Tyler Montrone
About Tyler Montrone
Executive Vice President — Acima since February 20, 2023; age 44; prior roles include Chief Development Officer (Jul 2022–Feb 2023), SVP Assistant General Counsel/Compliance (Feb 2021–Jun 2022), and Chief Legal & Compliance Officer (Mar 2016–Feb 2021). Education: B.S. in Accounting and Master in Taxation (Weber State University), J.D. (University of Arkansas) . Company performance metrics used in pay design: 2024 consolidated Adjusted EBITDA $489M, Rent‑A‑Center segment revenue $1,863M, Acima segment revenue $2,261M; 2024 TSR used for PSU vesting is measured relative to the S&P 1500 Specialty Retail Index . Company 2024 results: revenue $4.3B (+8.2% y/y), net income $123.5M, Adjusted EBITDA $473.2M, GAAP diluted EPS $2.21; relative TSR for the 2022–2024 PSU cycle ranked 29/52 (45th percentile), vesting 75% of PSUs .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Acima (Upbound Group) | Executive Vice President — Acima | Feb 2023–present | Leads Acima segment operations; segment metrics are included in incentive plan design . |
| Acima | Chief Development Officer | Jul 2022–Feb 2023 | Oversaw growth initiatives and development pipeline . |
| Acima | SVP, Assistant General Counsel/Compliance Officer | Feb 2021–Jun 2022 | Led compliance and legal support for segment . |
| Acima | Chief Legal & Compliance Officer | Mar 2016–Feb 2021 | Established compliance frameworks for Acima’s business . |
External Roles
- No public company directorships, committee roles, or external board service disclosed for Tyler Montrone .
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $450,000 | $475,000 |
| Target Bonus (% of Salary) | — | 60% |
| Discretionary/Other Bonus ($) | — | $500 |
| Actual Annual Incentive (Non‑Equity Incentive Plan) ($) | $388,800 | $285,000 |
| All Other Compensation ($) | $35,504 | $34,995 |
| Total Compensation ($) | $1,762,135 | $1,680,381 |
All Other Compensation detail (2024):
- Company 401(k) match: $10,332
- Insurance premiums: $20,718
- Executive physical: $3,945
Performance Compensation
Annual Cash Incentive (2024 design and outcome)
| Metric | Weight | Threshold | Target | Max | Actual | Payout vs Target |
|---|---|---|---|---|---|---|
| Adjusted EBITDA (Consolidated) ($M) | 50% | <425 | 500 | ≥575 | 489 | 97.7% |
| Rent‑A‑Center Segment Revenue ($M) | 25% | <1,821 | 1,897 | ≥1,973 | 1,863 | 98.2% |
| Acima Segment Revenue ($M) | 25% | <2,035 | 2,165 | ≥2,295 | 2,261 | 104.5% |
- Plan payout approved at 100% of target for all named executive officers, including Tyler .
Long‑Term Incentive Program (LTIP)
- Mix: 75% Performance Stock Units (PSUs), 25% Restricted Stock Units (RSUs) .
- RSUs vest 1/3 per year over 3 years .
- PSUs cliff‑vest based on 3‑year relative TSR vs S&P 1500 Specialty Retail Index; payout schedule from 0% (<25th percentile) to 200% (≥90th percentile) .
2022 PSU cycle outcome (for Tyler):
| Metric | Measurement Period | Index | Percentile Rank | Payout |
|---|---|---|---|---|
| Relative TSR | Jan 1, 2022–Dec 31, 2024 | S&P 1500 Specialty Retail Index | 45th percentile | 75% of target |
Equity Grants and Vesting
2024 Grants (February 26, 2024)
| Award Type | Units Granted | Grant‑Date Fair Value ($) | Vesting |
|---|---|---|---|
| RSUs | 5,973 | $201,887 | 1/3 per year over 3 years |
| PSUs (Target / Max) | 17,918 / 35,836 | $688,769 (PSUs) | 3‑year cliff based on relative TSR |
2023 Grants (February 24, 2023)
| Award Type | Units at Grant | Market Value at 12/31/2024 ($) | Vesting |
|---|---|---|---|
| RSUs | 4,700 | $137,099 | 1/3 per year over 3 years |
| PSUs (Target) | 21,933 | $639,786 | 3‑year cliff, TSR‑based |
Outstanding at FY‑end (December 31, 2024)
| Award Type | Units Unvested/Unearned | Market/Payout Value ($) |
|---|---|---|
| RSUs (2024 grant) | 5,973 | $174,232 |
| RSUs (2023 grant) | 4,700 | $137,099 |
| PSUs (2024 grant) | 17,918 (uneared) | $522,668 |
| PSUs (2023 grant) | 21,933 (uneared) | $639,786 |
| PSUs (2022 grant) | 15,743 (vested from 75% payout) | $344,417 |
Stock vested/exercised in 2024:
- Shares vested (Tyler): 9,131; value realized $311,712 .
