Jeffrey Hochstadt
About Jeffrey Hochstadt
Jeffrey Hochstadt is Chief Financial Officer of CPI Card Group (PMTS) since May 2023; age 53; B.S. from Washington University in St. Louis and MBA from The Wharton School. Prior roles include Chief Strategy Officer and Global Head of FP&A at Western Union (2006–2021), with earlier finance/strategy roles at First Data (now Fiserv), MSCI, IBM, A.G. Edwards & Sons, and Price Waterhouse; he also served as Managing Member of Jazmin LLC and Senior Advisor at Simon Kucher & Partners . PMTS performance in 2024: Net Sales up 8.1% year-over-year, Adjusted EBITDA up 2.7%; pay-versus-performance shows an initial $100 investment valued at $161 for 2024, indicative of TSR calculations used in compensation design .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Western Union | Chief Strategy Officer; Global Head of FP&A | 2006–2021 | Led corporate strategy and FP&A across a multinational financial services platform |
| First Data (now Fiserv) | Finance/Strategy roles | n/a | Payments industry finance and strategy experience |
| MSCI | Finance/Strategy roles | n/a | Data/indices analytical background |
| IBM | Finance/Strategy roles | n/a | Technology operations and finance exposure |
| A.G. Edwards & Sons | Finance roles | n/a | Brokerage/financial services experience |
| Price Waterhouse | Finance roles | n/a | Foundational accounting/analysis experience |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Jazmin LLC | Managing Member (consulting) | n/a | Provided consulting services leveraging strategy/finance expertise |
| Simon Kucher & Partners | Senior Advisor | n/a | Advised global strategy firm on pricing/growth topics |
Fixed Compensation
| Item | 2024 | Notes |
|---|---|---|
| Base Salary | $425,000 | Effective as of Dec 31, 2024 |
| Target Annual STIP (Cash Bonus) | $350,000 | Corporate-wide metrics |
| STIP Metrics & Weighting | 70% Adjusted EBITDA; 30% Net Sales | Company-wide measurement |
| Actual STIP Paid | $438,550 | Reflects 125.3% payout vs target due to strong Net Sales |
Performance Compensation
Short-Term Incentives (STIP)
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Adjusted EBITDA | 70% | Not disclosed | Contributed to 125.3% overall payout | 125.3% of target for Continuing NEOs | Quarterly payouts with year-end true-up |
| Net Sales | 30% | Not disclosed | Contributed to 125.3% overall payout | 125.3% of target for Continuing NEOs | Quarterly payouts with year-end true-up |
Long-Term Incentives (LTIP) — RSUs (2024 grants)
| Grant Date | # RSUs | Grant-Date Fair Value |
|---|---|---|
| 3/29/2024 | 4,881 | $87,175 |
| 5/31/2024 | 3,595 | $94,153 |
| 8/30/2024 | 3,116 | $89,242 |
| 11/29/2024 | 3,064 | $101,143 |
- Vesting: RSUs vest 33.4% on the first anniversary, 33.3% on the second, 33.3% on the third anniversary of grant, subject to continued service .
