Peter J. Koh
HOPE BANCORPAbout Peter J. Koh
Senior Executive Vice President and Chief Operating Officer (COO) of Bank of Hope since January 1, 2022; previously Deputy COO (May 2021), and EVP/Chief Credit Officer following the BBCN–Wilshire merger in 2016. Age 48; BA Columbia University; MBA USC Marshall; graduate of Pacific Coast Banking School . Company performance context for FY2024: EPS excluding notable items $0.85 and PPNR ROAA excluding notable items 0.88% amid net interest income pressure; net income $99.6M; all regulatory capital ratios expanded YoY . The Board notes his familial relationship: Steven S. Koh (Honorary Chairman) is Peter’s father (governance awareness) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Bank of Hope | COO; Deputy COO; EVP & Chief Credit Officer | 2021–present; 2016–2021 | Led strategy, operations, IT, HR, credit; post-merger credit administration, appraisals, loan ops, special assets |
| Wilshire Bank | Chief Credit Officer; Deputy Chief Credit Officer; Chief Credit Review Officer; Senior Loan Officer | 2007–2014 | Built credit review functions and advanced to CCO; promoted July 2014 |
| Wilshire Bank | Credit-related positions | 2001–2005 | Early tenure in credit roles |
External Roles
- None disclosed in the proxy for Peter J. Koh .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $399,145 | $429,231 | $476,539 |
| Bonus – Individual/Discretionary ($) | $83,333 | $160,050 | $29,588 |
| All Other Compensation ($) | $29,410 | $30,675 | $31,050 |
| All Other Compensation – detail | — | — | 401(k) match $17,250; auto allowance $13,800 |
Notes:
- 2024 base salary increased 11.4% to $490,000 (annualized) per Committee decision (program detail table shows 2023/2024 salaries) .
Performance Compensation
2024 Short-Term Incentive Program (STIP) – Corporate Metrics and Outcomes
| Metric | Weight | Target | Actual | Payout vs Target |
|---|---|---|---|---|
| EPS (excluding notable items) | 25% | $1.00 | $0.85 | 63% |
| PPNR ROAA (excluding notable items) | 25% | 0.98% | 0.88% | 50% |
| Criticized Loan Ratio (4-Q avg) | 20% | 2.33% | 3.35% | 0% |
| Total Loan Growth | 15% | 3.0% | (1.62)% | 0% |
| Avg Deposit Change (ex brokered) | 15% | (2.0)% | (2.58)% | 78% |
- Corporate performance attainment: 40% aggregate .
- Individual performance score for Koh: 67% (led culture/performance tooling; net charge-offs improved YoY; criticized loans increased) .
2024 STIP Cash Earned (Breakdown)
| Component | Amount ($) |
|---|---|
| Corporate Performance (80% bucket) | $70,472 |
| Individual/Discretionary (20% bucket) | $29,528 |
| Total STIP Earned | $100,000 |
2024 Long-Term Incentive Program (LTIP) Design and Grants
- Structure: 50% time-vested RSUs (one-third annually over 3 years), 50% PSUs over a 3-year performance period .
- PSU metrics/weights: ROTCE excluding notable items (absolute) 50%; Relative TSR vs KBW Nasdaq Regional Banking Index 50%; payout 50–150% of target via linear interpolation .
| Grant Date | Time-Vested RSUs (#) | PSUs ROTCE (Target #) | PSUs TSR (Target #) |
|---|---|---|---|
| 7/19/2024 | 11,583 | 5,792 | 5,792 |
Grant Date Fair Values:
| Description | Grant Date Fair Value ($) | Max Value Assumption ($) |
|---|---|---|
| RSUs (time-vested) | $146,988 | $146,988 |
| PSUs ROTCE | $73,500 | $110,251 |
| PSUs TSR | $65,334 | $110,251 |
Prior-cycle PSU outcome:
- 2022–2024 PSU cycle earned at 70% of target; Koh received 3,713 shares based on 4,273 target .
