David P. Malone
HOPE BANCORPAbout David P. Malone
David P. Malone (age 74) is an independent director of Hope Bancorp, Inc. (HOPE) and Chair of the Board Risk Committee, with core credentials in banking operations, risk, accounting, and credit management . He has served on HOPE’s board since 2014 and previously held senior executive roles at Bank of Hope/HOPE, including Chief Operating Officer, President, Advisor (2017–2022), and Interim Chief Financial Officer (Jan 6, 2023–Apr 30, 2023) . Malone began his career at Arthur Andersen as a certified public accountant and senior manager, and later led Community Bank (Pasadena) as Chairman, President and CEO, growing it to over $3 billion in assets with 17 offices across five counties . He holds a B.S. in Accounting from California State University, Northridge (CSUN) and chairs the advisory board of CSUN’s David Nazarian College of Business and Economics; he is also a member of the CSUN foundation board .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Hope Bancorp, Inc. | Interim Chief Financial Officer; Advisor | Jan 6, 2023 – Apr 30, 2023 | Supported corporate finance and advised the holding company |
| Bank of Hope | Chief Operating Officer; President; Advisor | May 2017 – Dec 31, 2021; Advisor until Mar 31, 2022 | Senior operating leadership across credit, sales culture, business lines |
| Community Bank (Pasadena) | Chairman, President & CEO | 15 years (dates not specified) | Transformed bank into relationship-focused institution; grew to >$3B assets and 17 offices |
| Arthur Andersen | CPA; Senior Manager | Early career (dates not specified) | Strategic/operational consulting to Western U.S. financial institutions |
External Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| CSUN – David Nazarian College of Business & Economics | Advisory Board Chairman | Current | Oversight/advisory to business college |
| CSUN Foundation | Board Member | Current | Governance and philanthropic oversight |
Board Governance
- Independence: Board has affirmatively determined Malone is independent under Nasdaq and SEC rules .
- Committee assignments: Chair, Board Risk Committee (BRC) ; not listed on Audit, Nomination, Compensation, Executive committees in current roster .
- Committee activity levels: Board Risk Committee held 8 meetings in 2024; Board and Bank boards held 10 joint meetings (7 regular, 3 special) .
- Attendance: All current directors attended at least 75% of Board and committee meetings during their service in 2024 (Malone included) .
- Lead independent structure: Board maintains Lead Independent Director and Deputy Lead Independent Director; executive sessions conducted by LID .
- Risk oversight: Board and BRC oversee enterprise-wide risk, information security, and responsible AI-use policies; cybersecurity program overseen by BRC, with CISO reporting to CRO and BRC .
Fixed Compensation
| Item | Amount | Detail |
|---|---|---|
| Fees Earned or Paid in Cash (2024) | $62,250 | Includes annual board retainer and applicable chair fees |
| Stock Awards (2024) | $63,000 | RSUs granted July 3, 2024 at $10.51 close; value computed per ASC 718 |
| Option Awards (2024) | — | No new option awards to directors in 2024 |
| All Other Compensation (2024) | $15,000 | Health insurance or cash in lieu |
| Total (2024) | $140,250 | Sum of above |
Director fee schedule (effective May 23, 2024):
- Annual Director Retainer: $54,000 cash; $54,000 equity (RSUs); plus $15,000 other comp (health or cash in lieu) .
- Committee Chair Retainer: $9,000 cash; $9,000 equity (RSUs) .
- Deputy LID Retainer (if applicable to a director): $9,000 cash; $9,000 equity .
RSU/Option detail (Director awards/outstanding at 12/31/2024):
- RSUs granted in 2024: 5,994; Unvested RSUs outstanding: 5,994; Options outstanding: 20,000 (exercise price $17.18; expiring Sept 1, 2026; originally granted Sept 1, 2016; fully vested Sept 1, 2018) .
Performance Compensation
| Metric | Applies to Non-Employee Directors? | Notes |
|---|---|---|
| Annual performance metrics (EPS ex-notables, PPNR ROAA, criticized loans, loan/deposit growth) | No | These STIP/LTIP metrics apply to Named Executive Officers; non-employee directors receive time-based RSUs and fixed retainers, not performance-contingent awards . |
Other Directorships & Interlocks
| Category | Disclosure |
|---|---|
| Current public company directorships | Not disclosed for Malone; bio does not list current public boards |
| Committee roles at other public companies | Not disclosed |
| Interlocks/conflicts (competitors/suppliers/customers) | No related-party transactions disclosed beyond ordinary-course banking relationships approved under policy . |
Expertise & Qualifications
- Focus areas: Accounting, auditing and financial reporting; Banking and regulatory compliance; Credit review and management .