Long-Term Incentives — Performance Cash (awarded 2024)
| Item | Detail |
|---|---|
| Target Performance Cash Opportunity | $165,990 |
| Performance Period | Jan 1, 2024 – Dec 31, 2025 |
| Metrics | Relative TSR vs Russell 2000 (midpoint P50) and Cumulative Free Cash Flow |
| Settlement & Accounting | Cash-settled; considered stock-based under ASC 718; excluded from 2024 SCT and will be reflected as 2025 compensation |
| Expected Payment Timing | 2026, subject to achievement and continued service |
Options — Outstanding at FY2024 Year-End (Hochstadt)
| Grant Date | Exercisable | Unexercisable | Exercise Price | Expiration |
|---|---|---|---|---|
| 5/15/2023 | 1,888 | 1,888 | $27.04 | 5/15/2030 |
| 5/31/2023 | 478 | 478 | $26.61 | 5/31/2030 |
| 8/31/2023 | 610 | 609 | $20.67 | 8/31/2030 |
| 11/30/2023 | 710 | 710 | $17.79 | 11/30/2030 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 23,245 shares; less than 1% of outstanding |
| Components Included | 6,052 Options; 5,434 RSUs |
| Shares Outstanding Basis | 11,281,489 shares outstanding (as of Apr 4, 2025) |
| Stock Ownership Guidelines | Executives must hold ≥2× base salary within five years of appointment; CEO 5×; Directors 5× cash retainer |
| Hedging/Pledging | Prohibited for officers/directors (short sales, publicly traded options, hedging/monetization, margin sales, pledges, standing limit orders) |
Employment Terms
| Term | Detail |
|---|---|
| Executive Severance Guidelines (non-CEO) | 1.0× (base salary + target bonus) for termination without cause/good reason; increases to 1.5× if within 24 months post-change-in-control; benefits continuation at active rates; up to 6 months outplacement |
| Clawback Policy | Adopted Oct 9, 2023; recoupment of erroneously awarded incentive compensation for prior 3 fiscal years; covers TSR/stock-price based awards; recovery without regard to culpability; no indemnification |
| Insider Trading Policy | Prohibits hedging/pledging; governs purchases/sales by insiders |
Performance & Pay Benchmarking
- Say-on-Pay: 97.5% approval at 2024 Annual Meeting, indicating strong shareholder support of pay design .
- Compensation Peer Group (used to evaluate CEO/CFO pay in 2024): Axcelis Technologies; Badger Meter; CompoSecure; CTS; Ennis; EVERTEC; FormFactor; International Money Express; MeridianLink; Mirion Technologies; Qualys; Repay Holdings; Veeco Instruments; Verra Mobility; Vishay Precision Group .
Company Performance Context
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($) | 475,745,000 | 444,547,000 | 480,601,000 |
| EBITDA ($) | 94,016,000* | 77,521,000* | 79,212,000* |
Values retrieved from S&P Global.*
Additional disclosed performance metrics:
- 2024 Net Sales up 8.1% YoY; Adjusted EBITDA up 2.7% YoY .
- Pay vs Performance — Value of initial $100 investment (cumulative TSR visualization proxy): FY2022 $195; FY2023 $103; FY2024 $161 .
Investment Implications
- Compensation alignment: STIP tied to Adjusted EBITDA/Net Sales with clear 70/30 weighting and year-end true-up; 2024 payout at 125.3% of target reflects strong top-line execution while maintaining profitability focus . LTIP shifted toward performance-linked awards (Performance Cash with Relative TSR/Cumulative FCF) reducing option reliance and enhancing pay-for-performance alignment .
- Retention and selling pressure: Quarterly RSU grants (2024) vest ratably over three years beginning on first anniversaries of 3/29/2024, 5/31/2024, 8/30/2024, 11/29/2024, creating periodic settlement events; however, hedging/pledging is prohibited, and clawback strengthens governance around realized pay . Executive Severance Guidelines (1.0×; 1.5× upon change-in-control) offer moderate retention economics without single-trigger cash severance .
- Alignment and governance: Beneficial ownership includes RSUs/options; ownership guidelines (≥2× salary) reinforce skin-in-the-game; high say-on-pay support (97.5%) reduces governance overhang risk .
- Execution risk: 2024 operational backdrop showed Net Sales growth and Adjusted EBITDA uptick amid refinancing costs; compensation metrics mirror strategic priorities (growth, cash generation, TSR), which can signal management confidence in delivering FCF/relative returns through 2025 .
Note: No specific Form 4 insider transaction detail was disclosed in the proxy. Section 16(a) compliance was timely for insiders in 2024 except one late filing by affiliated stockholders (Tricor Funds). For real-time insider trading analysis, additional Form 4 data would be required .