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Bradley A. Henion

Executive Vice President and Chief Lending Officer at CHOICEONE FINANCIAL SERVICES
Executive

About Bradley A. Henion

Bradley A. Henion, 55, is Executive Vice President and Chief Lending Officer of ChoiceOne Bank since January 1, 2023; he previously served as Senior Vice President and Chief Lending Officer from November 2015. Prior roles include Market President at First Community Bank (formerly Select Bank) in Grand Rapids, Michigan, and positions at Greenstone Farm Credit Services and Bank of America (formerly LaSalle Bank) . ChoiceOne’s executive incentive plan ties payouts to a defined model based on expected asset growth and return on average assets, adjusted by an asset quality modifier, with awards delivered in cash, time-based RSUs, and performance-based RSUs . The company prohibits hedging and generally pledging of company stock (limited FDIC-insured loan exception) and has an SEC/Nasdaq-compliant clawback policy covering erroneously awarded incentive-based compensation upon restatement . Shareholders approved the 2025 say‑on‑pay at the annual meeting (For: 8,625,296; Against: 488,518; Abstain: 225,425; Broker Non‑Votes: 2,667,331) .

Past Roles

OrganizationRoleYearsStrategic Impact
ChoiceOne BankSenior Vice President & Chief Lending OfficerNov 2015–Dec 2022 Not disclosed
ChoiceOne BankExecutive Vice President & Chief Lending OfficerJan 2023–present Not disclosed
First Community Bank (Select Bank)Market PresidentNot disclosed Not disclosed
Greenstone Farm Credit ServicesRole not specifiedNot disclosed Not disclosed
Bank of America (LaSalle Bank)Role not specifiedNot disclosed Not disclosed

External Roles

No external public company directorships or committee roles disclosed for Henion in the proxy .

Fixed Compensation

Multi‑year compensation (company-reported Summary Compensation Table):

Metric20232024
Salary ($)$245,000 $255,008
Bonus ($)$— $—
Stock Awards ($)$32,830 $46,921
Option Awards ($)$— $—
Non‑equity Incentive Plan Compensation ($)$49,245 $82,113
All Other Compensation ($)$9,525 $13,106
Total ($)$336,600 $397,148

Performance Compensation

Incentive design, targets, and vesting:

ComponentMetricWeightingTargetActual/PayoutVesting
Annual Cash AwardDefined model based on expected asset growth and ROAA; asset quality modifier 35% of salary Target % of salary 2024 awards adjusted to 92% of target amounts ; Henion 2024 cash payout $82,113 Cash paid in following year; employment through payment date required
Time‑based RSUsService only20% of salary Target % of salary 2024 RSU grant value $46,921 Vest in full after 3‑year service period
Performance‑based RSUs (PSUs)Five‑year cumulative EPS growthPart of long‑term equity mix Payout schedule: 0%–125% based on EPS growth thresholds (0%→25%, 1%→33%, 2%→50%, 3%→67%, 5%→100%, 7%→125%) 2024 plan converted equally between time‑based and performance‑based RSUs Vest after both metric achievement and 5‑year service period

Equity Ownership & Alignment

Ownership DetailValue
Sole Voting/Dispositive Power2,746 shares
Shared Voting/Dispositive Power
Shares Underlying Unexercised Options4,773 shares
Total Beneficial Ownership7,519 shares
Percent of ClassLess than 1%
Pledged/Hedged SharesNone disclosed for Henion; pledging generally prohibited except limited FDIC‑insured loan exception
Director Ownership GuidelinesNon‑employee director guideline: minimum 5,000 shares; all non‑employee directors in compliance as of proxy; no executive guideline disclosed

Outstanding Equity Awards and Vesting Schedules (as of 12/31/2024)

