(Name of Registrant as Specified In Its Charter) | ||
(Name of Person(s) Filing Proxy Statement, if other than the Registrant) |
April 8, 2022 | ||||||||
Dear Berkshire Hills Bancorp Shareholder: | ||||||||
It is our pleasure to invite you to attend the 2022 Annual Meeting of Shareholders, which will be held virtually on Wednesday, May 18, 2022 at 10:00 a.m. Eastern Time by visiting www.virtualshareholdermeeting.com/BHLB2022, where you will be able to listen to the meeting live, submit questions and vote online. You will be asked to enter the 16-digit control number located on your proxy card. | ||||||||
CEO, Nitin J. Mhatre | Please see the Notice of Annual Meeting on the next page for more information about our meeting procedures. | |||||||
We urge you to vote your proxy online, or by telephone, or by completing and returning a proxy card by mail as soon as possible, even if you plan to attend the Annual Meeting. | ||||||||
Your vote is important to us. Thank you for your attention to the enclosed materials, and for your continued support of our company. | ||||||||
Chairperson, David M. Brunelle | ||||||||
Nitin J. Mhatre, Chief Executive Officer | ||||||||
David M. Brunelle, Chairperson of the Board of Directors |
Notice of | |||||||||||||||||
Purpose. Performance. Progress. | |||||||||||||||||
Notice of 2022 Annual Meeting of Shareholders of Berkshire Hills Bancorp, Inc. | ||||||||||||||||||||
When: | Where: | Record Date: | ||||||||||||||||||
10:00 a.m. |
IMPORTANT NOTICE REGARDING AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON MAY | |||
18, 2022: The Notice of Annual Meeting, |
Table of Contents | |||||||||||||||||
Purpose. Performance. Progress. | |||||||||||||||||
Proxy Summary | ||||||||||||||||||
2021 Company Performance | ||||||||||||||||||
2021 Executive Compensation Highlights | ||||||||||||||||||
Shareholder Engagement and Responsiveness | ||||||||||||||||||
Environmental, Social, Governance (ESG) & Corporate Responsibility | ||||||||||||||||||
Proposal 1 | ||||||||||||||||||
Information Regarding Directors and Director Nominees | ||||||||||||||||||
Corporate Governance | ||||||||||||||||||
Director Compensation | ||||||||||||||||||
Compensation Committee Report | ||||||||||||||||||
Executive Compensation | ||||||||||||||||||
Summary Compensation and Other Tables | ||||||||||||||||||
Accountant | ||||||||||||||||||
Audit Committee Report | ||||||||||||||||||
Proposal 4 - Approval of the Berkshire Hills Bancorp, Inc. 2022 Equity Incentive Plan | 69 | |||||||||||||||||
Additional Information | ||||||||||||||||||
Stock Ownership | ||||||||||||||||||
Information About Voting | ||||||||||||||||||
Other Information Relating to Directors and Executive Officers | ||||||||||||||||||
Submission of Business Proposals and Shareholder Nominations | ||||||||||||||||||
Shareholder Communications | ||||||||||||||||||
Miscellaneous | ||||||||||||||||||
Other Matters | ||||||||||||||||||
Appendix A | ||||||||||||||||||
Berkshire Hills Bancorp, Inc. 2022 Equity Incentive Plan | A-1 | |||||||||||||||||
Appendix B | B-1 | |||||||||||||||||
Summary of and Reconciliation of Certain Non-GAAP Financial Measures | B- | |||||||||||||||||
Berkshire Hills Bancorp, Inc. Proxy Statement | |||||||||||||||||
Purpose. Performance. Progress. | |||||||||||||||||
l | Declassified Board of | |||||||
l | In 2019, adopted new corporate guidelines implementing age and tenure limits to facilitate consistent Board refreshment | |||||||
l | Added | |||||||
Increased the three-year performance-based shares portion of long-term incentive compensation to 60% from 50% | ||||||||
l | Increased the focus on long-term equity compensation | |||||||
l | Created a new Board-level Corporate Responsibility and Culture Committee, | |||||||
Diversity & Inclusion* | ◦ | Percent of women in workforce | 67 | % | |||||||
◦ | Percent of ethnic minorities in workforce | 15 | % | ||||||||
◦ | Percent of women on the Board | 25 | % | ||||||||
◦ | Percent of ethnic minorities on the Board | 33 | % | ||||||||
◦ | Percent of women in management (officer+) | 20 | % | ||||||||
◦ | Percent of ethnic minorities in management (officer+) | 4 | % |
Proposal 1: Election of Directors for a One-Year Term | Purpose. | Performance. Progress. |
BAYE ADOFO-WILSON, CEO OF BAW DEVELOPMENT, LLC | ||||||||||||||||||
Mr. Adofo-Wilson, Esq. is CEO of BAW Development, LLC, a national real estate development company concentrating on redevelopment and consulting services in diverse communities. He is also Of Counsel at Post Polak, PA focusing on redevelopment law and specializing in New Jersey’s urban transitioning communities and municipalities, He has over 20 years of experience in law and business development, with a focus on community development, including the position of Deputy Mayor/Director, Economic and Housing Development for the City of Newark, New Jersey. | ||||||||||||||||||
Independent | Qualifications, Skills, and Experience: | |||||||||||||||||
Years of Service: 3 | Business Operations/Strategic | Regulated Industry | ||||||||||||||||
Age: 53 | Planning | Corporate Responsibility/ | ||||||||||||||||
Board Committees: | Financial Expertise/Literacy | Community Leader | ||||||||||||||||
Audit | Talent Management | Small Business Owner/Operator | ||||||||||||||||
Compliance & Regulatory | Real Estate | Legal Expertise | ||||||||||||||||
Corporate Responsibility | ||||||||||||||||||
and Culture | ||||||||||||||||||
NINA A. CHARNLEY, FORMER SENIOR MANAGING DIRECTOR, TIAA | |||||||||||||||||
Ms. Charnley was Senior Managing Director, Enterprise Customer Experience Executive at TIAA. Ms. Charnley led the strategy, development and execution of a significant portfolio of technology projects launching the company's mobile app and a digital bank, building digital capabilities enabling employees and customers. Previously, she was an executive at Bank of America managing diverse businesses including a de novo sustainable energy lending program and created the strategy, infrastructure, template and accountabilities matrix for Bank of America's Diversity and Inclusion program. | |||||||||||||||||
Independent | Qualifications, Skills, and Experience: | ||||||||||||||||
Years of Service: <1 | Financial Institution Executive | Talent Management | |||||||||||||||
Age: 66 | Business Operations and Strategic | Regulated Industry | |||||||||||||||
Board Committees: | Planning | Corporate Responsibility/ | |||||||||||||||
Compensation | Financial Expertise/Literacy | Community Leader | |||||||||||||||
Compliance & Regulatory | Risk Management | Information Technology/Cyber | |||||||||||||||
Corporate Responsibility | |||||||||||||||||
& Culture |
JOHN B. DAVIES, AGENT EMERITUS WITH MASSACHUSETTS MUTUAL LIFE INSURANCE | |||||||||||||||||
Mr. Davies is a former Executive Vice President of Massachusetts Mutual Life Insurance and is currently an Agent Emeritus with Massachusetts Mutual, providing high net worth counseling with a focus on tax efficiency and intergenerational transfers of wealth. Mr. Davies currently serves on the Westfield State University Foundation Board. Mr. Davies is a former director of Woronoco Bancorp, Inc. | |||||||||||||||||
Independent | Qualifications, Skills, and Experience: | ||||||||||||||||
Years of Service: 16 | Public Company Board | Regulated Industry | |||||||||||||||
Age: 72 | Financial Institution Executive | Wealth Management/Insurance | |||||||||||||||
Board Committees: | Business Operations/Strategic | Talent Management | |||||||||||||||
Compensation (Chair) | Planning | Corporate Responsibility/ | |||||||||||||||
Corporate | Financial Expertise/Literacy | Community Leader | |||||||||||||||
Governance/Nominating |
MIHIR A. DESAI, PROFESSOR OF | |||||||||||||||||
Dr. Desai is the Mizuho Financial Group Professor of Finance at Harvard Business School, and Professor of Law at Harvard Law School. Dr. Desai is an accomplished author and expert in finance and tax policy. He is a Research Associate in the National Bureau of Economic Research’s Public Economics and Corporate Finance Programs. In addition to his work at Harvard University, his professional experiences include CS First Boston, McKinsey & Co., and advising a number of firms and governmental organizations. | |||||||||||||||||
Independent | Qualifications, Skills, and Experience: | ||||||||||||||||
Years of Service: <1 | Financial Expertise/Literacy | Legal Expertise | |||||||||||||||
Age: 54 | Business Operations and Strategic | Corporate Responsibility/ | |||||||||||||||
Board Committees: | Planning | Community Leader | |||||||||||||||
Risk Management & Capital | Risk Management | ||||||||||||||||
Compliance & Regulatory |
WILLIAM H. HUGHES III, PRESIDENT OF EDUCATION DESIGN LAB | |||||||||||||||||
Independent | Qualifications, Skills, and Experience: | ||||||||||||||||
Years of Service: 3 | Business Operations/Strategic | Talent Management | |||||||||||||||
Age: 58 | Planning | Regulated Industry | |||||||||||||||
Board Committees: | Information Technology | Corporate Responsibility/ | |||||||||||||||
Compensation | Product Management | Community Leader | |||||||||||||||
Risk Management and | Cybersecurity | Small Business Owner Operator | |||||||||||||||
Capital (Chair) | |||||||||||||||||
Corporate Responsibility & | |||||||||||||||||
Culture |
JEFFREY W. KIP, CHIEF EXECUTIVE OFFICER OF ANGI INTERNATIONAL | |||||||||||||||||
Mr. Kip is Chief Executive Officer of Angi International which provides internet tools and resources for home improvement, maintenance, and repair projects. Angi International is a subsidiary of IAC/InterActive Corp (NASDAQ: IAC), which owns and manages popular online brands and services. Prior to his role as Chief Executive Officer, Mr. Kip was the Chief Financial Officer of IAC/InterActive Corp from 2012-2016. Mr. Kip's previous positions include Chief Financial Officer of Panera Bread, LLC from 2006 – 2012. Mr. Kip has been designated by the Board of Directors | |||||||||||||||||
Independent | Qualifications, Skills, and Experience: | ||||||||||||||||
Years of Service: < 1 | Financial Expertise | Talent Management | |||||||||||||||
Age: 53 | Business Operations/Strategic | Information Technology/Cyber | |||||||||||||||
Board Committees: | Planning | ||||||||||||||||
Audit | Marketing/Public Relations | ||||||||||||||||
Compensation |
DR. SYLVIA MAXFIELD, DEAN OF THE PROVIDENCE COLLEGE SCHOOL OF BUSINESS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dr. Maxfield
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Independent | Qualifications, Skills, and Experience: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years of Service: 2 | Business Operations/Strategic | Talent Management | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Age: 63 | Planning | Corporate Responsibility/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Board Committees: | Financial Expertise/Literacy | Community Leader | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Audit (Chair) | Marketing/PR | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Governance/Nominating | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Management and Capital |
NITIN J. MHATRE, PRESIDENT, CHIEF EXECUTIVE OFFICER AND DIRECTOR OF THE COMPANY | |||||||||||||||||
Mr. Mhatre | |||||||||||||||||
Non-Independent | Qualifications, Skills, and Experience: | ||||||||||||||||
Years of Service: 1 | Public Company CEO | Risk Management | |||||||||||||||
Age: 51 | Financial Institution Executive | Regulated Industry | |||||||||||||||
Business Operations/Strategic | Corporate Responsibility/ | ||||||||||||||||
Planning | Community Leader | ||||||||||||||||
Financial Expertise/Literacy | Talent Management |
LAURIE NORTON MOFFATT, DIRECTOR & CEO OF THE NORMAN ROCKWELL MUSEUM | ||||||||||||||||||