Equity Ownership & Alignment
| Holding Type | Quantity | Notes/Value Basis |
|---|---|---|
| Common shares beneficially owned | 108,629 | <1% of outstanding; Section 16 officer |
| Stock options (exercisable) | 20,000 | $17.18 strike; expires 9/1/2026 |
| RSUs unvested (selected grants) | 11,583 (2024); 9,515 (2023 LTIP); 7,929 (2023 STIP); 5,273 (2022 LTIP) | Vesting one-third annually (LTIP) or per award terms |
| PSUs outstanding (target) | 5,792 (ROTCE 2024); 5,792 (TSR 2024); 3,806 (TSR 2023); 1,904 (TSR 2023) | Vest subject to 3-year performance |
| Options in-the-money at 12/31/2024 | $0 | All NEO options OTM at $12.29 year-end price (thus no value) |
Policies affecting alignment:
- Anti-hedging and anti-pledging policy for covered persons; pledging exceptions require Legal approval; no pledges disclosed for Koh .
- Clawback: adopted Oct 2023, recoupment of erroneously awarded incentive compensation per SEC/Nasdaq rules .
- Stock ownership guidelines apply to CEO and non-employee directors; no formal guideline for other NEOs (including Koh) .
Employment Terms
| Topic | Disclosed Terms |
|---|---|
| Employment Agreement | None for NEOs other than CEO; Koh has no employment agreement . |
| Severance | No cash severance disclosed for Koh . |
| Change-in-Control | Accelerated vesting of unvested equity only; estimated $601,433 value at 12/31/2024 (no option value; options OTM) . |
| Non-compete/Non-solicit | Not disclosed for Koh; CEO agreement contains specific terms . |
| Clawback | Company clawback policy (2023) covers executives . |
| Insider Trading | Prohibits hedging/pledging; margin accounts barred; exceptions tightly controlled . |
Multi-Year Compensation Summary (Total and Components)
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $399,145 | $429,231 | $476,539 |
| Bonus (incl. discretionary) ($) | $83,333 | $160,050 | $29,588 |
| Stock Awards ($) | $238,152 | $253,876 | $285,823 |
| Non-Equity Incentive ($) | — | — | $70,472 |
| All Other Compensation ($) | $29,410 | $30,675 | $31,050 |
| Total ($) | $750,040 | $873,832 | $893,472 |
Compensation Structure Analysis
- Year-over-year: Koh’s base salary rose 11.4% in 2024 to adjust market positioning and expanded remit; STIP paid below target due to underperformance on key financial metrics; LTIP grants tilted to balanced RSUs/PSUs with 3-year measurement favored by shareholders .
- STIP metric rigor: Five-metric scorecard with 80% weight to financials, 20% individual; criticized loans and loan growth missed, capping payouts; EPS/PPNR achieved near threshold levels .
- PSU design shifts: Eliminated 12-month EPS goal; moved fully to three-year ROTCE ex-notables and relative TSR with 50–150% payout band—reduces short-term gaming risk .
Governance, Peer Group, and Shareholder Feedback
- 2024 say-on-pay approval ~97% following program changes (alignment emphasis; diversified metrics; three-year LTI) .
- Compensation peer group updated fall 2023 (regional banks with assets/revenues 0.5–2.0x HOPE); KBW Nasdaq Regional Banking Index used for relative TSR peer set .
Investment Implications
- Alignment: Koh’s pay mix incorporates meaningful equity at risk (PSUs tied to ROTCE and relative TSR), while 2024 STIP paid below target due to earnings/asset-quality/loan growth realities—indicative of pay-for-performance integrity .
- Retention risk: Absence of a personal employment agreement or cash severance means retention relies on multi-year LTIP vesting and role scope; equity acceleration only upon change-in-control reduces golden parachute concerns but may modestly elevate mobility risk versus peers with severance .
- Selling pressure: Options are out-of-the-money at year-end and expire in 2026; RSUs vest ratably over three years and PSUs require 3-year performance, limiting near-term forced selling; anti-hedging/anti-pledging policy further curbs adverse signals .
- Execution watchpoints: Elevated criticized loans drove a zero payout on that metric; while net charge-offs improved, continued credit discipline and deposit mix improvement are critical to lifting future STIP and PSU outcomes (EPS/PPNR/ROTCE) .