Dayna N. Matsumoto
About Dayna N. Matsumoto
Executive Vice President and Chief Financial Officer (CFO) of Central Pacific Financial Corp. and Central Pacific Bank since March 1, 2025; age 43; licensed CPA in Hawaii; BBA in Accounting & Finance (University of Hawaii at Manoa) and MBA (Hawaii Pacific University) . In Q1–Q2 2025 under her finance leadership, CPF expanded net interest margin and delivered improving profitability: NIM rose from 3.31% to 3.44%, ROA ~1.0% and ROE ~13% . She executed CFO certifications and signed SEC filings, evidencing responsibility for disclosure controls and fair presentation of results .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Central Pacific Financial Corp. / Central Pacific Bank | EVP & Chief Financial Officer | 2025–present | Oversees Controller, Treasury, FP&A; raised NIM and maintained strong capital/liquidity in 2025 |
| Central Pacific Financial Corp. / Central Pacific Bank | Group SVP, Director of Finance & Accounting | 2023–2025 | Led finance and accounting across the Company/Bank |
| Central Pacific Financial Corp. / Central Pacific Bank | SVP, Controller | 2013–2022 | Enterprise controllership, financial reporting |
| Central Pacific Financial Corp. / Central Pacific Bank | Treasury Division (incl. VP, Asset & Liability Manager) | 2006–2012 | Asset-liability management; interest rate risk/ALCO support |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Girl Scouts of Hawaii | Director | Not disclosed | Community leadership and youth development |
| Teach for America – Hawaii | Director | Not disclosed | Education and talent development support |
Fixed Compensation
- Company-wide approach sets executive base salaries near the 50th percentile of the compensation peer group and local market; adjustments consider market alignment and total pay structure .
- Dayna’s individual base salary and 2025 target bonus are not disclosed in the 2025 proxy.
Context – 2024 base salaries for Named Executive Officers (NEOs):
| Name | 2023 Base Salary | 2024 Base Salary | % Change |
|---|---|---|---|
| Arnold D. Martines (CEO) | $635,000 | $675,000 | 6.30% |
| David S. Morimoto (CFO in 2024) | $490,000 | $500,000 | 2.04% |
| Anna M. Hu (EVP, Chief Credit Officer) | $300,000 | $325,000 | 8.33% |
| Kisan Jo (EVP, Retail & Wealth) | $315,000 | $320,000 | 1.59% |
| Diane W. Murakami (EVP, Commercial Markets) | $300,000 | $310,000 | 3.33% |
Performance Compensation
| Component | Metric | Weighting | Target/Definition | Payout Range | Vesting |
|---|---|---|---|---|---|
| Annual Incentive Plan (AIP) | Net Income; Efficiency Ratio; Business Plan/Personal Goals | Not disclosed | Company performance and strategic/operational goals; 2024 performance adjusted for non-core securities repositioning | 50% at threshold; 200% at max; 2024 NEO payouts ~91–94% of target | |
| PSUs (2024 grant) | Return on Equity (ROE) | 50% of PSUs | 3-year (2024–2026) Board-approved ROE targets; threshold 80% of target; forfeiture if threshold not achieved | 50% of target at threshold; up to 200% at max | Cliff vest Feb 15, 2027 if threshold achieved |
| PSUs (2024 grant) | Relative TSR vs. peer group | 50% of PSUs | 3-year rTSR vs. industry peers | 50% of target at 25th percentile; 200% at 75th percentile | Cliff vest Feb 15, 2027 |
| RSUs (2024 grant) | Time-based | 50% of LTI value | Service-based retention | N/A | Equal annual installments over 3 years (Feb 15 each year) |
| PSUs (2022 cycle observation) | ROA (3-year avg) | 50% of PSUs | 2022–2024 average ROA – threshold 80% for 50% payout | 50–200% of target | Cliff vest Feb 15, 2025; shares indicated at target due to metric trending between threshold/target |
| PSUs (2022 cycle observation) | Relative TSR | 50% of PSUs | Feb 15, 2022–Feb 15, 2025 period | 50–200% of target | Shares indicated at maximum due to metric trending between target/maximum |
Program governance and risk:
- NYSE-compliant clawback policy adopted Sept 21, 2023; applies to incentive compensation over preceding 3 years if restatement occurs; SOX 304 reimbursement applies to CEO and CFO; annual and LTI plans permit cancellations/recovery where materially inaccurate or excessive risk encouraged .
- No guaranteed bonuses; independent consultant (Pay Governance) engaged; compensation risk assessment framework implemented in 2024 .