Ms. Norton Moffatt is the Director and Chief Executive Officer of the Norman Rockwell Museum, Stockbridge, Massachusetts. Since 1986, Ms. Norton Moffatt has overseen the expansion of the museum’s facilities and the creation of a scholars’ research program. Her efforts resulted in the Museum receiving the National Humanities Medal, America’s highest humanities honor. Ms. Norton Moffatt is also an active community leader. She is a founder of 1Berkshire and Berkshire Creative Economy Council and serves as a trustee of Berkshire Health Systems and a director of Berkshire Health Systems, Inc. and Berkshire Medical Center, Inc. | ||||||||||||||||||
Independent | Qualifications, Skills, and Experience: | |||||||||||||||||
Years of Service: 8 | Business Operations/Strategic | Marketing/PR | ||||||||||||||||
Age: 65 | Planning | Small Business Owner/Operator | ||||||||||||||||
Board Committees: | Financial Expertise/Literacy | Corporate Responsibility/ | ||||||||||||||||
Corporate | Talent Management | Community Leader | ||||||||||||||||
Governance/ Nominating | ||||||||||||||||||
Corporate Responsibility & | ||||||||||||||||||
Culture (Chair) | ||||||||||||||||||
JONATHAN I. SHULMAN, FORMER EVP AND TREASURER AT KEYCORP | ||||||||||||||||||
Mr. Shulman was formerly Executive Vice President & Treasurer at KeyCorp, a publicly traded U.S. bank. Mr. Shulman possesses deep commercial banking experience that includes financial markets, governance, and balance sheet and risk management disciplines. He began his career with KeyCorp in 1989 and served in leadership roles in financial market strategy, asset liability management, wholesale funding and capital planning. Shulman has also held committee membership positions on KeyCorp’s Asset Liability Committee, Market Risk Committee, Model Risk Committee, and Funds Transfer Pricing Committee. Mr. Shulman has been designated by the Board | ||||||||||||||||||
MICHAEL A. ZAITZEFF, MANAGING MEMBER OF VM GP II LLC | |||||||||||||||||
Mr. Zaitzeff | |||||||||||||||||
Independent | Qualifications, Skills, and Experience: | ||||||||||||||||
Years of Service: 1 | Financial Expertise/Literacy | Marketing/PR | |||||||||||||||
Age: 39 | Regulated Industry | Small Business Owner/Operator | |||||||||||||||
Audit | |||||||||||||||||
Risk Management and Capital |
Key Corporate Governance Documents | ||||||||||
Please visit our investor relations website at ir.berkshirebank.com to view the following documents: | ||||||||||
Corporate Governance Policy | ||||||||||
Code of Business Conduct | ||||||||||
Anonymous Reporting Line Policy | ||||||||||
Board Committee Charters | ||||||||||
Certificate of Incorporation | ||||||||||
Company By-Laws | ||||||||||
These documents are available free of charge on our website or by writing to Berkshire Hills Bancorp, c/o Wm. Gordon Prescott, | ||||||||||
Independent Oversight | Shareholder Orientation | Good Governance | ||||||||||||||||
Majority independent directors | Diverse board membership (skills, tenure, age); annual director | |||||||||||||||||
Strong and engaged independent | Robust stock-ownership guidelines | Annual evaluation of CEO and senior management and review of succession plans | ||||||||||||||||
All key committees are fully independent | Annual shareholder engagement program | Implementation of a Corporate Responsibility & Culture Committee at both Board and employee level | ||||||||||||||||
Regular executive sessions of independent directors | Risk oversight by full board and committees | |||||||||||||||||
Board Chair or Chair of Corporate Governance | No poison pill in place; annual election of all directors | Formal ethics code, reporting hotline and ethics training to all employees |
(years) | 2019 | 2020 | 2021 | 2022 | ||||||||||
Average Nominee Age | 67.0 | 63.9 | 60.2 | 59.4 | ||||||||||
Average Nominee Tenure | 6.5 | 5.7 | 4.0 | 3.8 |
| 2018 Committee Structure | | ||||||||||||||||||||||||||||||
| Directors | | | Audit Committee | | | Compensation Committee | | | Corporate Governance/ Nominating Committee | | | Risk Management & Capital Committee | | | Compliance & Regulatory Committee | | |||||||||||||||
| Paul T. Bossidy(1) | | | | | C | | | | | | | | | | | | ● | | | | | | | | | | | | | | |
| David M. Brunelle | | | | | ● | | | | | | | | | | | | | | | | | | | | | | | | ● | | |
| Robert M. Curley | | | | | | | | | | | | | | | | | | | | | | | ● | | | | | | ● | | |
| John B. Davies | | | | | | | | | | | C | | | | | | ● | | | | | | | | | | | | | | |
| J. Williar Dunlaevy | | | | | ● | | | | | | | | | | | | | | | | | | C | | | | | | | | |
| Cornelius D. Mahoney | | | | | | | | | | | ● | | | | | | | | | | | | | | | | | | ● | | |
| Richard M. Marotta | | | | | | | | | | | | ||||||||||||||||||||
| Pamela A. Massad | | | | | | | | | | | | | | | | | | | | | | | ● | | | | | | ● | | |
| Laurie Norton Moffatt | | | | | | | | | | | | | | | | | | | | | | | ● | | | | | | ● | | |
| Richard J. Murphy | | | | | ● | | | | | | | | | | | | | | | | | | | | | | | | C | | |
| William J. Ryan | | | | | | | | | | | ● | | | | | | C | | | | | | | | | | | | | | |
| Patrick J. Sheehan(2) | | | | | ● | | | | | | | | | | | | | | | | | | ● | | | | | | | | |
| D. Jeffrey Templeton | | | | | | | | | | | ● | | | | | | ● | | | | | | | | | | | | | | |
| Number of Meetings in 2018 | | | | | 20 | | | | | | 8 | | | | | | 8 | | | | | | 7 | | | | | | 7 | | |
Director Name, Age & Primary Occupation | Director Since | Director Category | Audit(1) | Comp | Corp Gov & Nom | Corp Responsibility & Culture | Risk & Capital | Compliance & Reg | ||||||||||||||||||
Baye Adofo-Wilson, Age 53 CEO of BAW Development, LLC | 2019 | I | O | O | O | |||||||||||||||||||||
Rheo A. Brouillard(2), Age 68 Former Director, President, and CEO SI Financial Group, Inc. | 2019 | N | O | O | ||||||||||||||||||||||
David M. Brunelle, Age 51 Chairperson of the Board of Directors of Berkshire Hills Bancorp, Inc. Co-Founder and Managing Director of North Pointe Wealth Management | 2017 | I | O | C | O | |||||||||||||||||||||
Nina A. Charnley, Age 66 Former Senior Managing Director TIAA | 2021 | I | O | O | O | |||||||||||||||||||||
John B. Davies, Age 72 Agent Emeritus with Massachusetts Mutual Life Insurance | 2005 | I | C | O | ||||||||||||||||||||||
Mihir A. Desai, Age 54 Professor of Finance and Law | 2022 | I | O | O | ||||||||||||||||||||||
William H. Hughes III, Age 58 President of Education Design Lab | 2019 | I | O | O | C | |||||||||||||||||||||
Jeffrey W. Kip(1), Age 53 Chief Executive Officer Angi International | 2021 | I | O | O | ||||||||||||||||||||||
Dr. Sylvia Maxfield(1), Age 63 Dean Providence College School of Business | 2020 | I | C | O | O | |||||||||||||||||||||
Nitin J. Mhatre, Age 51 President and CEO of Berkshire Hills Bancorp, Inc. | 2021 | N | ||||||||||||||||||||||||
Laurie Norton Moffatt, Age 65 Director & CEO of the Norman Rockwell Museum | 2013 | I | O | C | ||||||||||||||||||||||
Jonathan I. Shulman(1), Age 59 Former EVP and Treasurer KeyCorp | 2020 | I | O | O | C | |||||||||||||||||||||
Michael A. Zaitzeff(3), Age 39 Co-founder and managing member of VM GP II LLC | 2021 | I | O | O | ||||||||||||||||||||||
Number of Meetings in 2021 | 16 (Full Board) | 15 | 6 | 10 | 5 | 5 | 5 | |||||||||||||||||||
N = Non-Independent Director | I = Independent Director | C = Chair | O = Committee Member | |||||||||||||||||||||||
BOARD COMMITTEES | ROLES AND RESPONSIBILITIES | ||||||||||
AUDIT COMMITTEE | Assists the Board of Directors in its oversight of the Company’s accounting and reporting practices | ||||||||||
All Members Independent | Reviews the quality and integrity of the Company’s financial reports | ||||||||||
Chair: Dr. Maxfield | Ensures the Company’s compliance with legal and regulatory requirements related to accounting and financial reporting | ||||||||||
The Board of Directors has determined that Dr. Maxfield, Mr. Kip, and Mr. Shulman qualify as Audit Committee Financial Experts under the rules of the Securities and Exchange Commission. | Oversees the Company’s internal audit function | ||||||||||
Annually reviews and approves the internal and external audit plans | |||||||||||
Engages with the Company’s independent registered public accounting firm (Crowe) and monitors its performance, reporting, and independence | |||||||||||
COMPENSATION COMMITTEE | Approves the compensation objectives for the Company and its subsidiaries and establishes the compensation for the Chief Executive Officer and other Named Executive Officers of the Company | ||||||||||
All Members Independent | Reviews the Company’s incentive compensation and other equity plans and recommends changes to the plans as needed | ||||||||||
Chair: Mr. Davies | |||||||||||
Reviews all compensation components for the Company’s Chief Executive Officer and other Named Executive Officers, including base salary, short-term incentive, long-term incentives/equity, benefits, and other perquisites | |||||||||||
See the “Compensation Discussion and Analysis” section for more information regarding the role of the Compensation Committee management and compensation consultants in determining and/or recommending the amount or form of named executive compensation. | |||||||||||
Reviews competitive market factors and examines the total compensation mix, pay-for-performance relationship, and how all elements, in the aggregate, comprise the named executive officer’s total compensation package | |||||||||||
Administers CEO employment agreement, change in control agreements, and equity incentive plans | |||||||||||
COMPLIANCE & REGULATORY COMMITTEE | Oversees management’s implementation of compliance programs, policies, and procedures designed to identify and respond to the various compliance and regulatory risks of the Company and its subsidiaries | ||||||||||
Most of Members Independent | Monitors the preparations for regulatory examinations of the Company and the Bank | ||||||||||
Chair: Mr. Shulman | |||||||||||
Oversees the Company’s information security program and monitors associated risks | |||||||||||
Monitors significant legal or regulatory compliance exposure and oversees responses to material reports or inquiries from government or regulatory agencies | |||||||||||
Ensures that the Company, Berkshire Bank and their affiliates have in place sound compliance management systems (“CMS”) as required by all applicable regulators and the Consumer Financial Protection Bureau (“CFPB”) | |||||||||||
BOARD COMMITTEES | ROLES AND RESPONSIBILITIES | ||||||||||
CORPORATE GOVERNANCE/ NOMINATING COMMITTEE | Identifies qualified individuals to serve as Board members | ||||||||||
Considers and recommends nominees for director to stand for election at the Company’s annual meeting of shareholders | |||||||||||
All Members Independent | Determines the composition of the Board of Directors and its committees | ||||||||||
Chair: Mr. Brunelle | |||||||||||
Annually reviews policy, procedures and criteria for identifying candidates for election or appointment to the Board of Directors | |||||||||||
Monitors a process to assess Board effectiveness, including annual Board and committee self-evaluations | |||||||||||
Develops and implements the Company’s corporate governance guidelines, including annual reviews of the Company’s Corporate Governance Policy and Code of Business Conduct | |||||||||||
Regularly receives reports from executive officers heading the Company’s investor relations and compliance and regulatory programs and periodically receives reports from other committee chairpersons regarding the work being done by their committees | |||||||||||
CORPORATE RESPONSIBILITY & | Oversee management’s implementation of Corporate Social | ||||||||||
All Members Independent | |||||||||||
Chair: Ms. Norton Moffatt | Review, approve, and recommend programs and policies to the Board that are designed to identify, measure, monitor, control, and enhance Corporate Social | ||||||||||
Monitor the performance of | |||||||||||
RISK MANAGEMENT & CAPITAL COMMITTEE | Oversees management’s program to limit or control the material business | ||||||||||
