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Joy Schaefer

Lead Independent Director at Velocity Financial
Board

About Joy Schaefer

Independent director since January 2020; appointed Lead Independent Director in February 2022. Schaefer brings deep financial services operating expertise across auto finance, residential and multifamily mortgages, and home equity lending, with prior audit experience at Ernst & Young and a B.S. in Accounting from Illinois Wesleyan University . She serves on VEL’s Audit Committee and Governance Committee and is designated an audit committee financial expert; the board has affirmatively determined she is independent despite a prior operating partner role at Snow Phipps (VEL’s largest shareholder) until August 2018 . The board appointed her Lead Independent Director under a policy ensuring female leadership in chair or lead roles .

Past Roles

OrganizationRoleTenureCommittees/Impact
Golden Eagle Advisors, LLCPresidentAug 2005–presentStrategic, operational, financial improvements consulting
Snow PhippsOperating Partner2005–Aug 2018PE operating leadership; prior affiliation considered non-material for independence
JL Schaefer ConsultingPresident2002–2005Strategic/financial/operational advisory
Ameriquest MortgagePresident & COO2002Mortgage banking operations leadership
Westcorp family of companies (Westcorp, WFS Financial, Western Financial Bank)Various senior roles: COO, CEO, President, CFO, Treasurer1990–2002Public company leadership; national auto finance; bank operations
Ernst & YoungAudit ManagerEarly careerAccounting/audit foundation

External Roles

OrganizationRoleTenureCommittees/Impact
American Assets Trust, Inc. (NYSE: AAT)DirectorCurrentPublic REIT board experience; AAT is also in VEL’s executive compensation peer set

Board Governance

  • Lead Independent Director; presides over executive sessions when applicable; independent directors and committees may meet in executive session without management .
  • Committee assignments: Audit Committee (member; financial expert), Governance Committee (member). Board determined all Audit Committee members are independent and financially literate .
  • 2024 meeting cadence: Board (7), Audit (5), Compensation (2), Governance (1); all directors attended at least 75% of meetings of the Board and committees on which they served .
  • Independence affirmed; board reviewed relationships with Snow Phipps and PIMCO and deemed them not material (Schaefer was a Snow Phipps operating partner until Aug 2018) .
  • Majority vote standard in uncontested elections; advance resignation policy for directors not receiving majority support .
  • Shareholder rights: written consent and ability to call special meetings (approved 2022) .
CommitteeRoleChairMeetings (2024)Notes
AuditMemberJohn P. Pitstick5Each member is independent; all are audit committee financial experts
GovernanceMemberJohn A. Pless1Oversight of ESG, board evaluation and succession planning
BoardLead Independent DirectorBoard Chair: Alan H. Mantel7Executive sessions allowed; LID/Chair/Committee Chair preside

Fixed Compensation

Metric2024Notes
Fees Earned or Paid in Cash ($)$95,000 Comprised of $75,000 board retainer + $10,000 per committee (Audit, Governance)
Stock Awards ($)$95,000 Annual restricted stock grant, issuable upon re-election
Total ($)$190,000
Director Compensation StructureAmountDetails
Board member cash retainer$75,000/year
Committee member retainer$10,000/year per committee
Committee chair retainer$10,000/year per chair
Annual equity grant$95,000 restricted stock (per non-employee director) Issued upon re-election at the annual meeting

Performance Compensation

FeatureTerms
Director equity grant vestingNon-employee director awards vest on the earlier of the one-year anniversary of grant and the next annual meeting
Clawback policyAll awards subject to reduction/recoupment per VEL clawback policy and law
No dividends on unvested equityDividends on unvested awards are accumulated and paid only upon vesting; no dividends on options/SARs
Change-in-controlNo automatic single-trigger vesting; performance awards vest based on actual performance through change-in-control

No director PSUs or option grants are disclosed for 2024 director compensation; Schaefer’s equity in 2024 is restricted stock (time-based) .

Other Directorships & Interlocks

CategoryDetail
Current public boardAmerican Assets Trust, Inc. (AAT)
Interlock with VEL peer setAAT is in VEL’s 2024 executive compensation peer group, creating potential information-flow interlock across boards

Expertise & Qualifications

  • Financial services operating executive across auto finance, mortgages, commercial lending; prior audit experience at Ernst & Young; B.S. in Accounting (Illinois Wesleyan) .
  • Audit committee financial expert; financial literacy per NYSE standards .
  • Public company board experience (AAT) and private equity operating partner background .

Equity Ownership

Metric (as of Apr 3, 2025)AmountNotes
Total beneficial ownership (shares)50,101
Percent of class0.1% Based on 36,480,648 shares outstanding
Unvested restricted shares15,811 Included in beneficial ownership; voting but no investment power
Vested options12,500 Included as exercisable within 60 days per footnotes
Ownership guidelines4x annual cash retainer for independent directors within 4 years
Hedging/pledgingProhibited (no pledging; anti-hedging policy)

Say-on-Pay & Shareholder Feedback

Votes20212022202320242025
For23,356,736 28,925,885 31,915,085 32,192,729 23,185,417
Against837,716 2,719,822 33,065 45,527 160,640
Abstain2,020,944 17,084 1,005 27,361 113,017
Broker Non-Votes428,858 391,416 271,573 349,332 1,044,375

Related Party Transactions and Policies

  • Written Related Person Transaction Policy; Audit Committee reviews and approves covered transactions .
  • 2024 disclosed related party transaction: Kelsey Farrar (adult child of CEO Christopher Farrar) employed and paid $391,122; otherwise, no director or executive related party transactions reported for 2024 .
  • Stock pledging and hedging prohibited for directors and executives .

Governance Assessment

  • Strengths: Lead Independent Director role and female leadership requirement; robust independence review; clear majority voting + resignation policy; anti-hedging/anti-pledging; director ownership guidelines; audit committee financial expertise; strong say-on-pay support (≥99% in 2023–2025; lower but approved in 2022) .
  • Alignment: Schaefer holds 50,101 shares and vested options; annual director equity grants with vesting align incentives; ownership guidelines require 4x cash retainer within 4 years .
  • Potential conflicts/RED FLAGS: Prior operating partner affiliation with Snow Phipps (largest shareholder) deemed non-material by board but remains a perception risk . Interlock risk as AAT director while AAT is in VEL’s executive compensation peer group (information-flow) .
  • Engagement and effectiveness: Committee service (Audit, Governance); board and committee meeting cadence; attendance threshold met; executive session practices support independent oversight .