(1) | Electing two directors to serve for a term expiring in |
(2) |
Ratifying the selection of RSM US LLP as Waterstone Financial, Inc.’s independent registered public accounting firm; |
Approving an advisory, non-binding resolution to approve the executive compensation described in the Proxy Statement; |
Transacting such other business as may properly come before the Annual Meeting or any adjournment or postponement thereof. |
Name of Beneficial Owner | Total Shares Beneficially Owned (1) | Percent of All Common Stock Outstanding |
5% or Greater Shareholders | ||
Renaissance Technologies LLC Renaissance Technologies Holdings Corporation 800 Third Avenue New York, New York 10022 | 1,910,044 (2) | 7.6% |
Dimensional Fund Advisors LP Building One 6300 Bee Cave Road Austin, Texas 78746 | 1,959,852 (3) | 7.8% |
BlackRock, Inc. 55 East 52nd Street New York, New York 10055 | 1,837,873 (4) | 7.3% |
Delaware Charter Guarantee & Trust Company dba Principal Trust Company as Trustee for the 2010 Amended and Restated Waterstone Bank SSB Employee Stock Ownership Plan and the Waterstone Bank 401(k) Plan 1013 Centre Road Suite 300 Wilmington, Delaware 19805-1265 | 2,444,999 (5) | 9.7% |
Directors and Executive Officers | ||
Ellen S. Bartel | 15,000 | * |
William F. Bruss | 120,354 | * |
Thomas E. Dalum | 200,127 | * |
Mark R. Gerke | 70,399 | * |
Julie A. Glynn | 17,601 | * |
Douglas S. Gordon | 606,577 | 2.4% |
Michael L. Hansen | 266,413 | 1.1% |
Patrick S. Lawton | 71,631 | * |
Jeffrey R. McGuiness | 7,132 | * |
Kristine A. Rappé | 102,318 | * |
Stephen J. Schmidt | 145,078 | * |
Derek L. Tyus | 6,440 | * |
All directors and executive officers as a group (11 persons) (6) | 2,998,985 | 11.9% |
Name of Beneficial Owner | Total Shares Beneficially Owned (1) | Percent of All Common Stock Outstanding | ||||||||
5% or Greater Shareholders | ||||||||||
Renaissance Technologies LLC Renaissance Technologies Holdings Corporation 800 Third Avenue New York, New York 10022 | 2,138,800 | (2 | ) | 7.9 | % | |||||
Dimensional Fund Advisors LP Building One 6300 Bee Cave Road Austin, Texas 78746 | 2,053,631 | (3 | ) | 7.6 | % | |||||
BlackRock, Inc. 55 East 52nd Street New York, New York 10055 | 1,911,109 | (4 | ) | 7.0 | % | |||||
Delaware Charter Guarantee & Trust Company dba Principal Trust Company as Trustee for the 2010 Amended and Restated Waterstone Bank SSB Employee Stock Ownership Plan and the Waterstone Bank 401(K) Plan 1013 Centre Road Suite 300 Wilmington, Delaware 19805-1265 | 2,456,211 | (5 | ) | 9.0 | % | |||||
Directors and Executive Officers | ||||||||||
Ellen S. Bartel | 79,715 | * | ||||||||
William F. Bruss | 114,847 | * | ||||||||
Thomas E. Dalum | 187,627 | * | ||||||||
Mark R. Gerke | 72,224 | * | ||||||||
Julie A. Glynn | 9,069 | * | ||||||||
Douglas S. Gordon | 597,564 | 2.3 | % | |||||||
Michael L. Hansen | 328,913 | 1.2 | % | |||||||
Patrick S. Lawton | 261,062 | * | ||||||||
Andy Peach | - | * | ||||||||
Kristine A. Rappé | 103,818 | * | ||||||||
Stephen J. Schmidt | 132,578 | * | ||||||||
All directors and executive officers as a group (11 persons) (6) | 3,362,710 | 12.7 | % |
* | Less than 1% . |
(1) | Unless otherwise noted, the specified persons have sole voting and dispositive power as to the shares. Number of shares 292,500. |
(2) | Based on a Schedule 11, 2021. |
(3) | Based on a Schedule 2021. |
(4) | Based on a Schedule 1, 2021. |
(5) | Based on a Schedule |
(6) | The total for the group (but not any individual) includes |
Name and Age | Principal Occupation and Business Experience | Director Since (1) | |
Nominees for terms expiring in | |||
2024 | |||
Douglas S. Gordon, | Mr. Gordon is the Chief Executive Officer and President of Waterstone Financial and WaterStone Bank, | 2005 | |
Patrick S. Lawton, 64 | Mr. Lawton is the Managing Director of Fixed Income Capital Markets for Baird. Mr. Lawton is also a member of Baird’s board of directors. As a Baird Managing Director, Mr. Lawton brings his investment portfolio expertise to the board of directors. Mr. Lawton has a B.S.B.A. and an M.B.A. from Marquette University. | 2000 |
Continuing Directors - Terms expiring in 2022 | |||
Ellen S. Bartel, 66 | Ms. Bartel is the former President of Divine Savior Holy Angels (DSHA) High School (Milwaukee, Wisconsin) | 2013 | |