Award TypeQuantityStrike/ValueExpiration/Vest DateNotes
Stock Options (Exercisable)120 $21.13 12/16/2025
Stock Options (Exercisable)1,653 $20.86 4/15/2027
Stock Options (Exercisable)1,500 $25.65 6/01/2028
Stock Options (Exercisable)1,500 $27.25 4/30/2029
Time‑based RSUs (unvested)616 $21,954 market value Vest 4/30/2025 (granted 2/15/2022) Footnote (1)
Time‑based RSUs (unvested)479 $17,072 market value Vest 4/30/2026 (granted 4/30/2023) Footnote (2)
Time‑based RSUs (unvested)560 $19,958 market value Vest 4/30/2027 (granted 4/30/2024) Footnote (3)
Performance Stock Units (PSUs)615 $21,919 market value Five‑year vest based on EPS growth (2012 plan) Footnote (4)
Performance Stock Units (PSUs)479 $17,072 market value Five‑year vest based on EPS growth (2022 plan) Footnote (5)
Performance Stock Units (PSUs)560 $19,958 market value Five‑year vest based on EPS growth (2022 plan) Footnote (6)

PSU vesting can be 125%, 100%, 75%, or 0% depending on five‑year EPS growth; time‑based RSUs vest pro rata upon death, disability, or retirement; all unvested awards accelerate upon a change in control .

Employment Terms

Triggering EventHenion Potential Payments/Benefits
Change in Control$58,984 (principally accelerated vesting of equity)
Death$278,685 (includes bank‑owned life insurance benefits)
Disability or Retirement$33,685 (pro‑rata RSU release under plan terms)
  • Severance multiples: Three‑times base salary change‑in‑control severance applies to CEO (Potes) and President (Burke) under employment agreements; Henion does not have a disclosed severance multiple—his change‑in‑control line item reflects equity acceleration, not salary‑based severance .
  • Equity acceleration: All outstanding unvested equity and options fully vest upon change in control; RSUs vest pro rata upon death, disability, or retirement per plan rules .
  • Clawback and trading policies: Incentive‑based compensation recoupment policy per SEC Rule 10D‑1/Nasdaq applies; insider trading policy prohibits trading on MNPI and hedging/short‑term trading; anti‑hedging/pledging policy restricts hedging and pledging (limited FDIC‑loan exception) .

Say‑On‑Pay & Shareholder Feedback

ProposalForAgainstAbstainBroker Non‑Votes
Advisory approval of NEO compensation (2025)8,625,296 488,518 225,425 2,667,331
Frequency of say‑on‑pay1‑Year: 8,476,908 2‑Year: 153,154 3‑Year: 578,479 Abstain: 130,698

Insider Transactions (Form 4 highlights; potential selling pressure)

Filing DateTrade Date(s)TypeSharesPriceNote/Source
May 01, 2024Apr 30, 2024Grant560RSU/PSU grant; ownership +14.85%
Apr 17, 2024Apr 15, 2024Tax withholding-220$22.19Shares withheld for taxes
Mar 06, 2020Mar 04, 2020Sale-1,000$32.03Open market sale
Feb 17, 2022Feb 15, 2022Grant616RSU grant

SEC/marketbeat index confirms Henion Form 4 filings in 2024/2025; direct Form 4 archive link references Henion’s reporting history (CIK 0001659024) .

Investment Implications

  • Pay‑for‑performance alignment: Henion’s variable compensation is tied to bank performance (asset growth, ROAA, asset quality) with a meaningful equity mix and rigorous five‑year EPS PSU metric, indicating alignment with long‑term value creation . 2024 plan payouts were set at 92% of target, consistent with disclosed actual cash incentive and stock award values .
  • Ownership and alignment: Total beneficial ownership is modest (<1% of shares outstanding), but anti‑hedging and restricted pledging policies mitigate misalignment risk; no Henion pledging disclosed .
  • Vesting/selling pressure: Time‑based RSU cliffs on April 30, 2025/2026/2027 and PSU five‑year vestings can create periodic selling/withholding events; monitor filings around these dates and option expirations (2025–2029) for potential stock flow impacts .
  • Change‑of‑control economics and retention: Henion’s change‑in‑control value is primarily equity acceleration ($58,984), with no disclosed salary‑based severance multiple—implying lower parachute leverage vs CEO/President and retention tethered to outstanding equity .
  • Governance signals: Strong 2025 say‑on‑pay approval and an active clawback/insider trading regime reduce governance risk; no red flags such as hedging or option repricing disclosed .