Dominic Ng
EAST WEST BANCORPAbout Dominic Ng
Dominic Ng (age 66) is Chairman of the Board and Chief Executive Officer of East West Bancorp, Inc. and East West Bank, serving as a director since 1991 and CEO since 1992. He transformed East West from a $600 million savings and loan into a $76.0 billion-asset, high-performing regional bank with industry-leading ROA and ROE; 2024 results included revenue of $2.6 billion, net income of $1.2 billion, diluted EPS of $8.33, ROA of 1.60%, ROE of 15.93%, and three-year TSR of 31.97% as of December 31, 2024 . Ng is a former CPA with Deloitte & Touche and previously served as President of Seyen Investment; he also chaired the 2023 APEC ABAC, and is a director of Mattel, Inc. and the University of Southern California .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| East West Bancorp / East West Bank | CEO | 1992–present | Scaled assets to $76.0B and led record financial performance |
| East West Bancorp Board | Director | 1991–present | Long-tenured leadership and continuity |
| Seyen Investment | President | Prior to 1992 (not disclosed) | Investment leadership pre-dating CEO role |
| Deloitte & Touche LLP | CPA (Houston, Los Angeles) | Not disclosed | Financial/accounting expertise foundation |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| APEC Business Advisory Council | Chair | 2023 | Regional economic leadership; cross-border trade advocacy |
| Mattel, Inc. (Nasdaq: MAT) | Director | Current (year not disclosed) | Public company governance experience |
| University of Southern California | Board Member | Current (year not disclosed) | Academic/civic engagement |
Fixed Compensation
Multi-year CEO compensation (calendar basis):
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | 1,275,000 | 1,275,000 | 1,275,000 |
| Stock Awards ($) | 4,538,539 | 4,745,307 | 4,712,953 |
| Non-Equity Incentive Plan ($) | 3,142,875 | 2,218,500 | 3,105,900 |
| All Other Compensation ($) | 119,994 | 119,743 | 119,780 |
| Total ($) | 9,076,408 | 8,358,550 | 9,213,633 |
Additional context:
- CEO target bonus percentage: 145% of salary .
- 2024 pay mix: 83% of CEO target pay at-risk .
Performance Compensation
Annual bonus framework and outcomes (2024):
| Component | Metric details | Weighting | Target | Actual/Outcome | Payout impact | Vesting/Timing |
|---|---|---|---|---|---|---|
| Corporate – Financial | Growth: Operating EPS, PTPP, avg loans, avg deposits; Credit: criticized loans ratio | 70% | EPS $7.50; PTPP $1,616mm; loans +$1,250mm (2.5%); deposits +$2,000mm (3.6%); criticized ratio 3.38% | EPS $8.33; record loans/deposits/assets | Financial component paid at 175% | Annual cash bonus paid in 2025 for 2024 |
| Corporate – Strategic | Back to Basics, Deepen Relationships, Strategic Growth, Talent | 30% | Pre-set strategic goals | Committee-certified achievement (weighted to 150%) | Strategic component paid at 150% | Annual cash bonus paid in 2025 for 2024 |
| CEO Total Corporate | Aggregate corporate (no individual component for CEO) | 100% of CEO bonus | — | — | CEO corporate payout 168% | Paid 2025 for 2024 |
Long-term incentives (PSUs):
- PSU performance metrics and weights: ROA (37.5%), ROE (37.5%), TSR (25%) vs BKX peers; Threshold 30th percentile (50% payout), Target 50th (100%), Max ≥80th (200%) .
- 2024 PSU earnout: 180.4% of target (TSR 57th percentile; ROA 100th; ROE 91st) for the first performance year of 2024 grants .
- 2022 PSU payouts by performance year: 150.0% (2022), 187.7% (2023), 180.4% (2024) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 1,028,900 shares; less than 1% of class; includes 53,000 in family trusts with voting/investment power |
| Stock ownership guideline | CEO required to hold 6x annual base salary; NEOs must hold at least 51% of shares acquired via vesting/exercise until retirement; all NEOs met guidelines for 2024 |
| Hedging/Pledging | Prohibited for directors/officers/employees; no shorting or derivatives |
| Outstanding equity awards (12/31/2024) | Time-based RSUs: 23 (2/1/2022), 29 (1/23/2023), 28 (2/12/2024); Market values $2,202, $2,777, $2,681 respectively |
| Performance RSUs unvested (12/31/2024) | 100,560 (3/4/2022 grant; cliff vested 3/4/2025); 72,812 target + max 39,563 (3/1/2023 grant; cliffs 3/1/2026); 35,289 target + max 78,238 (3/5/2024 grant; cliffs 3/5/2027); market values in table below |
| Options | None outstanding for NEOs as of 12/31/2024; company primarily uses RSUs |
Outstanding awards detail (market values at $95.76 close on 12/31/2024):
| Grant | Units (unvested) | Market value ($) |
|---|---|---|
| 3/4/2022 PSU (cliff vested 3/4/2025) | 100,560 | 9,629,626 |
| 3/1/2023 PSU (target) | 72,812 | 6,972,477 |
| 3/1/2023 PSU (max potential unearned) | 39,563 | 3,788,553 |
| 3/5/2024 PSU (target) | 35,289 | 3,379,275 |
| 3/5/2024 PSU (max potential unearned) | 78,238 | 7,492,071 |
| 2/1/2022 RSU (time-based) | 23 | 2,202 |
| 1/23/2023 RSU (time-based) | 29 | 2,777 |
| 2/12/2024 RSU (time-based) | 28 | 2,681 |
Stock vesting realized in 2024:
- Shares vested: 116,194; value realized $8,507,677 before taxes .
