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Paul Aguggia

About Paul M. Aguggia

Independent director (since September 2022), age 62, and Chair of the Corporate Governance Committee at Dime Community Bancshares (DCOM). He is a partner at Holland & Knight LLP (joined 2018) and previously served as Chairman & CEO of Clifton Bancorp, Inc. until its merger with Kearny Financial Corp., and as Chairman of Kilpatrick Townsend & Stockton LLP . He is classified as an independent director under Nasdaq standards; all directors attended the 2024 annual meeting .

Past Roles

OrganizationRoleTenureCommittees/Impact
Holland & Knight LLPPartner2018–presentCorporate/securities, banking law expertise
Clifton Bancorp, Inc.Chairman & CEO2014–merger with KearnyPublic company CEO overseeing M&A; banking operations
Kilpatrick Townsend & Stockton LLPChairmanNot disclosedLaw firm leadership; governance experience

External Roles

OrganizationRolePublic Company?Notes
Holland & Knight LLPPartnerNoActive legal practice; potential situational conflicts monitored via related-party review
Clifton Bancorp, Inc. (prior)Chairman & CEOYes (prior)Historical public company experience; merged into Kearny Financial

Board Governance

  • Committee assignments: Chair, Corporate Governance Committee; Member, Compensation & Human Resources Committee. Audit Committee is separate; all standing committees are independent .
  • Board/committee cadence: Board met 10 times in 2024; Audit (4), Compensation (4), Corporate Governance (4) in 2024 .
  • Independence: Board determined 10 of 11 members are independent; CEO is not independent .
  • Attendance: All directors attended the May 23, 2024 annual meeting; in 2023, no director other than Suskind attended fewer than 75% of aggregate meetings (Suskind excused for medical reasons) .
  • Governance responsibilities (CG Committee chaired by Aguggia): Board composition/refresh, nominee criteria and recommendations, committee structure/chairs, related-party transaction approval, succession planning, director education .
  • Risk oversight: Enterprise Risk, Compliance Risk, Credit Risk committees oversee risk framework, with quarterly cyber updates and risk appetite monitoring .

Fixed Compensation (Director)

YearRoleCash Retainer ($)Equity (RSAs) ($)Total ($)Structure
2024Non‑employee Director79,000 58,500 (2,227 RSAs; granted 1/1/2024) 137,500 Retainers paid ~55% cash/45% stock; RSAs vest in 1 year; no meeting fees
2023Non‑employee Director71,500 58,500 (2,463 RSAs; granted 3/31/2023) 130,000 Same structure; Lead Director retainer eliminated in 2024

Notes:

  • Standard non‑employee director annual retainer was $130,000 in 2024; Corporate Governance Committee chair retainer $15,000; Chairman incremental retainer $60,000. Paid ~55% cash / 45% stock via Directors’ Stock Purchase Program elections; no meeting fees .
  • DSPP allows conversion of cash retainers into stock at market price on pay date; 2024 participants included Germano and Perry (not Aguggia) .

Performance Compensation (Committee‑set metrics oversight)

Directors receive time‑vested RSAs (no performance‑vesting), but as a Compensation Committee member, Aguggia oversees executive incentive design. 2024 Annual Incentive Plan (AIP) Corporate Factor metrics:

MetricWeightThresholdTargetMaximumActual (FY’24)
Adjusted Non‑Interest Expense / Avg. Assets50.0% 1.75% 1.55% 1.35% 1.54%
Relative Asset Quality (NPLs/Loans vs peer median)12.5% 25th pct. 50th pct. 75th pct. 73rd pct.
CET1 Ratio (Consolidated)10.0% 10.25% 11.00% 12.00% 12.17%
CRE Concentration Ratio (Consolidated)15.0% 550% 510% 470% 447%
Loan‑to‑Deposit Ratio12.5% 105% 97.5% 90% 93%

Long‑Term Incentive Plan (LTIP) PRSA metrics (2024–2026 cycle):

MetricWeightThresholdTargetMaximum
Relative Deposit Franchise Quality (Metro NY/NJ)50% 25th pct. 50th pct. 75th pct.
Consolidated CRE Concentration Ratio (12/31/2026)50% 490% 450% 400%

AIP gating: No bonuses paid if Total Risk‑Based Capital <10.5% at year‑end; Discretionary Factor at 120% of target reflecting deposit franchise growth, tech, compliance, TSR, CRA and cyber .