Equity Ownership & Alignment
| Policy | Requirement | Timeframe | Notes |
|---|---|---|---|
| Stock Ownership Guidelines – EVP & Executive Committee | Hold 50% of net-after-tax vested shares until market value equals 1.5× annual base salary | 5 years; if not met, 100% of net shares from future vesting must be held until achieved | Applies to executive officers; compliance tracked (Morimoto and Hu met; Jo and Murakami on track). Dayna’s compliance status not disclosed |
| Hedging/Pledging | Hedging transactions prohibited; pledging (including margin) prohibited without Legal Dept. prior consent | Ongoing | Applies to directors/employees; supports alignment and risk control |
| Insider Trading Policy | Trading prohibited while in possession of MNPI and during blackout periods | Ongoing | Robust whistleblower protections and conduct codes in place |
Beneficial ownership:
- Individual share count for Dayna is not itemized in the Security Ownership table; group ownership for all directors and executive officers is 650,606 shares (includes Dayna and Ralph M. Mesick) .
Employment Terms
- At-will employment; no individual employment agreements for NEOs/executive officers .
- No change-in-control (CIC) agreements; outstanding RSUs/PSUs accelerate vesting only upon CIC with associated termination (double-trigger). For PSUs, acceleration occurs at target shares .
- No severance agreements; no additional payments beyond standard employee programs upon termination absent CIC .
- No tax gross-ups (e.g., 280G, 409A) under executive compensation governance .
- Clawback policy (NYSE Rule 954) and SOX 304 apply to CFO .
Performance & Track Record (2025 operating KPIs)
| Metric | Q1 2025 | Q2 2025 |
|---|---|---|
| Net Income ($MM) | $17.8 | $18.3 |
| Diluted EPS ($) | $0.65 | $0.67 |
| ROA (%) | 0.96% | 1.00% |
| ROE (%) | 13.04% | 13.04% |
| Net Interest Margin (%) | 3.31% | 3.44% |
| Efficiency Ratio (%) | 61.16% | 60.36% |
| Closing Market Price per Share | Q1 2025 | Q2 2025 |
|---|---|---|
| Price ($) | $27.04 | $28.03 |
Execution notes:
- NIM expanded sequentially each quarter over the last five quarters; deposit costs declined to 1.02% in Q2 2025, contributing to spread expansion .
- Liquidity and capital remained strong (Leverage 9.4%→9.6%; CET1 12.4%→12.6%) and quarterly dividend increased to $0.27 per share in 2025 .
Related Party & Risk Indicators
- Related party transaction: Dayna’s spouse, Patrick Matsumoto (VP, Commercial Real Estate Manager, non-executive officer); 2024 total compensation approximately $177,000; compensation commensurate with peers; does not report to Dayna .
- Loans to related persons are extended in ordinary course on market terms and pass-rated; overseen per Regulation O and internal policies .
- No Section 16(a) delinquencies in 2024 for persons subject to reporting (includes executive officers) .
- Prohibition on hedging and limits on pledging mitigate alignment risks .
- 2024 Say-on-Pay approval ~98%, indicating strong shareholder support for pay programs .
Compensation Committee & Peer Benchmarking
- Compensation Committee: independent directors (Chair: Saedene K. Ota); met six times in 2024; uses independent consultant (Pay Governance) and independent legal advisor (Manatt, Phelps & Phillips, LLP) .
- Peer group (16 banks, assets ~$2–24B, West Coast/Hawaii emphasis) used for benchmarking; company positioned at 38th percentile in assets; CEO target pay at lower percentiles vs peers/local market .
Investment Implications
- Pay-for-performance alignment appears robust: AIP tied to profitability/efficiency; LTI 50% PSUs (ROE and rTSR) and 50% RSUs with clear 3-year vesting; clawbacks and hedging prohibitions add downside safeguards .
- Double-trigger CIC equity acceleration and absence of severance/CIC agreements reduce windfall risks; stock ownership guidelines (1.5× salary for EVPs) require ongoing “skin-in-the-game,” though Dayna’s individual holdings level is undisclosed .
- Near-term insider selling pressure assessment is constrained by lack of individual Form 4 data in documents; policy limits pledge/hedge activity, and strong say-on-pay support reduces governance overhang .
- Operational momentum in 2025 (NIM, ROA/ROE, capital) under her CFO tenure signals execution strength; continued delivery against ROE/rTSR PSU hurdles would be a positive indicator for compensation alignment and future vesting outcomes .