Credit Acceptance outlines ex-CFO separation terms
Credit Acceptance details its separation agreement with former CFO Jay D. Martin, outlining a short-term advisory role, modest payments, and continued equity vesting.
Rhea-AI Filing Summary
CREDIT ACCEPTANCE CORP (CACC) reported that on September 3, 2026 it entered into a separation agreement and general release with former Chief Financial Officer Jay D. Martin, who has been serving as an employee advisor since his CFO tenure ended on July 27, 2026. Under the agreement, Mr. Martin will continue as an unsalaried employee advisor from September 3, 2026 through February 1, 2027, providing about 15 hours of advisory services per month. Credit Acceptance will make a lump-sum pre-tax payment of $4,000 covering his potential COBRA benefit premiums for the term and will provide three months of medical, dental, and vision benefits at no cost to him. Mr. Martin will continue to vest in his existing equity awards during this period under their current vesting schedules, and he has granted a general release of claims in favor of the company.
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8-K Event Classification
Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
1 item
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Key Figures
Advisory term start: September 3, 2026
Advisory term end: February 1, 2027
Advisory hours: 15 hours per month
+3 more
6 metrics
Advisory term start
September 3, 2026
Start date of Jay D. Martin’s unsalaried employee advisor term
Advisory term end
February 1, 2027
End date of Jay D. Martin’s unsalaried employee advisor term
Advisory hours
15 hours per month
Approximate advisory services Jay D. Martin will provide during the term
Lump-sum payment
$4,000
Pre-tax payment representing potential COBRA benefit premiums for the advisory term
Health benefits duration
3 months
Period of medical, dental, and vision benefits at no cost to Jay D. Martin
Former CFO tenure end date
July 27, 2026
Date Jay D. Martin’s tenure as Chief Financial Officer ended
Key Terms
Separation Agreement, general release of claims, Consolidated Omnibus Budget Reconciliation Act of 1985, forward-looking statements
4 terms
Separation Agreement regulatory
"entered into a separation agreement and general release (the “Separation Agreement”)"
A separation agreement is a written contract that spells out the financial and legal terms when an employee and a company part ways, such as final pay, severance, continued benefits, confidentiality, and any release of claims. For investors, it matters because these agreements determine immediate costs, potential future liabilities, and whether departing staff are restricted from competing or disclosing information—factors that can affect a company’s cash flow, risk profile, and leadership continuity.
general release of claims regulatory
"The Separation Agreement includes a general release of claims by Mr. Martin"
Consolidated Omnibus Budget Reconciliation Act of 1985 regulatory
"representing his benefit premiums (if elected) under the Consolidated Omnibus Budget Reconciliation Act of 1985"
forward-looking statements regulatory
"We claim the protection of the safe harbor for forward-looking statements"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
FAQ
What did CACC disclose about its former CFO Jay D. Martin in this 8-K?
CACC disclosed a Separation Agreement with former CFO Jay D. Martin. He will serve as an unsalaried employee advisor from September 3, 2026 through February 1, 2027, with limited hours, specified benefits support, and continued vesting of his existing equity awards.
What is the advisory role and time commitment for Jay D. Martin at CACC?
Under the Separation Agreement, Jay D. Martin will act as an unsalaried employee advisor to Credit Acceptance from September 3, 2026 through February 1, 2027, providing approximately 15 hours of advisory services per month during this term.
What cash payment will CACC make to Jay D. Martin under the Separation Agreement?
Credit Acceptance will provide Jay D. Martin a lump-sum pre-tax payment of $4,000. This amount represents his benefit premiums (if elected) under COBRA based on his coverage election on September 3, 2026 through the end of the advisory term.
What health benefits does CACC provide to Jay D. Martin in the Separation Agreement?
During the advisory term, Credit Acceptance will provide Jay D. Martin with three months of medical, dental, and vision benefits at no cost to him. These benefits apply during the period covered by the Separation Agreement.
How are Jay D. Martin’s equity awards treated under the CACC Separation Agreement?
Jay D. Martin will continue to vest in his outstanding equity awards during the advisory term from September 3, 2026 through February 1, 2027, following the existing vesting schedules already applicable to those awards.
Does the Separation Agreement include a release of claims in favor of CACC?
Yes. The Separation Agreement includes a general release of claims by Jay D. Martin in favor of Credit Acceptance Corporation, resolving potential claims he might have against the company.
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