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Louise Bonvechio

Executive Vice President and Chief Financial Officer; Corporate Secretary and Treasurer at COMMUNITY BANCORP /VT
Executive

About Louise Bonvechio

Louise M. Bonvechio is Executive Vice President, Chief Financial Officer and Cashier of Community National Bank, and Corporate Secretary and Treasurer of Community Bancorp. (CMTV). She is 64 and has 32 years with the Bank; credentials include an Associate Degree in Accounting, the New England School of Financial Studies (Babson), ABA Stonier Graduate School of Banking, and a Wharton leadership certificate . Recent company performance during her tenure: Total Shareholder Return (value of initial $100) was $140 (2021), $140 (2022), $141 (2023), and $99 (2024) ; net income was $13,138k (2021), $13,739k (2022), $13,432k (2023), and $14,008k (2024) .

Past Roles

OrganizationRoleYearsStrategic Impact
Community National BankController2003–2008Built core finance processes and controls
Community National BankVice President & Cashier2004–2008Led treasury/cash operations
Community National BankSenior Vice President2011–2019Expanded leadership scope ahead of EVP role
Community National BankExecutive Vice President2019–presentExecutive leadership across finance and operations
Community National BankChief Financial Officer2008–presentLong-tenured CFO stewardship
Community Bancorp.Treasurer (Executive Officer)2008–presentCorporate finance oversight
Community Bancorp. & BankCorporate Secretary2016–presentGovernance and disclosure leadership

External Roles

  • No external public company directorships or committee roles for Bonvechio are disclosed in recent proxies .

Fixed Compensation

Multi-year compensation (amounts earned in year shown; paid per plan):

Metric (USD)2021202220232024
Salary$225,000 $237,500 $251,125 $263,625
Non-Equity Incentive Plan (Bonus)$76,590 $76,869 $79,670 $49,025
All Other Compensation$53,795 $60,877 $64,058 $72,982
Total$355,385 $375,246 $394,853 $385,632

Key notes:

  • Mid-year salary actions: CFO salary increased from $245,000 to $257,250 effective July 1, 2023; further increased to $270,000 mid-2024 .
  • All Other Compensation includes 401(k) matching, discretionary profit-sharing, taxable life insurance, and personal use of a bank-owned vehicle; company also covers executive/spouse attendance at certain banking events .

Performance Compensation

Officer Incentive Plan design: Target award 25% of base salary; paid as cash in February following year per short-term deferral under IRC 409A. Metrics and weightings: Return on Average Assets (30%), IDC rating (25%), Board subjective evaluation (20%), Overhead expense/avg assets (15%), Non-performing loans/avg loans (10%) .

Bonus outcomes by metric and year (Actual and multiplier contribution):

Metric (Weight)2021 Actual / Contribution2022 Actual / Contribution2023 Actual / Contribution2024 Actual / Contribution
Return on Avg Assets (30%)1.45% / 45.00% 1.43% / 45.00% 1.36% / 36.00% 1.21% / 0.00%
IDC Rating (25%)Superior 272 / 30.50% Superior 262 / 30.50% Superior 274 / 31.00% Superior 248 / 24.40%
Board Evaluation (20%)5.00 / 30.00% 5.00 / 30.00% 4.75 / 27.50% 4.50 / 25.00%
Overhead % Avg Assets (15%)2.22% / 22.50% 2.10% / 22.50% 2.17% / 22.50% 2.18% / 18.75%
NPLs % Avg Loans (10%)0.95% / 5.20% 1.17% / 5.20% 0.88% / 6.88% 0.98% / 4.48%
Total Multiplier133.20% 125.50% 123.88% 72.63%
Bonus as % of Salary33.30% 31.375% 31.375% 18.158%
Vesting/Payment TimingPaid Feb 2022 Paid Feb 2023 Paid Feb 2024 Paid Feb 2025

Plan governance and risk:

  • Includes a three-year recoupment provision for restatements (clawback) .
  • Company does not grant equity/long-term incentives to executives; compensation is heavily salary-weighted .

Equity Ownership & Alignment

Metric2022202320242025
Total Beneficial Ownership (shares)8,168 9,089 9,479 10,016
Ownership % of Outstanding0.15% 0.16% 0.17% 0.18%
401(k) Plan Shares7,651 8,072 8,462 8,999
Family Trust Shares1,017 1,017
Pledged SharesNone disclosedNone disclosedNone disclosedNone disclosed

Policies and red flags:

  • Insider trading policy prohibits margin accounts and speculative short sales; hedging is not expressly prohibited, and management is unaware of insider hedging activity . No pledging disclosed for Bonvechio; note one director (Marsh) has pledged shares (contextual governance) .

Employment Terms

Change-in-Control (CIC) agreements:

  • Double-trigger: severance if terminated without cause or for good reason within 3 years post-CIC; also payable if termination occurs within 120 days prior to CIC after public announcement .
  • Severance multiple: 2x highest total annual cash compensation (salary + bonus) in last 3 years, lump sum; excise tax cutback to avoid 280G/4999 taxes .
  • Auto-renewing term every 3 years; confidentiality and non-disparagement apply .

Illustrative CIC payout amounts (if terminated at period end):

Period-endAmount
2021$603,180
2022$628,738
2023$661,590
2024$661,590

Other contractual matters:

  • No executive ownership guidelines disclosed (director guidelines only) .
  • No non-compete, non-solicit, garden leave, or post-termination consulting terms disclosed for Bonvechio .

Investment Implications

  • Pay-for-performance linkage remains intact: annual cash bonus targets 25% of salary with multi-factor metrics (ROAA, asset quality, efficiency, IDC rating), but 2024 payout dropped to 18.2% due to weaker ROAA and modest IDC score, signaling disciplined risk posture and lower near-term sell pressure from bonuses .
  • Governance and alignment: long CFO tenure, incremental ownership growth to 0.18% of outstanding by 2025 with significant 401(k) exposure; no equity grants, no pledging, and a clawback in place—a conservative compensation structure that reduces overhang risk but limits alignment via performance equity .
  • Retention and potential event risk: CIC double-trigger severance of ~$662k creates modest financial incentive stability, but not outsized golden parachute; family relationship with a director (Couture) noted for independence context; one late Section 16 filing in 2023 suggests minor disclosure risk, not systemic .
  • Performance context: TSR declined in 2024 ($99 on $100 basis) after strong 2021–2023; net income reached $14,008k in 2024. Watch continued asset quality and efficiency metrics driving future incentives; bonus pool mechanics could reduce short-term selling pressure, while lack of equity programs removes PSU/RSU vesting-driven sales .