First Acceptance shuffles execs

Harrison relinquishes president role, CFO moving up

Stephen Harrison, CEO of auto insurer First Acceptance Corp., has given up the president title he has held since 2004. CFO Edward Pierce has been named president and Kevin Cohn will be the company’s new CFO.

Speaking with this morning, Treasurer Michael Bodayle said the personnel moves have been in the works for a while and are not connected to last week’s loan agreement amendments, which loosened various fixed-charge coverage and net income ratios.

Harrison in 1995 co-founded USAuto Holdings Inc., which was acquired by First Acceptance in 2004. He will remain CEO of the company, which Friday posted an $11 million second-quarter loss.

His new job description comes with an amended employment agreement that will pay him the same amount – a base salary of $500,000 and a maximum bonus of another $500,000. (He did not receive a bonus for First Acceptance’s last fiscal year.)

For his part, President Pierce will be paid $400,000 and be eligible for a bonus of up to $300,000. As CFO, those numbers were $300,000 and $200,000, respectively.