Thomas E. Dalum, Kristine A. Rappé, | Mr. Dalum is the former Chairman and Chief Executive Officer of UELC, an equipment leasing company and of DUECO, an equipment manufacturer and distributor. Mr. Dalum brings an entrepreneurial background, a long-standing record of community involvement and public service plus more than 30 years of experience as a member of the WaterStone Bank board of directors. Mr. Dalum has a B.A. from the University of Notre Dame and an M.B.A. from Northwestern University. Ms. Rappé is the former Senior Vice President and Chief Administrative Officer of WEC Energy Group (2004 to 2012). Her roles at WEC Energy Group also included Vice President and Corporate Secretary (2001 to 2004) and Vice President of Customer Services (1994 to 2001). In these roles, Ms. Rappé had responsibility for shared services including information technology, human resources, supply chain management, business continuity/corporate security, and the WEC Foundation. Ms. Rappé’s experience overseeing a large corporate entity provides the board of directors with significant perspective on financial management and human resources matters, and she has a long-standing history of community involvement and public service. Ms. Rappé has a an | 1979 2013 |
| |||
Continuing Directors - Terms expiring in 2023 | |||
Mr. Hansen is a business investor who currently holds significant ownership interests in Jacsten Holdings LLC and Mid-States Contracting, Inc. In addition to extensive entrepreneurial experience, Mr. Hansen is a C.P.A. with 13 years of audit and tax experience at an international public accounting firm. Mr. Hansen brings this experience to the board of directors and to the Audit Committee in particular. Mr. Hansen has a B.B.A. from the University of Notre Dame. | 2013 | ||
Stephen J. Schmidt, 59 | Mr. Schmidt is the President of Schmidt and Bartelt Funeral and Cremation Services. Mr. Schmidt has entrepreneurial experience and extensive community relationships throughout the communities served by WaterStone Bank. | 1979 | |
Derek L. Tyus, 51 | Mr. Tyus currently serves as Vice President and Chief Investment Officer of West Bend Mutual Insurance Company. He has been with West Bend since 2016. Before joining West Bend, Mr. Tyus was a director for Northwestern Mutual Wealth Management Company. He has been in | 2021 |
Name and Age | Offices and Positions with Waterstone Financial and WaterStone Bank | Executive Officer Since |
William F. Bruss, | Executive Vice President since 2015, Chief Operating Officer (appointed 2013), General Counsel and Secretary, Waterstone Financial and WaterStone Bank | 2005 |
Mark R. Gerke, | Executive Vice President since January 2020, Chief Financial Officer since February 2016, Chief Accounting Officer (appointed 2014), Senior Vice President, Waterstone Financial and WaterStone Bank since 2014, Controller 2005 to February 2016 | 2016 |
Julie A. Glynn, | 2018 | |
President and Chief Executive Officer of Waterstone Mortgage Corporation since |
Director | Audit Committee | Compensation Committee | Executive Committee | Nominating and Corporate Governance Committee |
Ellen S. Bartel | X | X | Chair | |
Thomas E Dalum | X | Chair | ||
Michael L. Hansen | Chair | X | X | |
Patrick S. Lawton (Chair) | X | X | ||
Kristine A. Rappé | X | Chair | ||
Stephen J. Schmidt | X | X | Chair | |
Derek L. Tyus | X | X | X |
Year Ended | ||||||||
December 31, 2019 | December 31, 2018 | |||||||
Audit fees(1)…………… | $ | 370,000 | $ | 295,125 | ||||
Audit-related fees(2)…… | $ | - | $ | 21,000 | ||||
_____________________ |
Year Ended | ||||||||
December 31, 2020 | December 31, 2019 | |||||||
Audit fees(1)(2)………… | $ | 393,695 | $ | 341,875 | ||||
Audit-related fees…….. | $ | - | $ | - | ||||
_____________________ | ||||||||
(1) Audit fees consist of professional services rendered for the audit of our financial statements, review of SEC Filings and consent on Form S-8. | ||||||||
(2) Fees for the year ended December 31, 2019 have been adjusted for amounts that were estimated in the previously filed Proxy. |
• | Competitive Base Salary; |
• | Short-Term Cash-Based Incentives; |
• | Equity Incentive Awards; |
• | Broad-Based Welfare and Retirement Benefit Plans; |
• | Perquisites; and |
• | Executive Agreements. |
