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Bradley Quade

EVP & Chief Credit Officer at FIRST BUSINESS FINANCIAL SERVICES
Executive

About Bradley Quade

Executive Vice President & Chief Credit Officer of First Business Financial Services (FBIZ). Joined FBIZ in 2019, became Chief Credit Officer in April 2020, and was promoted to EVP & Chief Credit Officer in August 2024. He holds a B.S. in Accounting and Finance (UW–Milwaukee) and is a Certified Public Accountant (CPA). Year of birth: 1966. His incentive pay is tied to Company performance: 2021–2023 PRSUs paid 200% on 99th percentile TSR and 92nd percentile ROAE; 2024 annual bonus paid above target with metrics including operating revenue, ROAA, and efficiency ratio.

Past Roles

OrganizationRoleYearsStrategic Impact
First Business Financial Services, Inc.EVP & Chief Credit OfficerAug 2024–PresentExecutive oversight of enterprise credit function following promotion; leadership of high-performing teams serving middle-market clients.
First Business Financial Services, Inc.Chief Credit OfficerApr 2020–Aug 2024Led enterprise-wide credit oversight across commercial lines.
First Business (parent/Bank)Deputy Chief Credit OfficerOct 2019–Apr 2020Transitioned into credit leadership; process improvement initiatives.
Johnson BankSenior leadership roles23 years 10 monthsBusiness development, enterprise credit oversight, operations/technology leadership across multiple banking verticals.

External Roles

OrganizationRoleYearsStrategic Impact
Various Milwaukee-area charitable organizationsBoard member/supporterNot disclosedCommunity engagement across education, arts, homeless care, nutrition, and faith.

Fixed Compensation

Multi-year summary compensation (SEC-reported):

Metric202220232024
Base Salary ($)259,960 276,000 312,500
Stock Awards ($)93,196 91,327 99,398
Non-Equity Incentive Plan Compensation ($)148,410 93,386 107,607
All Other Compensation ($)41,351 45,797 42,458
Total ($)542,917 506,510 561,963

2024 base salary and annual bonus mechanics:

  • 2024 base salary: $330,000 (increased from $300,000 effective August 1, 2024, upon promotion). Target bonus opportunity: 30% of base; maximum: 60%. Actual payout: 34.43% of base, $107,607 cash. 2024 bonus metrics included operating revenue and efficiency ratio; performance criteria were equally weighted.

Perquisites (2024 “All other compensation” detail):

  • 401(k) match: $10,350; Profit sharing: $14,973; Country club membership: $17,135; Total perqs: $42,458.

Performance Compensation

2024 annual cash bonus (paid in 2025):

MetricWeightingTargetActualPayout
Operating revenue; efficiency ratio (equally weighted)Equally weighted 30% of base salary 34.43% of base salary $107,607

2024 long-term incentive grants:

Award TypeGrant DateTarget/Granted (#)Grant-Date Fair Value ($)VestingPerformance Metrics
PRSU2/16/20241,485 target (range 743–2,970) 63,698 Cliff-vest after 3-year period ending 12/31/2027 Relative TSR 50% and ROATCE 50% vs custom peer group
RSU2/16/2024990 35,699 Ratable over 3 years on 2/16/2025, 2/16/2026, 2/16/2027 Time-based
LTI mix2024LTI target = 30% of base Total LTI $99,398 Annual grant cadence 2019 Equity Incentive Plan (no options currently granted)

Prior PRSU performance realization:

PRSU Performance PeriodRelative TSR PercentileRelative ROAE PercentilePayoutShares Earned (Quade)Certification/Delivery
2021–202399th 92nd 200% of target 4,240 Approved 4/17/2024

Equity Ownership & Alignment

Beneficial ownership:

Shares Beneficially OwnedPercent of OutstandingAs of
11,172Less than 1%Feb 18, 2025

Outstanding equity awards at FY-end (Dec 31, 2024):

Grant DateUnvested RSUs (# / $)Unearned PRSUs (# / $)
2/16/2024990 / $45,827 2,970 / $137,481
2/16/2023657 / $30,413 2,740 / $126,835
2/16/2022337 / $15,600 2,770 / $128,223

Valuations assume $46.29/share closing price on 12/31/2024.

