Keith Correia
About Keith Correia
Keith Correia is Portillo’s Chief Information Officer, appointed in April 2024 (age 53), with a background in restaurant operations and enterprise IT, including CIO roles at Steak ‘n Shake and leadership across operations, retail technology, and innovation at Dairy Queen . He holds a BA in Geology from Union College . During his tenure-to-date, Portillo’s reported FY2024 revenues of $710.6M, adjusted EBITDA of $104.8M, net income of $35.1M, and restaurant-level adjusted EBITDA margin of 23.7% . In “Pay vs Performance,” a $100 investment in PTLO since IPO stood at $30.86 at FY2024, versus $100.21 for the S&P 600 Restaurants Index peer group, highlighting TSR headwinds .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Steak ‘n Shake | Chief Information Officer | 2019–2024 | Led technology to drive efficiencies and improve guest/team experiences |
| Dairy Queen | Operations/IT leadership (field ops turnaround; project management; equipment innovation; training; retail tech; ops efficiency) | Various | Led operational turnarounds; later advanced to leading IT and innovation |
Performance Compensation
Company Short-Term Incentive (STI) Design (applies to Executive Officers)
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Adjusted EBITDA (FY2024) | 75% | $110.7M | $104.760M | 70.5% of component | Annual cash |
| Individual goals (FY2024) | 25% | Objectives aligned to strategic pillars | Assessed by CEO/Comp Committee | 0–200% based on performance | Annual cash |
Notes: 2024 STI outcome for the financial component was 70.5%; overall NEO payouts reflected this with individual goal adjustments . Design emphasizes pay-for-performance and shareholder alignment .
Equity Awards – Keith Correia (granted at appointment)
| Grant Date | Instrument | Shares/Units | Exercise Price | Vesting Schedule | Conditions |
|---|---|---|---|---|---|
| 04/22/2024 | RSUs | 6,162 | n/a | Time-based: 1/3 on each of the first three anniversaries of grant | Continued service; award agreement terms |
| 04/22/2024 | Stock Options | 625,000 | $12.17 | 1/3 potentially on 10/21/2024; 1/3 on 10/21/2025; 1/3 on 10/21/2026; expire 04/22/2034 | Performance-vesting hurdles: 20-Day VWAP ≥ $30 (2024), ≥ $40 (2025), ≥ $50 (2026), subject to adjustment/acceleration/forfeiture |
Equity Ownership & Alignment
- Initial beneficial holdings at appointment: 6,162 time-vested RSUs and options on 625,000 shares (exercise price $12.17) with VWAP hurdles; options expire in 2034 .
- Stock ownership guidelines: CIOs (other C-suite officers) are expected to hold 3x annual base salary; five-year grace period; compliance monitored using 90-day average price, with sale restrictions if below thresholds .
- Hedging/pledging: Company prohibits hedging and pledging of Company securities for executives and Directors under the Insider Trading Compliance Policy .
- Clawbacks: Incentive-Based Compensation Recovery Policy adopted in Oct 2023 per Nasdaq Listing Rule 5608; no recoveries to date .
Employment Terms
| Provision | Key Terms |
|---|---|
| Senior Executive Severance Plan (SESP) | For SVP+ (covers C-suite other than CEO employment agreement). Without CIC: 1.0x base salary, pro-rated annual bonus, prior-year unpaid bonus, subsidized COBRA, outplacement; With CIC (double trigger within 24 months): 2.0x base + target bonus, pro-rated bonus, prior-year unpaid bonus, subsidized COBRA, outplacement . |
| Equity on CIC | Unvested equity generally vests upon double trigger termination or if surviving entity fails to assume awards; PSUs valued at target for scenarios in quantification examples . |
| Change-in-control policy mechanics | Plan-defined “Cause/Good Reason”; broad equity acceleration provisions; benefits quantified for NEOs at FY2024 prices in proxy (illustrative) . |
| Ownership/trading policies | Ownership guidelines and trading restrictions (no hedging/pledging), five-year compliance window . |
| Clawback policy | Nasdaq 5608-compliant recovery of erroneously awarded incentive compensation . |
Execution Highlights and Risk Signals
- Digital loyalty launch: Keith led frictionless, app-less Portillo’s Perks leveraging digital wallets; initial signup goal of 1.5–1.7M by midsummer 2025 . He also participated in investor outreach (ICR 2025) alongside CEO/CFO .
- Enterprise modernization: Company invested in ERP/HCM implementations and cyber/DR/continuity processes under Audit Committee oversight in 2024, relevant to CIO remit .
Investment Implications
- Alignment and retention: Two-thirds of Keith’s time-based RSUs remain to vest through 2026, and his large option grant vests only if ambitious VWAP thresholds ($30/$40/$50) are met, reinforcing performance alignment and reducing near-term selling pressure from unvested equity . Ownership guidelines and prohibitions on hedging/pledging further align incentives with shareholders .
- Pay-for-performance framework: Executive STI is anchored to Adjusted EBITDA (75% weight) with clear targets and payouts (FY2024 outcome 70.5%), and LTI emphasizes multi-year RSUs/PSUs/options across the executive cadre, supporting disciplined capital allocation and margin focus amid TSR headwinds since IPO .
- Change-in-control economics: SESP double-trigger 2x base+bonus and equity acceleration provide market-standard protection; clawback adoption mitigates governance risk and supports accountability .
Data sources: PTLO 2025 DEF 14A and related sections ; SEC Form 3 (Keith Correia) ; PTLO 8-K (ICR conference) ; PTLO press release (Portillo’s Perks) .