✔ | The Compensation Committee has engaged an independent compensation consultant. |
✔ | The Compensation Committee is composed solely of independent directors. |
✔ | We maintain stock ownership guidelines for our executive officers. |
✔ | We maintain stock ownership guidelines for our non-employee directors. |
✔ | We maintain a clawback policy for incentive compensation. |
✔ | We place restrictions on our directors and officers with respect to (i) holding Company securities in a margin account or otherwise pledging Company securities as collateral for a loan or (ii) engaging in hedging transactions in the Company’s securities. |
✔ | We provide a say-on-pay advisory vote on an annual basis until the next required vote on the frequency of shareholder votes on executive compensation. |
x | We do not encourage excessive risk-taking behavior through our compensation plans. |
x | We do not reprice underwater stock options. |
x | We do not grant options with an exercise price less than fair market value on date of grant. |
x | We do not provide excessive perquisites to our NEOs. |
x | We do not provide excise tax gross ups in our compensation plans or employment agreements. |
x | We do not guarantee salary increases. |
x | We do not provide for uncapped bonuses. |
x | We do not provide for “single-trigger” benefits upon a change in control. |
Bank Financial Corporation, Burr Ridge, IL | |
Name and Principal Position | 2019 ($) | 2018 ($) | Change ($) | Change (%) | 2020 ($) | 2019 ($) | Change ($) | Change (%) | ||||||||||||
Douglas S. Gordon Chief Executive Officer of Waterstone Financial and WaterStone Bank | 850,000 | 850,000 | — | — | 850,000 | 850,000 | — | — | ||||||||||||
William F. Bruss Chief Operating Officer and General Counsel of Waterstone Financial and WaterStone Bank | 318,000 | 309,000 | 9,000 | 2.9 | % | 365,000 | 318,000 | 47,000 | 14.8% | |||||||||||
Mark R. Gerke Chief Financial Officer of Waterstone Financial and WaterStone Bank | 206,000 | 200,000 | 6,000 | 3.0 | % | 250,000 | 206,000 | 44,000 | 21.4% | |||||||||||
Julie A. Glynn Senior Vice President and Director of Retail of WaterStone Bank | 190,500 | 185,000 | 5,500 | 3.0 | % | |||||||||||||||
Andy Peach Chief Executive Officer and President of Waterstone Mortgage Corporation (1) | 400,000 | — | — | — | ||||||||||||||||
Julie A. Glynn Chief Retail Officer of WaterStone Bank | 225,000 | 190,500 | 34,500 | 18.1% | ||||||||||||||||
Jeff McGuiness Chief Executive Officer and President of Waterstone Mortgage Corporation (1) | 400,000 | — | — | — |
Performance Measure | Evaluated Against | Rationale | |
Budget | Focuses management on achieving budgeted net income. | ||
Focuses management on enhancing franchise value through growth of the Commercial Real Estate and Commercial and Industrial segments of the loan portfolio. | |||
Core Deposit Growth | Focuses management on less costly deposits and growth of business and retail checking and savings accounts, which will help to improve net interest margin. | ||
Individual Performance | Contingent on individual achievement of strategic or operational non-financial objectives. | ||
Target | Target | |||||||||||||||||||
Name | Threshold ($) | Amount ($) | % of Annual Base Salary | Maximum ($) | Threshold ($) | Amount ($) | % of Annual Base Salary | Maximum ($) | ||||||||||||
Douglas S. Gordon | 63,750 | 127,500 | 15 | % | 191,250 | 212,500 | 425,000 | 50% | 637,500 | |||||||||||
William F. Bruss | 23,850 | 47,700 | 15 | % | 71,550 | 91,250 | 136,875 | 37.5% | 182,500 | |||||||||||
Mark R. Gerke | 15,450 | 30,900 | 15 | % | 46,350 | 25,000 | 37,500 | 15% | 50,000 | |||||||||||
Julie A. Glynn | 38,100 | 57,150 | 30 | % | 76,200 | 45,000 | 67,500 | 30% | 90,000 |
Name | Return on Average Assets | Non-Performing Assets to Total Asset | Core Deposit Growth | Individual Performance | Earnings Per Share | Commercial Loan Growth | Core Deposit Growth | Individual Performance | ||||||||||||
Douglas S. Gordon | 40 | % | 30 | % | 15 | % | 15 | % | 50% | 20% | 20% | 10% | ||||||||
William F. Bruss | 40 | % | 30 | % | 15 | % | 15 | % | 50% | 20% | 20% | 10% | ||||||||
Mark R. Gerke | 40 | % | 30 | % | 15 | % | 15 | % | 50% | 20% | 20% | 10% | ||||||||
Julie A. Glynn | 40 | % | 30 | % | 15 | % | 15 | % | 20% | 20% | 50% | 10% |
