Matthew K.M. Emerson
BANK OF HAWAIIAbout Matthew K.M. Emerson
Vice Chair at Bank of Hawai‘i, currently serving as Chief Retail Banking Officer since July 19, 2024; previously Chief Strategy Officer (Q4 2023) and a member of the Executive Committee since 2018 . He joined BOH in 2010 in online/mobile banking and has led eCommerce, Digital Channels, Product Management, Investment Services, Retail Lending, Consumer Deposits, and Digital Banking; he holds a BA in Economics and Mathematical Methods in the Social Sciences (Northwestern) and an MBA in Finance/Marketing (Kellogg) . Company performance context: 2024 diluted EPS $3.46; loans/leases +0.8% YoY; deposits -2.0% YoY; 2020–2023 TSR for BOH tracked at 84, 95, 91, 89 vs peer TSR 93, 131, 107, 94 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Bank of Hawai‘i | VP, Internet Banking Manager | 2010 | Led online/mobile banking initiatives |
| Bank of Hawai‘i | Executive Committee member | 2018–present | Enterprise strategy participation |
| Bank of Hawai‘i | Vice Chair | 2022–present | Senior leadership across consumer businesses |
| Bank of Hawai‘i | Chief Strategy Officer | Q4 2023–Jul 2024 | Built Business Risk Executive program; stabilized consumer loans/deposits in a challenging 2023; led deposit product/pricing |
| Bank of Hawai‘i | Chief Retail Banking Officer | Jul 19, 2024–present | Responsible for Consumer Banking products, Branch Banking, Contact Center; reports to President James C. Polk |
External Roles
| Organization | Role | Years |
|---|---|---|
| Kapiolani Health Foundation | Board Member | Not disclosed |
| The Nature Conservancy of Hawai‘i | Trustee | Not disclosed |
| ‘Iolani School | Board of Governors Member | Not disclosed |
Fixed Compensation
| Metric (USD) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Salary | $325,000 | $405,271 | $434,023 |
| Stock Awards (Grant-date fair value) | $936,360 | $300,069 | $500,074 |
| Non-Equity Incentive Plan Compensation (Cash bonus paid) | $300,000 | $400,000 | $300,000 |
| All Other Compensation | $36,276 | $52,659 | $47,054 |
| Total Compensation | $1,597,636 | $1,157,999 | $1,281,151 |
| Additional Salary Reference | Amount |
|---|---|
| Base Salary effective April 1, 2023 | $437,750 |
Notes:
- 2023 EIP target award for NEOs was 80% of base salary; threshold 50% of target; maximum 200% of target .
- Option awards not granted to Emerson in 2021–2023 (Option Awards column shows “—”) .
Performance Compensation
2024 Short-Term Incentive (STI) – Balanced Scorecard
| Metric | Weighting | Measurement |
|---|---|---|
| Pre-Provision Net Revenue (Profitability) | 20% | Absolute |
| Non-Performing Assets (Asset Quality) | 20% | Relative |
| Return-on-Common-Equity (Financial Returns) | 20% | Relative |
| Customer Experience (Strategic Measure) | 20% | Absolute |
| Individual Performance | 20% | Absolute |
Design notes: STI is 100% performance-based; the same scorecard drives other NEO payouts with emphasis on line-of-sight individual contribution .
2024 Long-Term Incentive (LTI) – Performance Units
| Feature | ROCE | TSR |
|---|---|---|
| Metric weighting | 70% | 30% |
| Performance window | 2024–2026 three-year sustained period | 2024–2026 |
| Peer construct | S&P Supercomposite Regional Bank Index, excluding banks >$50B assets | Same |
| Payout schedule | Threshold 50%; Target 100%; Max 200% of target, interpolated from 25th to 75th percentile; no payout below 25th percentile | Same |
| Vesting | Three-year cliff; payout on Committee certification |
2023 Equity Grants (Plan-Based Awards)
| Grant Date | Award Type | Target Shares (#) | Maximum Shares (#) | Grant-date Fair Value (USD) | Vesting |
|---|---|---|---|---|---|
| Feb 24, 2023 | Performance Stock Units (PSU) | 6,657 | 6,657 | $500,074 | Vests on certification in 2026 |
2023 Stock Vested
| Category | Shares Vested (#) | Value Realized (USD) |
|---|---|---|
| Stock Awards (restricted/performance) | 3,520 | $253,280 |
Equity Ownership & Alignment
Beneficial Ownership
| As-of Date | Shares Beneficially Owned | Ownership % of Outstanding |
|---|---|---|
| Jan 31, 2024 | 23,572 | Less than 1% (per company disclosure footnote) |
Stock ownership requirements: Vice Chairs must hold Company stock valued at least 2x base salary; attainment within 3 years of promotion; anti-hedging and anti-pledging policies prohibit derivatives and pledging/margin accounts; as of Dec 31, 2024, all NEOs satisfied stock ownership guidelines .
