Alberto Casellas
Synchrony FinancialAbout Alberto Casellas
Alberto Casellas, 58, is Executive Vice President and CEO—Health & Wellness at Synchrony, a role he has held since June 2021; previously he led the CareCredit platform (CEO, Jan 2019–Jun 2021), served as EVP & Chief Customer Engagement Officer (Nov 2016–Dec 2018), and SVP, Retail Card Client Initiatives (Mar 2014–Nov 2016). He holds a B.A. in Economics from Yale University and sits on the board of Domus Kids, a Stamford, CT nonprofit . Synchrony’s 2024 annual incentive paid at 105% of target based on performance against PPNR minus charge-offs, average receivables growth, and strategy/culture goals ; the 2022–2024 PSU program paid 175.5% of target driven by cumulative diluted EPS of $19.64, ROE of 20.34%, and a TSR modifier of 117% (TSR ~50%, 71st percentile vs peers) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Synchrony | EVP & CEO—Health & Wellness | Jun 2021–present | Leads Health & Wellness platform |
| Synchrony (CareCredit) | CEO—CareCredit platform | Jan 2019–Jun 2021 | Led consumer healthcare financing business |
| Synchrony | EVP & Chief Customer Engagement Officer | Nov 2016–Dec 2018 | Drove customer engagement strategy |
| Synchrony | SVP, Retail Card Client Initiatives Group | Mar 2014–Nov 2016 | Managed Retail Card client initiatives |
External Roles
| Organization | Role | Years |
|---|---|---|
| Domus Kids (Stamford, CT) | Board Director | Current |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary (set by MDCC) | $625,000 | $650,000 |
| Salary (Summary Comp Table, paid) | — | $645,673 |
| All Other Compensation (Total) | — | $371,638 |
| Perquisites & Other Personal Benefits (incl. relocation $120,608, telecom stipend) | — | $147,280 |
| Supplementary Insurance Premiums | — | $8,701 |
| Payments relating to Employee Savings Plan (401k) | — | $37,950 |
| Amounts credited to Restoration Plan account | — | $177,707 |
Performance Compensation
Annual Incentive Plan (AIP) – 2024
| Metric | Weight | Target | Actual | Payout | Vesting/Payment |
|---|---|---|---|---|---|
| PPNR minus Charge-Offs | 50% | $4,850 | $4,773 | 48.1% | Paid after year-end (cash) |
| Average Receivables Growth | 30% | 10.0% | 7.3% | 16.9% | Paid after year-end (cash) |
| Strategy & Culture | 20% | MDCC framework | Achieved; strong outcomes | 40.0% | Paid after year-end (cash) |
| Total AIP Payout | — | — | — | 105.0% | — |
| Executive | 2024 Target AIP ($) | 2024 AIP Paid ($) |
|---|---|---|
| Alberto Casellas | $812,500 | $853,125 |
Target bonus percent (derived): ~125% of base salary ($812,500 ÷ $650,000) using disclosed target and base salary .
Long-Term Incentive (Equity) – 2024 Grants
| Grant Type | Grant Date | Units / Fair Value | Vesting |
|---|---|---|---|
| PSUs – 2024–2026 cycle | 3/1/2024 | Threshold 6,799; Target 33,999; Max 61,198 | Earned based on cumulative diluted EPS and average ROE; TSR modifier ±20%; vests 12/31/2026 |
| RSUs | 3/1/2024 | 27,817; Fair Value $1,141,888 | Ratable, 33.3% annually in 2025/2026/2027 |
| 2024 Equity Mix Summary | — | RSUs $1,141,888; PSUs $1,485,076; Total $2,626,964 | — |
Long-Term Performance (PSU) – 2022–2024 Payout
| Metric | Weight | Min | Target | Max | Actual | Payout |
|---|---|---|---|---|---|---|
| Cumulative Diluted EPS | 50% | $12 | $15 | $18 | $19.64 | 150.0% |
| Return on Equity | 50% | 13.0% | 16.0% | 19.0% | 20.34% | 150.0% |
| TSR Adjustment | — | — | — | — | ~50% TSR; 71st percentile | 117.0% |
| Total PSU Payout | — | — | — | — | — | 175.5% |
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Beneficial Ownership (as of 4/1/2025) | 29,497 shares; <1% of outstanding |
| Shares Outstanding (denominator) | 380,545,542 |
| Ownership % (derived) | ~0.0077% (29,497 ÷ 380,545,542) |
| Stock Ownership Guideline (EVP) | 3× base salary |
| Casellas Ownership Multiple | 6.5× (exceeds guideline) |
| Hedging/Pledging Policy | Prohibited (no hedging or pledging) |
Unvested equity (as of 12/31/2024):
- RSUs: 9,178 (3/1/2022); 20,451 (3/1/2023); 28,235 (3/1/2024); market values $596,552; $1,329,313; $1,835,286 respectively at $65.00 close price .