2019 Performance Measure | Threshold | Target | Maximum | Actual | Achievement as a % of Target | |||||||||||||||
Return on Average Assets | 1.25 | % | 1.40 | % | 1.55 | % | 1.82 | % | 130 | % | ||||||||||
Non-Performing Assets to total Assets | 0.70 | % | 0.50 | % | 0.30 | % | 0.40 | % | 79 | % | ||||||||||
Core Deposit Growth | 2.50 | % | 5.00 | % | 7.50 | % | 8.23 | % | 165 | % |
2020 Performance Measure | Threshold | Target | Maximum | Actual | Achievement as a % of Target | |||||||||||||||
Earnings Per Share | $ | 0.96 | $ | 1.06 | $ | 1.27 | $ | 3.30 | 311 | % | ||||||||||
Commercial Loan Growth | 1.10 | % | 2.20 | % | 4.00 | % | 1.37 | % | 62 | % | ||||||||||
Core Deposit Growth | 3.00 | % | 4.50 | % | 7.00 | % | 45.41 | % | 712 | % |
Name | 2019 Annual Incentive Payment ($) | % of 2019 Target Annual Incentive | 2020 Annual Incentive Payment ($) | % of 2020 Target Annual Incentive | ||||||
Douglas S. Gordon | 181,688 | 142.5 | % | 562,932 | 132.5% | |||||
William F. Bruss | 67,973 | 142.5 | % | 166,490 | 121.6% | |||||
Mark R. Gerke | 44,033 | 142.5 | % | 45,614 | 121.6% | |||||
Julie A. Glynn | 73,343 | 142.5 | % | 82,105 | 121.6% |
SUMMARY COMPENSATION TABLE | ||||||||||||||||||||||||||||||||
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($)(1) | Option Awards ($)(1) | Non-Equity Incentive Plan Compensation ($) | All Other Compensation ($)(2) | Total ($) | ||||||||||||||||||||||||
Douglas S. Gordon Chief Executive Officer of Waterstone Financial and WaterStone Bank | 2019 2018 2017 | 850,000 850,000 850,000 | 181,688 — — | — — — | — — — | — — — | 187,986 137,899 86,712 | 1,219,674 987,899 936,712 | ||||||||||||||||||||||||
William F. Bruss Chief Operating Officer and General Counsel of Waterstone Financial and WaterStone Bank | 2019 2018 2017 | 318,000 308,654 300,000 | 67,973 — — | — — — | — — — | — — — | 86,911 74,343 65,929 | 472,884 382,997 365,929 | ||||||||||||||||||||||||
Mark R. Gerke Chief Financial Officer of Waterstone Financial and WaterStone Bank | 2019 2018 2017 | 206,000 197,308 170,000 | 44,033 — — | — — — | — — — | — — — | 61,353 56,949 52,410 | 311,386 254,257 222,410 | ||||||||||||||||||||||||
Julie A. Glynn Senior Vice President and Director of Retail of WaterStone Bank (3) | 2019 2018 | 190,500 132,192 | 73,343 40,000 | — — | — 72,800 | — — | 24,629 4,162 | 288,472 252,154 | ||||||||||||||||||||||||
Andy Peach President of Waterstone Mortgage Corporation (4) | 2019 | 117,239 | — | — | — | — | — | 117,239 |
SUMMARY COMPENSATION TABLE | |||||||
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($) | Option Awards ($)(1) | All Other Compensation ($)(2) | Total ($) |
Douglas S. Gordon Chief Executive Officer of Waterstone Financial and WaterStone Bank | 2020 2019 2018 | 850,000 850,000 850,000 | 562,932 181,688 — | — — — | — — — | 63,026 187,986 137,899 | 1,475,958 1,219,674 987,899 |
William F. Bruss Chief Operating Officer and General Counsel of Waterstone Financial and WaterStone Bank | 2020 2019 2018 | 357,000 318,000 308,654 | 166,490 67,973 — | — — — | — — — | 67,847 86,911 74,343 | 591,337 472,884 382,997 |
Mark R. Gerke Chief Financial Officer of Waterstone Financial and WaterStone Bank | 2020 2019 2018 | 242,000 206,000 197,308 | 45,614 44,033 — | — — — | — — — | 72,667 61,353 56,949 | 360,281 311,386 254,257 |
Julie A. Glynn Senior Vice President and Director of Retail of WaterStone Bank (3) | 2020 2019 2018 | 219,000 190,500 132,192 | 82,105 73,343 40,000 | — — — | — — 72,800 | 57,996 24,629 4,162 | 359,101 288,472 249,154 |
Jeff McGuiness President of Waterstone Mortgage Corporation (4) | 2020 | 30,769 | 325,000 | — | — | — | 355,769 |
(1) | Reflects the aggregate grant-date fair value of the Standards Board Accounting Standards Codification Topic 718. The assumptions used in the valuation of these awards are included in the “Stock Based Compensation” footnote to Waterstone Financial’s audited financial statements for the years ended December 31, 2020, 2019 Report on Form 10-K for such years, as filed with the Securities and Exchange Commission. |
(2) | A detailed breakdown of “All Other Compensation” for 2020 is provided in the table below. |
(3) | Ms. Glynn initiated employment with the Company on March 26, 2018. |
(4) | Mr. |
