Driven Brands CFO: Exits
The Chief Financial Officer (CFO) of Driven Brands, Tiffany Mason, left the automotive services company suddenly last week. According to a filing with the Securities and Exchange Commission, the company appointed Gary W. Ferrera, a former executive at Cardtronics, as the new CFO, effective from May 10. Mason, who had been with the company for three years, resigned from her position on May 4. In the filing, it was mentioned that President and CEO Jonathan Fitzpatrick would serve as the interim principal financial officer until Ferrera assumes the finance role later in the week. The filing did not provide an explanation for Mason’s departure or specify whether she was terminated with or without cause.
Insight:
Mason’s departure took place the day after Driven Brands announced its first-quarter earnings for the period ending April 1. The company, which owns various automotive brands including Auto Glass Now and CARSTAR, reported a 20% year-over-year increase in revenue for the quarter, reaching $562.5 million. The revenue growth was attributed to same-store sales and the expansion of the company’s store network, as per the earnings results.
According to Mason’s LinkedIn profile, she had been the CFO of Driven Brands since 2020. Prior to that, she had a 13-year tenure at home improvement company Lowe’s, holding positions such as Senior Vice President of Corporate Finance & Treasurer and interim CFO for a brief period.
In 2022, Mason received a total compensation of around $2.2 million as the company’s CFO, according to the firm’s proxy statement. If her employment was terminated by the company without cause, Mason is entitled to receive 12 months of her base salary as continued payment upon leaving the company.
The proxy statement outlines that in case of any termination of employment, including resignation, termination for cause, or termination due to death or disability, Mason is eligible for payment of her base salary until her last day of active employment. Additionally, she is entitled to any pending cash bonus for the fiscal year prior to her termination and severance payments if she resigns for “good reason.”
Mason’s successor, Gary W. Ferrera, will receive a base salary of $675,000 along with a cash bonus targeted at 100% of his base salary, which is guaranteed to be paid at the full amount for 2023. Additionally, Ferrera received a one-time cash bonus of $100,000, which would need to be repaid if he leaves the company before May 10 of the following year.
If Ferrera resigns for “good reason” or his employment is terminated without cause by Driven Brands, he is entitled to receive cash payments equal to 1.5 times the sum of his annual base salary and target bonus amount. Furthermore, he will have pro-rata vesting of performance-based restricted stock units and the continued vesting of restricted stock units for 12 months, according to the company filing.
Before joining Driven Brands, Ferrera served as the CFO of the corporate digital learning firm Skillsoft. He was also the CFO of ATM owner and operator Cardtronics from 2017 to 2021 when the company was sold to NCR Corporation for $1.7 billion.
Jonathan Fitzpatrick, the President and CEO of Driven Brands, commented in a press release about Ferrera’s appointment, stating that Ferrera is an experienced leader with a strong background in leading financial teams, driving growth strategies, and expertise in mergers and acquisitions. The company reaffirmed its revenue guidance of approximately $2.35 billion for 2023.
Driven Brands and Tiffany Mason did not provide immediate responses to requests for comment.
