Chad Prashad
About Chad Prashad
R. Chad Prashad, 45, is President & CEO of World Acceptance (since June 2018) and a director since 2018. He holds a BA in Political Science and dual BS in Business Administration and Economics from Presbyterian College, and an MA in Economics from Clemson University . Company performance context: fiscal 2025 net income was $89.7M and diluted EPS $16.30; company TSR (value of $100) has been volatile: 2021–2025 were 237.61, 351.29, 152.52, 265.48, and 231.73 respectively . The Board separates the Chair and CEO roles; an independent Chair leads executive sessions, providing governance balance to Prashad’s dual role as CEO and director .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| World Acceptance | President & CEO | 2018–present | Led strategy and operations; oversaw EPS/TSR-linked long-term incentive conclusion in FY25; continued capital returns (buybacks) . |
| World Acceptance | SVP & Chief Strategy and Analytics Officer | Feb–Jun 2018 | Set analytics-driven strategy prior to elevation to CEO . |
| World Acceptance | VP of Analytics | 2014–2018 | Built analytics capability supporting underwriting and operations . |
| Resurgent Capital Services | Senior Director, Strategy Development | 2013–2014 | Strategy leadership at a consumer debt servicing firm . |
| Resurgent Capital Services | Director, Legal Strategy | 2009–2013 | Led legal strategy in consumer debt servicing . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Presbyterian College | Trustee | 2022–present | Higher education governance . |
| Build Carolina | Director | 2022–present | Workforce development/non-profit . |
| National CASA-GAL Association for Children | Director | 2022–present | Child advocacy . |
| The Family Effect | Director | 2018–present | Community non-profit . |
| American Financial Services Association (AFSA) | Director | 2018–present | Industry association; relevant for regulatory/industry insights . |
| Fostering Great Ideas | Director (emeritus); Chair (2015–2016) | 2013–2021 | Non-profit leadership experience . |
Fixed Compensation
- The company eliminated its annual bonus plan in 2019; CEO cash comp is predominantly base salary with perquisites; base salary reviews are generally biennial and did not use an outside consultant in FY25 .
- FY25 salaries increased for the first time in several years; CEO annualized base rose to $890,400 from $840,000 .
| Metric ($) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Salary | 840,000 | 840,000 | 864,037 (earned) |
| Stock awards (grant-date fair value) | — | — | 1,299,936 |
| Non-equity incentive/Bonus | — | — | — |
| Change in pension value (2005 SIP) | 78,320 | 83,277 | 58,677 |
| All other compensation (perqs) | 38,268 | 42,460 | 53,430 |
| Total | 956,588 | 965,737 | 2,276,080 |
Perquisite detail (FY25): company car $44,001, 401(k) match $7,576, term life premiums $1,853; total $53,430 .
Performance Compensation
- Structure and metrics: The 2019 Long-Term Incentive Program (LTIP) used trailing four-quarter EPS hurdles ($16.35 and $20.45 for performance shares; $25.30 for performance options) plus service-based RS; program ran from 9/30/2018 to 3/31/2025 .
- Outcome: Only the $16.35 EPS tranche vested (72%); the $20.45 performance shares and $25.30 performance options were forfeited, indicating discipline around performance hurdles .
- FY25 grants: 11,644 time-based restricted shares granted 12/18/2024 to Prashad vest 12/18/2025 (one-year cliff) .
| Metric/Instrument | Weighting | Target | Actual | Payout to Prashad | Vesting |
|---|---|---|---|---|---|
| Performance Shares ($16.35 EPS) | 40% of PSU award | Trailing 4Q EPS ≥ 16.35 | Achieved (partial) | 22,464 shares vested (72% of tranche) | On certification within program period (through 3/31/2025) |
| Performance Shares ($20.45 EPS) | 60% of PSU award | Trailing 4Q EPS ≥ 20.45 | Not achieved | Forfeited | — |
| Performance Options ($25.30 EPS) | 100% of option award | Trailing 4Q EPS ≥ 25.30 (4 consecutive quarters) | Not achieved | Forfeited | — |
| Time-based Restricted Stock (FY25 grant) | N/A | Service condition | Continuing service | 11,644 shares granted | Vests 12/18/2025 |
Realized equity (FY25): 35,464 shares vested with value realized $4,515,046 for Prashad . Pay-versus-performance shows “compensation actually paid” (SEC CAP) was negative in FY25 due to equity valuation changes: CAP = $(6,797,172) despite SCT total of $2,276,080 .
Equity Ownership & Alignment
- Beneficial ownership (as of July 9, 2025): 99,097 shares (1.8% of outstanding); directors and officers as a group: 2,266,686 (41.6%) . Shares outstanding 5,446,636 (July 9, 2025) .
- Unvested/vested breakdown: Ownership table footnote indicates 47,644 unvested restricted shares included for Prashad; the FY25 year-end outstanding awards table shows 11,644 unvested RS under the 2017 Plan vesting 12/18/2025 (market value $1,473,548 at $126.55) .
- Options: None outstanding at FY25 year-end for NEOs; performance options were forfeited .
- Hedging/pledging: Hedging prohibited; pledging requires CFO pre-clearance and ability to repay without relying on pledged stock (monitoring mitigant) .
