Paul Paradis
About Paul Paradis
Paul Paradis is Sezzle’s co-founder, Executive Director, and President (age 41), serving on the Board since May 2018 and as President since July 2020; he previously served as Chief Revenue Officer starting in May 2016 . He holds a B.A. in Political Science from Davidson College and an MBA from the University of Minnesota (Carlson School) . Company performance under Sezzle’s current leadership includes 2024 revenue growth of ~70% YoY, net income of $78.5M (ten-fold increase), $40M operating cash flow, $20M buybacks, and 2025 guidance for >55% pre-tax income growth; compensation programs emphasize profitability and long-term equity alignment . Historic LTIP designs tied to TSR vs the S&P/ASX All Technology Index were not met in 2021–2022; equity shifted toward RSUs with multi-year service vesting beginning in 2023 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Sezzle | Chief Revenue Officer | May 2016–Jul 2020 | Built sales, partnerships, account management, and support capabilities |
| Sezzle | President | Jul 2020–Present | Leads commercial and support functions; co-founder leadership continuity |
| Dashe & Thomson; Abreon Group | Sales & Marketing Leader | 6 years | Led IT transformation adoption for boutique consultancies |
| Minnesota Timberwolves | Sales | Not disclosed | Early commercial experience; foundation in sales |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| — | — | — | Mr. Paradis does not currently hold other directorships |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $351,923 | $362,783 |
| Bonus ($) | $0 | $0 |
| PSIP Cash ($) | $140,000 | $274,238 |
| PSIP Stock ($) | — | $231,960 (unrestricted stock issued Mar 20, 2025) |
| Total Compensation ($) | $1,224,797 | $1,572,295 |
Performance Compensation
Annual PSIP (Profit-Sharing Incentive Plan)
| Year | Metric | Target Framework | Actual/Payout | Vesting/Settlement |
|---|---|---|---|---|
| 2023 | Adjusted pre-tax income | 0–100% payout scale at Company level | Company determined payout at 50% of goal; Mr. Paradis received $140,000 cash | Cash paid for the year |
| 2024 | Adjusted net income | Pool set at 10% of adjusted net income; individual payouts discretionary | Mr. Paradis received $274,238 cash plus $231,960 unrestricted stock (issued Mar 20, 2025) | Cash and unrestricted stock; stock issued Mar 20, 2025 |
Long-Term Incentive Plan (LTIP)
| Grant Date | Award Type | Metric | Units | Vesting Schedule | Notes |
|---|---|---|---|---|---|
| Jun 14, 2023 | RSUs | Service-based | 106,578 unearned/remaining at 12/31/2024 | 25% on Jan 1, 2024; remainder vests quarterly over 4 years | Value calculated at $42.63 per share at 12/31/2024 ($4,543,420) |
| Apr 1, 2024 | RSUs | Service-based | 60,000 unearned/remaining at 12/31/2024 | 25% on Apr 1, 2025; remainder vests quarterly over 4 years | Value calculated at $42.63 per share at 12/31/2024 ($2,557,800) |
| 2020–2022 | Options/PRSUs | TSR vs S&P/ASX All Technology Index | As described in plan | Options/PRSUs subject to TSR market condition; 2021–2022 metrics not met | Historic LTIP shifted from TSR-linked options/PRSUs to RSUs in 2023 |
Equity Ownership & Alignment
| Data Point | As of/Terms | Amount |
|---|---|---|
| Total Beneficial Ownership (Shares) | Apr 21, 2025 | 1,367,706 shares (4.03% of outstanding) |
| Direct & Indirect Holdings | Breakdown | 228,956 shares direct/related entities/family trusts; plus options to purchase 78,954 shares |
| Options (Exercisable) | Grant Jul 27, 2020; Exp Jul 27, 2029 | 78,954 options at $5.32 exercise price |
| Unvested RSUs (2023 grant) | Value at 12/31/2024 | 106,578 units; $4,543,420 value at $42.63/share |
| Unvested RSUs (2024 grant) | Value at 12/31/2024 | 60,000 units; $2,557,800 value at $42.63/share |
| Hedging/Shorting | Policy | Prohibited for insiders |
| Pledging | Policy/Status | Prohibited absent Audit & Risk Committee approval; no pledge disclosed for Mr. Paradis; CEO has pledged shares (reference for policy scope) |
| Ownership Guidelines | Directors/Executives | Committee oversees minimum shareholding for non-executive directors; executive guideline not disclosed |
Employment Terms
| Term | Detail |
|---|---|
| Employment Agreement Date | June 1, 2019 |
| Non-Compete/Non-Solicit | One-year non-compete and non-solicit post-termination (scope includes customers, service providers, suppliers) |
| Notice Period (Company→Executive) | 12 months or payment in lieu of notice equal to regular compensation over notice period |
| Notice Period (Executive→Company) | 12 months |
| Death/Disability | Immediate termination; contract terms apply |
| Change-of-Control | Options immediately vest and become exercisable if terminated in connection with, or within 3 years following, a change of control (as defined) |
| Benefits/Perqs | Broad-based benefits; 401(k) RRSP; no material perquisites disclosed for NEOs |
Board Governance
| Item | Detail |
|---|---|
| Board Service | Director since 2018; Executive Director and President |
| Committee Memberships | None (as an executive director) |
| Independence Status | Not independent (executive director); Board majority independent in 2025 |
| Board Leadership | CEO is also Chairman (dual role); independent directors comprise majority; CEO not on Board committees |
| Committee Structure (2025) | Compensation, Nominating & Corporate Governance, Audit & Risk; all chaired by Stephen East; members East (Chair), Brehm, Webster (all independent) |
| Executive Sessions | Independent directors meet at least twice annually without management |
| Meeting Attendance | Board met 14 times in 2024; each director attended ≥75% of meetings |
Director Compensation
- Sezzle compensates non-executive directors via cash retainers and RSUs; chairs/members receive incremental fees; the disclosed schedule applies to independents and not to executive directors .
