Peggy O'Leary
About Peggy O'Leary
Peggy O’Leary, 49, is Executive Vice President, Prepaid and Digital Solutions at CPI Card Group (PMTS). She joined CPI in April 2017 and was promoted to EVP effective August 1, 2024 after serving as SVP Prepaid Solutions and Chief Development & Digital Officer; she holds a B.A. in Psychology from Hamline University . Company performance relevant to her remit: 2024 Total Net Sales were $480.6M (+8.1% YoY) with Adjusted EBITDA of $91.9M (+2.7% YoY), while Net Income was $19.5M (−18.6% YoY) primarily due to debt refinancing costs; management highlighted “significant increase in sales from Prepaid Debit” and growth of contactless cards and personalization services . The firm’s executive incentive design ties pay to Adjusted EBITDA, Net Sales, Relative TSR vs. Russell 2000, and Cumulative Free Cash Flow—directly linking compensation to value creation .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| CPI Card Group | EVP, Prepaid & Digital Solutions | Aug 2024–present | Leads growth in prepaid packaging, digital solutions; remit expanded from SVP/CDDO |
| CPI Card Group | SVP Prepaid Solutions; Chief Development & Digital Officer | Jan 2024–Jul 2024 | Drove prepaid growth and adjacent market expansion |
| CPI Card Group | SVP Prepaid Solutions | Dec 2022–Jan 2024 | Executed prepaid segment strategy |
| CPI Card Group | VP Sales, Prepaid/Personalization/Instant Issuance | Jan 2020–Dec 2022 | Scaled sales across prepaid and personalization |
| CPI Card Group | Director, Sales & Client Services, Prepaid | Apr 2017–Dec 2019 | Built client relationships in prepaid solutions |
| Jingit | Vice President, Business Development | Since 2012 (prior to CPI) | Payments platform BD; consumer loyalty & engagement |
| InteliSpend; Maritz; Hallmark | Various roles (sales mgmt, channel mgmt, client services) | Prior to 2012 | Progressive responsibilities across payments/marketing |
Fixed Compensation
No Peggy-specific cash compensation amounts were disclosed in the proxy; CPI’s 2024 program components for executives comprise base salary plus a quarterly/annual Short-Term Incentive Plan (STIP) .
| Element | Design | Key Terms |
|---|---|---|
| Base Salary | Fixed cash | Set by Compensation Committee based on role/performance and market data |
| STIP (Short-Term Incentive) | Quarterly cash bonuses with annual true-up | Company-wide metrics: 70% Adjusted EBITDA; 30% Net Sales; payouts 0–200% annually; quarterly payments capped at 100% in 2024 (excess paid at year-end if earned) |
Performance Compensation
| Metric | Weighting | Target Definition | Actual Outcome | Payout Mechanics | Vesting/Timing |
|---|---|---|---|---|---|
| Adjusted EBITDA (Company-wide) | 70% | Pre-established 2024 quarterly/annual plan | Included in 2024 STIP funding; overall STIP paid 125.3% of target for continuing NEOs due to strong Net Sales | Straight-line interpolation; annual trigger requires threshold cumulative Adjusted EBITDA; quarterly cap 100% | Quarterly payouts; excess over quarterly cap paid at year-end |
| Net Sales (Company-wide) | 30% | Pre-established 2024 quarterly/annual plan | Overperformance drove 2024 STIP to 125.3% of target | Straight-line interpolation; quarterly cap 100% | Quarterly payouts; year-end true-up |
| Relative TSR vs. Russell 2000 | Part of LTIP Performance Cash (33% of LTIP target) | Performance period 1/1/2024–12/31/2025 | Not yet reported (pays in 2026 if achieved) | Pays based on achieving midpoint (P50) TSR vs. Russell 2000 | Cash-settled; payable after performance period |
| Cumulative Free Cash Flow | Part of LTIP Performance Cash (33% of LTIP target) | Annual FCF targets per Compensation Committee (2024/2025) | Not yet reported | Pays only if threshold goals met | Cash-settled; payable after performance period |
| RSUs | 67% of LTIP target; stock-settled | Time-based | N/A | Aligns with shareholder value; at-risk | Vests ratably over three years beginning on first anniversary of grant |
Notes:
- In 2023, quarterly STIP cap was 125% with catch-up; 2023 STIP paid 49.4% of target overall due to first-quarter strength amid full-year softness .
