Richard M. Elder
About Richard M. Elder
Richard M. Elder (age 59) is Treasurer of The First Bancorp, Inc. and Executive Vice President and Chief Financial Officer of both the Company and First National Bank; he has been with the Bank since 1993 and assumed executive roles beginning in 2016, becoming Bank CFO in January 2018 and Company Treasurer & CFO in March 2018 . As CFO his goals include asset/liability management, investment portfolio performance, and quality of financial reporting, aligning compensation outcomes with company performance . Company performance under the executive team in 2024 included net income of $27.0 million, diluted EPS of $2.43, a non-GAAP efficiency ratio of 56.66%, and PTPP returns of 1.09% on average assets and 15.12% on average tangible common equity . The proxy’s Pay vs Performance disclosure shows cumulative TSR of 116.01 in 2024 (base year 2019=100), net income of $27,045k, and return on average tangible common equity of 12.35% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| First National Bank | Manager, Boothbay Harbor Branch | Not disclosed | Retail leadership and customer engagement prior to executive track |
| First National Bank | Senior Commercial Loan Officer | Not disclosed | Commercial credit production and portfolio quality responsibility |
| First National Bank | Vice President, Retail Services | 2001 | Oversight of retail operations and growth initiatives |
| The First Bancorp / First National Bank | Senior Vice President | 2005 | Broader management scope; precursor to executive leadership |
| The First Bancorp / First National Bank | Executive Vice President | 2016 | Executive management responsibilities |
| First National Bank | EVP/Treasurer | Jan 2017 | Treasury oversight and capital/liquidity planning |
| First National Bank | Chief Financial Officer | Jan 2018 | Asset/liability management, investment portfolio performance, financial reporting |
| The First Bancorp, Inc. | Treasurer & Chief Financial Officer | Mar 2018 | Company-level finance, reporting, investor-facing treasury responsibilities |
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | 275,000 | 310,000 | 325,000 |
| Short-Term Bonus ($) | 82,496 | 50,237 | 60,536 |
| Stock Awards ($) | 55,000 | 62,000 | 65,000 |
| All Other Compensation ($) | 17,455 | 19,289 | 19,793 |
| Total Compensation ($) | 429,951 | 441,526 | 470,329 |
| Short-Term Incentive Target (% of Salary) | Not disclosed | Not disclosed | 25.0% |
Notes:
- All Other Compensation includes 401(k) match, 3% Safe Harbor contribution, and economic value of life insurance; Elder did not have company vehicle usage .
Performance Compensation
2024 Short-Term Incentive details for Elder (cash, paid by March 15 following plan year; awards range 0–150% of target; plan balances risk via multiple measures) .
| Metric | Weight | Threshold | Target | Stretch | Actual | Weighted Payout (%) | Payout ($) |
|---|---|---|---|---|---|---|---|
| Net Income ($000s) | 15.0% | $26,130 | $31,130 | $36,130 | $28,048 | 10.4% | 8,431 |
| PTPP ROATCE (%) | 15.0% | 12.97% | 17.97% | 22.97% | 15.79% | 11.7% | 9,530 |
| Efficiency Ratio (%) | 10.0% | 54.73% | 52.23% | 49.73% | 55.67% | — | — |
| Fee Income ($000s) | 10.0% | $11,140 | $13,140 | $15,140 | $13,033 | 9.7% | 7,908 |
| Strategic Plan Implementation (%) | 10.0% | 50.0 | 100.0 | 150.0 | 100.0 | 10.0% | 8,125 |
| UBPR Investment Yield Percentile (%) | 20.0% | 45.0 | 60.0 | 75.0 | 49.0 | 12.7% | 10,292 |
| Discretionary (%) | 20.0% | 50.0 | 100.0 | 150.0 | 100.0 | 20.0% | 16,250 |
| Total | 100.0% | — | — | — | — | 74.5% | 60,536 |
Key design elements:
- Short-Term Incentive Target for CFO: 25% of base salary; payout earned was 18.63% of salary ($60,536) .
- Plan runs Jan 1–Dec 31; awards paid by March 15; eligibility and clawback provisions apply; awards forfeited for certain statuses (e.g., resignation before payment) .
Long-Term Incentives (restricted stock; 3-year cliff vesting; no options granted):
| Grant Based On | Grant Date | Shares (#) | Value ($) | Vesting |
|---|---|---|---|---|
| 2022 performance | Jan 26, 2023 | 1,878 | 55,000 | 3-year cliff vesting |
| 2023 performance | Jan 30, 2024 | 2,365 | 62,000 | 3-year cliff vesting |
| 2024 performance | Jan 30, 2025 | 2,500 | 65,000 | 3-year cliff vesting |
The plan permits award acceleration or cash-out in reorganization events at Board discretion; options are not currently granted .
Equity Ownership & Alignment
| Category | Detail |
|---|---|
| Beneficial Ownership (2/20/2025) | 29,030 shares; less than 1% of outstanding shares |
| Unvested RSUs at 12/31/2024 | 5,773 shares; market value $157,891.55 |
| Stock Vested in 2024 | 1,845 shares vested; value realized $48,690 |
| Options (exercisable/unexercisable) | None outstanding |
| Stock Ownership Guidelines | NEOs (other than CEO) must hold 1x base salary; all NEOs met guidelines as of 12/31/2024 |
| Hedging & Pre-clearance | Insider Trading Policy disallows hedging or offsetting transactions; sets pre-clearance procedures |
| Pledging | No pledging disclosed for Elder; among directors, pledges disclosed for Stuart G. Smith (72,216) and F. Stephen Ward (20,718) |
Employment Terms
- No employment agreements; no contractual severance or change-of-control commitments for executives .
- Incentive compensation clawback policy applies in the event of an accounting restatement due to material noncompliance .
- Equity awards under the 2020 Plan have 3-year cliff vesting; in a merger or reorganization, awards may be assumed, accelerated, or cashed out per plan provisions .
- Benefits include 401(k) match and 3% Safe Harbor contribution; supplemental LTD applies only to CEO; Elder did not have a company vehicle in 2024 .
Compensation Program Context and Governance
- Compensation philosophy targets base salaries slightly above market median (55th–75th percentile) using Pearl Meyer benchmarking against ~20 Northeast non-metropolitan bank peers; incentives balance company-wide and role-specific metrics .
- 2024 Say-on-Pay approval was 96%; Committee retained overall approach after shareholder feedback .
- Key financial performance measures linking pay include ROATCE, TSR, Net Income, and Efficiency Ratio .
Investment Implications
- Pay-for-performance alignment: Elder’s 2024 cash incentive was driven by multi-factor bank performance including Net Income, ROATCE, Fee Income, strategic plan execution, and UBPR Investment Yield percentile; his payout was 18.63% of base salary versus a 25% target, reflecting below-target efficiency ratio offset by solid profitability and investment yield metrics .
- Retention risk appears contained: Three-year cliff vesting on restricted stock and ongoing ownership guideline compliance create strong retention incentives; absence of severance/COC commitments reduces “golden parachute” protections but equity vesting and ownership policies build multi-year alignment .
- Trading signals: As of year-end 2024 Elder had 5,773 unvested shares across 2022–2024 grants, with scheduled three-year cliff vesting cadence; 1,845 shares vested in 2024, and the Insider Trading Policy prohibits hedging, mitigating short-term selling pressure risk indicators .
- Governance and risk: Clawback provisions, independent Compensation Committee oversight, and peer-based benchmarking support disciplined incentive design; no options or repricing activity, and no executive share pledging disclosed for Elder, reducing typical red flags .