Parker Shi

About Parker Shi

Parker Shi, 55, has served as Executive Vice President and Chief Operating Officer of East West Bancorp and East West Bank since December 2021, following roles as EVP & Chief Strategy, Growth and Technology Officer (June–Nov 2021), consultant (March–June 2021), and prior senior positions at PharmScript (Senior Advisor, 2020), Accenture (Senior Managing Director, 2018–2019), and McKinsey & Company (Senior Partner, 2013–2018) . Under EWBC’s 2024 results, the company delivered record revenues ($2.6B) and net income (~$1.2B), with ROA of 1.60%, ROE of 15.93%, and a three-year TSR of 31.97% as of Dec 31, 2024, framing the operating context for executive performance evaluations .

Past Roles

External Roles

No external public company directorships or committee roles for Mr. Shi are disclosed in the 2025 proxy or 2024 Form 10-K executive officer biographies .

Fixed Compensation

Performance Compensation

Annual Performance Bonus (2024 design and outcome for Mr. Shi)

2024 Corporate metrics represented 70% of corporate goals with 80% weighting to growth (operating EPS, PTPP, avg loans and deposits) and 20% to credit quality (year-end criticized loans ratio target 3.38%) .

Long-Term Incentives (PSUs and RSUs)

• PSU framework and 2024 awards:

  • Metrics/weights: ROA 37.5%, ROE 37.5%, TSR 25% vs BKX banks; threshold 30th percentile (50% payout), target 50th (100%), max ≥80th (200%) .
  • 2024 PSU first-year earnout: 180.4% (TSR 57th pct, ROA 100th pct, ROE 91st pct) .
  • 2024 Target PSUs for Shi: 9,780 (grant 3/5/2024; cliff vest 3/5/2027) .
  • 2024 Spirit of Ownership RSUs: 28 (grant 2/12/2024; cliff vest in 3 years) .

• Prior-year PSU earnouts (multi-year program context):

  • 2022 PSUs: earned 150.0% for 2022 performance, 187.7% for 2023, and 180.4% for 2024; shares payable at end of 3-year period .
  • 2023 PSUs: earned 187.7% for 2023; 2024 earnout also determined at 180.4%; final performance period ends 12/31/2025 .

• 2023 awards reference:

  • 2023 Target PSUs for Shi: 9,232; Spirit of Ownership RSUs: 29 (1/23/2023) .

Equity Vesting and 2024 Realizations

Equity Ownership & Alignment

Beneficial Ownership and Outstanding Awards (as of Dec 31, 2024 / Apr 3, 2025)

Notes:

• 2022 PBRSU vests 3/4/2025; 2023 PBRSU vests 3/1/2026; 2024 PBRSU vests 3/5/2027 (cliff vesting, subject to performance and service) .
• Market values in the awards table use $95.76 closing price on 12/31/2024 .

Ownership Policies and Alignment

• Stock ownership guidelines: CEO 6x salary; other NEOs 1x salary; all NEOs met guidelines for 2024 .
• Holding requirements: NEOs must hold at least 51% of net-after-tax shares acquired upon vest/exercise until retirement .
• Hedging/pledging: Prohibited for NEOs by Insider Trading Policy; no single-trigger change in control payments; no tax gross-ups .
• Clawback: Executive Compensation Clawback Policy adopted in 2023 (Dodd-Frank/Nasdaq) .

Employment Terms

Compensation Structure Analysis

• Mix and at-risk pay: For NEOs (ex-CEO), 68% of target pay is at risk and tied to performance, aligning incentives with results .
• Shift toward PSUs: 100% of LTI for NEOs delivered as PSUs with three one-year performance periods and cliff payout at year 3; Spirit of Ownership grants add small time-based RSUs for broad-based alignment .
• Performance rigor: Annual bonus targets tied to operating EPS, PTPP, balance sheet growth, and credit quality; PSU metrics benchmarked to BKX peers with percentile hurdles (50th target, ≥80th max) .
• Governance guardrails: No hedging/pledging, no single-trigger CoC, no tax gross-ups; Compensation Committee risk review concluded programs are not reasonably likely to have a material adverse effect .

Vesting Schedules and Potential Selling Pressure

Note: Insider trading policy bans hedging/pledging, and NEOs must hold at least 51% of net shares from vestings until retirement, which can temper selling pressure from vest events .

Employment & Retention Risk Indicators

• Contract term: Current term ends Dec 1, 2025, implying renegotiation/extension visibility over the next year; severance provides 2x base + 1x base bonus cushion if involuntarily terminated without cause .
• Equity continuity: Absent CoC, equity continues to vest post-termination per original schedules, supporting retention but limiting immediate acceleration .
• Double-trigger CoC equity treatment further aligns with shareholder outcomes (no single-trigger payments) .
• Compensation program risk review found no material risk-taking incentives; clawback policy in place .

Expertise & Qualifications

• Career expertise spans strategy, growth, technology, and operations in financial services and consulting (McKinsey, Accenture), with operating leadership at EWBC since 2021 .
• 2024 commentary highlights strategic leadership in corporate development, operational efficiency, reliability, security, and organization-wide execution (Back to Basics) .

Investment Implications

• Pay-for-performance alignment appears strong: 100% PSU LTI with percentile-based hurdles and elevated 2023–2024 earnouts; 2024 annual bonus paid at 155% of target for Mr. Shi, reflecting above-target financial and strategic outcomes .
• Retention outlook is constructive through 2026–2027 given meaningful unvested PSU overhang and continued vesting on original schedules if terminated without cause (absent CoC), while double-trigger CoC treatment reduces windfall risk .
• Selling pressure watch: Notable cliff vest dates ahead (3/1/2026 and 3/5/2027) with sizeable PBRSU tranches; mitigants include the 51% post-vest holding requirement and no hedging/pledging .
• Governance risk is low: No single-trigger CoC, no tax gross-ups, clawback in place, and committee risk review positive; ownership guidelines met, indicating alignment .
• Execution contribution: 2024 narrative credits Mr. Shi with driving operational execution and enterprise initiatives during a period of record financial performance (ROE 15.93%, ROA 1.60%, 3-year TSR ~32%), supportive of ongoing confidence in operational stewardship .