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Kevin B. Quinn

Senior Vice President, Chief Commercial Banking Officer at FINANCIAL INSTITUTIONS
Executive

About Kevin B. Quinn

Senior Vice President and Chief Commercial Banking Officer at Financial Institutions, Inc. (Five Star Bank) since February 2021; joined the Bank in August 2020 as SVP, Commercial Banking Executive. Quinn oversees CRE and C&I lending, treasury management, merchant services, and community development; prior experience includes leadership at HSBC Bank USA (Managing Director, Regional Head Corporate Banking) and a decade in commercial banking at M&T Bank, after beginning his career as an attorney at Jones Day . Company performance metrics tied to executive pay include PPNI, loan and deposit growth, and net charge-offs for annual incentives, and three-year ROAA and relative ROAE for PSUs; 2024 resulted in a net loss due to an investment securities restructuring, with adjusted PPNI of $54.5 million, and 0% PSU payouts for the 2022–2024 cycle; company TSR value of a $100 investment measured $109.51 for 2024 in the pay-versus-performance table .

Past Roles

OrganizationRoleYearsStrategic Impact
Financial Institutions, Inc. (Five Star Bank)SVP, Chief Commercial Banking OfficerFeb 2021–presentLeads CRE/C&I lending, treasury management, merchant services, community development
Financial Institutions, Inc. (Five Star Bank)SVP, Commercial Banking ExecutiveAug 2020–Feb 2021Senior commercial banking leadership; predecessor to CCB Officer role
HSBC Bank USA, N.A.Managing Director, Regional Head of Corporate Banking2005–2019Regional corporate banking leadership
M&T BankCommercial banking roles10 yearsBroad commercial banking execution
Jones DayAttorneyNot disclosedLegal foundation; early career

Fixed Compensation

Summary Compensation (multi-year):

Metric202220232024
Salary ($)285,472 307,130 316,487
Stock Awards ($, grant-date fair value)119,278 89,431 104,079
Non-Equity Incentive ($)104,186 109,845 86,569
Change in Pension Value ($)12,796 17,604 17,267
All Other Compensation ($)20,918 20,913 26,235
Total ($)542,650 544,923 550,637

Base salary progression:

Metric12/31/202312/31/2024
Annual Base Salary ($)309,000 318,270

Perquisites and pension specifics (2024):

  • Vehicle stipend: $9,000
  • Club memberships: $14,084
  • Group term life insurance (taxable portion): $3,151
  • Defined benefit plan – present value of accumulated benefit: $63,518

Performance Compensation

2024 Executive Incentive Plan (EIP) – individual award and plan metrics:

ItemValue
Target bonus (% of salary)40%
Base salary for EIP calculation ($)318,270
Calculated award at plan funding ($)79,994
Individual performance adjustment ($)6,575
Total incentive paid ($)86,569

Company EIP performance metrics (2024):

MetricWeightThresholdTargetMaximumActualWeighted contribution
PPNI ($MM, normalized)40%44.87 59.83 68.80 54.47 32.8%
Total Loan Growth (%)20%0.94 1.45 1.81 0.41 0.0%
Non-Public Deposit Growth (%)20%4.22 6.49 8.11 3.92 0.0%
Net Charge-off Ratio (%)20%0.43 0.34 0.26 0.20 30.0%

Long-Term Incentive Plan (LTIP) – 2024 grants (PSUs/RSUs):

Award TypeMetricUnits (Threshold)Units (Target)Units (Max)Vest Date
RSUs (time-based)N/AN/A3,338 N/A3/7/2027
PSUs (performance)Relative ROAE835 1,669 2,504 3/1/2027
PSUs (performance)ROAA835 1,669 2,504 3/1/2027

PSU design highlights and gateways:

  • Gateways: Tier 1 capital ratio ≥8.5% (actual 11.21% at 12/31/2024), satisfactory individual rating, and continued employment .
  • PSU performance goals: 3-year ROAA (0.849% threshold, 0.884% target, 0.920% maximum) and 3-year Relative ROAE percentile (30th/50th/80th) against NASDAQ Bank Index .
  • 2022 cycle (2012–2024 vest): Relative ROAE 13th percentile and ROAA 0.48% led to 0% payout on both PSU tranches .