Outstanding Equity Awards (as of Dec 31, 2023)
| Award Type | Shares/Units (#) | Vest Date / Condition | Market/Payout Value (USD) |
|---|---|---|---|
| Performance-based restricted stock (achieved) | 2,806 | Vested on Feb 21, 2024 | $203,323 (using 12/31/23 close) |
| Service-based RS (EIP 2020 portion) | 323 | Final installment vest Feb 19, 2024 | $23,405 |
| Service-based RS | 402 | Final installment vest Oct 23, 2024 | $29,129 |
| Performance-based restricted stock | 3,438 | Vests on 2025 certification | $249,117 |
| Performance-based RSU | 6,657 | Vests on 2026 certification | $482,366 |
| Performance-based restricted stock | 6,442 | Vests Mar 31, 2026 | $466,787 |
Policy alignment: Anti-hedging and anti-pledging; no officer/director engages in hedging or pledging per the Securities Trading Policy .
Employment Terms
- No employment or severance agreements with NEOs; double-trigger change-in-control provisions; formal clawback policy; no tax gross-ups; significant stock ownership requirements (CEO 5x salary; Vice Chairs 2x) .
- Clawback policy requires recovery of incentive-based compensation in event of accounting restatement per Section 10D-1; recovery approach documented to NYSE as needed .
- Deferred Compensation Program allows deferral of up to 80% of base salary and 100% of EIP incentives; Excess Benefit Plan provides nonqualified supplemental retirement benefits to offset IRC limits; perquisites are limited and reviewed for competitiveness .
Performance & Track Record
| Metric | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|
| BOH Total Shareholder Return (Value of $100) | 84 | 95 | 91 | 89 |
| Peer Group TSR (S&P Supercomposite Regional Bank Index) | 93 | 131 | 107 | 94 |
| Net Income (USD) | $153,804,000 | $253,372,000 | $225,804,000 | $171,202,000 |
| Return-on-Common Equity (%) | 11.56% | 17.92% | 17.83% | 13.89% |
Selected achievements in Emerson’s remit:
- Built Business Risk Executive program with Deputy Chief Risk Officer; stabilized consumer loans and deposits in 2023; led consumer deposit product and pricing strategy in partnership with The Private Bank and Branch Banking .
- Appointed Chief Retail Banking Officer in July 2024 to lead Consumer Banking products, Branch Banking and Contact Center .
Compensation Committee & Shareholder Feedback
- Independent compensation consultant WTW engaged directly by the Human Resources & Compensation Committee; SEC Rule 10C-1 independence factors assessed; WTW provided market analysis and peer benchmarking .
- Program redesign for 2024: balanced STI scorecard, LTI metrics shifted to ROCE and TSR (eliminated P/B); reduced target equity values with potential for higher payouts for superior performance; say-on-pay approval improved to 94% (2024) from 74% (2023) and 80% (2022) .
Investment Implications
- High alignment and retention: Significant unvested performance-based equity across 2025–2026 vesting windows (PSU/PRS) suggests strong retention incentives; anti-hedging/pledging and ownership guidelines reinforce alignment with shareholders .
- Pay-for-performance rigor: 2024 STI is diversified and quantitative; LTI requires top-quartile ROCE/TSR for max payout, with no payout below 25th percentile—reducing windfalls and raising execution bar .
- Selling pressure watchpoints: 2024–2026 vesting events may create periodic liquidity windows; monitor Form 4 filings around Feb/March 2024–2026 certifications and scheduled vest dates for potential insider selling signals .
- Performance context: BOH’s TSR trailed peers in 2021–2023 and diluted EPS was $3.46 in 2024; Emerson’s remit in retail and consumer banking places him at a key lever for ROCE/TSR improvement tied to his LTI metrics .
