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John McCauley

Director at FIRST BANCORP /NC/
Board

About John W. McCauley

John W. McCauley (age 57) has served on First Bancorp’s board since 2021 following the acquisition of Select Bancorp, bringing two decades of bank board experience. He is CEO of Highland Paving Co., LLC and general manager of McCauley‑McDonald Investments, holds a B.S. in Economics from Davidson College and a J.D. from the University of North Carolina School of Law. As of December 31, 2024, he beneficially owned 19,571 FBNC shares (<1%).

Past Roles

OrganizationRoleTenureCommittees/Impact
Select Bank and Select BancorpDirector2004–2021Long-tenured bank board director through sale to First Bancorp, joined FBNC board at closing
New Century Bank of Fayetteville (bank subsidiary of New Century Bancorp)Founding memberNot disclosedFounding governance role prior to entity’s evolution into Select Bank

External Roles

OrganizationRoleSince/YearsNotes
Highland Paving Co., LLCChief Executive OfficerNot disclosedHighway construction; manufacture and placement of hot mix asphalt
McCauley‑McDonald Investments (Fayetteville, NC)General ManagerNot disclosedOwns and leases ~70 commercial properties in NC

Board Governance

CommitteeMember (2024)Chair?2024 MeetingsNotes
Executive & LoanYesNo11Between-board authority; loan approvals
AuditYesNo8Independent committee; oversees audit, ICFR, auditor fees
CompensationYesNo4Independent; approves exec comp, equity plans
Nominating & Corporate GovernanceYesNo3Independent; director nominations, governance guidelines
RiskNo4Primary board risk oversight (Chair: CEO Moore)
  • Independence: The board determined 12 of 14 current directors (9 of 11 nominees) were independent; the only non‑independent directors are CEO/Chair Richard Moore and President Michael Mayer, implying McCauley is independent.
  • Attendance: All nominees attended ≥75% of board and committee meetings in 2024. Executive sessions of independent directors were held three times in 2024.
  • Lead Independent Director: James C. Crawford III serves as Lead Independent Director with defined responsibilities.

Fixed Compensation

Component2024 Amount2023 AmountNotes
Annual cash retainer (non‑employee director)$37,500$37,500Base director fee
Annual equity grant value$37,500$37,500Granted in June each year
Lead Independent Director fee$12,000$12,000Add‑on to base retainer
Audit Committee Chair fee$20,000$12,000Increased for 2024 service as disclosed in 2025 proxy
Meeting fees$0$0None paid for board/committee meetings
Shares granted (director grant)1,189 sh1,221 sh6/1/2024 at $31.55/sh; 6/1/2023 at $30.69/sh

Director-specific (2024):

  • John W. McCauley received $37,500 cash and $37,500 stock awards; total $75,000.

Performance Compensation

  • Non‑employee directors do not receive performance‑based bonuses; compensation consists of cash retainers and annual equity grants. No director performance metrics are used.

Other Directorships & Interlocks

  • Other public company directorships: None disclosed for McCauley in his biography.
  • Compensation Committee interlocks: None reported for the committee (of which McCauley is a member).

Expertise & Qualifications

  • Banking/board governance: Director at Select Bank/Select Bancorp for 17 years prior to joining FBNC; attended NC Bank Directors’ College.
  • Legal training: J.D. (UNC School of Law); brings legal and governance perspective.
  • Operating executive: CEO of a construction firm and GM of a commercial real estate portfolio, contributing operating and risk oversight skills.

Equity Ownership

ItemValueAs ofNotes
Total beneficial ownership19,571 sh12/31/2024Less than 1% of outstanding shares
Ownership as % of shares<1%12/31/2024Denoted by asterisk in beneficial ownership table
Director equity grant (annual)1,189 sh6/1/2024Grant date fair value $31.55/sh (~$37,500)
Stock ownership guideline5× cash retainerPolicyAll directors/nominees are in compliance
Hedging/pledgingProhibitedPolicyHedging, short sales, and pledging of Company stock are prohibited

Shareholder Voting Signals

ItemForAgainst/WithheldAbstainBroker Non‑VotesMeeting Date
Election of J. W. McCauley (Director)30,450,635850,5434,329,9504/29/2025
Say‑on‑Pay (Advisory)29,235,7922,013,23452,1524,329,9504/29/2025

Additional context: 2024 Say‑on‑Pay support was 96% (votes cast).

Governance Assessment

  • Strengths

    • Independent, multi‑committee member (Audit, Compensation, Nominating & Governance, Executive & Loan) with prior bank board tenure; adds legal and operator experience.
    • Strong alignment mechanisms: mandatory stock ownership (5× retainer), annual equity grants, anti‑hedging/anti‑pledging policy.
    • Shareholder support: high “For” votes in 2025 director election; robust Say‑on‑Pay approval.
    • Independent compensation/governance structures: all key committees independent; clawback policy adopted (NASDAQ Rule 5608).
  • Watch items / potential red flags

    • Late Section 16 filings in 2024 included McCauley among multiple directors/officers due to vendor/misunderstanding issues (company states all are now filed).
    • Related‑party exposure typical of community banks: ~$64 million of loans outstanding to directors/affiliates at YE 2024 (market terms; none impaired); oversight via Audit Committee and board‑level approvals.
    • Corporate‑level control environment note: Company disclosed and remediated a 2023 material weakness in IT general controls by June 30, 2024 (oversight relevance for Audit Committee members).
  • Compensation structure observations (board level)

    • Director pay is balanced cash/equity ($37.5k/$37.5k). Audit Chair fee increased to $20k, potentially improving oversight incentives; no meeting fees.
    • Compensation Committee uses an independent consultant periodically for executive benchmarking (Pearl Meyer last engaged in 2022), indicating attention to pay governance; McCauley serves on the committee.

Overall: McCauley appears to be an engaged, independent director with significant banking and operating experience, serving on core oversight committees. Alignment is supported by meaningful stock ownership requirements and equity grants; governance processes (clawback, anti‑hedging/pledging) are in place. Attention should remain on timely Section 16 compliance and routine monitoring of related‑party credit exposures standard to the business model.