Approves policies and procedures designed to lead to an understanding and to identify, control, monitor and measure the material business | |||||||||||
Most of Members Independent | |||||||||||
Chair: Mr. Hughes | Plans for future capital needs | ||||||||||
Reviews material business risks including, but not limited to, credit risk, interest rate risk, liquidity risk, regulatory risk, legal risk, operational risk, strategic risk, cyber-security risk, and reputation risk | |||||||||||
Monitors the Company’s enterprise governance, risk management and compliance (“EGRC”) program, including development and implementation of risk management processes in the area of vendor management, data loss prevention, business continuity, policy management and testing and assessment of operational controls | |||||||||||
Ensures compliance with regulations pertaining to capital structure and levels | |||||||||||
Audit Committee | Accounting and Financial Reporting | |||||||||||||
Compliance with Legal and Regulatory Requirements Related to Accounting and Financial Reporting | ||||||||||||||
Compensation Committee | Compensation Programs | |||||||||||||
Corporate Governance/ | Governance Policies and Procedures | |||||||||||||
Board Organization and Membership | ||||||||||||||
Committee Membership and Periodic Rotation of Chairpersons | ||||||||||||||
Corporate Responsibility & Culture Committee | Customer, Community, and Employee Engagement | |||||||||||||
Reputational Risk and Business Development | ||||||||||||||
Environmental Sustainability, Including Climate Risk | ||||||||||||||
Risk Management & Capital Committee | Credit Risk | |||||||||||||
Interest Rate Risk | ||||||||||||||
Liquidity and Capital Risk | ||||||||||||||
Operational and Strategic Risk | ||||||||||||||
Regulatory & Compliance | Legal, Regulatory, and Compliance Risk | |||||||||||||
Information Security |
Name | Fees Earned or Paid in Cash ($)(1) | Stock Awards ($)(2) | Option Awards ($) | All Other Compensation ($)(3) | Total ($) | ||||||||||||
Baye Adofo-Wilson | 68,000 | 50,000 | — | 414 | 118,414 | ||||||||||||
Deborah P. Bailey(4) | 43,050 | 46,350 | — | — | 89,400 | ||||||||||||
Rheo A. Brouillard(5) | 56,000 | 50,000 | — | 9,227 | 115,227 | ||||||||||||
David M. Brunelle(6) | 90,550 | 50,000 | — | 2,271 | 142,821 | ||||||||||||
Nina A. Charnley | 1,753 | 34,050 | — | — | 35,803 | ||||||||||||
Robert M. Curley(7) | 56,000 | 50,000 | — | 126,315 | 232,315 | ||||||||||||
John B. Davies | 62,000 | 50,000 | — | 2,109 | 114,109 | ||||||||||||
J. Williar Dunlaevy(8) | 112,000 | 50,000 | — | 2,153 | 164,153 | ||||||||||||
William H. Hughes III | 70,000 | 50,000 | — | 414 | 120,414 | ||||||||||||
Jeffrey W. Kip | 10,849 | 37,850 | — | — | 48,699 | ||||||||||||
Cornelius D. Mahoney(9) | 31,000 | 50,000 | — | 2,109 | 83,109 | ||||||||||||
Sylvia Maxfield | 60,000 | 50,000 | — | 2,109 | 112,109 | ||||||||||||
Laurie Norton Moffatt | 70,000 | 50,000 | — | 2,109 | 122,109 | ||||||||||||
Jonathan I. Shulman | 60,000 | 50,000 | — | 2,109 | 112,109 | ||||||||||||
D. Jeffrey Templeton(9) | 28,000 | 50,000 | — | 2,109 | 80,109 | ||||||||||||
Michael A. Zaitzeff | 36,900 | 46,350 | — | — | 83,250 |
| Name | | | Fees Earned or Paid in Cash ($) | | | Stock Awards ($)(1) | | | Option Awards ($) | | | All Other Compensation ($)(2) | | | Total ($) | | |||||||||||||||
| Paul T. Bossidy(3) | | | | $ | 66,000 | | | | | $ | 35,000 | | | | | | — | | | | | $ | 1,789 | | | | | $ | 102,789 | | |
| David M. Brunelle(4) | | | | $ | 56,000 | | | | | $ | 35,000 | | | | | | — | | | | | $ | 129 | | | | | $ | 91,129 | | |
| Robert M. Curley(5) | | | | $ | 56,000 | | | | | $ | 35,000 | | | | | | — | | | | | $ | 186,046 | | | | | $ | 277,046 | | |
| John B. Davies | | | | $ | 62,000 | | | | | $ | 35,000 | | | | | | — | | | | | $ | 2,100 | | | | | $ | 99,100 | | |
| J. Williar Dunlaevy(6) | | | | $ | 62,000 | | | | | $ | 35,000 | | | | | | — | | | | | $ | 2,225 | | | | | $ | 99,225 | | |
| Cornelius D. Mahoney | | | | $ | 56,000 | | | | | $ | 35,000 | | | | | | — | | | | | $ | 2,100 | | | | | $ | 93,100 | | |
| Pamela A. Massad(7) | | | | $ | 56,000 | | | | | $ | 35,000 | | | | | | — | | | | | $ | 369 | | | | | $ | 91,369 | | |
| Laurie Norton Moffatt | | | | $ | 56,000 | | | | | $ | 35,000 | | | | | | — | | | | | $ | 2,100 | | | | | $ | 93,100 | | |
| Richard J. Murphy | | | | $ | 62,000 | | | | | $ | 35,000 | | | | | | — | | | | | $ | 2,100 | | | | | $ | 99,100 | | |
| William J. Ryan | | | | $ | 112,000 | | | | | $ | 35,000 | | | | | | — | | | | | $ | 2,100 | | | | | $ | 149,100 | | |
| Patrick J. Sheehan(3) | | | | $ | 56,000 | | | | | $ | 35,000 | | | | | | — | | | | | $ | 801 | | | | | $ | 91,801 | | |
| D. Jeffrey Templeton | | | | $ | 56,000 | | | | | $ | 35,000 | | | | | | — | | | | | $ | 2,100 | | | | | $ | 93,100 | | |
Name | Unvested Restricted Stock | Stock Options Outstanding | |||||||||||||||||
— | |||||||||||||||||||
— | |||||||||||||||||||
David M. Brunelle | — | ||||||||||||||||||
— | |||||||||||||||||||
Robert M. Curley | — | ||||||||||||||||||
John B. Davies | — | ||||||||||||||||||
— | |||||||||||||||||||
— | |||||||||||||||||||
— | |||||||||||||||||||
Laurie Norton Moffatt | — | ||||||||||||||||||
— | |||||||||||||||||||
— | |||||||||||||||||||
| Annual Cash Retainer for Board Service | | | | $ | 40,000 | | |
| Annual Cash Retainer for Chairman of the Board of Directors | | | | $ | 90,000 | | |
| Annual Equity Retainer for Board Service | | | | $ | 45,000 | | |
| Annual Cash Retainer for Audit Committee Chair | | | | $ | 10,000 | | |
| Annual Cash Retainer for all other Committee Chairs | | | | $ | 6,000 | | |
| Annual Cash Retainer for Attendance at all Committee Meetings | | | | $ | 8,000 | | |
Annual Cash Retainer for Board Service | $ | 40,000 | ||||||
Annual Cash Retainer for Board Chair | $ | 95,000 | ||||||
Annual Cash Retainer for Board Vice Chair(1) | $ | 65,000 | ||||||
Annual Equity Retainer for Board Service(2) | $ | 65,000 | ||||||
Annual Cash Retainer for Audit Committee Chair | $ | 13,000 | ||||||
Annual Cash Retainer for all other Committee Chairs | $ | 6,000 | ||||||
Annual Cash Retainer for Attendance at Audit Committee Meetings | $ | 12,000 | ||||||
Annual Cash Retainer for Attendance at all other Committee Meetings | $ | 8,000 |
Proposal 2: Advisory Vote on Executive Compensation | |||||||||||||||||
Purpose. Performance. Progress. | |||||||||||||||||
Compensation Discussion and Analysis | |||||||||||||||||
Purpose. Performance. Progress. | |||||||||||||||||
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George F. Bacigalupo | Executive Vice President, Head of Commercial Banking | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subhadeep Basu | Senior Executive Vice President, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sean A. Gray | Senior Executive Vice President, Chief Operating Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gregory D. Lindenmuth | Executive Vice President, Chief Risk Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deborah A. Stephenson | Executive Vice President, Chief Compliance and Regulatory Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
James M. Moses | Former Senior Executive Vice President and Chief Financial Officer |
Named Executive Officers – A Year of Significant Leadership Transitions The Board approved the appointment of Nitin J. Mhatre to serve as the new President and Chief Executive Officer of the Company and the Bank effective January 29, 2021. The terms of Mr. Mhatre’s employment with the Company were disclosed in his Employment Agreement, which is attached as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on January 26, 2021. Mr. Mhatre is a senior banking executive with 25 years of community and global banking experience. He served most recently, as Executive Vice President, Community Banking at Webster Bank. In this role, he was responsible for profitable growth of the Community Banking segment at the $31 billion bank and led a diverse team of more than 1,500 employees. Previously, he spent more than 13 years at Citi Group in various leadership roles across consumer-related businesses globally. Following Mr. Mhatre’s employment, Acting CEO Sean Gray resumed his full time focus on his ongoing responsibilities as the President and Chief Operating Officer of the Bank. Following the resignation of James Moses as Senior Executive Vice President/Chief Financial Officer of the Company and the Bank in March 2021, the Company recruited Subhadeep Basu to assume these responsibilities. Mr. Basu is a senior executive with more than 20 years of global banking, financial and risk management expertise leading transformation and growth. He served most recently as Senior Vice President of Global Institutional Services at State Street, and prior to that he was Senior Vice President of Finance, leading global regulatory reporting, capital strategy and optimization and finance and risk infrastructure. Before joining State Street, he spent more than 15 years at Citigroup, Bank of America, and Ally Financial. During 2021, Tami Gunsch resigned from her position as Senior Executive Vice President/Head of Consumer Banking. Her position was divided into two positions. Lucy Bellomia was recruited as Executive Vice President/Head of Retail Banking and Ellen Steinfeld was recruited as Executive Vice President/Head of Consumer Lending and Payments. Deborah Stephenson, existing Senior Executive Vice President/Chief Compliance and Regulatory Officer, was designated as a Named Executive Officer pursuant to SEC guidelines and appears as an NEO for the first time in the compensation tables. The above transitions were handled seamlessly, reflecting the excellent succession plan and transitions protocols in place.Transitions also benefited from strong recruitment and retention of other management and integration of leadership around common goals of charting a new strategic direction and exceeding expectations in delivering on current year objectives. Compensation payments shown in the compensation tables include pro rating of compensation amounts based on time in service in the designated roles. 36 BERKSHIRE HILLS BANCORP, INC. | 2022 Proxy Statement COMPENSATION DISCUSSION AND ANALYSIS New Strategic Plan In May 2021, the Company announced its Berkshire’s Exciting Strategic Transformation (BEST) plan. The comprehensive BEST plan is targeted to improve the customer experience, deliver profitable growth, enhance stakeholder value and strengthen Berkshire’s community impact with improved focus on long-term efficiency, its customers, and its communities. The plan has three major pillars; optimize, digitize, and enhance. The BEST plan has five major goals to enhance shareholder value over the three-year plan period: •Return On Tangible Common Equity (ROTCE):10 -12% •Return on Assets (ROA):1.00 - 1.05% •Annual Pre-tax Pre-Provision Net Revenue (PPNR):$180 - 200 million •Net Promoter Score (NPS) in top quartile among New England banks •ESG ranking in the top quartile nationally based on composite metrics tracked by the Company 2021 Financial Results and Operations The Company rebounded strongly from the pandemic impacted performance in 2020. Earnings per share recovered to $2.39 from a loss of $10.60 per share in 2020 and were up 21% over $1.97 reported in 2019. Return on equity nearly doubled to 10.18% in 2021, compared to 5.75% reported in 2019, and advanced more rapidly than peers. Earnings improvement reflected stronger credit performance and also included gains achieved in disposing of lower return business lines. The Company’s 2021 pandemic support of its markets included processing of loan forgiveness for the Paycheck Protection Program (“PPP”) phase I loans, and facilitating PPP phase II loans in 2021 in partnership with a third party. Collectively, these loans provided more than $1 billion in support to Berkshire’s markets. The Company also continued to work with borrowers needing COVID related loan modifications, which originally totaled more than $1.5 billion, gradually helping nearly all of the borrowers to return to regular payment schedules by year-end 2021.The related improvement in the Company’s credit profile contributed strongly to the reduction in the loan loss provision compared to 2020. The Company’s earnings also benefited from processing of PPP loan forgiveness and loan applications, together with a decrease in nonperforming loans. | ||||