Other Directorships & Interlocks

  • Current public company boards: None disclosed beyond DCOM .
  • Prior public company boards: Clifton Bancorp, Inc. (Chairman & CEO) .
  • Committee interlocks: None; DCOM disclosed no interlocking relationships in 2024 and 2023 .

Expertise & Qualifications

  • 30+ years advising banks/financial services on M&A, capital markets, securities, regulatory, and governance; public company executive experience; corporate/banking law specialist .
  • Governance/nomination leadership (CG Committee Chair) and compensation oversight (Comp Committee member) .

Equity Ownership

As ofCommon Shares Beneficially OwnedIncludes Time‑Vested Restricted Shares% of Outstanding
3/20/202512,680 2,061 RSAs <1%
3/28/202410,832 4,690 RSAs <1%
  • Pledging/hedging: Prohibited for directors/officers; policy reaffirmed and disclosed in proxy and insider trading policy .
  • Ownership guidelines: Directors must hold at least 5× annual cash retainer; compliance reviewed annually. As of 12/31/2024, all directors were compliant or within the allowed 5‑year phase‑in under updated 2025 guidelines (CEO 3× salary; other NEOs 1.5×) .
  • Section 16(a): Company disclosed one late Form 3 for an executive; no director disclosure specific to Aguggia .

Fixed Compensation (Program Overview)

  • Non‑employee director retainer: $130,000; Chair retainers: Audit/Comp/Enterprise Risk $25,000; Corporate Governance $15,000; Chairman of Board $60,000; no meeting fees; compensation unchanged since 2021 except elimination of some chair retainers in 2023 and Lead Director role in 2024 .
  • Mix: ~55% cash / ~45% restricted stock vesting in one year; directors may elect stock via DSPP at prevailing Nasdaq price on pay date (2024 participants: Germano, Perry) .

Performance Compensation (Executive Program Signals)

ProgramComponentTarget Opportunity (illustrative)Design Notes
AIP (2024)Corporate Factor 85%; Discretionary 15% CEO 100% of salary; NEOs 45–50% Balanced sheet strength focus; risk gate at TRC ≥10.5%
LTIP (2024)60% PRSAs; 40% RSAs CEO 65% of salary; NEOs 40% PRSAs tied to deposit quality and CRE diversification; RSAs 3‑year ratable vesting

Say‑on‑Pay & Shareholder Feedback

  • Say‑on‑pay support: 81.0% approval at 2024 annual meeting (on 2023 pay); 80.4% at 2023 (on 2022 pay) .
  • Responsive changes: Majority vote standard adopted for uncontested director elections (bylaw amendment); inclusion of asset quality metric in AIP; eliminating positive discretion on time‑vested LTIP grants .

Governance Assessment

  • Strengths: Independent director; chairs Corporate Governance (controls nominations, related‑party approvals); member of Compensation Committee (uses independent consultant; Pay Governance in 2024, Aon in 2023; no interlocks) . Board leadership is independent; committees fully independent; strong risk oversight .
  • Alignment: Holds DCOM stock; directors subject to robust ownership guidelines and anti‑hedging/pledging prohibitions .
  • Performance signals: 2024 TSR of 18.5% vs peer median 12.5%; stronger balance sheet metrics (CET1 >12%, NIM expansion, CRE concentration reduction) tied to incentive outcomes—positive for pay‑for‑performance credibility .
  • Potential conflicts/RED FLAGS:
    • Law firm partnership could be a conflict if the firm provides services to DCOM; Corporate Governance Committee formally reviews/approves related‑party transactions (no Holland & Knight transaction disclosed) .
    • Director/officer loans: Bank disclosed two residential mortgages to two directors and one CRE loan to an entity controlled by a director, on market terms under permissible banking programs; names not disclosed. Monitor for future changes; oversight lies with CG Committee .
    • Section 16(a): One late Form 3 (executive) disclosure; maintain monitoring of timely filings .

Net view: Aguggia’s chairmanship of Corporate Governance and role on Compensation suggest meaningful influence over board composition, pay design, and related‑party oversight. Strong independence, attendance, and use of external consultants bolster governance quality; limited disclosed conflicts and robust policies (ownership, clawbacks, anti‑hedging) support investor alignment .