Joseph Connolly
About Joseph Connolly
Joseph W. Connolly is Chief Compliance Officer of BNY Mellon Strategic Municipal Bond Fund, Inc. (DSM) and has served as CCO of the BNY Mellon Family of Funds and BNY Mellon Funds Trust since 2004; he was CCO of BNY Mellon Investment Adviser, Inc. from 2004 until June 2021 . He has held the DSM officer role since 2012 and is age 68 per the latest proxy; his remit spans compliance oversight across a large fund complex (45–56 investment companies over time) . DSM’s Board disclosed trading dynamics relevant to the fund structure: DSM’s shares traded at an average 16.06% discount to NAV during the Q4 2023 measurement period and at a 14.44% discount on April 10, 2024; the Board recommended voting against conversion to open‑end status .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| BNY Mellon Investment Adviser, Inc. | Chief Compliance Officer | 2004 – June 2021 | Led adviser-level compliance; concurrent CCO responsibilities across the BNY Mellon Family of Funds . |
| BNY Mellon Family of Funds / BNY Mellon Funds Trust | Chief Compliance Officer | 2004 – present | Ongoing CCO coverage for 45–56 investment companies across years (103+ portfolios) . |
| DSM (BNY Mellon Strategic Municipal Bond Fund, Inc.) | Chief Compliance Officer (officer of the Fund) | 2012 – present | Fund officer with indefinite term; Board interacts regularly with the Fund’s and Adviser’s CCO for risk oversight . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Not disclosed | — | — | The proxy statements list Connolly’s CCO positions; no external board roles are disclosed for him . |
Fixed Compensation
| Component | 2023 | 2024 | Notes |
|---|---|---|---|
| Base salary | Not disclosed | Not disclosed | DSM proxies disclose director/advisory board compensation, not officer pay; officer details are not provided . |
| Target bonus % | Not disclosed | Not disclosed | Not disclosed in DSM proxies . |
| Actual bonus | Not disclosed | Not disclosed | Not disclosed in DSM proxies . |
| Perquisites | Not disclosed | Not disclosed | Not disclosed in DSM proxies . |
Performance Compensation
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Not disclosed | — | — | — | — | — |
DSM proxy statements do not disclose officer performance metrics, equity award terms, or payouts; they cover director/advisory board compensation only .
Equity Ownership & Alignment
| As-of Date | Common Stock Owned | % of Common Outstanding | VMTP/APS Owned | Notes |
|---|---|---|---|---|
| April 14, 2021 | None | 0% | None | As of April 14, 2021, none of the Nominees, Continuing Directors or officers owned Common Stock or APS . |
| April 13, 2022 | None | 0% | None | As of April 13, 2022, none of the Nominees, Continuing Directors or officers owned Common Stock or APS . |
| April 10, 2023 | None | 0% | None | As of April 10, 2023, none of the Nominees, Continuing Directors or officers owned Common Stock or APS . |
| April 10, 2024 | None | 0% | None | As of April 10, 2024, none of the Directors or officers owned Common Stock or VMTP Shares . |
- Shares pledged as collateral: Not disclosed .
- Ownership guidelines/compliance: Not disclosed for officers in DSM proxies .
Employment Terms
| Term | Detail | Source |
|---|---|---|
| Fund officer role since | 2012 | “Chief Compliance Officer (2012)” in officer roster . |
| Tenure calculation | Indefinite term for Fund officers; successors elected when qualified | “Each officer of the Fund holds office for an indefinite term…” . |
| Contract term/expiration | Not disclosed | DSM proxies do not include officer employment agreements . |
| Severance/change-of-control | Not disclosed | No officer severance or CIC terms disclosed; DSM details relate to Board compensation only . |
| Non-compete/non-solicit | Not disclosed | Not disclosed in DSM proxies . |
| Clawbacks/tax gross-ups | Not disclosed | Not disclosed in DSM proxies . |
Additional Context: Board Governance Touchpoints
- DSM’s Board interacts regularly with the Fund’s and the Investment Adviser’s Chief Compliance Officer as part of risk oversight, underscoring the centrality of the CCO function in compliance, valuation and regulatory risk management .
- DSM’s committees (Audit, Nominating, Compensation, Litigation) are composed of Independent Directors; Connolly is an officer, not a Director .
Investment Implications
- Alignment/Trading Signals: No DSM equity ownership by officers reduces direct insider selling pressure; DSM proxies disclose director/advisory compensation only, with no officer pay metrics or equity awards—limiting pay-for-performance analysis and trading signals derived from executive incentives .
- Retention Risk: Officers serve indefinite terms; absence of disclosed severance/CIC protections or non-compete terms leaves retention economics opaque, but the Board’s stated engagement with the CCO function suggests continuity and institutional oversight .
- Governance: Compliance leadership is structurally central to DSM’s risk controls, with the Board’s oversight relying on interaction with the CCO; for investors, monitoring Board disclosures and any future Item 5.02 filings would be key to detecting transition risk or governance changes affecting compliance rigor .
- Fund Structure Context: The Board cited persistent market discounts to NAV and recommended against conversion to open‑end status; while not attributable to the CCO, this context frames DSM’s operating environment and the importance of robust compliance and liquidity management under the closed‑end structure .