| | | | 2014 | | | 2015 | | | 2016 | | | 2017 | | | 2018 | | |||||||||||||||
| Total Assets | | | | $ | 6.5B | | | | | $ | 7.8B | | | | | $ | 9.2B | | | | | $ | 11.6B | | | | | $ | 12.2B | | |
| Core Earnings | | | | $ | 45MM | | | | | $ | 60MM | | | | | $ | 68MM | | | | | $ | 91MM | | | | | $ | 125MM | | |
| Core EPS | | | | $ | 1.80 | | | | | $ | 2.09 | | | | | $ | 2.20 | | | | | $ | 2.29 | | | | | $ | 2.71 | | |
| Core ROA | | | | | 0.73% | | | | | | 0.82% | | | | | | 0.86% | | | | | | 0.93% | | | | | | 1.07% | | |
| Dividend Paid | | | | $ | 0.72 | | | | | $ | 0.76 | | | | | $ | 0.80 | | | | | $ | 0.84 | | | | | $ | 0.88 | | |
Pay for Performance: A significant portion of each NEO’s annual direct compensation target is variable and tied to company and individual performance results. The Company uses a mix of performance metrics and our short- and long-term plans provide a balanced timeframe for incentive opportunities. Our long-term incentive program grants the majority (i.e., 60%) as performance shares that vest based on pre-defined performance goals. | ||||
Link Performance Measures with Strategic Objectives: Performance measures and individual goals for incentive compensation are linked to strategic, operating and financial goals approved by our Board and designed to create long-term shareholder value. | ||||
Annual Say-on-Pay Vote:We conduct an annual Say-on-Pay advisory | ||||
Shareholder Engagement: As part of the Company’s shareholder outreach program, members of the | ||||
Independent Compensation Consultant: The | ||||
Stock Ownership Guidelines: We have significant stock ownership guidelines requiring our executives and directors to hold substantial equity | ||||
Clawback Policy: The clawback policy allows the Board to recover incentive compensation paid to an executive if the financial results that the | ||||
Incentivize Sound Risk Management: Our compensation program includes features intended to discourage employees from taking unnecessary and excessive risks, including balanced performance metrics, emphasis on long-term shareholder value creation, and clawback provisions. The Chief Risk Officer conducts an annual risk assessment which is used by the Committee in assessing the soundness of the compensation program. |
Gross-ups for Excise Taxes:We have not | ||||
Hedging and Pledging: All of our | ||||
Employment Contracts: Our executives, with the exception of the CEO, are all employed “at will” and the relationship may be terminated by the Company or the employee at any time without any severance payments. The CEO is employed under a three year contract. Documented change-in-control arrangements align management and shareholder interests. | ||||
Dividends on Unvested Equity Awards: We do not pay dividends on any restricted stock |
Attract and retain highly talented executives committed to our success | Provide competitive total compensation that enables us to attract and retain highly talented executives with experience and leadership abilities to grow and sustain our business | |||||||||||
l | Target total compensation opportunities to reflect the median of market; defined as banks similar in size and business model to Berkshire | |||||||||||
Pay for performance alignment | ||||||||||||
l | A significant portion of total compensation is “at risk” and based on short and long-term performance | |||||||||||
l | Financial performance results fund our annual incentive plan and determine a portion of long-term equity vesting | |||||||||||
l | Long-term equity | |||||||||||
Align executive interests with those of our shareholders | ||||||||||||
l | Rigorous stock ownership requirements to ensure our executives hold stock throughout their tenure as executives | |||||||||||
l | A significant portion of executive compensation, consisting of our long-term incentive, is in the form of | |||||||||||
Manage risk through oversight and compensation design features and practices | ||||||||||||
l | Multiple goals in our incentive plans to reinforce | |||||||||||
l | Committee can apply discretion to negatively adjust | |||||||||||
l | Balance of short-term and long-term incentives, cash and equity, annual and multi-year performance periods, with 3 year | |||||||||||
l | Incentive plan caps for maximum payments | |||||||||||
l | Clawback policy that allows for recoupment of compensation for financial restatement or misconduct | |||||||||||
Compensation Drivers | Incentive plans | |||||||||||
l | Pay levels that are fair, competitive and internally equitable | |||||||||||
l | A focus on the attainment of our vision, business strategy, operating imperatives, and results | |||||||||||
l | Recognition of | |||||||||||
l | Consideration of |
Setting Performance Goals |
Determining Compensation |
Contribution from the Independent Compensation Consultant | ||||
Ameris Bancorp | Home BancShares, Inc. | ||||
Atlantic Union Bankshares Corporation | Independent Bank Corp. | ||||
BancorpSouth Bank | NBT Bancorp, Inc. | ||||
CenterState Bank Corporation | Old National Bancorp | ||||
Community Bank System, Inc. | Renasant Corporation | ||||
Customers Bancorp, Inc. | Simmons First National Corporation | ||||
First Financial Bancorp | South State Corporation | ||||
First Merchants Corporation | TowneBank | ||||
First Midwest Bancorp, Inc. | Trustmark Corporation | ||||
Fulton Financial | United Bankshares, Inc. | ||||
Great Western Bancorp, Inc. | United Community Banks, Inc. | ||||
Heartland Financial USA, Inc. | WesBanco, Inc. |
| Peer | | | Ticker | | | State | | | Asset Size ($B)(1) | | | Market Cap ($B)(1) | | | Revenue ($MM)(1) | |
| Chemical Financial Corp. | | | CHFC | | | MI | | | 21.5 | | | 2.6 | | | 780 | |
| Fulton Financial Corp. | | | FULT | | | PA | | | 20.7 | | | 2.6 | | | 826 | |
| MB Financial Inc. | | | MBFI | | | IL | | | 20.2 | | | 3.3 | | | 980 | |
| Old National Bancorp | | | ONB | | | IN | | | 19.7 | | | 2.7 | | | 733 | |
| United Bankshares Inc. | | | UBSI | | | WV | | | 19.3 | | | 3.2 | | | 717 | |
| BancorpSouth Bank | | | BXS | | | MS | | | 18 | | | 2.6 | | | 857 | |
| Simmons First National Corp. | | | SFNC | | | AR | | | 16.5 | | | 2.2 | | | 696 | |
| First Midwest Bancorp Inc. | | | FMBI | | | IL | | | 15.5 | | | 2.1 | | | 661 | |
| Home BancShares Inc. | | | HOMB | | | AR | | | 15.3 | | | 2.8 | | | 661 | |
| South State Corporation | | | SSB | | | SC | | | 14.7 | | | 2.1 | | | 659 | |
| First Financial Bancorp | | | FFBC | | | OH | | | 14.0 | | | 2.3 | | | 553 | |
| Union Bankshares Corp. | | | UBSH | | | VA | | | 13.8 | | | 1.9 | | | 531 | |
| Trustmark Corp. | | | TRMK | | | MS | | | 13.3 | | | 1.9 | | | 604 | |
| Renasant Corporation | | | RNST | | | MS | | | 12.9 | | | 1.8 | | | 540 | |
| United Community Banks Inc. | | | UCBI | | | GA | | | 12.6 | | | 1.7 | | | 531 | |
| WesBanco Inc. | | | WSBC | | | WV | | | 12.5 | | | 2.0 | | | 447 | |
| Great Western Bancorp | | | GWB | | | SD | | | 12.1 | | | 2.5 | | | 481 | |
| Heartland Financial USA Inc. | | | HTLF | | | IA | | | 11.4 | | | 1.5 | | | 523 | |
| TowneBank | | | TOWN | | | VA | | | 11.2 | | | 1.7 | | | 533 | |
| Community Bank System Inc. | | | CBU | | | NY | | | 10.6 | | | 3.0 | | | 569 | |
| Customers Bancorp Inc. | | | CUBI | | | PA | | | 9.8 | | | 0.6 | | | 317 | |
| NBT Bancorp Inc. | | | NBTB | | | NY | | | 9.6 | | | 1.5 | | | 430 | |
| Independent Bank Corp. | | | INDB | | | MA | | | 8.9 | | | 2.0 | | | 387 | |
| Peer Group Median | | | | | | | | | 13.8 | | | 2.1 | | | 569 | |
| Berkshire Hills Bancorp, Inc. | | | BHLB | | | MA | | | 12.2 | | | 1.2 | | | 469 | |
Brookline Bancorp | Lakeland Bancorp | ||||
Community Bank System | NBT Bancorp | ||||
Customers Bancorp | Northwest Bancshares | ||||
Eagle Bancorp | OceanFirst Financial Corp. | ||||
First Commonwealth Financial | Provident Financial Services | ||||
Flushing Financial | S&T Bancorp | ||||
Fulton Financial | Sandy Spring Bancorp | ||||
Independent Bank Corp. | Tompkins Financial | ||||
Investors Bancorp | WSFS Financial |
The Company’s base salary program is designed to provide competitive base pay reflective of an executive’s role, responsibilities, contributions, experience, leadership and performance. Salaries are generally targeted to be within the range of market median and are expected to |
2020 | 2021 | |||||||
Role | Salary | Salary | ||||||
President and Chief Executive Officer | $725,000 | $725,000 | ||||||
Chief Operating Officer | $550,000 | $550,000 | ||||||
Chief Financial Officer | $430,000 | $430,000 | ||||||
Head of Commercial Banking | $375,000 | $375,000 | ||||||
Chief Risk Officer | $300,000 | $300,000 | ||||||
Chief Compliance and Regulatory Officer | $275,000 | $275,000 |
| | | | 2018 Salary | | | 2017 Salary | | | Salary adjustment in 2018 | | |||||||||
| Marotta(1) | | | | $ | 530,000 | | | | | $ | 500,000 | | | | | | 6% | | |
| Gray(1) | | | | $ | 453,000 | | | | | $ | 425,000 | | | | | | 7% | | |
| Moses | | | | $ | 375,000 | | | | | $ | 350,000 | | | | | | 7% | | |
| Bacigalupo | | | | $ | 350,000 | | | | | $ | 350,000 | | | | | | 0% | | |
| Johnston | | | | $ | 300,000 | | | | | | N/A | | | | | | N/A | | |
| Daly (annualized) | | | | $ | 750,000 | | | | | $ | 700,000 | | | | | | 7% | | |
The Company’s short-term incentive compensation program is designed to |
2020 Original | 2021 | |||||||||||||
Role | Target % of Salary | Target % of Salary | ||||||||||||
President and Chief Executive Officer | 75% | 75% | ||||||||||||
Chief Operating Officer | 60% | 60% | ||||||||||||
Chief Financial Officer | 45% | 45% | ||||||||||||
Head of Commercial Banking | 45% | 45% | ||||||||||||
Chief Risk Officer | 30% | 30% | ||||||||||||
Chief Compliance and Regulatory Officer | 30% | 30% |
Plan Goals | |||||||||||||||||
Performance Measure | Definition | Weight | Threshold | Target | Stretch | ||||||||||||
EPS ($) | Core Earnings Per Share | 20% | $0.84 | $1.05 | $1.26 | ||||||||||||
ROE (%) | Core Return on Equity | 20% | 3.63% | 4.54% | 5.45% | ||||||||||||
ROA (%) | Core Return on Assets | 20% | 0.37% | 0.46% | 0.55% | ||||||||||||
Efficiency Ratio (%) | Core Efficiency Ratio | 20% | 80.10% | 76.10% | 72.10% | ||||||||||||
Asset Quality - NCO (%) | Net Charge-offs/Avg Loans % | 20% | 0.77% | 0.64% | 0.51% |
| Performance Measure | | | Weighting | | | Threshold | | | Target | | | Stretch | | | Result | | | Funding | |
| Core Earnings (MM) | | | 25% | | | $119.2 | | | $125.5 | | | $131.8 | | | $125.4 | | | 99% | |
| Expense Management | | | 25% | | | 63.0% | | | 60.0% | | | 57.0% | | | 58.3% | | | 128% | |
| Asset Quality | | | 25% | | | 30.0% | | | 26.0% | | | 22.0% | | | 17.2% | | | 150% | |
| Core Return on Assets | | | 25% | | | 1.00% | | | 1.05% | | | 1.10% | | | 1.07% | | | 120% | |
| Weighted Funding | | | | | | | | | | | | | | | | | | 124% | |
Plan Goals | |||||||||||||||||
Performance Measure | Definition | Weight | Result | Payout Funding | Pool Allocation | ||||||||||||
EPS ($) | Core Earnings Per Share | 20% | $1.69 | 1.50% | 30.00% | ||||||||||||
ROE (%) | Core Return on Equity | 20% | 7.20% | 1.50% | 30.00% | ||||||||||||
ROA (%) | Core Return on Assets | 20% | 0.70% | 1.50% | 30.00% | ||||||||||||
Efficiency Ratio (%) | Core Efficiency Ratio | 20% | 69.96% | 1.50% | 30.00% | ||||||||||||
Asset Quality - NCO (%) | Net Charge-offs/Avg Loans % | 20% | 0.29% | 1.50% | 30.00% | ||||||||||||
Total Payout | 150.00% |
Mr. Mhatre, President and Chief Executive Officer |
