Patrick J. Farrell
About Patrick J. Farrell
Patrick J. Farrell is Chief Financial Officer (principal financial officer) of ArrowMark Financial Corp. (BANX), serving since April 2014; he is age 65 per the 2025 proxy and is a New York–licensed CPA with a B.S. in Business Administration–Accounting from Manhattan College . He has 40+ years of finance and accounting experience across mutual funds, investment advisory and broker-dealer businesses, and began his career as an auditor at Peat Marwick Mitchell & Co. . As CFO, he certifies BANX’s SEC reports (Form N-CSR) and is an authorized signatory on current reports (8‑K) for governance matters, indicating responsibility for financial reporting and controls . Company-level performance indicators during 2025 show total return on NAV of 2.69% in Q1 and 4.29% in Q2, with annualized net investment income ratios of 10.74% and 10.40%, respectively; these are fund-level metrics during his ongoing tenure .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Emerging Managers Group, L.P. | CFO/COO | Not disclosed | Specialty asset manager focused on offshore mutual funds . |
| Reserve Management | Chief Financial Officer | Not disclosed | Oversaw all financial activities for the company . |
| Lexington Management | Finance roles | Not disclosed | Investment advisory and mutual fund activities focus . |
| Drexel Burnham Lambert | Finance roles | Not disclosed | Investment advisory activities focus . |
| Alliance Capital | Finance roles | Not disclosed | Investment advisory activities focus . |
| New York Life Investment Management | Finance roles | Not disclosed | Investment advisory activities focus . |
| Peat Marwick Mitchell & Co. | Auditor (early career) | Not disclosed | External audit foundation . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| StoneCastle Partners, LLC | Chief Financial Officer | Since April 2014 | Also serves as BANX CFO while employed by StoneCastle Partners . |
| StoneCastle Trust Co. | Director | Since January 2021 | Director role disclosed in BANX proxy . |
Fixed Compensation
- The Company discloses that “No officers of the Company received compensation from the Company.” Officers (including the CFO) are compensated by affiliated entities (e.g., the Adviser/related firms) rather than by BANX directly; specific salary/bonus amounts are not disclosed by the Company .
- Farrell’s employer of record is StoneCastle Partners, where he has served as CFO since April 2014, indicating compensation is set and paid outside BANX’s proxy disclosure scope .
| Year | Company-paid base salary | Target bonus % | Actual bonus | Notes |
|---|---|---|---|---|
| 2024 | None (officers not paid by Company) | Not disclosed | Not disclosed | Compensation paid by affiliates; not reported in BANX proxy . |
| 2025 | None (officers not paid by Company) | Not disclosed | Not disclosed | Compensation paid by affiliates; not reported in BANX proxy . |
Performance Compensation
- No Company equity or option awards to officers are disclosed; the proxy only details independent director fees and explicitly states officers receive no compensation from BANX .
- Consequently, no Company-level performance metric linkages (revenue growth, EBITDA, TSR, etc.), vesting schedules, or payout formulas for the CFO are disclosed in the Company’s proxy .
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Not disclosed (officers are not compensated by the Company) | — | — | — | — | — |
| Equity/Option Type | Grant date | Shares | Fair value | Vesting schedule | Notes |
|---|---|---|---|---|---|
| None disclosed for officers | — | — | — | — | Officers are paid by affiliates; Company does not grant officer equity . |
Equity Ownership & Alignment
- Beneficial ownership (dollar range) increased year over year: Farrell reported $50,001–$100,000 as of the 2024 record date and “Over $100,000” as of the 2025 record date .
- Officers and directors as a group owned ~0.82% of shares outstanding in 2024 and ~0.71% in 2025; individual share counts for Farrell are not disclosed (ranges only) .
- Shares outstanding were 7,116,775 (April 23, 2024 record date) and 7,126,812 (April 22, 2025 record date) .
- Pledging/hedging and ownership guidelines: not disclosed in the proxy .
| Ownership Metric | 2024 | 2025 |
|---|---|---|
| Farrell dollar range of BANX holdings | $50,001–$100,000 | Over $100,000 |
| Group ownership (Directors & officers) | ~0.82% of shares outstanding | ~0.71% of shares outstanding |
| Shares outstanding (record date) | 7,116,775 (4/23/2024) | 7,126,812 (4/22/2025) |
| Shares pledged by Farrell | Not disclosed | Not disclosed |
Insider trading/Section 16 notes:
- Company disclosure indicates Section 16(a) compliance for reporting persons with no late filings attributed to Farrell; a late Form 4 in 2024/2025 proxies involved a director (Emrich), not Farrell .
Employment Terms
- Start date and tenure: Farrell has served as BANX CFO since April 2014; officers are elected by and serve at the pleasure of the Board .
- Employment agreements, severance/change-in-control (CoC), non-compete, non-solicit, garden leave, clawbacks, tax gross-ups, deferred compensation, pensions/SERP, and perquisites: not disclosed in the Company’s proxy for officers (officers are not paid by the Company) .
Performance & Track Record
Company-level financial/return indicators (fund highlights):
| Metric | Q1 2025 | Q2 2025 |
|---|---|---|
| Net investment income per share | $0.58 | $0.57 |
| Total investment return (NAV) | 2.69% | 4.29% |
| Total investment return (Market) | 3.03% | 1.65% |
| Net assets, end of period (USD mm) | $155.2 | $158.4 |
| Expenses after waivers (annualized) | 6.23% | 7.19% |
| Net investment income ratio (annualized) | 10.74% | 10.40% |
Additional CFO responsibilities and actions:
- SOX/N-CSR certifications signed by Farrell as principal financial officer (Aug 27, 2025), demonstrating accountability for fair presentation and internal controls .
- Signed the March 28, 2025 8-K regarding Nasdaq audit committee composition cure period following a director’s passing, indicating active role in corporate governance disclosures .
Governance Context
- Independent director compensation is disclosed, but officers receive no compensation from BANX; thus, there is no compensation committee disclosure for officers, and the Nominating & Governance Committee periodically reviews independent director compensation .
- Audit committee composition temporarily fell out of compliance due to a director’s death; Nasdaq granted a cure period to regain compliance, with the Company seeking an additional independent director .
Investment Implications
- Alignment: Farrell’s disclosed ownership increased to “Over $100,000” by 2025, signaling some personal capital at risk, but lack of Company-paid officer compensation and absence of Company equity awards reduce direct pay-for-performance alignment at the issuer level (typical for externally managed structures) .
- Retention and selling pressure: No Form 4 activity for Farrell is noted in Company disclosures and Section 16 compliance statements reference no late filings for him; absence of Company equity grants means no forced vesting-related selling pressure is evident from Company awards .
- Transparency risk: With officer compensation paid by affiliates and not disclosed in BANX’s proxy, investors have limited visibility into incentive design, severance/CoC economics, or clawbacks that could influence behavior; this is a structural governance consideration for externally managed funds .
- Execution/continuity: Long tenure (CFO since 2014) and direct responsibility for SEC certifications support continuity and process maturity; recent governance disclosure regarding audit committee composition shows responsiveness but also highlights key-man/board composition sensitivities that can surface operationally .