Mark W. Scheirer
About Mark W. Scheirer
Executive Vice President and Chief Credit Officer of HBT Financial and Heartland Bank; age 54 as of April 9, 2025. Joined HBT in 2011 and has served as Chief Credit Officer since December 2018; holds a BS in Finance from the University of Illinois and completed the Graduate School of Banking at University of Wisconsin–Madison . His annual incentive is tied entirely to corporate performance, with 2024 bonuses paid at 148.58% of target based on adjusted PPNR less net charge-offs, adjusted ROAA, efficiency ratio, nonperforming assets ratio, and relative peer ranking . Long-term PRSU outcomes for the 2021–2023 performance period paid out at the maximum 150% due to strong average annual ROATCE, evidencing value creation on multi-year metrics .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Illinois National Bank | Senior Vice President, Commercial Lending | 2007–2011 | Led commercial lending; relevant to credit governance and underwriting discipline |
| MidAmerica National Bank; First Bank | Various commercial lending positions | 1998–2007 | Built frontline lending experience across institutions, informing portfolio credit oversight |
Fixed Compensation
| Year | Base Salary ($) | % Increase | Notes |
|---|---|---|---|
| 2023 | 256,196 | — | Not a NEO in 2023 |
| 2024 | 266,444 | 4.0% | Approved by Compensation Committee |
| 2025 (effective Mar 3) | 279,766 | 5.0% | Committee decision for 2025 |
| 2024 “All Other Compensation” Detail | Amount ($) |
|---|---|
| Group term life insurance premiums | 690 |
| Discretionary 401(k) match | 15,250 |
| Total | 15,940 |
Performance Compensation
| Bonus Metric (2024) | Weighting | Threshold | Target | Maximum | Actual | Payout Component |
|---|---|---|---|---|---|---|
| Adjusted PPNR less net charge-offs (recoveries) ($000s) | 25% | 76,075 | 89,500 | 102,925 | 103,162 | 37.50% |
| Adjusted ROAA | 25% | 1.11% | 1.30% | 1.50% | 1.50% | 37.50% |
| Adjusted efficiency ratio (tax-equivalent basis) | 10% | 61.00% | 56.00% | 51.00% | 52.42% | 13.58% |
| Nonperforming assets to total assets | 10% | 1.00% | 0.625% | 0.25% | 0.16% | 15.00% |
| Relative peer ranking | 30% | 25th percentile | 50th | 75th | 95.20% | 45.00% |
| Total payout vs target | — | — | — | — | — | 148.58% |
| 2024 Individual Bonus Design | Target Bonus (%) | Actual Bonus (%) | Target ($) | Actual ($) |
|---|---|---|---|---|
| Scheirer short-term incentive | 30.0% | 44.6% | 79,933 | 118,765 |
| 2024 LTI Grants (2/29/2024) | RSUs (#) | PRSUs (Target #) | Total Shares | Grant Date FV ($) |
|---|---|---|---|---|
| Scheirer | 1,680 | 1,680 | 3,360 | 64,042 |
| PRSU Performance Grid (2024–2026 AAROAA) | Peer Percentile Rank | Payout vs Target |
|---|---|---|
| ≥1.50% AAROAA | Not applicable | 150% |
| 0.50%–<1.50% AAROAA | ≥75th | 150% |
| 0.50%–<1.50% AAROAA | 50th | 100% |
| 0.50%–<1.50% AAROAA | 25th | 50% |
| 0.50%–<1.50% AAROAA | <25th | 25% |
| <0.50% AAROAA | Not applicable | 0% |
| Vesting Schedule (Unvested as of 12/31/2024) | RSUs (#) | PRSUs (#, max reporting) |
|---|---|---|
| 2/28/2025 | 1,338 | 1,893 |
| 2/28/2026 | 920 | 1,611 |
| 2/28/2027 | 571 | 2,520 |
2021–2023 PRSUs vested at 150% on 2/29/2024 based on AAROATCE (Actual 16.80%; Adjusted 17.84%) .