Alignment policies and practices:

  • NEO stock ownership guideline: 1× base salary; five years to comply; once met, retain ≥50% of net vested shares for 12 months. All NEOs currently in compliance.
  • No hedging; no holding in margin; no pledging of Company stock by Section 16 Reporting Persons; all in compliance.
  • LTI structure skews to performance equity (approx. 60% PRSUs / 40% RSUs for executives).
  • Company currently does not grant stock options to NEOs (reduces levered risk).

Employment Terms

Change-in-control and severance framework:

  • Agreement: Change-in-control agreement dated April 1, 2020 (double trigger applies). Benefits payable if terminated without cause or for “good reason” within 12 months after a change in control; equity vesting and severance are double-triggered. A “good reason” trigger does not apply to equity awards (assumes PRSUs at target for estimates).

Potential payments and benefits (assumes 12/31/2024 CoC and $46.29/share):

ScenarioSeverance PaymentRSU AccelerationPRSU AccelerationHealth BenefitsTotal
Involuntary termination or good reason (following CoC)$759,000 $91,839 $129,303 $24,580 $1,004,722
Change in control (no termination)$0 $0 $0 $0 $0
Death$91,839 $129,303 $0 $221,143
Disability$91,839 $129,303 $0 $221,143

Clawback and recovery:

  • Dodd-Frank/Nasdaq-compliant Recovery Policy adopted in 2023 (restatement-based recoupment); legacy 2019 Clawback Policy also remains in effect.

Compensation Governance, Peer Group, and Shareholder Feedback

  • Compensation Committee members: Carla C. Chavarria (Chair), Laurie S. Benson, W. Kent Lorenz; no interlocks.
  • Peer group used for 2024 decisions includes regional banks such as BWFG, BWB, BFST, CZNC, GSBC, HFWA, LKFN, MBWM, MOFG, NBN, OBT, SMBK, among others. Committee references median as a datapoint; does not target a specific percentile.
  • 2024 Say-on-Pay: 92% shareholder approval, indicating strong support.
  • Company emphasizes variable pay tied to long-term measures (TSR, ROATCE) and short-term profitability/efficiency; double trigger CoC; robust ownership, no-pledging, and clawback policies.

Related Party and Insider Policies

  • Insider loans to executive officers and directors (ordinary course, market terms, Reg O compliant; no unfavorable features). Approvals by Bank Board in accordance with Regulation O. No specific Quade-related exceptions disclosed.
  • Insider Trading Policy prohibits hedging and pledging; all Section 16 persons in compliance.

Investment Implications

  • Pay-for-performance alignment: Quade’s incentives are tightly linked to shareholder value drivers—PRSUs benchmarked to relative TSR and ROATCE and annual bonus tied to operating revenue/efficiency—supporting disciplined credit risk-taking and margin protection. 2021–2023 PRSUs paid at 200% (99th percentile TSR/92nd percentile ROAE), and 2024 bonuses paid above target, signaling strong execution momentum.
  • Overhang/vesting supply: Meaningful unvested RSUs through 2027 and performance PRSUs for 2024–2027 could introduce episodic post-vesting selling, though no hedging/pledging reduces alignment risk. Monitor April 2025 PRSU (2022–2024) payout 8-K for incremental share delivery.
  • Retention and CoC economics: Double-trigger CoC benefits total ~$1.0M under modeled assumptions—material but not excessive for a key risk officer—reducing transaction frictions while providing retention.
  • Ownership: Beneficial ownership (11,172 shares; <1%) is modest versus peers but within policy and complemented by ongoing equity grants and holding requirements, preserving skin-in-the-game.
  • Governance quality: No interlocks, strong say-on-pay support, clawback/recovery policies, and no option grants are governance positives for investors focused on risk-adjusted performance and capital discipline.