- PSUs: 37,493 (2023 grant, vests 12/31/2025); 34,510 (2024 grant, vests 12/31/2026); payout value subject to performance and TSR modifier; market/payout values presented at target using $65.00 .
Options (legacy; no new grants in recent years):
| Grant Date | Exercisable (#) | Exercise Price ($) | Expiration |
|---|---|---|---|
| 4/1/2015 | 6,632 | 30.41 | 4/1/2025 |
| 4/1/2016 | 8,964 | 29.33 | 4/1/2026 |
| 4/1/2017 | 11,588 | 34.30 | 4/1/2027 |
| 4/1/2018 | 10,911 | 33.53 | 4/1/2028 |
2024 Stock Vested/Exercised:
| Item | Amount |
|---|---|
| Shares acquired on vesting (RSUs/PSUs) | 86,655 |
| Value realized on vesting | $5,235,611 |
| Option shares exercised | 3,797 |
| Value realized on exercise | $60,598 |
Employment Terms
Key policies and severance economics:
- No employment agreements for executive officers .
- Double-trigger vesting of equity and LTI upon change in control .
- Clawback applies for misconduct and “no fault” financial restatements .
- No CIC excise tax gross-ups; no hedging or pledging; limited perquisites .
Payments upon termination (as of 12/31/2024; assumes $65.00 stock price):
| Element of Pay | For Cause | Voluntary Termination | Involuntary Termination | Death/Disability | Change-in-Control |
|---|---|---|---|---|---|
| Severance | $0 | $0 | $650,000 | $0 | $4,371,224 |
| RSUs | $0 | $0 | $1,925,865 | $3,761,151 | $3,761,151 |
| Long-Term Performance Plan (PSUs) | $0 | $0 | $2,437,017 | $4,680,174 | $4,680,174 |
| Annual Cash Incentive | $0 | $0 | $853,125 | $853,125 | $853,125 |
| Health Benefits Payment | $0 | $0 | $0 | $0 | $55,751 |
| Restoration Plan | $0 | $0 | $2,021,934 | $2,021,934 | $2,021,934 |
| Deferred Compensation | $11,764 | $11,764 | $11,764 | $11,764 | $11,764 |
| Total to Executive | $11,764 | $11,764 | $7,899,705 | $11,328,148 | $15,755,123 |
Additional retirement/deferral programs:
- Restoration Plan: 3% core, 4% match, plus 4% additional for former GE pension participants; forfeited if voluntarily leaving before age 60; Casellas 2024 contributions $177,707; aggregate YE balance $2,021,934 .
- Deferred Compensation Plan: elective deferrals up to 80% of base and bonus; YE aggregate balance $11,764 .
Compensation Structure Notes
- Equity-heavy pay mix with 55% of LTI in PSUs; RSUs vest over 3 years starting one year after grant; PSUs tied to 3-year EPS and ROE with TSR modifier .
- 2024 executive base salaries unchanged or modestly adjusted vs 2023; Casellas increased from $625,000 to $650,000 .
- 2024 AIP metrics balanced between profitability (PPNR-CO), growth (receivables), and qualitative strategy/culture, yielding 105% payout .
Risk Indicators & Red Flags
- No hedging or pledging allowed; reduces alignment risk .
- No CIC excise tax gross-ups; shareholder-friendly practice .
- No employment agreements; retention relies on equity/plan features .
- Continued vesting for awards held ≥1 year upon involuntary termination (with ≥20 years of service) increases retention but reduces forfeiture risk; PSUs vest at target upon death/disability .
Equity Vesting Schedule (Outstanding at YE 2024)
| Grant Date | RSU Vesting | PSU Vesting |
|---|---|---|
| 3/1/2022 | 33.3% vests in 2025 | — |
| 3/1/2023 | 33.3% vests in 2025, 2026 | 100% vests 2025 (to extent earned) |
| 3/1/2024 | 33.3% vests in 2025, 2026, 2027 | 100% vests 2026 (to extent earned) |
Investment Implications
- Strong pay-for-performance alignment: PSUs tied to EPS/ROE with TSR modifier paid 175.5% for 2022–2024, indicating execution against profitability and capital efficiency metrics, and a top-quartile TSR outcome; AIP at 105% reflects balanced performance drivers .
- Retention risk moderate: equity vests over multi-year schedules; continued vesting on involuntary termination (with tenure criteria) reduces forfeiture risk; Restoration Plan forfeiture before age 60 increases retention incentives .
- Insider selling pressure: RSUs vest annually around March 1 anniversaries; historical 2024 vesting was sizable ($5.24M value) and options exercises occurred, suggesting potential recurring liquidity needs near vest dates .
- Alignment and governance: ownership at 6.5× salary exceeds 3× guideline; hedging/pledging prohibited; double-trigger CIC terms and no excise tax gross-ups limit windfalls .
- Notable 2024 company actions (Pets Best sale, $802M after-tax gain) influenced qualitative AIP funding; continued strategic execution in Health & Wellness could sustain incentive outcomes and equity realizations .