Mr. Bacigalupo, Head of Commercial Banking |
Mr. Basu, Chief Financial Officer |
Mr. Gray, Chief Operating Officer |
| | | | 2018 Salary | | | Target Percent | | | Target | | | Funding at 124% | | | 2018 Incentive | | | 2017 Incentive | | | % Change | | |||||||||||||||||||||
| Marotta(1) | | | | $ | 530,000 | | | | | | 55% | | | | | $ | 291,000 | | | | | $ | 361,000 | | | | | $ | 381,000 | | | | | $ | 400,000 | | | | | | (5)% | | |
| Gray(1) | | | | $ | 453,000 | | | | | | 50% | | | | | $ | 226,000 | | | | | $ | 281,000 | | | | | $ | 287,000 | | | | | $ | 300,000 | | | | | | (4)% | | |
| Moses | | | | $ | 375,000 | | | | | | 45% | | | | | $ | 169,000 | | | | | $ | 210,000 | | | | | $ | 210,000 | | | | | $ | 242,000 | | | | | | (15)% | | |
| Bacigalupo | | | | $ | 350,000 | | | | | | 45% | | | | | $ | 156,000 | | | | | $ | 193,000 | | | | | $ | 196,000 | | | | | $ | 120,000 | | | | | | 63% | | |
| Johnston | | | | $ | 300,000 | | | | | | 45% | | | | | $ | 135,000 | | | | | $ | 167,000 | | | | | $ | 168,000 | | | | | | N/A | | | | | | N/A | | |
Ms. Stephenson, Chief Compliance & Regulatory Officer |
The Company’s long-term incentive/equity compensation program is designed to align senior executives with long-term interests of the Company and shareholders through stock-based compensation. The program also seeks to provide reward for |
Title | 2020 Target Long-Term Incentive Opportunity | 2021 Target Long-Term Incentive Opportunity | ||||||
President and Chief Executive Officer | 105% | 95% | ||||||
Chief Operating Officer | 80% | 85% | ||||||
Chief Financial Officer | 60% | 60% | ||||||
Head of Commercial Banking | 60% | 60% | ||||||
Chief Risk Officer | 40% | 40% | ||||||
Chief Compliance and Regulatory Officer | 40% | 40% |
| Long Term Incentive Plan 2018 — 2020 Performance Goals | | |||||||||
| | | | Threshold | | | Target | | | Stretch | |
| Core EPS 50% | | | 95% of EPS target | | | 100% of EPS target | | | 105% of EPS target | |
| Relative TSR 50% | | | 30th percentile | | | 50th percentile | | | 75th percentile | |
| Payout | | | 50% | | | 100% | | | 150% | |
| | | | Target % of Salary | | | Target Value | | | 2018 Grant | | | 2017 Grant | | | % Increase | | |||||||||||||||
| Marotta(1) | | | | | 75% | | | | | $ | 393,750 | | | | | $ | 375,000 | | | | | $ | 325,000 | | | | | | 15% | | |
| Gray(1) | | | | | 70% | | | | | $ | 315,000 | | | | | $ | 300,000 | | | | | $ | 250,000 | | | | | | 20% | | |
| Moses | | | | | 60% | | | | | $ | 225,000 | | | | | $ | 200,000 | | | | | $ | 175,000 | | | | | | 14% | | |
| Bacigalupo | | | | | 60% | | | | | $ | 210,000 | | | | | $ | 80,000 | | | | | $ | 120,000 | | | | | | (33)% | | |
| Johnston | | | | | 60% | | | | | $ | 180,000 | | | | | $ | 200,000 | | | | | | N/A | | | | | | N/A | | |
| Daly | | | | | 100% | | | | | $ | 750,000 | | | | | $ | 603,000 | | | | | $ | 588,000 | | | | | | 3% | | |
| | | | Long Term Incentive Plan 2016 — 2018 Performance and Payout | | | | | ||||||
| | | | Threshold | | | Target | | | Stretch | | | 2016 — 2018 Result | |
| Core EPS 50%(1) | | | $5.65 | | | $7.06 | | | $8.47 | | | $7.20 | |
| Average Core ROE(1) 50% | | | 6.50% | | | 8.12% | | | 9.74% | | | 7.64% | |
| Payout | | | 50% | | | 100% | | | 150% | | | 90.86% | |
| Participants | | | Grant Date | | | Share Grant(1) | | | Cliff Vesting — 3-year results | | |||||||||
| Marotta | | | | | 1/30/2016 | | | | | | 5,850 | | | | | | 5,315 | | |
| Gray | | | | | 1/30/2016 | | | | | | 4,500 | | | | | | 4,089 | | |
| Bacigalupo | | | | | 1/30/2016 | | | | | | 3,150 | | | | | | 2,862 | | |
| Johnston | | | | | 1/30/2016 | | | | | | 3,240 | | | | | | 2,944 | | |
Independent Directors | |||||||||
President and Chief Executive Officer | Four and a half times (4.5x) | ||||||||
Three and a half times (3.5x) | |||||||||
Senior | Two and a half times (2.5x) | ||||||||
One and a half times (1.5x) |
Executive Compensation | |||||||||||||||||
Purpose. Performance. Progress. | |||||||||||||||||
| Name and Principal Position(1) | | | Year | | | Salary ($) | | | Bonus ($) | | | Stock Awards ($)(2) | | | Option Awards ($) | | | Non-Equity Incentive Plan Compensation ($) | | | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($)(3) | | | All Other Compensation ($)(4) | | | Total ($) | | ||||||||||||||||||||||||
| Richard M. Marotta, Chief Executive Officer | | | | | 2018 | | | | | | 542,324 | | | | — | | | | | 375,032 | | | | — | | | | | 381,108 | | | | — | | | | | 186,013 | | | | | | 1,484,477 | | | ||||||
| | | 2017 | | | | | | 500,000 | | | | — | | | | | 325,034 | | | | — | | | | | 400,000 | | | | — | | | | | 206,370 | | | | | | 1,431,404 | | | |||||||||
| | | 2016 | | | | | | 500,000 | | | | — | | | | | 325,026 | | | | — | | | | | 275,000 | | | | — | | | | | 169,161 | | | | | | 1,269,187 | | | |||||||||
| Sean A. Gray, President and Chief Operating Officer | | | | | 2018 | | | | | | 461,225 | | | | — | | | | | 300,033 | | | | — | | | | | 287,448 | | | | — | | | | | 104,053 | | | | | | 1,152,759 | | | ||||||
| | | 2017 | | | | | | 425,000 | | | | — | | | | | 250,023 | | | | — | | | | | 300,000 | | | | — | | | | | 79,375 | | | | | | 1,054,398 | | | |||||||||
| | | 2016 | | | | | | 425,000 | | | | — | | | | | 250,020 | | | | — | | | | | 225,000 | | | | — | | | | | 67,305 | | | | | | 967,325 | | | |||||||||
| James M. Moses, Senior Executive Vice President and Chief Financial Officer | | | | | 2018 | | | | | | 375,000 | | | | — | | | | | 200,034 | | | | — | | | | | 209,571 | | | | — | | | | | 35,499 | | | | | | 820,104 | | | ||||||
| | | 2017 | | | | | | 350,000 | | | | — | | | | | 175,013 | | | | — | | | | | 241,500 | | | | — | | | | | 22,059 | | | | | | 788,572 | | | |||||||||
| | | 2016 | | | | | | 148,077 | | | | | | 100,000 | | | | — | | | — | | | | | 65,500 | | | | — | | | | | 7,167 | | | | | | 320,744 | | | |||||||||
| George F. Bacigalupo, Senior Executive Vice President, Commercial Banking | | | | | 2018 | | | | | | 350,000 | | | | — | | | | | 80,006 | | | | — | | | | | 195,599 | | | | — | | | | | 55,425 | | | | | | 681,030 | | | ||||||
| | | 2017 | | | | | | 350,000 | | | | — | | | | | 120,017 | | | | — | | | | | 120,000 | | | | — | | | | | 43,755 | | | | | | 633,772 | | | |||||||||
| | | 2016 | | | | | | 350,000 | | | | — | | | | | 175,014 | | | | — | | | | | 120,000 | | | | — | | | | | 58,028 | | | | | | 703,042 | | | |||||||||
| Linda A. Johnston, Former Senior Executive Vice President, Chief Human Resources Officer(5) | | | | | 2018 | | | | | | 300,000 | | | | — | | | | | 200,034 | | | | — | | | | | 167,657 | | | | — | | | | | 89,305 | | | | | | 756,996 | | | ||||||
| Michael P. Daly, Former Chief Executive Officer(6) | | | | | 2018 | | | | | | 693,289 | | | | — | | | | | 603,002 | | | | — | | | — | | | — | | | | | 1,179,044 | | | | | | 2,475,335 | | | |||||||||
| | | 2017 | | | | | | 700,000 | | | | — | | | | | 588,033 | | | | — | | | | | 724,500 | | | | | | 1,421,329 | | | | | | 115,989 | | | | | | 3,549,851 | | | ||||||
| | | 2016 | | | | | | 700,000 | | | | — | | | | | 650,024 | | | | — | | | | | 460,000 | | | | | | 622,627 | | | | | | 76,119 | | | | | | 2,508,770 | | |
Name and Principal Position(1) | Year | Salary ($) | Bonus ($) | Stock Awards ($)(2) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings(3) ($) | All Other Compensation(4) ($) | Total ($) | ||||||||||||||||||||
Nitin J. Mhatre, President, Chief Executive Officer | 2021 | 644,135 | — | 688,766 | — | 815,625 | — | 144,326 | 2,292,852 | ||||||||||||||||||||
George F. Bacigalupo, Executive Vice President, Head of Commercial Banking | 2021 | 375,000 | — | 225,007 | — | 253,125 | — | 27,943 | 881,075 | ||||||||||||||||||||
2020 | 375,000 | — | — | — | 84,375 | — | 80,695 | 540,070 | |||||||||||||||||||||
2019 | 375,000 | — | 225,010 | — | 115,000 | — | 51,463 | 766,473 | |||||||||||||||||||||
Subhadeep Basu, Senior Executive Vice President, Chief Financial Officer | 2021 | 325,808 | — | 100,000 | — | 290,250 | — | 13,059 | 729,117 | ||||||||||||||||||||
Sean A. Gray, Senior Executive Vice President, Chief Operating Officer | 2021 | 550,000 | — | 574,895 | — | 495,000 | — | 193,561 | 1,813,456 | ||||||||||||||||||||
2020 | 621,500 | — | 500,027 | — | 201,988 | — | 169,938 | 1,493,453 | |||||||||||||||||||||
2019 | 550,000 | — | 500,008 | — | 124,000 | — | 178,998 | 1,353,006 | |||||||||||||||||||||
Gregory D. Lindenmuth, Executive Vice President, Chief Risk Officer | 2021 | 300,000 | — | 120,006 | — | 135,000 | — | 14,648 | 569,654 | ||||||||||||||||||||
2020 | 300,000 | — | 160,024 | — | 45,000 | — | 19,214 | 524,238 | |||||||||||||||||||||
2019 | 300,000 | — | 150,016 | — | 36,750 | — | 12,949 | 499,715 | |||||||||||||||||||||
Deborah A. Stephenson, Executive Vice President, Chief Compliance and Regulatory Officer | 2021 | 275,000 | — | 110,008 | — | 123,750 | — | 13,794 | 522,552 | ||||||||||||||||||||
James M. Moses, Former SEVP and Chief Financial Officer | 2021 | 107,500 | — | 258,001 | — | — | — | 13,771 | 379,272 | ||||||||||||||||||||
2020 | 430,000 | — | 360,018 | — | 96,750 | — | 45,275 | 932,043 | |||||||||||||||||||||
2019 | 400,000 | — | 250,108 | — | 105,000 | — | 38,751 | 793,859 |
| | | | | | | | | | Number of Restricted Stock Awards Granted | | ||||||||||||||||||||||||||||||||||||
| Grant Date | | | Stock Price | | | Richard M. Marotta | | | Sean A. Gray | | | James M. Moses | | | George F. Bacigalupo | | | Linda Johnston | | | Michael P. Daly | | | |||||||||||||||||||||||
| January 30, 2018 | | | | $ | 37.65 | | | | | | 9,961 | | | | | | 7,969 | | | | | | 5,313 | | | | | | 2,125 | | | | | | 5,313 | | | | | | 16,016 | | | | ||
| January 30, 2017 | | | | $ | 35.55 | | | | | | 9,143 | | | | | | 7,033 | | | | | | 4,923 | | | | | | 3,376 | | | | | | 5,064 | | | | | | 16,541 | | | | ||
| January 29, 2016 | | | | $ | 27.78 | | | | | | 11,700 | | | | | | 9,000 | | | | — | | | | | 6,300 | | | | | | 6,480 | | | | | | 23,399 | | | |
Number of Restricted Stock Awards Granted | ||||||||||||||||||||||||||
Grant Date | Grant Date Closing Price | Nitin J. Mhatre | George F Bacigalupo | Subhadeep Basu | Sean A. Gray | Gregory B. Lindenmuth | Deborah A. Stephenson | James M. Moses | ||||||||||||||||||
January 30, 2021 | $ | 16.58 | 41,542 | 13,571 | — | 34,674 | 7,238 | 6,635 | 15,561 | |||||||||||||||||
April 30, 2021 | $ | 22.40 | — | — | 4,465 | — | — | — | — | |||||||||||||||||
January 30, 2020 | $ | 29.09 | — | — | — | 17,189 | 5,500 | — | 12,370 | |||||||||||||||||
January 30, 2019 | $ | 27.91 | — | 8,062 | — | 17,915 | 5,375 | — | 8,958 |
| Name | | | 401(k) Employer Contribution | | | Dividends on Restricted Stock | | | Automobile | | | Financial Planning | | | Membership Fees | | | Long Term Care Premiums and Imputed Income on Life Insurance | | | Long-Term Disability* | | | Other** | | | Total | | |||||||||||||||||||||||||||
| R. Marotta | | | | | 11,000 | | | | | | 25,246 | | | | | | 15,000 | | | | | | 1,800 | | | | | | 1,200 | | | | | | 27,908 | | | | | | 3,859 | | | | | | 100,000 | | | | | | 186,013 | | |
| S. Gray | | | | | 11,000 | | | | | | 20,749 | | | | | | 15,000 | | | | — | | | | | 5,940 | | | | | | 26,778 | | | | | | 2,474 | | | | | | 22,112 | | | | | | 104,053 | | | |||
| J. Moses | | | | | 11,000 | | | | | | 693 | | | | | | 15,000 | | | | — | | | | | 6,169 | | | | — | | | | | 2,637 | | | | — | | | | | 35,499 | | | |||||||||
| G. Bacigalupo | | | | | 9,154 | | | | | | 22,341 | | | | | | 15,000 | | | | | | 4,682 | | | | — | | | — | | | | | 4,248 | | | | — | | | | | 55,425 | | | |||||||||
| L. Johnston | | | | | 11,000 | | | | | | 32,985 | | | | | | 15,000 | | | | | | 1,050 | | | | | | 1,950 | | | | | | 22,889 | | | | | | 4,431 | | | | — | | | | | 89,305 | | | |||
| M. Daly | | | | | 11,000 | | | | | | 55,772 | | | | | | 3,645 | | | | | | 15,000 | | | | | | 1,120 | | | | | | 14,987 | | | | | | 12,340 | | | | | | 1,065,180 | | | | | | 1,179,044 | | |
