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Michael M. Yang

Director at HANMI FINANCIAL
Board

About Michael M. Yang

Independent director since 2016; age 63. Founder & CEO of Michael Yang Capital Management, LLC, with 35+ years as a technology entrepreneur/investor (co‑founded three startups including mySimon.com, acquired by CNET). Education: BS EECS (UC Berkeley), MS Computer Science (Columbia), MBA (UC Berkeley Haas). The board has affirmatively determined he is independent under Nasdaq rules.

Past Roles

OrganizationRoleTenureCommittees/Impact
mySimon.com, Inc.Co‑Founder & CEONot disclosedBuilt and exited at significant premium; strategic planning and M&A experience
Two other technology startupsCo‑Founder & CEONot disclosedLed growth and exits to larger enterprises
Xerox CorporationEngineering/Marketing/Management rolesNot disclosedOperating experience in tech/engineering
Samsung Electronics Co., Ltd.Engineering/Marketing/Management rolesNot disclosedGlobal technology/operations exposure

External Roles

OrganizationRoleTenureNotes
Michael Yang Capital Management, LLCFounder & CEOCurrentPublic equities investor in disruptive tech
Council of Korean AmericansFounding ChairmanPastNational non‑profit advocacy leadership
Stanford Institute for Economic Policy ResearchBoard memberPastPolicy and academic governance experience

Board Governance

  • Committee memberships: Audit; Compensation & Human Resources (CHR); Nominating & Corporate Governance (NCG). Not designated an Audit Committee Financial Expert.
  • Independence: Independent director under Nasdaq rules (CEO Bonita I. Lee is the only non‑independent).
  • Attendance: All directors attended more than 75% of aggregate board and committee meetings in FY2024; all directors attended the 2024 Annual Meeting.
  • Committee activity levels (FY2024): Audit 12 meetings; CHR 7 meetings; NCG 4 meetings; Risk, Compliance & Planning (RCP) 8 meetings.

Fixed Compensation

YearCash Fees (Director + Committees)Committee Chair FeesMeeting FeesTotal Cash
2024$64,000 None disclosed for Yang (chair fees schedule exists) Not disclosed$64,000

Non‑Employee Director Compensation Policy (structure reference):

  • Annual cash retainer: $42,500
  • Committee membership annual retainers: Audit $6,000; CHR $4,000; NCG $2,500; RCP $5,000; LCP $5,000; ALCO $3,000
  • Committee chair annual retainers: Audit $12,000; CHR $9,000; NCG $9,000; RCP $10,000; LCP $9,000; ALCO $9,000

Performance Compensation

Grant DateVehicleShares/UnitsGrant Date Fair ValueVestingNotes
May 22, 2024Restricted Stock4,040 $65,004 (4,040 × $16.09) One‑year cliff All independent directors (except Ms. Ball) had 4,040 restricted shares outstanding at 12/31/2024; no stock options outstanding

Annual equity program design for directors: single annual restricted stock grant valued at ~$65,000, aligned to market data; no performance‑conditioned equity for directors.

Other Directorships & Interlocks

CompanyPublic Company?RolePotential Interlock/Conflict
None disclosedNo other public company directorships disclosed in proxy
  • Consultant independence: CHR engages Aon HCS; committee determined independence with no conflicts in 2024. Relevant as Yang serves on CHR.

Expertise & Qualifications

  • Technology entrepreneurship, strategic planning, M&A, and ties to Korean‑American community; education in engineering/computer science and MBA.
  • Board skills matrix indicates directors collectively cover IT/cybersecurity, capital markets, risk oversight, and social/corporate governance; Yang contributes to tech/strategy/markets expertise.

Equity Ownership

HolderBeneficial Ownership (Shares)% OutstandingUnvested RS (12/31/2024)Options (Exercisable/Unexercisable)Pledging/Hedging
Michael M. Yang27,542 <1% 4,040 restricted shares outstanding (2024 grant) None outstanding Directors prohibited from pledging/hedging/margin accounts per Insider Trading Policy

Director Stock Ownership Guidelines:

  • Required: 3× annual retainer; retain 50% of net shares for 12 months post vest. As of 12/31/2024, all directors met guidelines except Marasco (new in 2024) and Ball (new in 2025).

Governance Assessment

  • Board effectiveness: Yang sits on Audit, CHR, and NCG—key oversight posts—supporting risk, compensation, and governance discipline; attendance thresholds met.
  • Alignment: Cash/equity mix standard; $64k cash + $65k RS grant for 2024; stock ownership guideline compliance and prohibitions on pledging/hedging enhance alignment.
  • Compensation governance: As CHR member, oversight employs diversified metrics for executives (ROAA, NPA/Assets, efficiency), long‑term PSUs tied to 3‑yr TSR vs KBW Regional Banking Index, and clawback policy—signals pay‑for‑performance discipline.
  • Independence/conflicts: No related‑party transactions requiring review in 2024; Code governs any related‑person dealings. Yang’s investment firm could present theoretical exposure if counterparties overlap with the bank, but no such transactions are disclosed.
  • Shareholder signals: 2024 Say‑on‑Pay approval at 94.6%, suggesting broad investor support for compensation practices overseen by CHR (including Yang).

RED FLAGS

  • None disclosed specific to Yang: no late Section 16 noted for him; no pledging/hedging; no related‑party transactions; not designated Audit Financial Expert (others carry FE designation). Continue monitoring for any MYCM investments tangential to bank counterparties and committee load across Audit/CHR/NCG to ensure sustained engagement.