Marco A. Abbruzzese
BANK OF HAWAIIAbout Marco A. Abbruzzese
Marco A. Abbruzzese, 59, is Vice Chair and Senior Executive Director of Wealth Management at Bank of Hawaii, serving since January 2022 after a 12-year leadership tenure at Wells Fargo . Company performance during his tenure included 2024 diluted EPS of $3.46 and net income of $150.0M, with TSR value of an initial $100 = $92 in 2024; ROCE was 10.85% in 2024, reflecting pay-for-performance alignment across redesigned incentive metrics . His role oversees Trust Services, Bankoh Investment Services, and The Private Bank, with 2023 contributions spanning strategic capacity-building for HNW/UHNW clients, technology/process upgrades, and risk governance enhancements in the Trust business .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Wells Fargo | Regional Managing Director – Washington, Oregon, Alaska | Jun 2009–Dec 2021 | Led a large regional franchise, commercial leadership, and client development across three states |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| McInerny Foundation (Hawai‘i) | Trustee | As of 2023 | Supports nonprofit grants statewide; augments BOH community footprint |
Fixed Compensation
Multi-year compensation (as reported):
| Metric | 2022 | 2023 |
|---|---|---|
| Salary ($) | $375,385 | $408,492 |
| Bonus ($) | $950,000 (signing bonus component included) | — |
| Stock Awards ($) | $700,133 | $500,074 |
| Non-Equity Incentive ($) | $400,000 | $265,000 |
| All Other Compensation ($) | $100,190 | $44,769 |
| Total ($) | $2,525,708 | $1,218,335 |
Context on 2023 base salary levels: Committee set Abbruzzese’s base salary to $412,000 effective April 1, 2023 (annualized) .
Performance Compensation
2023 Short-Term Incentive (STI) design and results (NEOs):
- Design: STI metrics weighted ROCE (40%), Price-to-Book (40%), Individual (20%); pool is funded by EPS growth; target payout 80% of base salary for non-CEO NEOs .
- Results: Downward discretion applied; Abbruzzese payout at 64% of base salary = $265,000 .
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| ROCE (relative) | 40% | Top two quartiles | 79.5th percentile for Co. | Contributes to pool; individual 64% of base | Cash (annual) |
| Price-to-Book (relative) | 40% | Top two quartiles | 91.8th percentile for Co. | Contributes to pool; individual 64% of base | Cash (annual) |
| Individual performance | 20% | Strategic goals | Committee assessment | Included in 64% payout | Cash (annual) |
2023 Long-Term Incentive (LTI):
- 100% performance-based PSUs; metrics ROCE (50%) and Price-to-Book (50%) over three-year period; three-year cliff vesting .
- Grant: Abbruzzese stock awards grant-date fair value $500,074 (shares not disclosed) .
| Metric | Weighting | Performance Period | Vesting |
|---|---|---|---|
| ROCE (relative) | 50% | 3 years | Cliff at 3 years |
| Price-to-Book (relative) | 50% | 3 years | Cliff at 3 years |
2024 Plan Redesign (applies to NEO program going forward; shows alignment improvement):
- STI: Balanced scorecard with PPNR, Non-Performing Assets, ROCE, Customer Experience, Individual; each weighted 20%; pool funded by EPS growth .
- LTI: ROCE (70%) + TSR (30%); grants reduced with upside to 2x for superior performance; say-on-pay support improved to 94% in 2024 .
| Program | Metrics | Weighting | Notes |
|---|---|---|---|
| 2024 STI | PPNR, NPAs, ROCE, CX, Individual | 20% each | Pool by EPS growth |
| 2024 LTI | ROCE, TSR | 70%/30% | Reduced grants, upside leverage |
2025 RSU Grant:
- On January 24, 2025, BOH awarded Abbruzzese 7,032 service-based RSUs under the plan (vesting terms not disclosed in 8-K) .
| Grant Date | Award Type | Units | Notes |
|---|---|---|---|
| Jan 24, 2025 | RSU (service-based) | 7,032 | Awarded per BOH plan; vesting details not specified in 8-K |
Equity Ownership & Alignment
| Item | Details |
|---|---|
| Beneficial shares owned | 13,735 shares as of Jan 31, 2024 |
| % of shares outstanding | ~0.03% = 13,735 / 39,821,950 |
| Ownership guidelines | CEO 5x salary; other NEOs 2x salary |
| Hedging/pledging | Prohibited by BOH Securities Trading Policy |
| Deferred compensation | Registrant contributions of $28,074 in 2023; no executive contributions reported for Abbruzzese in 2023 |
Note: BOH prohibits hedging and pledging of company stock by directors and employees; no pledging disclosed for Abbruzzese .
Employment Terms
- Role start date and tenure: Vice Chair, Senior Executive Director of Wealth Management since January 2022 .
- Employment agreements: BOH states no employment or severance agreements with NEOs .
- Change-in-control retention plan (double-trigger):
- Severance: 2× base salary and bonus, payable after termination without cause or for good reason within 24 months of change-in-control .
- Non-compete payment: Additional 1× base salary and bonus upon compliance with 12-month non-compete; includes non-disclosure, non-solicit, non-disparagement .
- Equity acceleration: Full acceleration of RSUs/restricted stock/options upon double-trigger termination in change-in-control; STI prorated at 2× incentive allocation for prorated period .
- Clawback policy: Formalized clawback policy maintained by BOH .
Performance & Track Record
- 2023 contributions: Unified Wealth Management leadership, five-year strategic plan execution, capacity-building for HNW/UHNW, technology/process upgrades, enhanced Trust governance, cross-line partnerships; executive sponsor for Blue Brigade Military ERG; trustee role at McInerny Foundation .
- Incentive outcomes: 2023 STI payout of 64% of base salary ($265,000), reflecting lower EPS-driven pool and committee discretion; 2023 LTI grant fair value $500,074 tied to ROCE/P/B over three years .
Compensation Structure Analysis
- Pay-for-performance: 2023 STI and LTI were 100% performance-based, with corporate metrics in top quartile but EPS decline moderating payouts; 2024 redesign broadened metrics and added TSR to improve alignment; say-on-pay support rose to 94% .
- Mix shifts: BOH reduced LTI grant values in 2024, adding upside leverage for superior performance versus peers .
- One-time awards: 2022 onboarding package included $450,000 signing bonus, $100,000 relocation allowance, and $1.20M make-whole; normalized in 2023 (no repeat) .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited; no pledging disclosed .
- Tax gross-ups: Not permitted under change-in-control plan; payments limited to avoid excise tax exposure .
- Option repricing: No repricing of equity incentive awards .
- Say-on-pay: Improved to 94% in 2024, indicating shareholder support for redesign .
Compensation Peer Group
- Benchmarking: BOH references S&P Supercomposite Regional Bank Index for TSR and peer comparisons in PVP and incentive metrics .
Investment Implications
- Alignment: Abbruzzese’s incentives are tightly linked to ROCE, shareholder value (TSR), asset quality, and strategic execution, with 2024 scorecard improvements enhancing pay-for-performance linkage .
- Retention risk: Absence of individual employment agreements is mitigated by BOH’s double-trigger change-in-control retention plan with 2×+1× economics and equity acceleration, reducing flight risk amid transitions or M&A scenarios .
- Selling pressure: The 7,032 service-based RSUs granted on Jan 24, 2025 introduce potential future supply as they vest; specific vesting dates and any sale intentions are not disclosed in filings .
- Governance strength: Anti-hedging/pledging and clawback policies, plus strong shareholder support post-redesign, indicate robust governance and incentive risk controls .
