Anna M. Hu
About Anna M. Hu
Executive Vice President and Chief Credit Officer of Central Pacific Financial Corp. and Central Pacific Bank since October 1, 2016; executive officer since 2023; age 52. She oversees credit risk and credit administration across commercial, CRE and consumer lending, including underwriting, problem loans, collections, and loan loss reserves; education: BBA in Finance (UH Mānoa, Shidler) and Pacific Coast Banking School (UW) . Company 2024 performance context: net income $53.4M (adjusted $63.4M), ROA 0.72% (adjusted 0.86%), ROE 10.25% (adjusted 12.10%) . Pay-versus-performance and equity incentives tie to shareholder outcomes (e.g., 2022–2024 PSUs paid 96.03% of target; $100 invested in CPF was worth $124.21 by 12/31/2024) .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Central Pacific Financial Corp. and Central Pacific Bank | EVP, Chief Credit Officer | 10/2016–Present | Leads credit risk strategy, credit admin, special assets, retail collections, loan documentation, enterprise PMO, vendor management |
External Roles
| Organization | Role | Years |
|---|---|---|
| Public Schools of Hawaii Foundation | Trustee | Not disclosed (current) |
| Scouting America, Aloha Council | Board Member | Not disclosed (current) |
| ProSight Financial Association Community Bank Council | Member | Not disclosed (current) |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $300,000 | $325,000 |
| Target Annual Incentive (% of salary) | 50% | 50% |
| Actual Annual Incentive Paid ($) | $105,000 | $151,125 |
Performance Compensation
Annual Incentive Plan (AIP) – 2024 Design and Outcomes
| Metric | Weight | Threshold | Target | Actual | Payout % |
|---|---|---|---|---|---|
| Net Income (adjusted) | 50% | $51.12M | $63.90M | $63.42M | 98% |
| Efficiency Ratio (adjusted) | 20% | 65.20% | 62.69% | 65.10% | 52% |
| Business Plan/Personal Goals | 30% | Committee assessed | Committee assessed | Exceeds expectations | CEO 117%; other NEOs avg 115% |
| Final Pool Payout | — | — | — | — | 94% overall |
| Ms. Hu actual AIP award | — | — | Target $162,500 | Paid $151,125 | 93% of target |
Notes: AIP funding balanced quantitative (70%) and qualitative (30%) goals; adjustments excluded non-recurring items (portfolio repositioning loss and strategic evaluation expenses) for core performance measure calibration .
Long-Term Incentive (LTI) Grants – February 15, 2024
| Component | Target Shares | Vesting | Performance Metric |
|---|---|---|---|
| PSUs – ROE | 2,097 | Cliff vest 2/15/2027 | 3-year avg ROE, 80% threshold = 50%, 100% target, 120%+ = 200% |
| PSUs – rTSR | 2,097 | Cliff vest 2/15/2027 | Relative TSR vs S&P SmallCap 600 Banks: 25th=50%, 50th=100%, 75th+=200%; negative TSR governor caps at 100% |
| RSUs | 4,195 | Equal annual installments over 3 years (2/15/2025, 2026, 2027) | Time-based (retention) |
2022–2024 PSU cycle outcome: earned 96.03% of target (50% 3-yr avg ROA; 50% rTSR vs KBW Regional Bank Index) .
Equity Ownership & Alignment
Beneficial Ownership and Breakdown (as of 2/19/2025)
| Holder | Shares | Notes |
|---|---|---|
| Anna M. Hu (direct) | 21,536 | Directly held shares |
| CPB Foundation | 5,886 | Held by CPB Foundation; Ms. Hu is Vice President and Director |
| Total Beneficial Ownership | 27,422 | Rule 13d-3 beneficial ownership basis |
Ownership as % of outstanding: 27,422 / 27,115,848 = ~0.101% (based on outstanding shares at record date 2/19/2025) .
Unvested Equity Position (12/31/2024)
| Unvested RSUs (counts) | Value at $29.05 | Unvested PSUs (counts at target) | Value at $29.05 |
|---|---|---|---|
| 1,538 | $15,629 | 807 | $23,443 |
| 2,108 | $61,237 | 1,614 | $46,887 |
| 3,160 | $91,798 | 791 | $22,979 |
| 4,195 | $121,865 | 1,049 | $30,473 |
| — | — | 4,194 | $121,836 |
Stock ownership guidelines: EVPs must hold net-of-tax shares to 1.5× base salary within 5 years; if short, 100% of net shares from vesting must be retained until compliant. Ms. Hu currently meets the guideline . Hedging is prohibited; pledging requires prior Legal approval (no pledging by Ms. Hu disclosed) .
