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John LaCarte

Director at CB Financial Services
Board

About John J. LaCarte

John J. LaCarte (age 58) is an independent director of CB Financial Services, Inc. with an MBA from the University of Rochester; he is President of LaCarte Enterprises, Inc., a holding company spanning Model Dry Cleaners, Model Uniforms, Model Apparel, Stoney’s Brewing Company, and LaCarte Development Company. He served as a director of FedFirst Financial Corporation starting in 1998 and as Chairman from 2004, guiding acquisitions, two public offerings, and FedFirst’s merger into CB Financial in 2014; he continues as a director with a current term ending in 2026. As of March 28, 2025, he beneficially owned 139,503 shares (2.7% of outstanding), with no pledged shares disclosed.

Past Roles

OrganizationRoleTenureCommittees/Impact
FedFirst Financial CorporationDirector1998–2014Oversaw board-level strategy leading to acquisition of insurance agency, two public stock offerings, and 2014 merger with CB Financial
FedFirst Financial CorporationChairman of the Board2004–2014Led governance through merger integration with CB Financial
LaCarte Enterprises, Inc.PresidentNot disclosedOperates multi-state businesses (Model Dry Cleaners, Model Uniforms, Model Apparel, Stoney’s Brewing)
LaCarte Development CompanyPresidentNot disclosedCommercial property development/ownership in Western PA and NE Ohio

External Roles

OrganizationRoleTenureNotes
Various non-profit boards and foundationsBoard memberNot disclosedActive volunteer in local community
Other public company boardsNo other public company directorships disclosed in proxy

Board Governance

CommitteeRoleMeetings in FY2024
Compensation CommitteeChairman4
Audit CommitteeMember8
Nominating/Corporate Governance CommitteeMember2
  • Independence: The board determined LaCarte is independent under NASDAQ rules; it considered loans/lines of credit to LaCarte or related entities and concluded they did not impair independent judgment.
  • Board attendance: The board met 13 times in FY2024; no director attended less than 75% of board and applicable committee meetings; all directors attended the prior annual meeting.
  • Board leadership: Chairman (Mark E. Fox) and Vice Chairman (Charles R. Guthrie, CPA); no Lead Independent Director designated.
  • Compensation Committee practices: No compensation consultant engaged in 2024.

Fixed Compensation (Director)

YearCash FeesStock Awards (grant-date fair value)Option AwardsAll OtherTotal
2024$37,800 $22,120 (1,000 restricted shares; $22.12 per share; 20% vests 2/16/2025; 5-year vest) $2,600 $62,520
  • Restricted stock awards issued under the 2021 Equity Incentive Plan; directors had 1,000 outstanding stock awards as of 12/31/2024; vest over 5 years with first 20% on 2/16/2025.

Performance Compensation (Committee Oversight Context)

Directors do not have performance-based pay; equity grants are time-based. As Compensation Committee Chair, LaCarte oversees executive incentive design. 2024 NEO incentive metrics were:

MetricWeightNotes
Pre-tax income55%Corporate Scorecard thresholds set by Compensation Committee
Nonperforming assets ratio15%Risk/asset quality alignment
Deposit growth15%Franchise funding strength
Loan growth15%Balanced growth focus
  • Target incentive opportunities: CEO 45% of salary; other NEOs 25–35%; payouts made in cash and restricted stock (CEO 50/50; others 60–70% cash, 30–40% equity).

Other Directorships & Interlocks

CompanyRoleStatus
FedFirst Financial CorporationChairman/DirectorPrior public company; merged into CBFV in 2014
  • Shared relationships: The bank maintains loans and lines with certain directors and related entities (aggregate $18.3 million outstanding as of 12/31/2024), including LaCarte/related entities; made at market terms per regulation with disinterested board approvals above thresholds.

Expertise & Qualifications

  • MBA (University of Rochester); broad entrepreneurial and governance experience across multi-state operating businesses and real estate development.
  • Strategic M&A leadership (FedFirst pre-2014 merger).

Equity Ownership

As of DateDirect SharesIndirect Shares (Corporation)Indirect Shares (Family Trust)Total Beneficial% OutstandingPledged?
2025-03-28Not separately disclosed85,000 7,700 139,503 2.7% None pledged
2025-07-30 (post-Form 4)46,170 85,000 7,700 ~138,870 Not disclosed in Form 4

Insider Trades (Recent)

Trade DateTypeSharesPriceOwned After (Direct)Notes
2025-07-30Option exercise (M) and open market sales (S)+685 exercised; net sales across multiple lines: 105, 232, 37, 52, 6, 201$30.75 (exercise); $33.20–$33.50 (sales)46,170Options exercised at $30.75; subsequent sales reported; indirect holdings noted: 85,000 by corporation, 7,700 by trust
2024-12-09Sale (S)712$33.50132,503 (pre-adjustment in later amendment)Corresponding Form 4 and Form 4/A filings; Form 144 filed same day

Governance Assessment

  • Strengths

    • Independent status affirmed despite director-related credit relationships; board judgment and regulatory compliance noted.
    • Active committee leadership (Compensation Chair) with clear oversight of pay-for-performance metrics and equity award governance; no compensation consultant engaged in 2024 (cost discipline).
    • Robust ownership alignment: substantial beneficial ownership (2.7%), including long-term indirect stakes; no pledging.
    • Attendance and engagement: ≥75% attendance at board/committee meetings and full director attendance at the annual meeting; signals engagement.
  • Potential RED FLAGS / Watch items

    • Related-party credit exposure: bank loans to directors/related parties ($18.3 million outstanding) can pose perceived conflicts; continue monitoring terms/approvals and any changes.
    • Periodic insider sales (Dec 2024; July 2025 after option exercise); not inherently negative but worth monitoring for patterns around sensitive windows.
    • No Lead Independent Director designated; depending on evolving governance norms, investors may prefer designated independent leadership.

Overall, LaCarte’s deep operating experience, meaningful equity stake, and Compensation Committee leadership support board effectiveness and alignment; maintaining transparency on director-related credit and continued adherence to trading policies will be important for investor confidence.