100,000 |
- Trustees and officers as a group owned <1% of each Fund’s outstanding shares as of the record date; individual ownership % for Rappaport is not disclosed, only dollar ranges .
- No pledge/hedging disclosures are provided; no ownership guideline disclosures are provided .
Governance Assessment
- Independence and committee leadership: Rappaport is an Independent Trustee and chairs the Performance Committee; he sits on all key independent-only oversight committees (audit, governance, valuation, contracts), supporting board effectiveness at PDO .
- Attendance and engagement: Board and committee meeting cadence is robust; trustees met the ≥75% attendance threshold across Board and all committees for PDO in FY 2024, indicating active engagement .
- Pay-for-performance alignment: Trustee compensation is fixed cash plus chair fees, with no equity or performance conditions; as with most CEFs, alignment relies on oversight roles and personal beneficial ownership rather than variable pay .
- Potential conflicts: External directorship at Victory Capital (asset manager) merits monitoring for information flow/interlocks; however, proxy disclosures note no beneficial ownership of adviser/underwriter affiliates and independent-only committee structures mitigate conflicts .
- Structural entrenchment considerations: Classified board with “Continuing Trustees” and certain actions requiring 75% shareholder approval absent board/Continuing Trustee supermajority approval may reduce takeover flexibility; this is a fund-level governance feature rather than Rappaport-specific, but affects investor control dynamics .
RED FLAGS (to monitor)
- External asset manager directorship (Victory Capital) could present perceived conflicts if overlapping mandates or service relationships arise, though none are disclosed in the proxy .
- No performance-based compensation or equity, which limits formal pay-for-performance linkage typical in operating companies; alignment relies on governance structure and personal holdings .
Overall, Rappaport’s deep finance background and leadership as Performance Committee Chair, combined with independent committee structures and attendance, support investor confidence in PDO’s board oversight. Continuous monitoring of external interlocks and fund-level entrenchment features is warranted for governance risk assessment .