Karen Hon
About Karen Hon
Karen Hon is Executive Vice President and Chief Accounting Officer of Banc of California (BANC), appointed March 4, 2025, age 48, overseeing accounting, controllership, financial reporting and Sarbanes‑Oxley (SOX) controls; she reports to CFO Joseph Kauder . She brings 20+ years in banking/finance, including 17 years at Silicon Valley Bank where she served as Chief Accounting Officer, and prior audit experience at KPMG; she holds a bachelor’s in economics and psychology from the University of British Columbia and is a Chartered Professional Accountant . Company performance context: in 2024 BANC expanded net interest margin by 135 bps to 3.04%, increased noninterest-bearing deposits to ~29%, reduced wholesale funding to 10.3%, cut noninterest expense by 36%, and was aligned with or outperformed the KBW Regional Banking Index (KRX) through the year, reflecting disciplined execution post-merger integration .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Silicon Valley Bank (SVB) | Chief Accounting Officer | 2020–2023 | Led accounting and reporting teams; oversaw controllership, tax, SOX, SEC/regulatory reporting; led finance transformation and data/tech initiatives supporting reporting . |
| First Citizens Bank (SVB unit) | Chief Accounting Officer | 2023–2024 | Continued CAO responsibilities post-acquisition; maintained oversight of controllership and reporting functions . |
| Silicon Valley Bank | Head of FP&A; Corporate Controller (earlier roles) | 2006–2020 | Advanced finance leadership roles supporting planning, analysis, and controllership . |
| KPMG LLP | Auditor | Pre-2006 | External audit foundation; professional standards and controls expertise . |
External Roles
| Role | Organization | Years | Notes |
|---|---|---|---|
| — | — | — | No public company directorships or committee roles disclosed for Hon . |
Fixed Compensation
| Component | Amount/Term | Notes |
|---|---|---|
| Annual Base Salary | $425,000 | Set upon appointment as CAO; subject to management discretion going forward . |
| Annual Bonus Eligibility | Eligible | Bonus opportunity under Company’s Executive Incentive framework, determined by CNG Committee; ranges 0–200% of target for executives generally . |
| Long-Term Incentive (LTI) Eligibility | Eligible | Participates in equity incentive plan; awards at the discretion of the CNG Committee . |
| Minimum Vesting | ≥1 year | Equity awards under the 2018 Omnibus Plan generally require at least one-year vesting . |
| Clawback/Recoupment | In place | Restatement/error and misconduct recoupment policies; Dodd‑Frank/NYSE compliant executive clawback adopted in 2023 . |
| Insider Trading Controls | Anti‑hedging/pledging | Prohibits short selling, options trading, hedging, pledging, and margin purchases for directors/officers/employees . |
| Officer Stock Ownership Guidelines | 100% of after-tax base salary | Executives must reach guideline within 3 years of becoming subject to it . |
Performance Compensation
Annual incentive plan framework and latest disclosed metrics (used to calculate 2024 NEO payouts; framework informs 2025 design):
| Metric | Weight | Threshold | Target | Maximum | Actual (2024) | Payout Ratio | Weighted Payout |
|---|---|---|---|---|---|---|---|
| Core ROATCE (4Q24) | 35% | 12.2% | 13.6% | 15.0% | 7.4% | 0% | 0% |
| Core Adjusted Noninterest Expense (4Q24, $mm) | 25% | $172.5 | $164.3 | $156.1 | $150.7 | 200% | 50% |
| Avg NIB Deposits Growth (YoY, 4Q24) | 15% | 2.5% | 4.9% | 5.9% | 1.7% | 0% | 0% |
| Qualitative Considerations | 25% | — | — | — | Committee determination | 100% | 25% |
| Total | 100% | — | — | — | — | — | 75% payout |
Long‑term PSU design (annual NEO grants made 2/27/2024; vesting after 3‑year performance period; gating requires “well‑capitalized” status):
| PSU Metric | Weight | Performance Period | Threshold Payout | Target Payout | Maximum Payout |
|---|---|---|---|---|---|
| Core ROAA | 33.3% | 2024–2026 | 50% | 100% | 200% |
| Core EPS (Diluted) | 33.3% | 2024–2026 | 50% | 100% | 200% |
| Relative TSR vs KRX | 33.3% | 2024–2026 | 50% | 100% | 200% |
Note: Hon’s specific annual bonus target %, PSU/RSU grant size, and vesting schedules for 2025 are not disclosed; she is eligible under the same governance framework and policies .