- Education: B.S. in Accounting, California State University, Northridge .
- Board qualification: Serves as Chair of Board Risk Committee, aligning expertise with risk oversight .
Equity Ownership
| Measure | As of Date | Value | Notes |
|---|---|---|---|
| Target shares to satisfy director ownership guideline (3x retainer) | Dec 31, 2024 | 13,181 | Based on $162,000 retainer multiple / $12.29 share price |
| Shares held directly/indirectly | Dec 31, 2024 | 81,228 | Counts vested and certain unvested time-based RSUs per policy |
| Guideline compliance | Dec 31, 2024 | Satisfied | Meets director ownership guideline |
| Beneficial ownership (common shares) | Record Date Mar 24, 2025 | 75,234 | Base shares owned |
| Options exercisable within 60 days | Record Date Mar 24, 2025 | 20,000 | Director legacy options |
| RSUs vesting within 60 days | Record Date Mar 24, 2025 | 5,994 | Near-term vesting RSUs |
| Total beneficial ownership | Record Date Mar 24, 2025 | 101,228 | Aggregate incl. options/RSUs counted per table |
| Ownership % of outstanding shares | Record Date Mar 24, 2025 | <1% | Company had 121,074,988 shares outstanding |
Policy alignment:
- Director stock ownership guideline: 3x annual cash retainer; 5-year compliance window; Malone is in compliance .
- Anti-hedging and anti-pledging: Directors prohibited from hedging; pledging prohibited except limited non-margin exceptions with legal approval; no pledging disclosures for Malone .
Governance Assessment
- Role/Effectiveness: As BRC Chair, Malone is central to risk oversight (credit, operational, cybersecurity) with the BRC overseeing the Information Security Program and AI-use policies—matching his credit and accounting background to board risk oversight needs .
- Independence signal: Board explicitly deems Malone independent despite prior executive roles, suggesting governance separation and oversight comfort; however, his recent interim CFO role (2023) and executive history warrant continued monitoring for potential perceived influence risks in executive evaluations .
- Engagement/Attendance: Met or exceeded policy threshold (≥75% attendance) with an active committee (BRC) and a board conducting regular and special meetings in 2024 .
- Compensation alignment: Director pay mixes cash and time-based equity; RSUs vest annually, supporting alignment without short-term performance gaming; no director performance-based metrics, reducing incentive-risk for governance roles .
- Shareholder signals: Strong executive say‑on‑pay support (~97% in 2024) reflects broad investor confidence in compensation governance, indirectly supportive of overall board stewardship .
- Conflicts/Related parties: Company reports no material related-party transactions beyond ordinary-course banking relationships reviewed under policy; insider trading/hedging/pledging prohibitions in place .
Risk Indicators & RED FLAGS
- Prior executive service: Malone’s recent interim CFO role (2023) and prior COO/President tenure (2017–2022) could be perceived as proximity to management; mitigated by formal independence determination and committee compositions being 100% independent .
- Options outstanding: Legacy director options (20,000 at $17.18 expiring 9/1/2026) remain, but no 2024 option grants; current director equity favors RSUs, lowering repricing risks; no option repricing disclosed .
- Pledging/hedging: Prohibited by policy (limited pledge exceptions); no exceptions or pledges disclosed for Malone—positive alignment .
- Related‑party: No material transactions disclosed with Malone; only ordinary-course loans under independent oversight—positive .
Insider Trades and Section 16 Compliance
| Item | Disclosure |
|---|---|
| Section 16(a) compliance | Company states all officers, directors, and >10% holders complied with filing requirements; no delinquent filings noted . |
Director Compensation Structure Changes (2024)
- Introduced Deputy Lead Independent Director fee ($9,000 cash + $9,000 equity) .
- Increased Committee Chair fee from $7,200 to $9,000 (cash and equity), effective May 23, 2024 .
Additional Board Policies Relevant to Governance
- Lead Independent Director Guidelines; annual evaluations of Board and Committees; proxy access; right to call special meetings (≥10% holders); mandatory resignation policy for nominees failing majority support; codes of conduct for directors and employees .
- Clawback policy adopted Oct 2023 (SEC/Nasdaq compliant) covering cash and equity incentive compensation in event of restatements; administered by Compensation Committee .
Overall, Malone’s financial and credit expertise, coupled with his chair role on the Board Risk Committee and compliance with equity ownership guidelines, support board effectiveness in risk oversight; independence is formally affirmed, though prior executive roles merit continued monitoring for perceived conflicts, with policy structures (independent committees, LID framework, anti-hedging/pledging, clawback) mitigating governance risk .