Christopher Del Moral-Niles
EAST WEST BANCORPAbout Christopher Del Moral-Niles
Executive Vice President and Chief Financial Officer (CFO) of East West Bancorp (EWBC) and East West Bank, appointed October 2, 2023; age 52 at appointment per 8-K . In 2024, EWBC reported record results (revenue ~$2.6B, net income ~$1.2B, EPS $8.33), with ROA 1.60%, ROE 15.93%, and three-year TSR of 31.97% as of 12/31/2024, framing pay-for-performance context during his tenure initiation . Company compensation program emphasizes at-risk pay (all-PSU LTI), no pledging/hedging, and clawbacks; say-on-pay support was 98.7% in 2024 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Associated Banc-Corp | Chief Financial Officer | 2012–2022 | Led finance for a decade; prior Treasurer 2010–2012, spanning ALM, capital and funding |
| Associated Banc-Corp | EVP & Treasurer | 2010–2012 | Enterprise treasury leadership across liquidity/capital |
| First American Trust, FSB | President | 2009–2010 | Ran trust bank operations within First American |
| The First American Corporation | Corporate VP & Treasurer | 2006–2009 | Corporate treasury and capital markets |
| Union Bank | SVP, Director of Liability Management | — | Balance sheet and funding management |
| Merrill Lynch; Lehman Brothers | Investment banker | — | Capital markets and advisory experience |
External Roles
- Not disclosed in EWBC filings reviewed for public company directorships or current external board roles for Del Moral-Niles .
Fixed Compensation
| Year | Base salary ($) | Target bonus (% of salary) | Actual annual bonus ($) | Sign-on / discretionary bonuses ($) | Stock awards (grant-date fair value, $) |
|---|---|---|---|---|---|
| 2024 | 630,462 | 100% | 1,011,494 | — | 420,757 |
| 2023 | 150,000 (partial year) | 100% (not applicable for 2023) | — | 350,000 (200k sign-on; 150k discretionary) | 500,000 (time-based RSUs at hire) |
Performance Compensation
Annual Incentive (Performance-Based Bonus Plan)
- 2024 weights and payouts (CFO): Financial 45%, Strategy 20%, Individual 35%; corporate component paid at 175% (financial) and 150% (strategic); individual component at 142%; total payout 159% of target (target = 100% of salary). Payout aligns with actual $1,011,494 vs. ~$636,000 target .
| Metric component | Weight (CFO) | 2024 payout (% of target) |
|---|---|---|
| Financial | 45% | 175% |
| Strategic | 20% | 150% |
| Individual | 35% | 142% |
| Total | — | 159% |
- 2024 financial metric design: 70% corporate weighting split across Operating EPS (25%), PTPP income (25%), average loans growth (10%), average deposits growth (20%); credit quality (year-end criticized loans ratio) at 20%. 2024 financial targets set amid a softening outlook (Operating EPS $7.50; PTPP $1,616mm; loan/deposit growth above 2023) .
Long-Term Incentives (PSUs; 100% performance-based)
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Plan design: Three one-year performance periods; metrics are relative ROA (37.5%), ROE (37.5%), TSR (25%) vs. BKX constituents with threshold 30th percentile (50%), target 50th (100%), max ≥80th (200%). Awards cliff vest after 3 years (e.g., 2024 grant vests 3/5/2027) subject to continued service; dividends accrue to vesting .
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2024 awards and earned progress (CFO):
- Granted 3/5/2024: Target 5,216 PSUs; first-year performance (2024) earned at 180.4%, equating to 3,137 PSUs “earned-to-date,” payable at 3/5/2027 if still employed; remaining years subject to performance; grant-date fair value $418,751 .
- Spirit of Ownership RSUs: 28 time-based RSUs on 2/12/2024; cliff vest 3 years from grant .
- Hire RSUs: 9,781 time-based RSUs on 10/2/2023; cliff vest 3 years from grant; grant-date fair value $500,000 .
| Grant | Type | Target / units | Performance result to date | Vesting schedule | Grant-date fair value ($) |
|---|---|---|---|---|---|
| 3/5/2024 | PSUs | 5,216 target | 3,137 earned for 2024 at 180.4% | Cliff vest 3/5/2027; 3 one-year performance tranches | 418,751 |
| 2/12/2024 | RSUs | 28 | — | Cliff vest ~2/12/2027 | 2,006 |
| 10/2/2023 | RSUs (hire) | 9,781 | — | Cliff vest ~10/2/2026 | 500,000 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (4/3/2025) | 0 shares beneficially owned; excludes unvested RSUs/PSUs |
| Options | None outstanding for NEOs as of 12/31/2024 |
| Unvested time-based RSUs | 9,781 (10/2/2023 hire) + 28 (2/12/2024) = 9,809 units unvested |
| PSUs earned-to-date (unvested) | 3,137 units from 2024 performance year (cliff vest 2027) |
| Additional PSU potential | 6,955 “unearned” units shown outstanding pending future years’ performance |
| Stock ownership guidelines | NEOs: 1× salary; hold 51% of net shares from vests/exercises until retirement; “all NEOs met” 2024 guidelines |
| Hedging/pledging | Prohibited for directors/officers/employees |
Notes on selling pressure:
- Anticipated vesting windows: ~10/2/2026 (hire RSUs), ~3/5/2027 (2024 PSUs), ~2/12/2027 (2024 RSUs). Standard tax withholding on vest may create mechanical selling around these dates .