Name | 401(k) Employer Contribution ($) | Dividends on Restricted Stock ($) | Automobile ($) | Financial Planning ($) | Membership Fees ($) | Long-Term Care Premiums and Imputed Income on Life Insurance ($) | Long-Term Disability ($) | Other ** ($) | Total ($) | ||||||||||||||||||||
Nitin J. Mhatre | — | — | 15,992 | — | — | — | 3,334 | 125,000 | 144,326 | ||||||||||||||||||||
George F. Bacigalupo | 7,500 | 2,704 | 15,000 | 525 | — | — | 2,214 | — | 27,943 | ||||||||||||||||||||
Subhadeep Basu | 1,323 | — | 11,366 | — | — | — | 370 | — | 13,059 | ||||||||||||||||||||
Sean A. Gray | 11,600 | 9,057 | 15,000 | — | — | 440 | 2,471 | 154,993 | 193,561 | ||||||||||||||||||||
Gregory D. Lindenmuth | 11,600 | 2,581 | — | — | — | — | 467 | — | 14,648 | ||||||||||||||||||||
Deborah A. Stephenson | 11,000 | 2,327 | — | — | — | — | 467 | — | 13,794 | ||||||||||||||||||||
James M. Moses | 4,845 | 5,464 | 3,462 | — | — | — | — | — | 13,771 |
| Name | | | Grant Date | | | Estimated Future Payouts Under Non-Equity Incentive Plan Awards(1) | | | Estimated Future Payouts Under Equity Incentive Plan Awards(2) | | | All Other Stock Awards: Number of Shares of Stock or Units (#) | | | Grant Date Fair Value of Stock and Option Awards(3) ($) | | |||||||||||||||||||||||||||||||||||||||
| Threshold ($) | | | Target ($) | | | Maximum ($) | | | Threshold (#) | | | Target (#) | | | Maximum (#) | | |||||||||||||||||||||||||||||||||||||||
| Richard M. Marotta | | | | | 1/30/2018 | | | | | | 153,438 | | | | | | 306,875 | | | | | | 613,750 | | | | — | | | — | | | — | | | — | | | — | | |||||||||||||||
| | | | | | 1/30/2018 | | | | — | | | — | | | — | | | — | | | — | | | — | | | | | 4,980 | | | | | | 187,497 | | | ||||||||||||||||||
| | | | | | 1/30/2018 | | | | — | | | — | | | — | | | | | 2,491 | | | | | | 4,981 | | | | | | 7,472 | | | | — | | | | | 187,535 | | | ||||||||||||
| Sean A. Gray | | | | | 1/30/2018 | | | | | | 115,729 | | | | | | 231,458 | | | | | | 462,916 | | | | — | | | — | | | — | | | — | | | — | | |||||||||||||||
| | | | | | 1/30/2018 | | | | — | | | — | | | — | | | — | | | — | | | — | | | | | 3,984 | | | | | | 149,998 | | | ||||||||||||||||||
| | | | | | 1/30/2018 | | | | — | | | — | | | — | | | | | 1,993 | | | | | | 3,985 | | | | | | 5,978 | | | | — | | | | | 150,035 | | | ||||||||||||
| James M. Moses | | | | | 1/30/2018 | | | | | | 84,375 | | | | | | 168,750 | | | | | | 337,500 | | | | — | | | — | | | — | | | — | | | — | | |||||||||||||||
| | | | | | 1/30/2018 | | | | — | | | — | | | — | | | — | | | — | | | — | | | | | 2,656 | | | | | | 99,998 | | | ||||||||||||||||||
| | | | | | 1/30/2018 | | | | — | | | — | | | — | | | | | 1,329 | | | | | | 2,657 | | | | | | 3,986 | | | | — | | | | | 100,036 | | | ||||||||||||
| George F. Bacigalupo | | | | | 1/30/2018 | | | | | | 78,750 | | | | | | 157,500 | | | | | | 315,000 | | | | — | | | — | | | — | | | — | | | — | | |||||||||||||||
| | | 1/30/2018 | | | | — | | | — | | | — | | | — | | | — | | | — | | | | | 1,062 | | | | | | 39,984 | | | |||||||||||||||||||||
| | | | | | 1/30/2018 | | | | — | | | — | | | — | | | | | 532 | | | | | | 1,063 | | | | | | 1,595 | | | | — | | | | | 40,022 | | | ||||||||||||
| Linda A. Johnston(4) | | | | | 1/30/2018 | | | | | | 67,500 | | | | | | 135,000 | | | | | | 270,000 | | | | — | | | — | | | — | | | — | | | — | | |||||||||||||||
| | | | | | 1/30/2018 | | | | — | | | — | | | — | | | — | | | — | | | — | | | | | 2,656 | | | | | | 99,998 | | | ||||||||||||||||||
| | | | | | 1/30/2018 | | | | — | | | — | | | — | | | | | 1,329 | | | | | | 2,657 | | | | | | 3,986 | | | | — | | | | | 100,036 | | | ||||||||||||
| Michael P. Daly(4) | | | | | 1/30/2018 | | | | | | 281,250 | | | | | | 562,500 | | | | | | 1,125,000 | | | | — | | | — | | | — | | | — | | | — | | |||||||||||||||
| | | | | | 1/30/2018 | | | | — | | | — | | | — | | | — | | | — | | | — | | | | | 8,008 | | | | | | 301,501 | | | ||||||||||||||||||
| | | | | | 1/30/2018 | | | | — | | | — | | | — | | | | | 4,004 | | | | | | 8,008 | | | | | | 12,012 | | | | — | | | | | 301,501 | | |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards(1) | Estimated Future Payouts Under Equity Incentive Plan Awards(2) | All Other Stock Awards: Number of Shares of Stock or Units (#) | Grant Date Fair Value of Stock and Option Awards(3) ($) | ||||||||||||||||||||||||||
Name | Grant Date | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | ||||||||||||||||||||||
Nitin J. Mhatre | 1/30/2021 | — | 543,750 | — | — | — | — | — | — | ||||||||||||||||||||
1/30/2021 | — | — | — | — | — | — | 16,617 | 275,510 | |||||||||||||||||||||
1/30/2021 | — | — | — | 12,462 | 24,925 | 37,388 | — | — | |||||||||||||||||||||
George F. Bacigalupo | 1/30/2021 | — | 168,750 | — | — | — | — | — | — | ||||||||||||||||||||
1/30/2021 | — | — | — | — | — | — | 5,429 | 90,012 | |||||||||||||||||||||
1/30/2021 | — | — | — | 4,071 | 8,142 | 12,213 | — | — | |||||||||||||||||||||
Subhadeep Basu | 1/30/2021 | — | — | — | — | — | — | — | — | ||||||||||||||||||||
1/30/2021 | — | — | — | — | — | — | — | — | |||||||||||||||||||||
1/30/2021 | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Sean A. Gray | 1/30/2021 | — | 330,000 | — | — | — | — | — | — | ||||||||||||||||||||
1/30/2021 | — | — | — | — | — | — | 13,870 | 229,965 | |||||||||||||||||||||
1/30/2021 | — | — | — | 10,402 | 20,804 | 31,206 | — | — | |||||||||||||||||||||
Gregory D. Lindenmuth | 1/30/2021 | — | 90,000 | — | — | — | — | — | — | ||||||||||||||||||||
1/30/2021 | — | — | — | — | — | — | 2,896 | 48,016 | |||||||||||||||||||||
1/30/2021 | — | — | — | 2,171 | 4,342 | 6,513 | — | — | |||||||||||||||||||||
Deborah A. Stephenson | 1/30/2021 | — | 82,500 | — | — | — | — | — | — | ||||||||||||||||||||
1/30/2021 | — | — | — | — | — | — | 2,654 | 44,003 | |||||||||||||||||||||
1/30/2021 | — | — | — | 1,991 | 3,981 | 5,972 | — | — | |||||||||||||||||||||
James M. Moses | 1/30/2021 | — | — | — | — | — | — | — | — | ||||||||||||||||||||
1/30/2021 | — | — | — | — | — | — | 6,225 | 103,211 | |||||||||||||||||||||
1/30/2021 | — | — | — | 4,668 | 9,336 | 14,004 | — | — |
| | | | | | | | | | Option Awards | | | Stock Awards | | | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested | | | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested($)(7) | | ||||||||||||||||||
| Name | | | Grant Date | | | Number of Securities Underlying Unexercised Options Exercisable (#) | | | Number of Securities Underlying Unexercised Options Unexercisable (#) | | | Number of Shares or Units of Stock That Have Not Vested (#) | | | Market Value of Shares or Units of Stock That Have Not Vested ($)(7) | | |||||||||||||||||||||
| Richard M. Marotta | | | | | 1/30/2016 | | | | — | | | — | | | | | 1,950(1) | | | | | | 52,592 | | | | | | 5,850(4) | | | | | | 157,775 | | |
| | | | | | 1/30/2017 | | | | — | | | — | | | | | 3,047(2) | | | | | | 82,178 | | | | | | 4,572(5) | | | | | | 123,307 | | |
| | | | | | 1/30/2018 | | | | — | | | — | | | | | 4,980(3) | | | | | | 134,311 | | | | | | 4,981(6) | | | | | | 134,338 | | |
| Sean A. Gray | | | | | 1/30/2016 | | | | — | | | — | | | | | 1,500(1) | | | | | | 40,455 | | | | | | 4,500(4) | | | | | | 121,365 | | |
| | | | | | 1/30/2017 | | | | — | | | — | | | | | 2,344(2) | | | | | | 63,218 | | | | | | 3,517(5) | | | | | | 94,853 | | |
| | | | | | 1/30/2018 | | | | — | | | — | | | | | 3,984(3) | | | | | | 107,448 | | | | | | 3,985(6) | | | | | | 107,475 | | |
| James M. Moses | | | | | 1/30/2017 | | | | — | | | — | | | | | 1,641(2) | | | | | | 44,258 | | | | | | 2,462(5) | | | | | | 66,400 | | |
| | | | | | 1/30/2018 | | | | — | | | — | | | | | 2,656(3) | | | | | | 71,632 | | | | | | 2,657(6) | | | | | | 71,659 | | |
| George F. Bacigalupo | | | | | 1/30/2016 | | | | — | | | — | | | | | 1,050(1) | | | | | | 28,319 | | | | | | 3,150(4) | | | | | | 84,956 | | |
| | | 1/30/2017 | | | | — | | | — | | | | | 1,125(2) | | | | | | 30,341 | | | | | | 1,688(5) | | | | | | 45,525 | | | |||
| | | | | | 1/30/2018 | | | | — | | | — | | | | | 1,062(3) | | | | | | 28,642 | | | | | | 1,063(6) | | | | | | 28,669 | | |
| | | | | | 10/1/2015 | | | | — | | | — | | | | | 12,708(9) | | | | | | 342,745 | | | | — | | | — | | ||||||
| Linda A. Johnston(8) | | | | | 1/30/2016 | | | | — | | | — | | | | | 1,080(1) | | | | | | 29,128 | | | | | | 3,240(4) | | | | | | 87,383 | | |
| | | | | | 1/30/2017 | | | | — | | | — | | | | | 1,688(2) | | | | | | 45,525 | | | | | | 2,532(5) | | | | | | 68,288 | | |
| | | | | | 1/30/2018 | | | | — | | | — | | | | | 2,656(3) | | | | | | 71,632 | | | | | | 2,657(6) | | | | | | 71,659 | | |
| Michael P. Daly(8) | | | | | 1/30/2016 | | | | — | | | — | | | — | | | — | | | — | | | — | | ||||||||||||
| | | | | | 1/30/2017 | | | | — | | | — | | | — | | | — | | | — | | | — | | ||||||||||||
| | | | | | 1/30/2018 | | | | — | | | — | | | — | | | — | | | — | | | — | |
Option Awards | Stock Awards | ||||||||||||||||||||||
Name | Grant Date | Number of Securities Underlying Unexercised Options Exercisable (#) | Number of Securities Underlying Unexercised Options Unexercisable (#) | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($)(7) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested($)(7) | ||||||||||||||||
Nitin J. Mhatre | 1/30/2019 | — | — | — | — | — | — | ||||||||||||||||
1/30/2020 | — | — | — | — | — | — | |||||||||||||||||
1/30/2021 | — | — | 16,617 (3) | 472,421 | 24,925 (6) | 706,618�� | |||||||||||||||||
George F. Bacigalupo | 1/30/2019 | — | — | 1,075 (1) | 30,562 | 4,837 (4) | 137,516 | ||||||||||||||||
1/30/2020 | — | — | 3,619 (2) | 102,888 | — | — | |||||||||||||||||
1/30/2021 | — | — | 5,429 (3) | 154,346 | 8,142 (6) | 231,477 | |||||||||||||||||
Subhadeep Basu | 1/30/2019 | — | — | — | — | — | — | ||||||||||||||||
1/30/2020 | — | — | — | — | — | — | |||||||||||||||||
1/30/2021 | — | — | 4,465 (3) | 126,940 | — | — | |||||||||||||||||
Sean A. Gray | 1/30/2019 | — | — | 2388 (1) | 67,891 | 10,749 (4) | 305,594 | ||||||||||||||||
1/30/2020 | — | — | 4,584 (2) | 130,323 | 10,313 (5) | 293,199 | |||||||||||||||||
1/30/2021 | — | — | 13,870 (3) | 394,324 | 20,804 (6) | 591,458 | |||||||||||||||||
Gregory D. Lindenmuth | 1/30/2019 | — | — | 716 | 20,356 | 3,225 (4) | 91,687 | ||||||||||||||||
1/30/2020 | — | — | 1,467 | 41,707 | 3,300 (5) | 93,819 | |||||||||||||||||
1/30/2021 | — | — | 2,896 | 82,333 | 4,342 (6) | 123,443 | |||||||||||||||||
Deborah A. Stephenson | 1/30/2019 | — | — | 716 (1) | 20,356 | 3,225 (4) | 91,687 | ||||||||||||||||
1/30/2020 | — | — | 1,009 (2) | 28,686 | 2,269 (5) | 64,508 | |||||||||||||||||
1/30/2021 | — | — | 2,654 (3) | 75,453 | 3,981 (6) | 113,180 | |||||||||||||||||
James M. Moses | 1/30/2019 | — | — | — | — | — | — | ||||||||||||||||
1/30/2020 | — | — | — | — | — | — | |||||||||||||||||
1/30/2021 | — | — | — | — | — | — |
| Name | | | Option Awards | | | Stock Awards | | ||||||||||||
| Number of Shares Acquired on Exercise (#) | | | Value Realized on Exercise ($) | | | Number of Shares Acquired on Vesting (#) | | | Value Realized on Vesting ($)(1) | | |||||||||
| Richard M. Marotta | | | — | | | — | | | | | 12,055 | | | | | | 457,157 | | |
| Sean A. Gray | | | — | | | — | | | | | 9,823 | | | | | | 372,575 | | |
| James M. Moses | | | — | | | — | | | | | 820 | | | | | | 30,873 | | |
| George F. Bacigalupo | | | — | | | — | | | | | 9,865 | | | | | | 378,059 | | |
| Linda A. Johnston | | | — | | | — | | | | | 14,228 | | | | | | 554,387 | | |
| Michael P. Daly | | | — | | | — | | | | | 26,107 | | | | | | 990,378 | | |
Option Awards | Stock Awards | |||||||||||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($) | ||||||||||
Nitin J. Mhatre | — | — | — | — | ||||||||||
George F. Bacigalupo | — | — | 1,429 | 23,693 | ||||||||||
Subhadeep Basu | — | — | — | — | ||||||||||
Sean A. Gray | — | — | 6,009 | 99,929 | ||||||||||
Gregory D. Lindenmuth | — | — | 1,783 | 29,562 | ||||||||||
Deborah A. Stephenson | — | — | 1,519 | 25,185 | ||||||||||
James M. Moses | — | — | 3,731 | 61,860 |
| Name | | | Plan Name | | | Registrant Contributions in Last Fiscal Year ($)(1) | | | Aggregate Earnings in 2018 ($) | | | Aggregate Balance at Last Fiscal Year End ($)(2) | | ||||||