Employment Terms
- Employment agreements: None; executives are “at will” .
- Severance provisions: No special severance multiples of salary/bonus; no tax gross-ups (Section 280G/409A) .
- Change-in-control (CIC): Double-trigger equity acceleration only (CIC plus termination without cause or resignation for Good Reason); PSUs accelerate at target; Ms. Hu’s estimated accelerated equity value at CIC with termination was $459,281 (based on $29.05 closing price, 12/31/2024) .
- Good Reason definitions embedded in RSU/PSU agreements (material pay cut, material duty reduction, relocation >35 miles, etc., with notice/cure periods) .
- Clawback: NYSE/Dodd-Frank compliant clawback adopted Sept 21, 2023; recovery applies to incentive comp upon restatement or materially inaccurate metrics; SOX 304 reimbursements apply to CEO/CFO; Company policies allow recovery for risk-encouraging or inaccurate awards .
Insider Activity (last 24 months)
| Date | Filing/Type | Shares | Price | Source |
|---|---|---|---|---|
| Feb 18, 2025 | Stock Award (Grant) | 2,796 | $0.00 | |
| Feb 20, 2025 | Form 4 filed | — | — | |
| Feb 18, 2025 | Insider trading roster (summary) | 2,796 | $0.00 | |
| Feb 18, 2025 | Insider transaction record | — | — | |
| Aggregated disclosures | Grant noted | 2,796 | $0.00 |
Note: Company disclosed no delinquent Section 16(a) reports for 2024 .
Performance & Track Record
- Credit quality under Hu’s oversight remained strong: nonperforming assets 0.15% of total assets at 12/31/2024; criticized assets declined to $32.8M (from $50.0M in 2023); provision for credit losses decreased to $9.8M (from $15.7M) .
- Capital return: 2024 dividends $1.04/share and 49,960 shares repurchased ($0.9M) .
- Recognition and operations: Forbes Best-in-State Bank; opened state-of-the-art Maui branch; SBA lender awards; employee engagement accolades .
Compensation Structure Analysis
- Pay mix and trends: Base salary increased 8.33% (2023: $300,000 → 2024: $325,000), reflecting market benchmarking for Hawaii talent . AIP paid at 93% of target for 2024 ($151,125), aligning with adjusted financial performance . LTI equally split between performance-based PSUs (ROE and rTSR, 3-year) and time-based RSUs (three-year pro rata), reinforcing long-term alignment and retention .
- Governance: Independent consultant Pay Governance engaged; strong guardrails (caps; no guaranteed bonuses; no tax gross-ups; no employment/CIC agreements; clawbacks) .
Equity Ownership & Alignment Details
| Policy/Metric | Detail |
|---|---|
| Stock ownership guideline (EVP) | 1.5× base salary; 5 years to comply; net share retention if short |
| Compliance status | Ms. Hu meets the guideline |
| Hedging/Pledging | Hedging prohibited; pledging requires Legal approval |
| Options | None held or exercised in 2024 |
Investment Implications
- Pay-for-performance alignment is robust: AIP and PSUs are formulaic and capped, with qualitative oversight; 2022–2024 PSUs paid ~96% of target, evidencing linkage to ROA/rTSR outcomes . Strong clawback and no-tax-gross-up posture reduce shareholder risk .
- Retention risk appears contained: Significant unvested RSUs and PSUs with scheduled vesting (including 2024 RSUs through 2027; PSUs cliff in 2027) plus guideline compliance incentivize tenure; double-trigger CIC reduces windfall risk while protecting against adverse changes .
- Trading signals: Upcoming annual RSU vest dates (each February 15) can drive periodic sell-to-cover activity; monitor Form 4 filings around vesting windows and any 10b5-1 plans for supply effects .
- Execution risk: As Chief Credit Officer, Hu’s performance is intertwined with asset quality; continued low NPAs and declining criticized assets support margin resilience and AIP outcomes; watch credit trends and macro sensitivity in Hawaii that could affect future PSU realization .