- 2024 policy examples: $60,000 Board retainer; $15,000 Audit Chair; $7,500 Compensation/Nominating Chair; $7,500 Audit member; $3,750 Compensation/Nominating member .
Compensation & Incentives Analysis
- Cash vs equity mix shifted toward performance-driven PSIP and multi-year RSU vesting; historic TSR-based option/PRSU designs did not pay out for 2021–2022, reducing windfalls after underperformance vs benchmark .
- 2024 PSIP linked to profitability (10% of adjusted net income to pool); discretionary individual awards and an added stock component increased at-risk compensation alignment with profitability .
- Clawback authorities embedded in the 2021 Equity Plan; Compensation Committee oversees clawbacks and deferral/cancellation policies .
- External consultant FW Cook engaged (2022) with planned engagement in 2025 for benchmarking; peer group selection is Compensation Committee responsibility (names not disclosed) .
Related Party Transactions and Compliance
- Related party employment: Nicholas Paradis (Paul’s brother) employed; 2024 total compensation ~$199,000; Audit & Risk Committee oversees related party transactions with formal policy .
- Section 16 reporting: Company amended certain Form 4s on Jan 3, 2025 to include previously omitted direct and indirect holdings for Mr. Paradis due to administrative errors (later corrected) .
Performance & Track Record
- Company execution highlights: 2024 revenue up ~70% YoY; net income $78.5M; $40M operating cash flow; $20M repurchases; 2025 >55% pre-tax income growth guidance and $50M repurchase program .
- Product momentum: expansion of Premium and Anywhere subscriptions; WebBank partnership; launch of On-Demand (Pay-in-4 anywhere Visa accepted) .
- Recognition: Forbes ranked Sezzle #3 among America’s Most Successful Mid-Cap Companies .
Compensation Committee Analysis
| Attribute | Detail |
|---|---|
| Members/Chair (2025) | Stephen East (Chair), Kyle Brehm, Karen Webster – all independent |
| Core Responsibilities | CEO/NEO goals; director pay; equity plan administration; risk and bias review; clawbacks; peer benchmarking; shareholder approvals |
| Interlocks | None; no officer/employee members; no cross-compensation committee service reported |
| Consultant Use | FW Cook engaged in 2022; planned 2025 reassessment of structure |
Say-on-Pay & Shareholder Feedback
- 2025 includes advisory say-on-pay proposal (non-binding); historical approval percentages not disclosed in filings reviewed .
Equity Plans and Vesting Detail
- 2021 Equity Incentive Plan: multi-award structure (options, RSUs, performance awards); no repricing without shareholder approval; 10-year plan term; clawback provisions; Director compensation cap ($750k, $1M in first year) .
- Share pool mechanics and annual increases disclosed; 2024 year-end equity plan outstanding and availability summarized .
Risk Indicators & Red Flags
- Pledging risk concentrated at CEO (10,323,600 shares pledged); no pledges disclosed for Paradis per ownership table; pledging only permitted with Audit & Risk Committee approval under strict safeguards .
- Related party employment (family member) monitored via formal policy; amounts disclosed .
- Historic TSR-based LTIP payouts not achieved (2021–2022), mitigating windfall risk and supporting pay-for-performance discipline .
- Administrative errors in Section 16 reporting corrected (Form 5/Form 4 amendments) .
Investment Implications
- Alignment: Paradis’ significant equity stake (4.03%) and large unvested RSU balances create multi-year alignment but also potential post-vesting selling pressure as units settle quarterly .
- Incentive design: 2024 PSIP directly tied to profitability and supplemented with stock, indicating management confidence and cash generation discipline; continued LTIP RSU service vesting supports retention but reduces metric stringency versus prior TSR-linked plans .
- Retention/transition risk: One-year non-compete/non-solicit and 12-month notice/pay-in-lieu provisions reduce abrupt exit risk; change-of-control accelerates options only (not RSUs), tempering parachute dilution while securing option value .
- Governance: Executive director with no committee roles; Board majority independent with robust committee oversight and clawback authority; independence mitigants in place despite CEO/Chair dual role .