Stanley Lam
About Stanley Lam
Stanley K. Lam (age 58) is Senior Vice President of Penn-America Group at Global Indemnity (GBLI), a role he has held since February 2019 after serving as Regional Vice President from 2015–2019; he holds a B.B.A. in Finance (cum laude) from Memphis State University . In 2024, Company-wide performance metrics used for Lam’s incentives included Consolidated Actual Adjusted Accident Year Underwriting Income of $33.4 million (above target) and Penn-America’s Adjusted Accident Year Underwriting Income of $27.0 million (well above target), while Penn-America Gross Written Premiums of $234.9 million came in below target but above threshold . For broader context, GBLI reported 2024 net income of $43.241 million, a Pay-vs-Performance “underwriting income” measure of $17.822 million, and cumulative TSR value of $138 on a $100 base (2019–2024) used in its disclosures .
Past Roles
| Organization | Role | Years | Strategic impact/notes |
|---|---|---|---|
| Global Indemnity – Penn-America Group | Senior Vice President | Feb 2019–present | Leads Penn-America unit; incentives tied to underwriting income and GWP outcomes . |
| Global Indemnity – Penn-America Group | Regional Vice President | May 2015–Feb 2019 | Regional leadership across specialty lines distribution/underwriting . |
| Western Heritage Insurance (Nationwide subsidiary) | Senior Director of Underwriting | Mar 2012–May 2015 | Senior underwriting leadership for E&S sister company . |
| Allied Insurance (Nationwide) | Senior Business Consultant | Jan 2011–Mar 2012 | Business consulting role within P&C operations . |
| Allied Insurance (Nationwide) | Director of Personal & Commercial Lines | Apr 2008–Jan 2011 | Line leadership for personal and commercial P&C . |
| Nationwide Insurance | Commercial Underwriting Manager | Jun 2002–Apr 2008 | Commercial underwriting management . |
| Nationwide Insurance | Commercial Staff Manager | Mar 1999–Jun 2002 | Commercial operations/staff management . |
| Nationwide Insurance | Lead Internal Auditor | Dec 1997–Mar 1999 | Internal audit lead . |
| Nationwide Insurance | Senior Claims Representative | Dec 1993–Nov 1997 | Claims leadership and adjudication . |
| Continental Insurance Company | Commercial Field Underwriter | Jun 1990–Aug 1993 | Field underwriting (commercial) . |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base salary ($) | $376,923 | $400,000 |
| Bonus – BVR cash settlements ($) | $15,145 (time‑vesting BVRs settled in cash) | $16,522 (time‑vesting BVRs settled in cash) |
| All other compensation ($) | $34,394 | $44,970 (401k match $11,077; life insurance $288; RSU distribution taxed as ordinary income $32,105; HSA $1,500) |
| Total fixed/cash-related ($) | $426,462 | $461,492 |
Performance Compensation
2024 Annual Cash Bonus Structure and Outcome
| Name | Performance measure | Weight (%) | Threshold ($) | Target ($) | Maximum ($) | Actual ($) | Earned cash bonus ($) |
|---|---|---|---|---|---|---|---|
| Stanley K. Lam | Consolidated Actual Adjusted Accident Year Underwriting Income | 50 | 16,403,000 | 32,806,000 | 39,367,000 | 33,400,000 | 210,000 |
| Penn-America Actual Adjusted Accident Year Underwriting Income | 32.5 | 9,454,000 | 18,907,000 | 22,688,000 | 27,027,000 | 210,000 | |
| Penn-America Actual Gross Written Premiums | 17.5 | 126,500,000 | 253,000,000 | 303,600,000 | 234,900,000 | 210,000 |
Notes:
- Committee allowed interpolation and exercised discretion on bonuses; Lam’s earned 2024 cash bonus was $210,000 .
Long-Term Incentives (earned for 2024, granted March 2025)
| Instrument | Grant date | Grant value ($) | Vesting | Performance conditions | Settlement |
|---|---|---|---|---|---|
| Book Value Rights (BVRs) | Mar 2025 | 200,000 | 16.5% yr 1; 16.5% yr 2; 17% yr 3; 50% after 4-year performance period | 50% tied to Belmont Holdings GX, Inc. consolidated policy-year combined ratio over 4 years | Cash or Class A shares |
Equity Options (granted in 2024)
| Grant date | Securities | Exercise price ($/sh) | Grant date fair value ($) | Vesting schedule | Change-in-control treatment |
|---|---|---|---|---|---|
| 03/06/2024 | 50,000 options | 30.00 | 292,000 | One-third on 3/6/2025, 3/6/2026, 3/6/2027 (contingent on continued employment) | All unvested options vest (single-trigger) immediately prior to closing |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 33,020 Class A shares as of 4/14/2025; includes 16,666 options exercisable or exercisable within 60 days |
| Ownership as % (as-converted) | <1% |
| Outstanding options (12/31/2024) | 50,000 unexercisable at 12/31/2024; vest one‑third annually on 3/6/2025–2027 |
| RSUs vested in 2024 | 6,295 shares; value realized $201,440 |
| Pledging/hedging | Company policy prohibits pledging, margin, short sales, and options trading by officers; 10b5‑1 plans permitted with pre‑approval |
| Ownership guidelines | No formal executive stock ownership guidelines currently in place; company may consider adopting in the future |
Vesting/selling pressure outlook:
- Options vest 1/3 annually through 2027, creating periodic liquidity windows; all unvested options would accelerate upon a change in control (single-trigger), which could pull forward supply if a transaction occurs .
Employment Terms
- Employment status: At-will; not party to employment, severance, or separation agreements (no severance on termination for any reason) .
- Change-in-control economics: Single-trigger acceleration of unvested options; illustrative incremental value at 12/31/2024 was $300,000 (closing price $36 less $30 strike × 50,000) .
- Clawback: Dodd‑Frank/NYSE‑compliant clawback adopted; covers incentive pay received in the prior 3 completed fiscal years if restatement occurs .
- Insider trading: Policy bans margin, short sales, options, pledging; 10b5‑1 plans allowed with approval .
Compensation Structure Notes (context)
- 2024 elements for Lam: Salary $400,000; Non‑equity incentive $210,000; Option awards grant-date fair value $292,000; BVR cash settlements $16,522; All other compensation $44,970; Total $963,492 .
- Performance metrics drive cash and long-term incentives: Underwriting income and gross written premiums at both consolidated and business-unit levels .
- Peer group used for context (not strict benchmarking) included RLI, PRO, UVE, UFG, SAFT, DGICA, EIG, KNSL, HCI, ROOT, AMSF, IFG Companies, etc. .
- Say‑on‑Pay: 2023 support >99%; triennial frequency adopted .
Investment Implications
- Pay-performance alignment: Lam’s 2024 bonus metrics were tightly linked to underwriting profitability (weight 82.5% across consolidated/Penn-America) with outcomes above target on underwriting but below target on Penn-America GWP, supporting incentive differentiation and reducing revenue-only bias .
- Retention risk: As an at-will executive with no severance protections, Lam has less downside insurance vs. peers; however, multi-year vesting of options (through 2027) and BVRs (through year 4 with 50% performance tranche) provide tethering mechanisms .
- Trading/overhang: The option vesting cadence and single-trigger CIC acceleration could introduce episodic selling pressure, especially around vest dates or a transaction event; policy prohibitions on pledging and derivatives mitigate alignment risks .
- Skin‑in‑the‑game: Beneficial ownership is modest (<1%), but exposure via unvested equity (options, performance‑contingent BVRs) ties outcomes to underwriting and book value performance; lack of formal ownership guidelines is a governance gap to monitor .