Equity Ownership & Alignment
| Item | Status/Details |
|---|---|
| Beneficial Share Ownership | Not disclosed in 2025 proxy record table; Hon joined in March 2025 after the 3/14/2025 record date . |
| Ownership Guidelines | Must beneficially own BANC stock ≥100% of after‑tax base salary within 3 years of becoming subject to guidelines . |
| Hedging/Pledging/Hypothecation | Prohibited for directors/officers/employees (short selling, derivatives, hedging, pledging, margin) . |
| Clawbacks | Restatement/error/misconduct recoupment; separate NYSE/SEC clawback policy applies to incentive‑based compensation from Oct 2, 2023 onward . |
| Equity Award Form | Company‑wide practice: RSUs vest in three equal annual installments; PSUs cliff vest after 3‑year performance period; minimum one‑year vesting . |
| Director/Officer Trading Windows | Governed by Insider Trading Policy and blackout periods overseen by General Counsel . |
Employment Terms
| Term | Details |
|---|---|
| Title | Executive Vice President, Chief Accounting Officer (principal accounting officer responsibilities) . |
| Appointment/Start Date | March 4, 2025 . |
| Reporting Line | Reports to EVP & CFO Joseph Kauder; member of senior management committee . |
| Base Salary | $425,000 . |
| Bonus/LTI Eligibility | Eligible for annual bonus and periodic LTI awards at Committee discretion . |
| Severance & CIC | Participant in Executive Change‑in‑Control Severance Plan; CIC benefits are double‑trigger (termination without cause or for good reason within CIC window) with continuation of health benefits; Company does not provide single‑trigger cash severance or single‑trigger equity vesting . |
| Non‑compete/Non‑solicit | Not specifically disclosed for Hon; plan documents include non‑solicitation provisions for certain executives; details vary by role . |
| Related Party Transactions | None disclosed; no family relationships; no Item 404(a) transactions . |
| Equity Grant Timing Convention | Annual employee equity awards typically approved late Feb/early Mar following 10‑K release (useful for monitoring Form 4 timing) . |
Investment Implications
- Compensation alignment: Hon’s package ties cash bonus and future LTI awards to BANC’s established performance frameworks (Core ROAA/EPS, Relative TSR), alongside strict governance on vesting, clawbacks, and hedging/pledging prohibitions—reducing incentive for short‑term risk taking and aligning pay with long‑term shareholder value .
- Retention risk: Participation in the Executive CIC Severance Plan with double‑trigger protections and health benefit continuation reduces voluntary departure risk around strategic events; absence of single‑trigger features and clawbacks further align incentives with performance and conduct .
- Trading signals: Monitor forthcoming Form 4s for initial CAO equity grants and the Company’s typical annual equity cycle post‑10‑K (late Feb/early Mar), as new RSU/PSU awards can create scheduled vesting events but pledging/hedging restrictions mitigate forced‑sale risk .
- Execution lens: Hon’s deep accounting leadership and SOX oversight experience at SVB/First Citizens should strengthen internal controls and reporting reliability post‑merger, supporting margin and deposit‑mix improvements the Company achieved in 2024; investor confidence in financial reporting quality is a lever for multiple expansion in regional banks .
- Governance context: Strong say‑on‑pay support (96%), independent consultant usage, rigorous PSU design (including price‑based “Stockholder Value Creation Award” for certain execs), and updated peer group all point to disciplined compensation oversight; Hon fits into this framework as a new executive subject to ownership guidelines and recoupment policies .