Name and Principal Position | 401(k) Match ($) | Employee Stock Ownership Plan ($) | Automobile Expense Allowance ($)(2) | Restricted Stock Dividends ($) | Other ($)(1) | Total ($) | 401(k) Match ($) | Employee Stock Ownership Plan ($) | Automobile Expense Allowance ($)(2) | Restricted Stock Dividends ($)(1) | Total ($) | ||||||||||||||||||
Douglas S. Gordon | 643 | 59,795 | 3,048 | 124,500 | — | 187,986 | 2,811 | 53,970 | 6,245 | — | 63,026 | ||||||||||||||||||
William F. Bruss | 1,117 | 59,795 | 11,059 | 14,940 | — | 86,911 | 2,941 | 53,970 | 10,936 | — | 67,847 | ||||||||||||||||||
Mark R. Gerke | 1,896 | 43,943 | 3,992 | 11,440 | — | 61,353 | 2,497 | 53,970 | 840 | 15,360 | 72,667 | ||||||||||||||||||
Julie A. Glynn | 1,463 | 20,341 | 2,825 | — | — | 24,629 | 2,078 | 53,970 | 2,078 | — | 57,996 | ||||||||||||||||||
Andy Peach (1) | — | — | — | — | — | — | |||||||||||||||||||||||
Jeff R. McGuiness | — | — | — | — | — |
REALIZED COMPENSATION | ||||||
Name and Principal Position | Year | Salary ($) | Bonus ($) | Value Realized on Stock Awards Vesting ($) | All Other Compensation ($) | Total ($) |
Douglas S. Gordon Chief Executive Officer of Waterstone Financial and WaterStone Bank | 2020 2019 2018 | 850,000 850,000 850,000 | 562,932 181,688 — | — 839,500 885,000 | 63,026 187,986 137,899 | 1,475,958 2,059,174 1,872,899 |
William F. Bruss Chief Operating Officer and General Counsel of Waterstone Financial and WaterStone Bank | 2020 2019 2018 | 357,000 318,000 308,654 | 166,490 67,973 — | — 100,740 106,200 | 67,847 86,911 74,343 | 591,337 573,624 489,197 |
Mark R. Gerke Chief Financial Officer of Waterstone Financial and WaterStone Bank | 2020 2019 2018 | 242,000 206,000 197,308 | 45,614 44,033 — | 59,720 67,640 71,600 | 72,667 61,353 56,949 | 420,001 379,026 325,857 |
Julie A. Glynn Senior Vice President and Director of Retail of WaterStone Bank | 2020 2019 2018 | 219,000 190,500 132,192 | 82,105 73,343 40,000 | — — — | 57,996 24,629 4,162 | 359,101 288,472 176,354 |
Jeff R. McGuiness President of Waterstone Mortgage Corporation | 2020 | 30,769 | — | — | — | 30,769 |
OUTSTANDING EQUITY AWARDS AT DECEMBER 31, 2019 | |||||||||||||||||||||||||||
OUTSTANDING EQUITY AWARDS AT DECEMBER 31, 2020 | OUTSTANDING EQUITY AWARDS AT DECEMBER 31, 2020 | ||||||||||||||||||||||||||
Option Awards | Stock Awards | Option Awards | Stock Awards | ||||||||||||||||||||||||
Name | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($)(2) | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | |||||||||||||||
Douglas S. Gordon | 88,627 | 30,000 | (3) | 12.75 | 3/4/2025 | — | — | ||||||||||||||||||||
William F. Bruss | 24,000 | 6,000 | (3) | 12.75 | 3/4/2025 | — | — | 30,000 | — | 12.75 | 3/4/2025 | — | — | ||||||||||||||
Mark R. Gerke | 3,292 | — | 1.73 | 1/4/2022 | — | — | 10,000 | — | 12.75 | 3/4/2025 | — | — | |||||||||||||||
8,000 | 2,000 | (3) | 12.75 | 3/4/2025 | — | — | 8,000 | 2,000 (1) | 14.98 | 6/21/2026 | — | — | |||||||||||||||
6,000 | 4,000 | (3) | 14.98 | 6/21/2026 | 4,000 | (1) | 76,120 | ||||||||||||||||||||
Julie A. Glynn | 4,000 | 16,000 | (3) | 17.35 | 3/20/2028 | — | — | 12,000 | 8,000 (1) | 17.35 | 3/20/2028 | — | — |
(1) |
Options vest in five annual increments of 20% each beginning on the first anniversary of the grant date and subsequently on each anniversary of the date of the initial award. |
OPTION EXERCISES AND STOCK VESTED DURING THE YEAR ENDED DECEMBER 31, 2019 | ||||||||||||||||||||
OPTION EXERCISES AND STOCK VESTED DURING THE YEAR ENDED DECEMBER 31, 2020 | OPTION EXERCISES AND STOCK VESTED DURING THE YEAR ENDED DECEMBER 31, 2020 | |||||||||||||||||||
Option Awards | Stock Awards | Option Awards | Stock Awards | |||||||||||||||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting(#) | Value Realized on Vesting ($) | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting(#) | Value Realized on Vesting ($) | ||||||||||||
Douglas S. Gordon | 7,843 | 32,470 | 50,000 | 839,500 | (1) | 118,628 | 142,896 | — | — | |||||||||||
William F. Bruss | — | — | 6,000 | 100,740 | (1) | |||||||||||||||
Mark R. Gerke | — | — | 4,000 | 67,640 | (2) | 3,292 | 51,487 | 4,000 | 58,720 (1) |
(1) | Based on the | |
22, 2020. |
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL | POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL | |||||||||||||||||||||||||||||||||||||||