- Ownership guidelines: Not disclosed; awards are subject to company clawback policy (Oct 2, 2023) .
| Ownership item | Detail |
|---|---|
| Shares beneficially owned | 99,097 (1.8% of class) |
| Unvested RS (beneficial ownership footnote) | 47,644 shares |
| Unvested RS (FY25 YE outstanding) | 11,644 shares; vests 12/18/2025; $1,473,548 at $126.55 |
| Options (exercisable/unexercisable) | None as of 3/31/2025 (performance options forfeited) |
| Anti-hedging/pledging policy | Hedging prohibited; pledging requires pre-clearance |
Near-term vesting and potential selling pressure: 11,644 RS vest 12/18/2025; monitor Form 4s around vest for any tax-driven or discretionary sales .
Employment Terms
- Agreement: Initial three-year term from 10/15/2018; automatically renews annually unless 90-days’ notice; base salary target initially $840,000 (cannot be reduced below $420,000) .
- Severance (termination without cause/good reason): $1,260,000 cash; 18 months COBRA equivalent; time-based awards vest per schedule; pro-rata vesting for certain performance awards if achieved within 180 days; options exercisable up to one year (longer for certain post-termination performance vest) .
- Change-in-control (double trigger within two years): Lump sum $1,260,000 + 18 months COBRA; equity vests per plan documents; options exercisable up to one year .
- Non-compete/non-solicit: Two years post-termination; release required to receive severance; confidentiality and non-disparagement apply .
- Definitions: “Cause” and “Good Reason” defined with protections including salary floor, material diminution, relocation >35 miles, failure to renew .
- Pension/SERP: 2005 Supplemental Income Plan (unfunded) targets 45% of base salary for 15 years at normal retirement; present value of accumulated benefit for Prashad: $648,584 (present value at death $1,945,752) .
- Clawback: Awards and compensation subject to company clawback policy and forfeiture provisions .
| Scenario (as of 3/31/2025) | Salary continuation | Benefits (COBRA) | Accelerated equity | Total |
|---|---|---|---|---|
| Termination without cause/good reason | 1,260,000 | 12,713 | 1,473,548 | 2,746,261 |
| Change-in-control + qualifying termination | 1,260,000 | 12,713 | 1,473,548 | 2,746,261 |
| Death benefits (illustrative) | — | — | 1,473,548 | Total incl. life/SIP: 3,919,300 |
Board Governance and Director Service
- Board service: Director since 2018; not on any board committees (consistent with executive status) .
- Independence and leadership: CEO is not independent; Board mandates an independent, non-executive Chair (Ken R. Bramlett, Jr.); independent directors hold executive sessions after regular meetings .
- Committees: All committee members are independent; Compensation & Stock Option Committee members include Bramlett (Chair), Vassalluzzo, Way, Neuhoff .
- Director pay: Only non-employee directors receive fees/equity. FY25 non-employee compensation included quarterly retainers ($20,000 rising to $22,000), chair retainers, and ~1,075-share RS grants; Prashad (employee director) is not listed in the director compensation table, indicating no director fees .
Say-on-Pay & Shareholder Feedback
- The company holds annual advisory votes; FY2024 say‑on‑pay received over 89% approval, indicating strong support for the program .
- The FY2025 proxy recommends FOR approval; the Compensation Committee met its independence requirements and maintains a clawback policy .
Compensation Structure Analysis
- Shift in mix: Elimination of annual bonus increased fixed salary weight; equity remains key via RS and (historically) PSUs/options tied to EPS .
- Performance rigor: FY25 outcome shows high bar—only the $16.35 EPS tranche partially vested; higher EPS tranches and performance options forfeited .
- FY25 grants skewed to time-based RS vesting in one year (12/18/2025), which is lower risk than performance-based awards and can reduce pay-at-risk; however, SEC “compensation actually paid” was negative in FY25, reflecting the sensitivity of equity to valuation performance .
- No consultant used for FY25 salary decisions; potential benchmarking risk, though say‑on‑pay support remains high .
Risk Indicators & Red Flags
- Equity vesting concentration: One-year cliff RS vest (12/18/2025) may create short-term selling pressure; however, hedging is banned and pledging tightly controlled .
- Option repricing prohibited without shareholder approval under plan documents; double-trigger CoC vesting generally applies, limiting windfall risk .
- No related-party transaction issues are highlighted in the excerpts reviewed; Audit & Compliance oversees such risks .
Data Tables (Company Performance Context)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Company TSR (value of $100) | 237.61 | 351.29 | 152.52 | 265.48 | 231.73 |
| Net Income ($) | 88,282,828 | 53,919,837 | 21,231,990 | 77,345,227 | 89,741,398 |
| Diluted EPS ($) | 13.23 | 8.47 | 3.60 | 13.19 | 16.30 |
Investment Implications
- Pay-for-performance alignment: Stringent EPS-based LTIP led to significant forfeitures; FY25 CAP negative despite higher SCT total, reinforcing equity sensitivity and discipline around performance hurdles .
- Retention risk moderate: Auto-renewing contract, two-year non-compete/non-solicit, and defined severance/CoC protections ($1.26M cash + COBRA; double trigger) support stability; near-term RS cliff vest (Dec 2025) is a focal point for monitoring potential selling/liquidity events .
- Alignment: Meaningful ownership (1.8% of shares) with anti-hedging/controlled pledging and an active buyback program ($54.2M returned in FY25) align management and shareholder interests; monitor future equity plan utilization under the proposed 2025 plan .
- Governance: Independent Chair and fully independent comp committee mitigate dual-role concerns; high say-on-pay support (>89% in 2024) suggests shareholder acceptance of the structure, notwithstanding the shift toward time-based RS in FY25 .