Employment Terms
| Provision | Terms |
|---|---|
| Employment agreement | None; the Bank has agreements with certain NEOs “with the exception of Mr. Del Moral-Niles” |
| Severance | Not disclosed for CFO (no individual agreement) |
| Change-of-control | Company policy: no “single-trigger” change of control payments to executive officers |
| Clawback | Executive Compensation Clawback Policy adopted 2023 under Dodd-Frank/Nasdaq; covers erroneously awarded incentive-based pay upon restatement |
| Hedging/pledging | Prohibited; Insider Trading Policy in place |
| Ownership/holding | 1× salary ownership; 51% hold-until-retirement on vested shares from awards |
Performance & Track Record
- 2024 company performance: record earnings (EPS $8.33), revenue ~$2.6B, loans $53.7B, deposits $63.2B, assets $76.0B; ROA 1.60%, ROE 15.93%; three-year TSR 31.97% as of 12/31/2024 .
- CFO-specific evaluation: “successfully delivered strong earnings… managing balance sheet, capital, and liquidity” and built credibility with analysts/investors; improved forecasting processes .
Compensation Structure Analysis
- Cash vs. equity mix: 2024 saw meaningful NEIP payout (159% of target) alongside PSU-centric LTI; 100% of LTI delivered in PSUs, no options, aligning realized pay with multi-year ROA/ROE/TSR vs. peers .
- Target calibration: For 2024 annual plan, operating EPS ($7.50) and PTPP ($1,616mm) targets were set below 2023 actuals given macro softness; growth targets for average loans/deposits were above 2023, and criticized loans ratio target emphasized credit quality .
- Governance: no tax gross-ups; no single-trigger; strict ownership/holding/hedging-pledging restrictions; clawback in force .
- Peer benchmarking: 2024 compensation peer group expanded (adding CFG, FITB, MTB); EWBC ranked 48th percentile by assets and 62nd by market cap; PSUs benchmark to BKX for ROA/ROE/TSR .
Say-on-Pay & Shareholder Feedback
- Say-on-pay approval: 98.7% support at 2024 annual meeting for 2023 NEO compensation; Committee engaged Meridian as independent consultant .
Compensation & Incentives Detail (Multi-Year Snapshot)
| Metric | 2023 | 2024 |
|---|---|---|
| Base salary ($) | 150,000 (partial year from 10/2/2023) | 630,462 (paid) |
| Target bonus (% salary) | 100% (not applicable due to late-year hire) | 100% |
| Actual bonus ($) | — (received sign-on/discretionary bonuses instead) | 1,011,494 |
| Stock awards ($, grant-date) | 500,000 (hire RSUs, 9,781 units) | 420,757 (PSUs+RSUs) |
| LTI structure | Not in 2022–2023 PSU cycles (joined late 2023) | PSUs (5,216 target); first-year earned 180.4% |
Investment Implications
- Alignment and incentive quality: Strong pay-for-performance linkage via 100% PSU LTI tied to relative ROA/ROE/TSR, with above-peer company performance translating to >100% earnouts (180.4% for 2024) .
- Retention dynamics: No individual employment agreement or bespoke severance for the CFO, but significant unvested equity with cliff vesting in 2026–2027 supports retention; upcoming vest events may create episodic selling pressure from tax withholding and potential de-risking trades .
- Ownership optics: Beneficially 0 shares as of 4/3/2025, yet company reports all NEOs met stock ownership/holding guidelines for 2024—implies guideline measurement includes qualifying equity (e.g., unvested RSUs) or other forms; strict anti-pledging/hedging and 51% hold rules mitigate misalignment risk .
- Target rigor: Annual plan targets adjusted below 2023 actuals amid macro headwinds; investors should monitor if future calibrations maintain appropriate difficulty while balancing growth and credit quality .
- Shareholder support and peer positioning: High say-on-pay approval (98.7%) and transparent use of a robust regional-bank peer set and BKX benchmarking reduce governance risk and pay inflation concerns .
Overall, Del Moral-Niles’ package is heavily equity- and performance-oriented, with meaningful unvested PSUs/RSUs serving as a retention hook and limiting short-term exit risk; absence of a bespoke employment agreement elevates at-will exposure, but company-wide policies (clawbacks, no single-trigger, ownership/holding) and strong corporate performance align the CFO’s incentives with shareholder value creation .