| Richard M. Marotta | | | Supplemental Executive Retirement Agreement | | | | $ | 100,000 | | | | — | | | | $ | 300,000 | | |
Name | Plan Name | Registrant Contributions in Last Fiscal Year ($)(1) | Aggregate Earnings in 2019 ($) | Aggregate Balance at Last Fiscal Year End ($)(2) | ||||||||||
Nitin J. Mhatre | Supplemental Executive Retirement Agreement | 125,000 | — | 125,000 | ||||||||||
Sean A. Gray | Supplemental Executive Retirement Agreement | 100,000 | — | 550,000 |
| | | | Termination For Cause ($)(1) | | | Termination Without Cause or for Good Reason ($)(2) | | | Payments Due Upon Change in Control With Termination of Employment ($)(3) | | | Disability ($)(4) | | | Death ($)(5) | | ||||||||||||
| Cash severance | | | — | | | | | 3,037,500 | | | | | | 3,037,500 | | | | — | | | — | | ||||||
| In-kind benefits | | | — | | | | | 67,578 | | | | | | 69,578 | | | | | | 45,052 | | | | — | | |||
| Restricted stock vesting(8) | | | — | | | | | 684,499 | | | | | | 684,499 | | | | | | 684,499 | | | | | | 684,499 | | |
| SERP | | | — | | | — | | | | | 2,450,000 | | | | — | | | — | |
Termination for Cause ($)(1) | Termination Without Cause or for Good Reason ($)(2) | Payments Due Upon Change in Control With Termination of Employment ($)(3) | Disability($)(4) | Death($)(5) | |||||||||||||
Cash severance | — | 3,806,250 | 3,806,250 | — | — | ||||||||||||
In-kind benefits | — | 63,030 | 65,755 | 42,020 | — | ||||||||||||
Restricted stock vesting(8) | — | — | 1,181,039 | 1,181,039 | 1,181,039 | ||||||||||||
SERP(4) | — | — | 2,000,000 | — | — |
| | | | Sean A. Gray(7)(10) | | | James M. Moses(6) | | | George F. Bacigalupo(6) | | |||||||||
| Cash severance | | | | $ | 2,744,792 | | | | | $ | 1,706,283 | | | | | $ | 1,597,500 | | |
| In-kind benefits | | | | $ | 50,229 | | | | | $ | 50,229 | | | | | $ | 51,075 | | |
| Restricted stock vesting(8) | | | | $ | 534,815 | | | | | $ | 253,950 | | | | | $ | 589,187 | | |
| SERP(9) | | | | $ | 1,000,000 | | | | | $ | — | | | | | $ | — | | |
George F. Bacigalupo(7) | Subhadeep Basu(7) | Sean A. Gray(8)(10) | Gregory D. Lindenmuth(7) | Deborah A. Stephenson(7) | |||||||||||||
Cash severance | 1,631,250 | 1,870,500 | 3,144,042 | 1,170,000 | 1,072,500 | ||||||||||||
In-kind benefits | 56,386 | 2,700 | 43,668 | 26,718 | 7,137 | ||||||||||||
Restricted stock vesting(8) | 553,902 | 63,456 | 1,782,788 | 473,758 | 393,869 | ||||||||||||
SERP(9) | — | — | 760,000 | — | — |
Proposal 3: Ratification of the Appointment of the Independent Registered Public Accounting Firm | |||||||||||||||||
Purpose. Performance. Progress. | |||||||||||||||||
| Fees | | | 2018 | | | 2017 | | ||||||
| Audit Fees(1) | | | | $ | 1,056,100 | | | | | $ | 981,350 | | |
| Audit-Related Fees(2) | | | | $ | 265,300 | | | | | $ | 374,900 | | |
| Tax Fees(3) | | | | $ | 213,100 | | | | | $ | 368,925 | | |
| All Other Fees | | | — | | | — | |
Fees | 2021 | 2020 | ||||||
Audit Fees(1) | $ | 1,270,000 | $ | 1,552,000 | ||||
Audit-Related Fees(2) | 91,000 | 119,000 | ||||||
Tax Fees(3) | 277,000 | 249,000 | ||||||
All Other Fees | — | — |
Proposal 4: Berkshire Hills Bancorp, Inc. 2022 Equity Incentive Plan | |||||||||||||||||
Purpose. Performance. Progress. | |||||||||||||||||
Key Attribute | Feature | Discussion | ||||||
Equity Award Types | Stock Options, Restricted Stock and Restricted Stock Units. | The Plan provides the Company with equity award types predominately used in the marketplace to provide flexibility in meeting its compensation objectives. | ||||||
Award Vesting Criteria: Performance Awards Service-Based Awards | The vesting of Awards may be subject to the achievement of performance measures as determined by the Compensation Committee of the Board of Directors (the “Compensation Committee”) or subject to time-based vesting over a period of continuous service (i.e., service-based). | Based on the Compensation Committee’s evaluation of current market practices and past Company practices, it expects a portion of equity award grants under the 2022 Equity Incentive Plan will be subject to performance-based vesting. The Compensation Committee intends to continue to use a third-party independent compensation consultant in determining the vesting criteria of equity award grants. | ||||||
Vesting Period | The Compensation Committee will determine the vesting schedule or performance criteria for each Award. At least 95% of the Awards under the Plan will vest no earlier than one year after the grant date. | While the Compensation Committee may set the vesting schedule or conditions, the Committee views equity awards as a longer-term compensation element. | ||||||
Prohibition Against Stock Option Repricing | Neither the Compensation Committee nor the Board shall have the right or authority to make any adjustment or amendment that reduces or would have the effect of reducing the exercise price of a Stock Option previously granted under the Plan, except in the event of certain corporate transactions set forth in the 2022 Equity Incentive Plan (including stock splits, and stock dividends) or adjustments approved by the Company’s shareholders. | The Compensation Committee believes that repricing Stock Options is contrary to the objectives of Stock Options and would not be in alignment with the interest of shareholders. | ||||||
Dividends on Restricted Stock Awards | Dividends paid on restricted stock awards subject to time-based vesting or performance-based vesting shall be distributed to a participant on or after the vesting date of such restricted stock award. If the restricted stock award does not vest, the participant will not receive such dividends. | The Compensation Committee believes that the timing of dividend payments is appropriately aligned with the interests of shareholders. | ||||||
Acceleration of Vesting - Termination of Service due to Death and Disability | Unless otherwise specified by the Compensation Committee, Awards vest upon a participant’s termination of service due to death or Disability and Stock Options remain exercisable for one year. | The Compensation Committee believes that recognizing participant contributions and vesting Awards upon death and Disability is appropriately aligned with the interests of shareholders. |
Key Attribute | Feature | Discussion | ||||||
Acceleration of Vesting - Termination of Service for Cause or resignation for any reason (except death, Disability or following a Change in Control) | Unless otherwise specified by the Compensation Committee, no Awards will vest upon a participant’s termination for cause or a voluntary resignation for any reason (except death or disability). Generally, all vested Stock Options remain exercisable for three months from the date of termination of service due to a resignation for any reason (except death or disability, in which case they will remain exercisable for one year). Upon a termination for cause, all unvested Awards, including unexercised Stock Options, will be forfeited | The Compensation Committee believes that acceleration of vesting following a termination of service for reasons other than death, disability, or in certain instances following a Change in Control is not appropriately aligned with the objectives of the 2022 Equity Incentive Plan or the interests of shareholders. | ||||||
Acceleration of Vesting - Committee Discretion | Vesting of Awards may be accelerated by the Compensation Committee, at its discretion, except that the Compensation Committee may not accelerate the vesting of any Award within the first year following the date of grant. | The Compensation Committee determined that discretion to accelerate awards is important to allow the Company to respond to employment-related matters or other unforeseen circumstances that could warrant consideration of acceleration. | ||||||
Acceleration of Vesting - Termination of Service without Cause or Resignation for Good Reason following a Change in Control (i.e., an Involuntary Termination of Service) | Unless otherwise specified by the Compensation Committee: All unvested service-based Awards will vest upon an Involuntary Termination of Service following a Change in Control. Stock Options will remain exercisable for one year following an Involuntary Termination of Service following a Change in Control. All Performance Awards will vest upon an Involuntary Termination of Service following a Change in Control based on the greater of target level of performance or actual annualized performance measured as of the most recent completed fiscal quarter. | The Compensation Committee determined that a “double trigger” vesting acceleration in connection with a Change in Control is appropriate in providing the Company with a meaningful retention tool as an independent company, and any future acquirer with the ability to appropriately manage human resources during any merger integration. |
Key Attribute | Feature | Discussion | ||||||
Share Limitations, Freezing of equity grants under the Plan | The maximum number of shares of Common Stock that may be delivered to participants under the 2022 Equity Incentive Plan is equal to (i) 1,200,000 shares, plus (ii) the number of shares of Common Stock which have been reserved but not issued under the 2018 Plan, which is estimated to be approximately 258,102, plus (iii) any shares of Common Stock returned to the 2018 Plan after the effective date of the 2022 Equity Incentive Plan as a result of expiration, cancellation, or forfeiture of awards issued under the 2018 Plan. As of April 1, 2022 (the latest practicable date before the printing of this Proxy Statement) the closing price of the Company’s Common Stock, as reported on the New York Stock Exchange, was $28.82. If shareholders approve the 2022 Equity Incentive Plan, the Company will not make any more grants under the 2018 Plan; the 2018 Plan will be frozen and equity awards that would otherwise be available for grant under that Plan will not be granted. The Compensation Committee will continue to administer outstanding grants under the 2018 Plan. | The Compensation Committee evaluated a number of factors in determining the appropriate plan size, including past grant practices, the grant practices of peer community banks, the shareholder value transfer to participants, and publications of proxy advisors. | ||||||
Limitation of Grants to Non-Employee Directors and Employees | The sum of the grant date fair value of equity awards granted under the 2022 Equity Incentive Plan, including Stock Options, Restricted Stock and Restricted Stock Units may not exceed: (i) for non-employee directors, $100,000 for any calendar year, and (ii) for employees, $2,000,000 for any calendar year. | The Compensation Committee expects that it will continue to use the services of an independent compensation consultant to assist it in making equity award grants, but believes it is important to provide calendar year plan limitations of grant date fair value to participants. | ||||||
Recycling of Equity Awards | Only forfeited and expired Awards are available for reissuance under the Plan. | The Compensation Committee believes that conservative recycling of equity awards is an important provision in the 2022 Equity Incentive Plan and properly aligns with the interests of shareholders. | ||||||
Automatic Exercise of Stock Options | At the Compensation Committee’s discretion, Stock Options that are exercisable but unexercised as of the day immediately before their expiration date may be automatically exercised on behalf of a participant, in accordance with procedures established by the Compensation Committee. | The Compensation Committee believes that providing for an automatic exercise is in the best interest of the Company and participants and provides for an efficient mechanism to exercise Stock Options. |
Key Attribute | Feature | Discussion | ||||||
