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Jonathan R. Littlewood

Chief Lending Officer at FIRST KEYSTONE
Executive

About Jonathan R. Littlewood

Jonathan R. Littlewood (age 45) is Chief Lending Officer (CLO) at First Keystone Corporation/First Keystone Community Bank, a role he has held since 2020; he joined the bank on January 7, 2008 and previously served as Business Deposit Specialist and Commercial Services Officer before promotion to CLO on August 11, 2020 . He holds a BA in Business Management from Gettysburg College and a Master’s in Applied Project Management from Villanova University; he has completed Pennsylvania Bankers Association programs and is enrolled in the ABA Stonier Graduate School of Banking . Recent company pay-versus-performance shows TSR fell from 88.45 (2022) to 68.05 (2024) and Net Income moved from $14.0 million (2022) to a loss of $(13.2) million (2024), which can influence bonus outcomes and compensation alignment for executives . FKYS currently does not grant equity awards to executive officers, and its insider trading policy does not prohibit pledging or hedging by executives—both notable for alignment and risk assessment .

Past Roles

OrganizationRoleYearsStrategic impact
First Keystone Community BankBusiness Deposit SpecialistJan 7, 2008Early commercial/client onboarding role prior to credit leadership
First Keystone Community BankCommercial Services OfficerSep 2008Progression in commercial banking responsibilities
First Keystone Community BankChief Lending OfficerAug 11, 2020 – PresentLeads lending function as CLO

Fixed Compensation

Metric ($)2019202020212022
Base Salary122,536 160,146 152,431 158,914
All Other Compensation7,243 10,337 11,059 10,052
Total Compensation129,929 171,133 173,790 179,366

Notes:

  • 401(k) match/profit-sharing and taxable life benefit are included in “All Other Compensation” as itemized in the proxy footnotes for each year .

Performance Compensation

YearIncentive TypeMetric(s)WeightingTargetActual/Payout
2019Annual cash bonusNot disclosedN/ANot disclosed$150
2020Annual cash bonusNot disclosedN/ANot disclosed$650
2021Annual cash bonusNot disclosedN/ANot disclosed$10,300
2022Annual cash bonusNot disclosedN/ANot disclosed$10,400

Context on pay-performance alignment:

  • FKYS’s Pay vs Performance shows company TSR values of 88.45 (2022), 74.35 (2023), 68.05 (2024) and Net Income of $14.0mm (2022), $5.6mm (2023), $(13.2)mm (2024), indicating a decline in shareholder returns and profitability over the period .
  • FKYS does not grant equity awards to executive officers; no RSUs/PSUs/options or vesting schedules apply to Littlewood as per current policy .

Equity Ownership & Alignment

As-Of DateTotal Beneficial Ownership (shares)BreakdownOwnership % of Shares Outstanding
Mar 1, 2023461 461 in Bank 401(k) plan —% (less than 1%)
Mar 20, 2024599 6 individually; 593 in Bank 401(k) plan —% (less than 1%)
Mar 3, 2025705 6 individually; 699 in Bank 401(k) plan —% (less than 1%) (6,218,781 shares outstanding)

Additional alignment considerations:

  • Anti-pledging/anti-hedging: The insider trading policy does not prohibit pledging or hedging by executive officers, a potential alignment red flag at many institutions .
  • Stock ownership guidelines: Not disclosed in the 2023–2025 proxies; the ownership above indicates de minimis personal holdings relative to shares outstanding .

Employment Terms

  • Role/tenure: CLO since 2020; officer as listed by the Board of Directors .
  • Individual employment agreement: None disclosed for Littlewood in the 2023–2025 proxies; equity awards are not granted to executives under current policy .
  • Benefits: Named executive officers participate in the Bank’s 401(k) (safe harbor match and discretionary profit sharing) and standard health/welfare plans on the same terms as other employees; group life insurance benefit equals 2× base salary, capped at $300,000 .
  • Related party/loans: Related person transactions are stated as none material; insider lending is conducted on market terms with loans current and paid as agreed .

Compensation Committee Analysis

  • Governance structure: FKYS has no separate Compensation Committee; the full Board acts as the Compensation Committee for executive officers .
  • Consultants/benchmarks: No outside compensation consultant used; the Board reviewed L.R. Webber Associates’ Salary/Benefits Survey for Pennsylvania financial institutions .
  • Say-on-pay and frequency: FKYS held an advisory say-on-pay vote (2023 proxy) and sought frequency guidance, recommending a triennial vote .

Performance & Track Record

  • Company TSR and Net Income during recent years (for context to pay outcomes):
    • TSR: 88.45 (2022), 74.35 (2023), 68.05 (2024) .
    • Net Income: $14.0mm (2022), $5.6mm (2023), $(13.2)mm (2024) .
  • Principal Officers table confirms Littlewood’s ongoing leadership of lending since 2020 .

Investment Implications

  • Pay-for-performance risk: Cash-only incentive structure with undisclosed bonus metrics and no equity long-term incentives limits alignment with multi-year shareholder value creation; TSR and profitability deterioration in 2023–2024 suggest potential pressure on cash bonuses, but absent disclosed metrics reduces transparency .
  • Ownership alignment: Very small personal stake (705 shares as of Mar-2025; —% of outstanding) and no equity award programs reduce “skin-in-the-game”; anti-pledging policy permissiveness adds governance risk if executives use shares as collateral .
  • Retention dynamics: No disclosed individual employment agreement or severance/change-in-control terms for Littlewood; benefits and retirement programs are standard, implying moderate retention protections compared to peers .
  • Trading signals: Proxies report Section 16 compliance but provide no Form 4 detail; absence of equity grants and small holdings suggest limited forced-selling pressure from vesting schedules, though personal 401(k) holdings can still lead to small discretionary flows .

Block quotes of key governance facts:

  • “Currently, the Corporation does not grant equity awards to its executive officers.”
  • “Insider Trading Policy does not prohibit… pledging… or hedging transactions” by executive officers and directors.

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