- Option exercises: none for Tyler .
Equity Ownership & Alignment
| Ownership Item | Detail |
|---|---|
| Beneficial Ownership | 40,960 shares; less than 1% of common stock outstanding . |
| Shares under RSUs/PSUs vesting within 60 days | None reported . |
| Hedging/Pledging | Hedging, short sales, and derivative transactions prohibited; pledging or margin accounts prohibited unless treated as non‑marginable by brokerage . |
| Stock Ownership Guidelines | EVPs required to hold 3× base salary; deadline is the later of Dec 1, 2025 or five years after appointment; counts RSUs and unvested time‑based RSUs toward compliance (PSUs and options excluded) . |
| Clawback | Nasdaq/SEC‑compliant clawback policy (effective Dec 1, 2023) for incentive comp tied to financial reporting measures upon a material restatement . |
Employment Terms
- Executive Transition Agreement (applies to named executive officers other than the CEO): non‑competition and non‑solicitation provisions during employment and for 1.5–2 years thereafter; severance benefits vary by termination scenario .
Estimated Payments (as of 12/31/2024)
| Scenario | Cash Severance ($) | Medical Continuation ($) | Equity Acceleration ($) | Total ($) |
|---|---|---|---|---|
| Without Cause / For Good Reason (no CIC) | $988,847 | $38,850 | — | $1,027,697 |
| With Change in Control (double‑trigger) | $1,223,462 | $51,801 | $2,187,568 | $3,462,831 |
- Double trigger vesting on change in control for awards; PSUs deemed earned at the greater of target or performance through the change‑in‑control date, with continued time‑based vesting post‑CIC .
- Deferred Compensation Plan: Tyler is not a participant per 2024 plan table .
Compensation Structure vs Performance Metrics
- 2024 annual incentive weighted 50% Adjusted EBITDA, 25% Rent‑A‑Center revenue, 25% Acima revenue with rigorous targets tied to Board‑approved budget; payout at 100% based on outcomes (Adjusted EBITDA $489M; RAC revenue $1,863M; Acima revenue $2,261M) .
- LTIP places greater emphasis on PSUs (75%) vs RSUs (25%), tying realized value to three‑year relative TSR vs the S&P 1500 Specialty Retail Index; 2022 cohort vested at 75% on 45th percentile TSR .
Risk Indicators & Red Flags
- Strong governance safeguards: clawback, hedging/pledging prohibitions, ownership guidelines, and no option repricing; limited perquisites and no tax gross‑ups (other than certain relocation) .
- Related‑party transactions: none reportable since January 1, 2024 .
- Company litigation accruals reflected in “special items” for 2024 (CFPB/NYAG/Multi‑State AG matters), which influenced non‑GAAP reconciliations; not individually tied to Tyler’s pay .
Say‑on‑Pay & Peer Benchmarking
- Say‑on‑pay approval ~98% in June 2024, indicating investor support for program design .
- Peer group used by the Compensation Committee for 2024: Aarons, Big Lots, Bread Financial, Brinker, Conn’s, FirstCash, H&R Block, La‑Z‑Boy, OneMain, PROG, Sally Beauty, Western Union; Korn Ferry provides independent advice; updates contemplated for 2025/2026 (remove Big Lots; add Enova and ODP; review Aarons/Conn’s) .
Investment Implications
- Alignment: High at‑risk mix with 75% of LTIP in PSUs and annual bonus rigor tied to segment and consolidated performance; 2024 outcomes yielded a full‑target annual bonus and PSU vesting at 75% for the 2022 cycle, signaling balanced upside/downside linkage to performance .
- Retention risk: Standard severance (1.5× salary; 2.0× with CIC) with double‑trigger equity vesting reduces sudden departure risk while preserving alignment; non‑compete/non‑solicit protections for up to two years post‑employment .
- Insider selling pressure: No option exercises; 2024 stock vesting of 9,131 shares suggests routine LTIP delivery rather than opportunistic selling; hedging/pledging prohibitions materially limit misalignment behaviors .
- Ownership: Beneficial holdings are <1%; EVP ownership guidelines (3× salary by the later of Dec 1, 2025 or five years post‑appointment) are in force; compliance status not disclosed, but unvested time‑based RSUs count toward guidelines .