Clawback of Equity Awards | The 2022 Equity Incentive Plan provides for a number of forfeiture events including termination for cause, automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 related to accounting restatements, and any clawback policy of the Company. | The Compensation Committee believes it is necessary to maintain strong clawback provisions for equity awards. | ||||||
Holding Period Required | The Compensation Committee may require participants to hold a vested Award or Common Stock received upon exercise of a Stock option until the later of (i) 12 months or (ii) the date the individual meets the minimum ownership requirements (if any) applicable to that individual, except in the event of death, Disability, Involuntary Termination following a Change in Control, or, in general, if shares of Stock are withheld to satisfy tax withholding. | The Compensation Committee believes that a required holding period is appropriately aligned with the interests of shareholders. |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column) | |||||||||||||||||
Equity compensation plans approved by security holders | 80,400 | $ | 25.21 | 536,469 | ||||||||||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||||||||||
Total | 80,400 | $ | 25.21 | 536,469 |
Berkshire Hills Bancorp, Inc. Proxy Statement | |||||||||||||||||
Purpose. Performance. Progress. | |||||||||||||||||
Name and Address | Number of Shares Owned | Percent of Common Stock Outstanding | ||||||||||||||||||
BlackRock, Inc. 55 East New York, New York 10055 | 7,167,441(1) | |||||||||||||||||||
The Vanguard Group 100 Vanguard Blvd. Malvern, Pennsylvania 19355 | 5,202,346(2) | |||||||||||||||||||
Dimensional Fund Advisors LP Palisades West Building One 6300 Bee Cave Road Austin, Texas 78746 | 2,775,007(3) |
Name | Number of Shares Owned (Excluding Options)(1) | Options Exercisable Within 60 Days | Total | ||||||||
Directors | |||||||||||
Baye Adofo-Wilson | 7,933 | — | 7,933 | ||||||||
Rheo A. Brouillard(2) | 26,311 | — | 26,311 | ||||||||
David M. Brunelle(3) | 18,654 | — | 18,654 | ||||||||
Nina A. Charnley | 3,426 | — | 3,426 | ||||||||
John B. Davies(4) | 45,209 | — | 45,209 | ||||||||
Mihir A. Desai | — | — | — | ||||||||
William H. Hughes III | 7,939 | — | 7,939 | ||||||||
Jeffrey W. Kip | 13,557 | — | 13,557 | ||||||||
Sylvia Maxfield | 6,748 | — | 6,748 | ||||||||
Nitin J. Mhatre | 64,165 | — | 64,165 | ||||||||
Laurie Norton Moffatt | 16,035 | — | 16,035 | ||||||||
Jonathan L. Shulman | 6,998 | — | 6,998 | ||||||||
Michael A. Zaitzeff(5) | 1,676,498 | — | 1,676,498 | ||||||||
Named Executive Officers Who Are Not Directors | |||||||||||
George F. Bacigalupo | 51,517 | — | 51,517 | ||||||||
Subhadeep Basu | 17,444 | — | 17,444 | ||||||||
Sean A. Gray | 88,477 | — | 88,477 | ||||||||
Gregory D. Lindenmuth | 18,720 | — | 18,720 | ||||||||
Deborah Stephenson(6) | 12,382 | — | 12,382 | ||||||||
All Named Executive Officers and Directors, and Nominees for Directors as a Group (18 persons) | 2,082,013 | — | 2,082,013 |
| Name | | | Number of Shares Owned (Excluding Options)(1) | | | Options Exercisable Within 60 Days | | | Total | | |||||||||
| Directors | | | | | | | | | | | | | | | | | | | |
| Paul T. Bossidy(2) | | | | | 12,999 | | | | | | — | | | | | | 12,999 | | |
| David M. Brunelle | | | | | 6,606(3) | | | | | | — | | | | | | 6,606 | | |
| Robert M. Curley | | | | | 19,210 | | | | | | — | | | | | | 19,210 | | |
| John B. Davies | | | | | 32,611(4) | | | | | | — | | | | | | 32,611 | | |
| J. Williar Dunlaevy | | | | | 78,811(5) | | | | | | — | | | | | | 78,811 | | |
| Cornelius D. Mahoney | | | | | 20,225 | | | | | | — | | | | | | 20,225 | | |
| Richard M. Marotta(6) | | | | | 62,239 | | | | | | — | | | | | | 62,239 | | |
| Pamela A. Massad | | | | | 4,437,098(7) | | | | | | — | | | | | | 4,437,098 | | |
| Laurie Norton Moffatt | | | | | 9,052 | | | | | | — | | | | | | 9,052 | | |
| Richard J. Murphy | | | | | 15,504 | | | | | | — | | | | | | 15,504 | | |
| William J. Ryan | | | | | 19,975 | | | | | | — | | | | | | 19,975 | | |
| Patrick J. Sheehan | | | | | 4,788(8) | | | | | | — | | | | | | 4,788 | | |
| D. Jeffrey Templeton | | | | | 27,041 | | | | | | — | | | | | | 27,041 | | |
| Named Executive Officers Who Are Not Directors(9) | | | | | | | | | |||||||||||
| George F. Bacigalupo | | | | | 42,402 | | | | | | — | | | | | | 42,402 | | |
| Sean A. Gray | | | | | 62,592 | | | | | | — | | | | | | 62,592 | | |
| Linda A. Johnston | | | | | 38,990 | | | | | | — | | | | | | 38,990 | | |
| James M. Moses | | | | | 7,957 | | | | | | — | | | | | | 7,957 | | |
| All Named Executive Officers and Directors, and Nominees for Directors as a Group (17 persons) | | | | | 4,898,100 | | | | | | — | | | | | | 4,898,100 | | |
| Name | | | Shares of Granted but Unvested Restricted Stock Held In Trust | | | Shares Held In Trust in the Berkshire Bank 401(k) Plan | | ||||||
| Paul T. Bossidy | | | | | 2,562 | | | | — | | |||
| David M. Brunelle | | | | | 2,233 | | | | — | | |||
| Robert M. Curley | | | | | 2,562 | | | | — | | |||
| John B. Davies | | | | | 2,562 | | | | — | | |||
| J. Williar Dunlaevy | | | | | 2,562 | | | | — | | |||
| Cornelius D. Mahoney | | | | | 2,562 | | | | — | | |||
| Richard M. Marotta | | | | | 16,366 | | | | | | 631 | | |
| Pamela A. Massad | | | | | 2,233 | | | | — | | |||
| Laurie Norton Moffatt | | | | | 2,562 | | | | — | | |||
| Richard J. Murphy | | | | | 2,562 | | | | — | | |||
| William J. Ryan | | | | | 2,562 | | | | — | | |||
| Patrick J. Sheehan | | | | | 2,562 | | | | — | | |||
| D. Jeffrey Templeton | | | | | 2,562 | | | | — | | |||
| Named Executive Officer Who Are Not Directors(9) | | | | | | | | | | | | | |
| George F. Bacigalupo | | | | | 17,203 | | | | | | 411 | | |
| Sean A. Gray | | | | | 10,994 | | | | | | 2,023 | | |
| Linda A. Johnston | | | | | 5,410 | | | | | | 3,951 | | |
| James M. Moses | | | | | 6,176 | | | | — | |
Name | Shares of Granted but Unvested Restricted Stock Held In Trust | Shares Held In Trust in the Berkshire Bank 401(k) Plan | ||||||
Directors | ||||||||
Baye Adofo-Wilson | 4,832 | — | ||||||
Rheo A. Brouillard | 4,832 | — | ||||||
David M. Brunelle | 4,832 | — | ||||||
Nina A. Charnley | 3,034 | — | ||||||
John B. Davies | 4,832 | — | ||||||
Mihir A. Desai | — | — | ||||||
William H. Hughes III | 4,832 | — | ||||||
Jeffrey W. Kip | 3,121 | — | ||||||
Sylvia Maxfield | 4,832 | — | ||||||
Nitin J. Mhatre | 22,334 | — | ||||||
Laurie Norton Moffatt | 4,832 | — | ||||||
Jonathan L. Shulman | 4,832 | — | ||||||
Michael Z. Zaitzeff | 3,296 | — | ||||||
Named Executive Officers Who Are Not Directors | ||||||||
George F. Bacigalupo | 7,477 | 798 | ||||||
Subhadeep Basu | 9,444 | — | ||||||
Sean A. Gray | 19,532 | 2,523 | ||||||
Gregory D. Lindenmuth | 4,955 | 6,827 | ||||||
Deborah A. Stephenson | 3,934 | — |
Appendix A | |||||||||||||||||
Purpose. Performance. Progress. | |||||||||||||||||
Appendix B | |||||||||||||||||
Purpose. Performance. Progress. | |||||||||||||||||
(Dollars in thousands) | December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||
GAAP Net income | $ | 118,664 | $ | (533,017) | $ | 97,450 | |||||
Non-GAAP measures | |||||||||||
Adj: Net loss/(gain) on securities, net | 787 | 7,520 | (4,389) | ||||||||
Adj: Goodwill impairment | — | 553,762 | — | ||||||||
Adj: Net gains on sale of business operations and assets | (52,942) | (1,240) | — | ||||||||
Adj: Acquisition, restructuring and other | 5,781 | 5,839 | 28,046 | ||||||||
Adj: Loss from discontinued operations before income taxes | — | 26,855 | 5,539 | ||||||||
Adj: Income taxes | 11,696 | (29,342) | (7,799) | ||||||||
Net non-operating charges | (34,678) | 563,394 | 21,397 | ||||||||
Adjusted net income (non-GAAP) | $ | 83,986 | $ | 30,377 | $ | 118,847 | |||||
Total revenue from continuing operations | $ | 434,414 | $ | 383,089 | $ | 449,260 | |||||
Total non-interest expense from continuing operations | 285,893 | 840,239 | 289,857 | ||||||||
Pre-tax, pre-provision net revenue (PPNR) from continuing operations | $ | 148,521 | $ | (457,150) | $ | 159,403 | |||||
Total adjusted revenue | $ | 382,259 | $ | 389,369 | $ | 444,871 | |||||
Adjusted non-interest expense | 280,112 | 280,638 | 261,811 | ||||||||
Adjusted pre-tax, pre-provision net revenue (PPNR) | $ | 102,147 | $ | 108,731 | $ | 183,060 | |||||
(dollars in millions, except share related data) | |||||||||||
Total average assets - GAAP | $ | 12,056 | $ | 12,861 | $ | 12,961 | |||||
Total average shareholders’ equity - GAAP | 1,166 | 1,421 | 1,694 | ||||||||
Total average tangible shareholders equity - GAAP | 1,134 | 1,105 | 1,116 | ||||||||
Total average tangible common shareholders equity - GAAP | 1,134 | 1,088 | 1,076 | ||||||||
Average diluted shares outstanding - GAAP (thousands) | 49,554 | 50,308 | 49,421 | ||||||||
Earnings per share, diluted | $ | 2.39 | $ | (10.60) | $ | 1.97 | |||||
Plus: Net adjustments per share, diluted | (0.70) | 11.20 | 0.43 | ||||||||
Adjusted earnings per share, diluted | 1.69 | 0.60 | 2.40 | ||||||||
Performance Ratios | |||||||||||
GAAP return on assets | 0.98 | % | (4.15) | % | 0.75 | % | |||||
Adjusted return on assets | 0.70 | 0.24 | 0.93 | ||||||||
GAAP return on equity | 10.18 | (37.46) | 5.75 | ||||||||
Adjusted return on equity | 7.20 | 2.14 | 7.01 | ||||||||
GAAP return on tangible common equity | 10.80 | 48.60 | 9.36 | ||||||||
Adjusted return on tangible common equity | 7.74 | 3.18 | 11.35 | ||||||||
Efficiency ratio | 69.96 | 68.53 | 55.63 |
| | | | At or For the Years Ended | | |||||||||||||||
| (Dollars in thousands) | | | December 31, 2018 | | | December 31, 2017 | | | December 31, 2016 | | |||||||||
| GAAP Net income | | | | $ | 105,765 | | | | | $ | 55,247 | | | | | $ | 58,670 | | |
| Non-GAAP measures | | | | | | | | | | | | | | | | | | | |
| Adj: Net gain on sale of securities and operations | | | | | 3,259 | | | | | | (12,894) | | | | | | (534) | | |
| Adj: Loss on termination of hedges | | | — | | | | | 6,629 | | | | — | | ||||||
| Adj: Acquisition related expenses | | | | | 8,930 | | | | | | 24,876 | | | | | | 13,501 | | |
| Adj: Restructuring and other expenses | | | | | 13,201 | | | | | | 6,682 | | | | | | 2,260 | | |
| Adj: Deferred tax writedown and related expense | | | — | | | | | 21,545 | | | | — | | ||||||
| Adj: Income taxes | | | | | (5,788) | | | | | | (11,277) | | | | | | (5,455) | | |
| Net non-operating charges | | | | | 19,602 | | | | | | 35,561 | | | | | | 9,772 | | |
| Core net income (non-GAAP) | | | | $ | 125,367 | | | | | $ | 90,808 | | | | | $ | 68,442 | | |
| (dollars in millions, except share related data) | | | | | | | | | | | | | | | | | | | |
| Total average assets – GAAP | | | | $ | 11,769 | | | | | $ | 9,815 | | | | | $ | 7,958 | | |
| Total average shareholders’ equity – GAAP | | | | | 1,546 | | | | | | 1,244 | | | | | | 911 | | |
| Average diluted shares outstanding – GAAP (thousands) | | | | | 46,231 | | | | | | 39,695 | | | | | | 31,167 | | |
| Earnings per share, diluted | | | | $ | 2.29 | | | | | $ | 1.39 | | | | | $ | 1.88 | | |
| Plus: Net adjustments per share, diluted | | | | | 0.42 | | | | | | 0.90 | | | | | | 0.32 | | |
| Core earnings per share, diluted | | | | | 2.71 | | | | | | 2.29 | | | | | | 2.20 | | |
| Performance Ratios | | | | | | | | | | | | | | | | | | | |
| GAAP return on assets | | | | | 0.90% | | | | | | 0.56% | | | | | | 0.74% | | |
| Core return on assets | | | | | 1.07 | | | | | | 0.93 | | | | | | 0.86 | | |
| GAAP return on equity | | | | | 6.84 | | | | | | 4.45 | | | | | | 6.44 | | |
| Core return on equity | | | | | 8.11 | | | | | | 7.31 | | | | | | 7.51 | | |
| Efficiency ratio | | | | | 58.32 | | | | | | 59.97 | | | | | | 58.27 | | |
| Supplementary Data (dollars in thousands) | | | | | | | | | | | | | | | | | | | |
| Intangible amortization | | | | | 4,934 | | | | | | 3,493 | | | | | | 2,927 | | |
| Fully taxable equivalent income adjustment | | | | | 7,423 | | | | | | 11,227 | | | | | | 8,098 | | |