Stephen East
About Stephen East
Stephen East, age 61, is an Independent Non-Executive Director of Sezzle Inc. and has served since 2024. He is a CFA charterholder, designated as an SEC “audit committee financial expert,” and brings 30+ years of equity research and industry experience, including top Institutional Investor rankings in Homebuilding & Building Products; he also serves on the board of Toll Brothers, Inc. (NYSE: TOL) with committee leadership roles there. Education includes an MBA from the University of Missouri and a BS in Finance from Arkansas State University; his background emphasizes capital markets, corporate governance, and consumer behavior in housing-related sectors .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Wells Fargo | Managing Director and Senior Consumer Analyst, headed Equity Research for Homebuilding & Building Products | Not disclosed | Led coverage; focus on strategy, managerial talent, capital structure, housing macroeconomics |
| Evercore ISI | Partner and Senior Managing Director, headed Housing research | Four years | Leadership of housing research effort |
| Various (equity research & investment mgmt.) | Director of Research and senior roles | Nearly two decades | Recognized by Institutional Investor and StarMine |
| Monsanto | Industry roles | Six years | Operational/industry grounding |
External Roles
| Organization | Role | Committees/Positions | Notes |
|---|---|---|---|
| Toll Brothers, Inc. (NYSE: TOL) | Director | Audit & Risk; Executive Compensation; Chair of Public Debt & Equity Securities committee | Current public company board; capital markets oversight |
| Local Planning & Zoning Commission | Commissioner | — | Community governance involvement (10+ years) |
| Industry groups (ULI, NAHB) | Member | — | Frequent speaker at industry conferences and media outlets |
Board Governance
- Independence: Board determined Stephen East is “independent” under Nasdaq and SEC rules; he serves as Chair of all three key committees (Audit & Risk; Compensation; Nominating and Corporate Governance) .
- Committee leadership and expertise: East is Audit & Risk Chair and designated an SEC “audit committee financial expert”; all committee members can read and understand fundamental financial statements .
- Attendance and engagement: The Board met 14 times in 2024, and each director attended at least 75% of meetings; independent directors also hold executive sessions at least twice annually without management .
- Board leadership: Combined Chair/CEO (Charles Youakim) structure; independent directors (including East) provide oversight, with CEO excluded from the three principal committees .
- Hedging/pledging policy: Strict prohibitions on short sales, options, hedging; pledging allowed only with Audit & Risk Committee approval and safeguards; continuous monitoring of any pledges .
Fixed Compensation
| Metric | 2024 |
|---|---|
| Fees earned or paid in cash | $45,000 |
| Stock awards (grant-date fair value) | $42,165 |
| Option awards | — |
| All other compensation (stipend) | $748 |
| Total | $87,913 |
Director fee policy (structure for non-executive directors):
- Annual board retainer: $60,000
- Committee chair fees: Audit & Risk Chair $15,000; Compensation Chair $7,500; Nominating Chair $7,500
- Committee membership fees: Audit & Risk Member $7,500; Compensation/Nominating Member $3,750
Note: East joined in July 2024; 2024 cash fees reflect partial-year service relative to the fee policy .
Performance Compensation
| Award Type | Grant Date | Shares/Options | Fair Value Per Share | Vesting Schedule |
|---|---|---|---|---|
| Restricted Stock Units (RSUs) | July 18, 2024 | 3,000 RSUs | $14.06 | 25% vest April 1, 2025; remaining RSUs vest quarterly thereafter |
| Stock Options | — | — | — | No director option grants disclosed for East in 2024 |
- Performance metrics: Director equity awards are time-based; no performance metrics (e.g., TSR, revenue, EBITDA) tied to director compensation are disclosed for East .
- Clawback: Company maintains clawback provisions applicable to incentive compensation under the 2021 Equity Incentive Plan and broader policies, subject to law and exchange standards .
Other Directorships & Interlocks
| Company | Relationship to SEZL | Potential Interlocks/Conflicts |
|---|---|---|
| Toll Brothers, Inc. (NYSE: TOL) | No disclosed transactions with Sezzle | No related-party transactions involving East disclosed; Audit & Risk Committee oversees related-party transactions |
Expertise & Qualifications
- CFA Charterholder; SEC “audit committee financial expert” designation .
- MBA (University of Missouri); BS in Finance (Arkansas State University) .
- Equity research leadership across housing and building products; top Institutional Investor rankings; StarMine recognition .
- Active in industry groups (ULI, NAHB) and public speaking; capital markets and governance expertise .
Equity Ownership
| Holder | Shares Beneficially Owned | % of Common Stock | Pledged Shares |
|---|---|---|---|
| Stephen East | 7,950 | <1% | None disclosed for East in the ownership table |
Insider filings and trades:
| Date | Filing/Transaction | Description |
|---|---|---|
| Dec 3, 2024 | Form 4 (gift) | Gift of 600 shares of common stock; reported via Form 5 on Jan 31, 2025 due to administrative error |
| Jul 18, 2024 | Form 3 correction | Omission of 7,800 shares owned at board appointment; subsequently corrected on Form 5 Jan 31, 2025 (administrative error by Company) |
Hedging/pledging compliance:
- Company policy prohibits hedging/shorting and restricts pledging; audit committee approval required for any pledge; no pledges disclosed for East .
Governance Assessment
- Committee leadership and financial expertise: East chairs Audit & Risk, Compensation, and Nominating & Corporate Governance, providing strong oversight; designation as “audit committee financial expert” supports audit quality and internal controls .
- Independence and engagement: Board determination of independence; attendance at least 75%; executive sessions held without management enhance independent oversight .
- Compensation alignment: Director compensation uses cash retainer plus time-based RSUs; no performance-linked metrics disclosed for directors—common market practice, but limits pay-for-performance linkage at the board level .
- Ownership alignment: East’s stake is 7,950 shares (<1%), indicating limited financial exposure relative to outstanding shares; committee oversees minimum shareholding requirements, but specific guidelines and compliance status for directors are not disclosed .
- Conflicts/related parties: No related-party transactions involving East disclosed; related-party employment disclosures involve relatives of the CEO and President; Audit & Risk Committee reviews related-party transactions .
- Section 16(a) reporting: Administrative errors by the Company led to a corrected Form 3 omission and a gift reported on Form 5; while attributed to company error, timely and accurate reporting remains a governance focus area. Correction occurred Jan 31, 2025 .
RED FLAGS
- Section 16(a) reporting corrections for East (Form 3 omission and delayed gift reporting), albeit attributed to Company administrative error .
- Absence of disclosed director-specific stock ownership guideline thresholds or compliance status (committee oversight noted, but metrics not provided) .
Positive Signals
- Triple-committee chairmanship and audit financial expert designation, enhancing board effectiveness and risk oversight .
- No disclosed pledging by East; strong company-level anti-hedging/pledging policy .
- Independent status affirmed under Nasdaq and SEC standards .