Equity Ownership & Alignment
| Beneficial Ownership (as of 3/21/2025) | Shares | % of Outstanding | Notes |
|---|---|---|---|
| Mark W. Scheirer | 26,388 | <1% | Based on 31,631,431 shares outstanding |
| Outstanding Equity (12/31/2024) | RSUs Unvested (#) | RSUs Market Value ($) | PRSUs Unearned (#, max) | PRSUs Market/Payout Value ($) |
|---|---|---|---|---|
| Scheirer | 2,829 | 61,955 | 6,024 | 131,926 |
| Stock Vested in 2024 | Shares Vested (#) | Value Realized ($) |
|---|---|---|
| Scheirer | 4,231 | 81,149 |
| Option/SAR Awards | Exercisable (#) | Unexercisable (#) | Strike ($) | Expiration |
|---|---|---|---|---|
| Cash-settled SARs | 6,120 | — | 16.32 | 9/1/2029 |
- Stock ownership guidelines: Executive officers must hold at least 1x annual base salary; unearned PRSUs excluded, unvested RSUs included; compliance expected within 3 years of 4/1/2024 or 5 years after role changes .
- Hedging/margin: Hedging prohibited; margin accounts prohibited unless non-marginable; company reports no violations by officers/directors .
- Insider trading windows and 10b5-1 plans allowed under pre-clearance and defined open periods .
Employment Terms
| Termination Scenario | Cash Severance | Bonus Severance | COBRA |
|---|---|---|---|
| Involuntary not for cause or Good Reason (no CIC) | Continued base salary for 6 months | — | — |
| Involuntary not for cause or Good Reason (in connection with CIC) | Lump sum 1x base salary | Lump sum 1x target short-term bonus | Lump sum equal to 18 months |
- Severance conditioned on signing a release; agreements include restrictive covenants during employment and for a specified post-employment period .
- Change-in-control treatment of equity: Company historically did not automatically vest RSUs upon a change in control; the Compensation Committee determines treatment (policy disclosure in earlier proxy) .
- No single-trigger cash severance; no tax gross-ups on severance payments .
- Clawback policy adopted consistent with Exchange Act Rule 10D-1 and Nasdaq standards, covering incentive comp (cash bonuses and equity) upon restatements or specified misconduct .
Compensation Structure Analysis
- Pay mix: Combination of base, short-term cash incentives, and long-term RSU/PRSU awards with three-year vesting; 2024 base salary increases ranged 0–5%; Scheirer received 4% in 2024 and 5% in 2025 .
- 100% of annual bonus tied to company metrics (no individual component), with capped maximum at 150% of target; 2024 payout at 148.58% reflects strong performance across credit and efficiency metrics and top-tier peer ranking .
- LTI shifts toward RSUs/PRSUs; no new stock options or SARs granted—SARs outstanding are legacy instruments; company does not currently grant options and would evaluate policies if resumed .
- Peer benchmarking: Committee uses a defined regional banking peer group; external consultant (McLagan/Aon) advised in 2023; no consultant retained in 2024 .
Investment Implications
- Alignment: Scheirer’s incentives are tightly linked to credit quality, profitability (adjusted ROAA), efficiency, and peer-relative performance; multi-year PRSU max payout for 2021–2023 underscores strong execution on capital-efficient returns .
- Retention and selling pressure: Upcoming vesting tranches through 2027 and insider trading windows suggest potential episodic liquidity events around vest dates; hedging/margin prohibitions limit misalignment risks .
- Ownership: Beneficial ownership is <1%, indicating limited “skin in the game” versus founders/insiders; stock ownership guidelines (1x salary for execs) may gradually increase alignment for non-CEO executives .
- Downside protection: Severance is modest (6 months cash non-CIC; 1x base + 1x target bonus under CIC) with double-trigger characteristics and clawbacks—supportive of shareholder-friendly discipline .
- Execution risk: As CCO, Scheirer’s performance is most exposed to credit cycle turns; incentive design’s emphasis on NPA ratio and PPNR less net charge-offs directly ties pay to disciplined credit underwriting and portfolio outcomes .