Restricted stock vesting realized (2024):

Shares vestedValue realized ($)
3,653 66,813

Equity Ownership & Alignment

Beneficial ownership progression:

DateDirect CommonIndirect/401(k)
10/30/2020 (Form 3)0
4/19/2022 (Proxy)0
4/10/2024 (Proxy)3,305
12/31/2024 (Form 5)3,70522

Outstanding equity awards (as of 12/31/2024):

TypeUnvested UnitsMarket Value ($, $27.29/sh)
RSUs (time-based)8,554 233,439
PSUs (unearned, threshold display)3,392 92,568
Note: All PSU tranches (2022, 2023, 2024 grants; ROAA and Relative ROAE) were projected below threshold (0% expected vesting) due to the 2024 investment securities restructuring impact .

Ownership policy and alignment controls:

  • Stock ownership requirement for Executive Vice Presidents: 1.5x annual base salary; all EMC members met requirements in 2024 .
  • Prohibitions on hedging, pledging, and margin accounts for insiders; derivatives on Company stock are prohibited .
  • Clawback policy adopted per SEC/Nasdaq rules: 3-year recoupment window for erroneously awarded incentive-based compensation; no clawback actions to date .

Employment Terms

TermProvision
Agreement termInitial 3-year term; auto-renews for 1-year terms unless Company gives ≥90 days’ notice not to extend
Change-in-control structureDouble trigger required (CIC + qualifying termination within −6 to +24 months) for severance
CIC cash multiple1.25x of sum of last-year base salary + three-year average annual cash incentive; payable in installments over continuation period
Health benefits continuation18 months for Quinn and covered dependents
Equity upon CIC terminationImmediate vesting of RSUs; PSUs vest at greater of target performance or actual performance through termination date
Non-compete / non-solicit9 months post-termination when benefits are payable; at least 6 months otherwise or for duration of any compensation/benefit period, whichever is longer
280G excise taxCutback to avoid 4999 excise tax; no gross-ups

Estimated potential payments (12/31/2024):

ScenarioPay Continuation ($)Equity Vesting ($)Health Benefits ($)Total ($)
CIC + qualifying termination539,455 439,587 24,203 1,003,246
Death/Disability439,587 439,587

Investment Implications

  • Pay-for-performance: Quinn’s 2024 bonus equaled 27.2% of salary (below target) reflecting mixed EIP outcomes—PPNI above threshold, loan and non-public deposit growth below threshold, and strong credit quality; discretion applied for individual performance. Incentives remain tied to controllable operating metrics, signaling alignment with core banking execution .
  • Long-term metrics risk: 0% PSU vesting for the 2022–2024 cycle and projections below threshold across PSU tranches (2022–2024 grants) indicate near-term downside to long-term equity realization if ROAA and relative ROAE do not rebound post-restructuring; this reduces realized equity but heightens focus on future profitability and capital efficiency .
  • Vesting calendar and potential supply: Notable RSU vest dates are March 16, 2025 (2,532 shares), March 21, 2026 (2,684), and March 7, 2027 (3,338), which may create periodic settlement-related flows; 2024 realized vesting was 3,653 shares ($66,813) .
  • Retention and change-in-control economics: CIC double-trigger protection totals ~$1.0 million with 9-month non-compete, immediate RSU vesting, and PSUs at greater of target or actual, which provides moderate retention value without tax gross-ups; agreements auto-renew, lowering transition risk .
  • Governance alignment: Ownership guidelines met; strict prohibitions on hedging/pledging; adopted clawback with no enforcement to date; 2024 say-on-pay support at 88.5%, indicating shareholder acceptance of program structure despite restructuring impacts .