Mr. Gordon | Mr. Bruss | Mr. Gerke | Ms. Glynn | Mr. Peach | Mr. Gordon | Mr. Bruss | Mr. Gerke | Ms. Glynn | Mr. McGuiness | |||||||||||||||||||||||||||||||
Discharge Without Cause or Resignation With Good Reason — no Change in Control | ||||||||||||||||||||||||||||||||||||||||
Severance payment | $ | 3,986,497 | (1) | $ | — | $ | — | $ | — | $ | 400,000 | (1) | $ | 3,739,551 | (1) | $ | — | $ | — | $ | — | $ | 400,000 | (1) | ||||||||||||||||
Medical, dental and life insurance benefits | 35,954 | (2) | — | — | — | — | 36,344 | (2) | — | — | — | — | ||||||||||||||||||||||||||||
Acceleration of vesting of stock options | 188,400 | (4) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 4,210,851 | $ | — | $ | — | $ | — | $ | 400,000 | $ | 3,775,896 | $ | — | $ | — | $ | — | $ | 400,000 | ||||||||||||||||||||
Discharge Without Cause or Resignation With Good Reason — Change in Control Related | ||||||||||||||||||||||||||||||||||||||||
Severance payment (lump sum) | $ | 6,149,322 | (3) | $ | — | $ | — | $ | 230,500 | (3) | $ | 400,000 | (3) | $ | 6,141,471 | (3) | $ | — | $ | — | $ | 225,000 | (3) | $ | 400,000 | (3) | ||||||||||||||
Medical, dental and life insurance benefits | 53,931 | (2) | — | — | — | — | 54,516 | (2) | — | — | — | — | ||||||||||||||||||||||||||||
Acceleration of vesting of stock options | 188,400 | (4) | 37,680 | (4) | 19,680 | (4) | 26,880 | (4) | — | — | — | 7,680 | (4) | 17,640 | (4) | — | ||||||||||||||||||||||||
Acceleration of vesting of restricted stock | — | — | 88,520 | (5) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 6,391,653 | $ | 37,680 | $ | 108,200 | $ | 257,380 | $ | 400,000 | $ | 6,391,653 | $ | — | $ | 7,680 | $ | 242,640 | $ | 400,000 | ||||||||||||||||||||
Disability | ||||||||||||||||||||||||||||||||||||||||
Severance/disability payment | $ | 1,983,333 | (6) | $ | — | $ | — | $ | — | $ | — | $ | 1,416,667 | (5) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Acceleration of vesting of stock option | 188,400 | (4) | 37,680 | (4) | 19,680 | (4) | 26,880 | (4) | — | — | — | 7,680 | (4) | 17,640 | (4) | — | ||||||||||||||||||||||||
Acceleration of vesting of restricted stock | — | — | 88,520 | (5) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 2,171,733 | $ | 37,680 | $ | 108,200 | $ | 26,880 | $ | — | $ | 1,416,667 | $ | — | $ | 7,680 | $ | 17,640 | $ | — | ||||||||||||||||||||
Death | ||||||||||||||||||||||||||||||||||||||||
Salary continuation payment | $ | 850,000 | (7) | $ | — | $ | — | $ | 230,500 | (7) | $ | — | $ | 850,000 | (6) | $ | — | $ | — | $ | 225,000 | (6) | $ | — | ||||||||||||||||
Medical, dental and life insurance benefits | 17,977 | (7) | — | — | — | — | 18,172 | (6) | — | — | — | — | ||||||||||||||||||||||||||||
Acceleration of vesting of stock options | 188,400 | (4) | 37,680 | (4) | 19,680 | (4) | 26,880 | (4) | — | — | — | 7,680 | (4) | 17,640 | (4) | — | ||||||||||||||||||||||||
Acceleration of vesting of restricted stock | — | — | 88,520 | (5) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 1,056,377 | $ | 37,680 | $ | 108,200 | $ | 257,380 | $ | — | $ | 868,172 | $ | — | $ | 7,680 | $ | 242,640 | $ | — |
DIRECTOR COMPENSATION TABLE FOR THE YEAR ENDED DECEMBER 31, 2019 | ||||||||||
DIRECTOR COMPENSATION TABLE FOR THE YEAR ENDED DECEMBER 31, 2020 | DIRECTOR COMPENSATION TABLE FOR THE YEAR ENDED DECEMBER 31, 2020 | |||||||||
Name | Fees earned or paid in cash ($) | Total ($) | Fees earned or paid in cash ($) | Total ($) | ||||||
Ellen S. Bartel Nominating Committee Co-chairman | 18,000 | 18,000 | 18,000 | 18,000 | ||||||
Thomas E. Dalum Compensation Committee Chairman | 18,000 | 18,000 | 18,000 | 18,000 | ||||||
Michael L. Hansen Audit Committee Chairman | 24,000 | 24,000 | 24,000 | 24,000 | ||||||
Patrick S. Lawton Chairman of the Board | 30,000 | 30,000 | 30,000 | 30,000 | ||||||
Kristine A. Rappé Executive Committee Chairman | 18,000 | 18,000 | 18,000 | 18,000 | ||||||
Stephen J. Schmidt Nominating Committee Co-chairman | 18,000 | 18,000 | 18,000 | 18,000 |
• | WaterStone Bank employees volunteered over | |
• | Bank employees have leadership roles with over 50 community organizations. | |
• | The WaterStone Bank Foundation awarded more than |
• | WaterStone | |||
• | The Bank installs energy-efficient lighting and appliances in its premises. | |||
• | The Bank takes efforts to properly recycle paper, plastic, glass, and metal and produces materials with recycled paper. | |||