Employment Terms
| Provision | CEO Employment Agreement (Ng) |
|---|---|
| Agreement dates | Original June 1998; amended March 3, 2025; termination date March 5, 2028 |
| Severance (no cause or specified resignation events) | Greater of (i) remaining payments/benefits for the term or (ii) 3x current base salary plus 3x prior-year bonus, lump sum |
| Estimated severance (as of 12/31/2024) | $13,251,576 |
| Equity acceleration | Upon termination other than cause, outstanding unvested stock options (if any), time-based and performance-based RSUs become fully vested; RSUs market value would have been $25,629,350 at 12/31/2024 |
| Change-of-control policy framework | Company practice: no “single trigger” change-of-control payments to executive officers |
| Perquisites | Financial planning services; company car; plus standard employee benefits |
Deferred compensation (2024):
- CEO contributions: $1,491,750; aggregate balance $5,794,582; aggregate earnings $471,528 .
Insider Transactions and Selling Pressure
| Date | Shares | Price | Proceeds | Note |
|---|---|---|---|---|
| Mar 19, 2025 | 19,819 | ~$90 | ~$1.78 million | Sale under Rule 10b5-1 plan adopted Nov 20, 2024; post-trade direct holdings 968,314; 7,586 indirectly via 401(k) |
| Mar 20, 2025 (article) | 19,819 | ~$90 | ~$1.78 million | Coverage of the above sale |
| Jul 28, 2025 | 40,000 | $103.38 (weighted avg) | ~$4.13 million | Executed under the Nov 20, 2024 Rule 10b5-1 plan; post-trade direct holdings 888,314; ~7,633 indirectly via 401(k) |
Context:
- Company reports no hedging or pledging allowed, reducing alignment risk; directors/officers prohibited from shorting or use of derivatives .
- RSUs cliff-vest three years from grant; 2022 PSU vested on 3/4/2025; 2023 PSU will vest 3/1/2026; 2024 PSU will vest 3/5/2027, with annual PSU earnouts affecting final payout quantities .
Board Governance
- Roles and independence: Ng serves as combined CEO and Chairman; 9 of 10 directors are independent under Nasdaq standards; committees (Audit, Compensation, Nominating/Governance) are fully independent .
- Lead Independent Director (Lester M. Sussman) has strong authority including executive sessions, agenda control, consultant retention, and investor engagement .
- Committee memberships: Ng chairs the Executive Committee; other committees and their chairs are independent (e.g., Compensation chaired by Jack C. Liu; Audit chaired by Sussman; Risk Oversight chaired by Mark Hutchins) .
- Meeting attendance: All nominees attended all regularly scheduled Board and committee meetings and the retreat in 2024 .
Director compensation (Ng):
- Employees are not compensated for service as company directors; Ng’s compensation is solely as CEO, disclosed in NEO tables .
Stock ownership guidelines:
- Directors must hold shares equal to 3x annual cash retainer; CEO guideline 6x salary; compliance reviewed annually .
Compensation Structure Analysis
- At-risk orientation: CEO target pay 83% at-risk; all LTI as PSUs tied to ROA/ROE/TSR vs BKX peers; no options or repricing; annual bonus linked to objective financial and strategic goals .
- Clawbacks: 2023 clawback policy adopted under Nasdaq/Dodd-Frank for erroneous incentive-based pay upon restatements .
- Shareholder oversight: Annual say-on-pay; 98.7% approval in 2024 for prior year comp; peer group reviewed annually; Meridian as independent consultant .
- Taxes and protections: No excise tax gross-ups; no hedging/pledging; stock ownership and holding requirements for NEOs .
Equity Ownership & Director Interlocks
- Beneficial ownership: 1,028,900 shares beneficially owned by Ng (including two family trusts totaling 53,000 shares) as of April 3, 2025; <1% of shares outstanding .
- Other boards: Mattel, Inc.; University of Southern California; chair of APEC ABAC in 2023 .
Say-on-Pay & Peer Group
- Say-on-Pay: 98.7% approval at 2024 annual meeting for 2023 executive compensation .
- Compensation peer group: 21 bank holding companies, updated in Nov 2023; includes CFG, FITB, MTB, RF, HBAN, KEY, RF, etc.; performance benchmarking for PSUs vs BKX .
- Percentile target usage: Committee does not benchmark to a specific percentile for total compensation; considers performance, tenure, role, retention .
Related Party & Risk Indicators
- Related party transactions: None requiring approval/ratification in 2024; director loans, if any, made in ordinary course and on market terms; no loans to NEOs .
- Policy restrictions: No option repricing without stockholder approval; no single-trigger change-in-control payments; no hedging/pledging .
Investment Implications
- Pay-for-performance alignment appears strong: high at-risk mix, rigorous PSU framework linked to ROA/ROE/TSR vs BKX; annual corporate bonus metrics produced above-target payouts (Financial 175%, Strategic 150%, CEO total 168%), consistent with record 2024 results and multi-year outperformance on ROA/ROE .
- Governance checks mitigate dual-role risk: combined CEO/Chairman structure offset by a robust Lead Independent Director and fully independent committees; high board independence (9/10) .
- Insider sale activity under 10b5-1 may create periodic supply: planned sales in March and July 2025 totaling ~60k shares were executed under a pre-adopted plan, limiting information-risk but signaling potential near-term technical overhang around vesting cycles; alignment enhanced by ownership guidelines and anti-pledging policies .
- Severance and acceleration economics are material: CEO severance estimated at $13.25 million with full RSU acceleration valued at $25.63 million as of 12/31/2024 under termination scenarios other than cause; investors should monitor contract renewals and potential change-of-control terms, noting the company’s no single-trigger practice .
- Shareholder support remains high: 98.7% say-on-pay approval in 2024, annual peer review with independent consultant (Meridian), and clawback policy adoption in 2023 align with governance best practices .