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Robert M. Glaser

Director at FINANCIAL INSTITUTIONS
Board

About Robert M. Glaser

Independent director since 2014; age 78; term expires 2026. Certified Public Accountant and President of Glaser Consulting, LLC (since 2016); retired Chair of Freed Maxick CPAs, P.C., where he served as partner starting in 1981 and was Chair/Managing Director 1994–2011; earlier career at Price Waterhouse (1968–1981). Education: Canisius College. Committee roles: Audit Committee Chair and member of Executive Committee; designated the Company’s “audit committee financial expert.”

Past Roles

OrganizationRoleTenureCommittees/Impact
Glaser Consulting, LLCPresident2016–present Strategic consulting; finance and governance expertise
Freed Maxick CPAs, P.C.Chair of the Board; Managing Director; PartnerPartner (1981–); Chair/Managing Director (1994–2011); retired Chair (1994–2015) Led audit/assurance practice; deep internal controls and reporting experience
Price WaterhouseProfessional staff1968–1981 Foundation in public accounting and auditing
Erie County Fiscal Stability AuthorityAppointed ChairPast service Public-sector fiscal oversight
Independent Judicial Election Qualification Commission (Eighth Judicial District)AppointeePast service Governance and ethics oversight

External Roles

OrganizationRoleTenureNotes
NA Realty Fund IIBoardCurrent Private company board service
Noco, Inc.BoardCurrent Private company board service
Kaleida HealthAudit CommitteePast Nonprofit audit oversight
CPA Associates, Inc.; other nonprofit/cultural boardsBoard rolesPast Community governance engagement

Board Governance

  • Independence: Board and Governance Committee determined all directors except the CEO are independent per SEC/Nasdaq standards; Audit Committee members (including Glaser) affirmed independent, with Glaser designated “audit committee financial expert.”
  • Attendance: Board met 12 times in 2024; all directors attended >75% of Board and committee meetings; all directors attended last year’s annual meeting.
  • Stock ownership policy: Non-employee directors must hold 3x annual cash retainer; all directors met requirements in 2024. Hedging, pledging, and margin accounts are prohibited.
  • Related-party oversight: Audit Committee reviews all potential related party transactions; 2024 disclosed no Item 404(a) related-party transactions >$120,000, and director/insider loans were on ordinary terms without preferential treatment.
CommitteeRole2024 MeetingsNotes
AuditChair 11 Financial reporting/internal controls; related party review; auditor oversight; Glaser designated audit committee financial expert
ExecutiveMember 7 Strategic planning, M&A/branching proposals; acts between Board meetings

Fixed Compensation

ComponentAmountDetail
Fees earned or paid in cash (2024)$70,000 Includes Board/Bank service and chair roles per schedule; actual cash paid in 2024
Stock awards (2024)$34,997 Restricted share grant under LTIP; aggregate grant-date fair value per ASC 718
All other compensation (2024)No other items disclosed for Glaser

Standard non-employee director fee schedule (for reference):

RoleFII Fee (Cash)Five Star Bank Fee (Cash)
Chair of Audit Committee$47,000 $23,000
Other Director$37,000 $18,000

Performance Compensation

  • Annual director equity grant: Restricted shares valued at $35,000 on June 5, 2024; 50% vest at grant; 50% vest day prior to 2025 annual meeting, forfeiture if service ends; no dividends on unvested shares.
  • LTIP structural safeguards: One-year minimum vesting (limited exceptions); director annual award cap $300,000 (incumbent), $500,000 (Chair, new director first-year); options/SARs cannot be repriced without shareholder approval; no discounted awards; no liberal share recycling or change-in-control definitions.
Equity DetailAmount / Terms
Restricted stock grant-date value (2024)$34,997
Shares received in lieu of cash (2024)2,654 shares
Unvested restricted shares at 12/31/20241,000 shares
Stock options outstandingNone

Other Directorships & Interlocks

  • Current private boards: NA Realty Fund II; Noco, Inc.
  • Public company boards: None disclosed for Glaser.
  • Interlocks/conflicts: Audit Committee reviews related party transactions; 2024 disclosed no Item 404(a) related-party transactions >$120,000; insider loans to directors on ordinary terms.

Expertise & Qualifications

  • Designated audit committee financial expert; deep public accounting, audit, and internal control experience (Price Waterhouse; Freed Maxick Chair/Managing Director).
  • Board skills matrix: Financial Expert, Financial Services Industry, Nonprofit Board, Risk Oversight, and M&A marked for Glaser.

Equity Ownership

HolderShares Beneficially Owned% of ClassRight to Acquire (60 days)
Robert M. Glaser (Common)46,939 <1% (20,109,712 shares outstanding)

Policy alignment:

  • Director stock ownership requirement: 3x annual cash retainer; all directors met in 2024.
  • Hedging/derivatives/pledging prohibited by Insider Trading Policy.

Governance Assessment

  • Strengths

    • Seasoned audit chair with CPA credentials and SEC-defined “audit committee financial expert” designation; supports investor confidence in financial reporting and internal controls.
    • Clear independence; strong committee-level risk oversight, related-party review, and auditor monitoring; robust Board governance policies (resignation policy, ownership guidelines, clawback for executives).
    • Attendance and engagement: Board met 12 times; directors exceeded 75% attendance; all attended annual meeting.
    • Director equity grants with minimum vesting and no options; alignment with shareholders; explicit caps and anti-repricing safeguards.
  • Potential Risk Indicators and Red Flags

    • Age/tenure: At 78 and on the Board since 2014; while the Board emphasizes refreshment, continued succession planning for audit leadership is prudent.
    • External private boards (NA Realty Fund II; Noco, Inc.) could pose potential perceived conflicts if business relationships with the Bank exist; 2024 disclosures show no related-party transactions >$120,000 and insider loans on ordinary terms.
    • Broader compensation governance context: MD&C Committee used normalizing adjustments for executive EIP in 2024 due to strategic restructuring/litigation accruals (not director pay); investors may scrutinize discretion, reinforcing the need for rigorous Audit/Governance oversight.
  • Overall implication: Glaser’s audit leadership, independence, and ownership alignment are positives for board effectiveness and investor confidence; monitoring for any undisclosed related-party exposure tied to external roles and continued audit committee succession planning are recommended.

Notes

  • All directors may elect cash retainer in stock; Glaser elected 2,654 shares in 2024.
  • No director stock options outstanding as of 12/31/2024.
  • All directors had 1,000 unvested restricted shares as of 12/31/2024.