• | The Bank seeks to reduce consumption, including the utilization of electronic documents to reduce paper usage. | |||
• | The Bank adopts technology that can reduce our carbon footprint, such as providing direct and remote deposit capabilities and promoting e-statement enrollment to decrease paper and ink use. |
You May Vote Your Proxy When You View The Material On The Internet. You Will Be Asked To Follow The Prompts To Vote Your Shares. | |
WATERSTONE FINANCIAL, INC. c/o Continental Proxy Services – 30th Floor 1 State Street, New York NY 10004 | |
Waterstone Financial, Inc. 11200 West Plank Court, Wauwatosa, WI 53226 | |
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS to be held on May |
*Shareholders are cordially invited to attend the Annual Meeting and vote in person. At the meeting, you will need to request a ballot to vote your shares. |
(1) | Electing two directors each to serve for a term expiring in | |||
(2) | ||||
Ratifying the selection of RSM US LLP as Waterstone Financial, Inc.’s independent registered public accounting firm | ||||
Approving an advisory, non-binding resolution to approve the executive compensation described in the Proxy Statement; and | ||||
|
Your electronic vote authorizes the named proxies to vote your shares in the same manner as if you marked, signed, dated, and returned the proxy card. | Vote Your Proxy on the Internet: Go to http://www.cstproxyvote.com Have your notice available when you access the above website. Follow the prompts to vote your shares. | |
Vote at the Meeting - If you plan to attend the virtual online annual meeting, you will need your 12 digit control number to vote electronically at the meeting. To attend: https://www.cstproxy.com/wsbonline/2021 | CONTROL NUMBER | |
- | Annual Report for the year ended December 31, |
- |
- | the Proxy |
- | Any amendments to the foregoing materials that are required to be furnished to |
ACCESSING YOUR PROXY MATERIALS ONLINE Have this notice available when you request a paper copy of the proxy materials or to vote your proxy electronically. You must reference your company ID., proxy number, and account number. |
REQUESTING A PAPER COPY OF THE PROXY MATERIALS By telephone please call 1-888-221-0691, or By logging on to or By email at: proxy@continentalstock.com Please include the company name and your control number in the subject line. |
WATERSTONE FINANCIAL, INC. | Your phone or Internet vote authorizes the named proxies to vote your shares in the same manner as if you marked, signed and returned your proxy card. Votes submitted electronically over the Internet or by telephone must be received by 11:59 p.m., Eastern Time, on May | |
www.cstproxyvote.com Use the Internet to vote your proxy. Have your proxy card available when you access the above website. Follow the prompts to vote your shares. Vote at the Meeting - If you plan to attend the virtual online annual meeting, you will need your 12 digit control number to vote electronically at the meeting. To attend: https://www.cstproxy.com/wsbonline/2021 | ||
PHONE - 1 (866) 894-0536 Use a touch-tone telephone to vote your proxy. Have your proxy card available when you call. Follow the voting instructions to vote your shares. | ||
PLEASE DO NOT RETURN THE PROXY CARD IF YOU ARE VOTING ELECTRONICALLY OR BY PHONE. | MAIL - Mark, sign and date your proxy card and return it in the postage-paid envelope provided. |
PROXY | Please mark your votes like this | ☒ |
THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED AS INDICATED, OR IF NO DIRECTION IS INDICATED, WILL BE VOTED “FOR” ALL NOMINEES IN PROPOSAL 1, “FOR” PROPOSALS 2 |
THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR": | ||||||||||
1. Election of Directors | FOR all | WITHOUT AUTHORITY | FOR | |||||||
Nominees listed to the left | to vote (except as marked to the contrary for all nominees listed to the left) | resolution to approve the executive compensation described in the Proxy Statement. | ☐ | ☐ | ☐ | |||||
(1) | ☐ | ☐ | ||||||||
(2) Patrick Lawton | ||||||||||
(Instruction: To withhold authority to vote for any individual nominee, strike a line through that nominee's name in the list above) | The Board of Directors recommends a vote “FOR” all nominees in proposal 1, and “FOR” | |||||||||