Equity Ownership & Alignment
Peggy’s specific share holdings were not disclosed in beneficial ownership tables. Alignment and governance policies for CPI executives:
- Stock Ownership Guidelines: CEO 5x salary; other executive officers 2x salary; five years to comply .
- Hedging/Pledging: Prohibited for officers and directors; also bans short sales, publicly traded options, margin sales, and standing limit orders .
- Clawback: Recoup erroneously awarded incentive compensation for prior three fiscal years upon restatement; covers stock-price/TSR measures; no indemnification allowed .
| Alignment Policy | Requirement/Restriction |
|---|---|
| Ownership guidelines | CEO: 5x base; other execs: 2x base; 5-year compliance window |
| Hedging/Pledging | Prohibited for officers/directors under Insider Trading Policy |
| Clawback | Mandatory recovery of incentive comp on restatements; covers TSR/stock price; no insurance/indemnity |
Employment Terms
No individual employment agreement for Peggy O’Leary is disclosed. CPI’s Executive Severance Guidelines (for execs without individual contracts) provide:
| Provision | Standard Terms |
|---|---|
| Severance (no change-in-control) | 1.0x base salary + annual bonus target; CEO: 1.5x |
| Severance (within 24 months of change-in-control) | 1.5x for other execs; 2.0x for CEO |
| Benefits/Outplacement | Company pays active-rate share of medical/dental/vision during severance period or COBRA; up to six months outplacement at Company discretion |
Additional governance signals:
- No executive perquisites; no excise tax gross-ups; no option repricing without shareholder approval; no single-trigger cash severance on change-in-control .
Compensation Structure Analysis
- Mix shift to performance-based LTIP: In 2024 CPI replaced options with Performance Cash tied to Relative TSR and Cumulative Free Cash Flow (33% of LTIP), reducing RSU weight from prior years (RSUs 67%; Options eliminated), with RSUs now vesting over three years—heightening pay-for-performance and cash generation focus .
- Quarterly grant cadence: Equity awards granted quarterly to mitigate stock price volatility in award sizing; STIP also quarterly with annual true-up—supports retention and continuous performance motivation .
- STIP metrics maintained: Company-wide Adjusted EBITDA (70%) and Net Sales (30%) continue to be central; 2024 payouts above target (125.3%) indicate strong Net Sales execution, relevant to Prepaid growth under O’Leary’s remit .
Performance & Track Record
- Segment execution: 2024 saw “significant increase in sales from Prepaid Debit,” including complex packaging and new verticals; Debit/Credit also grew in contactless cards and personalization services .
- Firm-level outcomes: 2024 Net Sales $480.6M (+8.1% YoY), Adjusted EBITDA $91.9M (+2.7% YoY), Net Income $19.5M (−18.6% YoY due to refinancing costs); adjusted EBITDA margin 19.1% .
- Leadership commentary: CPI press release noted O’Leary “has played an integral role in driving the Company’s Prepaid growth and expansion into adjacent markets” .
Governance, Peer Benchmarking, and Shareholder Feedback
- Compensation Committee uses Willis Towers Watson (WTW) as independent consultant; no conflicts of interest .
- Executive compensation peer group includes Axcelis, EVERTEC, Qualys, REPAY, IMX, Veeco, CTS, MeridianLink, Verra Mobility, Ennis, Mirion, Vishay Precision Group, CompoSecure .
- Say-on-Pay support: ~97.5% approval at 2024 annual meeting, endorsing the pay design .
Investment Implications
- Incentives align to growth and cash generation: O’Leary’s area (Prepaid/Digital) benefited from 2024 Net Sales momentum, while executive pay is explicitly tied to Net Sales, Adjusted EBITDA, Cumulative FCF, and Relative TSR—supporting alignment between operational delivery and shareholder value .
- Retention/overhang assessment: Quarterly RSU grants vest over three years and Performance Cash pays after a two-year period; hedging/pledging prohibitions and ownership guidelines reduce misalignment and selling pressure risk, though individual grant/ownership details for O’Leary are not disclosed .
- Change-in-control economics: For execs without personal contracts, severance multiples (1.0x/1.5x; 1.5x/2.0x CEO) and accelerated vesting terms are defined by guidelines and award agreements—important in assessing potential transaction outcomes .
Data caveats: Peggy-specific cash compensation, grant-level award sizes, and personal share ownership were not disclosed in the proxies reviewed; analysis reflects CPI’s disclosed executive program design and company performance. All claims above are sourced from CPI Card Group Inc. DEF 14A (2024/2025) and related filings.