2. LLP as independent registered public accounting firm. | FOR ☐ | AGAINST ☐ | ABSTAIN ☐ | CONTROL NUMBER | ||||||
Signature | Signature, if held jointly | Date | , |
WATERSTONE FINANCIAL, INC. | Your phone or Internet instruction authorizes the ESOP Trustee to vote your shares in the same manner as if you marked, signed and returned your ESOP Vote Authorization form. Instructions submitted electronically over the Internet or by telephone must be received by 11:59 p.m., Eastern Time, on May | |
INTERNET/MOBILE - www.cstproxyvote.com Use the Internet to you access the above website. Follow the prompts to vote your shares. Vote at the Meeting - If you plan to attend the virtual online annual meeting, you will need your 12 digit control number to vote electronically at the meeting. To attend: https://www.cstproxy.com/wsbonline/2021 | ||
PHONE - 1 (866) 894-0536 Use a touch-tone telephone to transmit your voting instructions. Have your ESOP Vote Authorization Form available when you call. Follow the voting instructions to vote your shares. | ||
PLEASE DO NOT RETURN THE PROXY CARD IF YOU ARE VOTING ELECTRONICALLY OR BY PHONE. | MAIL - Mark, sign and date your envelope provided. |
ESOP VOTE AUTHORIZATION FORM | Please mark your votes like this | ☒ |
THIS ESOP VOTE AUTHORIZATION FORM WHEN PROPERLY EXECUTED WILL BE VOTED AS DIRECTED, OR IF NO DIRECTION IS INDICATED, WILL BE VOTED “FOR” ALL NOMINEES IN PROPOSAL 1, AND “FOR” PROPOSALS 2 |
THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR": | ||||||||||
1. Election of Directors | FOR all | WITHOUT AUTHORITY | FOR | |||||||
Nominees listed to the left | to vote (except as marked to the contrary for all nominees listed to the left) | resolution to approve the executive compensation described in the Proxy | ☐ | ☐ | ☐ | |||||
(1) | ☐ | ☐ | ||||||||
(2) Patrick Lawton | ||||||||||
(Instruction: To withhold authority to vote for any individual nominee, strike a line through that nominee's name in the list above) | The Board of Directors recommends a vote “FOR” all nominees in proposal 1, and “FOR” | |||||||||
2. LLP as independent registered public accounting firm. | FOR ☐ | AGAINST ☐ | ABSTAIN ☐ | CONTROL NUMBER | ||||||
Signature | Date | , |
WATERSTONE FINANCIAL, INC. | Your phone or Internet instruction authorizes the 401(k) Trustee to vote your shares in the same manner as if you marked, signed and returned your 401(k) Vote Authorization form. Instructions submitted electronically over the Internet or by telephone must be received by11:59 p.m., Eastern Time, on May | |
www.cstproxyvote.com Use the Internet to you access the above website. Follow the prompts to vote your shares. Vote at the Meeting - If you plan to attend the virtual online annual meeting, you will need your 12 digit control number to vote electronically at the meeting. To attend: https://www.cstproxy.com/wsbonline/2021 | ||
PHONE - 1 (866) 894-0536 Use a touch-tone telephone to transmit your voting instructions. Have your 401(k) Vote Authorization Form available when you call. Follow the voting instructions to vote your shares. | ||
PLEASE DO NOT RETURN THE PROXY CARD IF YOU ARE VOTING ELECTRONICALLY OR BY PHONE. | MAIL - Mark, sign and date your envelope provided. |
401(k) VOTE AUTHORIZATION FORM | Please mark your votes like this | ☒ |
THIS 401(k) VOTE AUTHORIZATION FORM WHEN PROPERLY EXECUTED WILL BE VOTED AS DIRECTED, OR IF NO DIRECTION IS INDICATED, WILL BE VOTED “FOR” ALL NOMINEES IN PROPOSAL 1, AND “FOR” PROPOSALS 2 |
THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR": | ||||||||||
1. Election of Directors | FOR all | WITHOUT AUTHORITY | FOR | |||||||
Nominees listed to the left | to vote (except as marked to the contrary for all nominees listed to the left) | resolution to approve the executive compensation described in the Proxy | ☐ | ☐ | ☐ | |||||
(1) | ☐ | ☐ | ||||||||
(2) Patrick Lawton | ||||||||||
(Instruction: To withhold authority to vote for any individual nominee, strike a line through that nominee's name in the list above) | The Board of Directors recommends a vote “FOR” all nominees in proposal 1, and “FOR” | |||||||||
2. LLP as independent registered public accounting firm. | FOR ☐ | AGAINST ☐ | ABSTAIN ☐ | CONTROL NUMBER | ||||||
Signature | Date | , 2020 |