Erika K. Parisi
About Erika K. Parisi
Executive Vice President and Chief Administrative Officer of Kearny Financial Corp. (Kearny Bank) since July 2019; previously EVP and Director of Customer Relationship Management (CRM) Analytics (2016–2019), EVP/Branch Administrator (2014–2016), and SVP/Branch Administrator (2002–2014). She joined South Bergen Savings Bank in 1991 and came to Kearny via acquisition in 1999. Education: B.S. in Accounting, State University of New York at Albany. Age 60 as of June 30, 2025 . For context on performance-linked pay, the annual incentive scorecards use bank-level metrics: in FY2017 net income was $18.6M vs $16.56M target, ROAA 0.40% vs 0.36% target, EPS $0.22 vs $0.21 target, and efficiency ratio 71.20% vs 71.34% target . Say-on-pay support has been strong (96.9% in 2016; 96.45% in 2023; over 95% for five consecutive years) reflecting alignment of compensation practices .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Kearny Financial Corp./Kearny Bank | EVP & Chief Administrative Officer | 2019–present | Enterprise administration leadership (retail network and administrative oversight) |
| Kearny Bank | EVP & Director of CRM Analytics | 2016–2019 | Customer analytics leadership to support sales, service and retention |
| Kearny Bank | EVP & Branch Administrator | 2014–2016 | Retail branch administration |
| Kearny Bank | SVP & Branch Administrator | 2002–2014 | Retail branch administration |
| Kearny Bank | VP & Branch Administrator | 1999–2002 | Retail branch administration post-acquisition integration |
| South Bergen Savings Bank | VP/Branch Administrator | 1991–1999 | Retail branch administration |
External Roles
- None disclosed in proxy biographies .
Fixed Compensation
Multi-year pay summary (from Summary Compensation Table):
| Metric | 2015 | 2016 | 2017 |
|---|---|---|---|
| Salary ($) | 266,195 | 266,097 | 268,730 |
| Bonus ($) | 6,637 | — | — |
| Stock Awards ($) | — | — | 767,500 |
| Option Awards ($) | — | — | 296,700 |
| Non-Equity Incentive ($) | 29,980 | 49,791 | 72,172 |
| All Other Compensation ($) | 38,067 | 41,610 | 48,531 |
| Total ($) | 379,879 | 418,498 | 1,453,633 |
Annual incentive payouts (short-term cash plan):
| Metric | 2017 | 2018 |
|---|---|---|
| Base Salary ($) | 268,730 | 268,730 |
| Target Bonus ($) | 67,183 (25%) | 67,183 (25%) |
| Actual Bonus Paid ($) | 72,172 | 88,701 |
| Actual Payout (% of base) | 26.86% | 33.01% |
Performance Compensation
Annual incentive scorecard design and results:
| Metric (Earnings category) | Target | Actual | Payout to Parisi (% of base) |
|---|---|---|---|
| Net Income ($) | 16,562,045 | 18,603,358 | 14.36% (Earnings category contribution) |
| ROAA (%) | 0.36 | 0.40 | 14.36% (Earnings category contribution) |
| EPS ($) | 0.21 | 0.22 | 14.36% (Earnings category contribution) |
| Efficiency Ratio (%) | 71.34 | 71.20 | 14.36% (Earnings category contribution) |
| Metric (Qualitative category) | Target | Actual | Payout to Parisi (% of base) |
|---|---|---|---|
| Qualitative goals | N/A | N/A | 12.50% |
2019 incentive design changes (target opportunities and category weights):
| Executive | Target Opportunity | Earnings | Asset Growth | Qualitative |
|---|---|---|---|---|
| Erika K. Parisi | 30% | 60% | 10% | 30% |
Long-term equity awards and performance conditions (2016 grant):
| Award Type | Grant Date | Shares/Options | Vesting Schedule | Performance Metric | Status |
|---|---|---|---|---|---|
| Time-based Restricted Stock | 12/1/2016 | 25,000 | 20% per year; tranches on June 30 with issuance Dec 1 | N/A | Unvested schedule per plan |
| Performance-based Restricted Stock | 12/1/2016 | 25,000 | 20% per year if metrics achieved; tranches on June 30 with issuance Dec 1 | ROAA 0.36% (measured quarterly; averaged) | Unvested schedule per plan |
| Stock Options | 12/1/2016 | 100,000 | 20% per year; 10-year term | Strike $15.35; Expires 12/1/2026 | Underwater at 6/30/2017 (FMV $14.85) |
Per-grant vesting math (illustrative): each RS tranche is 5,000 shares (20% of 25,000) per year under the plan terms .
Equity Ownership & Alignment
| Metric | Value |
|---|---|
| Total beneficial ownership (shares) | 176,351; includes 11,609 in 401(k), 39,862 in ESOP, and 295 in BEP |
| Ownership as % of common outstanding | <1% (individual entries marked “* less than 1%”) |
| Options outstanding (unexercisable as of 6/30/2017) | 100,000 |
| Restricted stock unvested | 25,000 time-based; 25,000 performance shares |
| Shares pledged as collateral | 0 (policy prohibits pledging; exceptions disclosed only for CEO and Chairman) |
| Stock ownership guidelines | NEOs: 2x annual base salary market value; 3x for CEO; 4x annual cash retainer for directors |
| Anti-hedging/pledging policy | Prohibits hedging and pledging by execs/directors |
Employment Terms
| Provision | Terms |
|---|---|
| Agreement term and renewal | Two-year term; auto-renews annually to maintain two years, subject to board performance review |
| Base salary (at agreement adoption) | $268,730 |
| Severance (without cause, no change in control) | Lump sum equal to base salary for remaining term plus continued medical/dental; estimated $611,306 at 6/30/2017 |
| Severance (good reason resignation) | Lump sum equal to annual base salary; $268,730 at 6/30/2017 |
| Change-in-control (double trigger) | If CoC followed within 24 months by involuntary termination or good reason: 2x most recent-year total compensation, lump sum, plus continued medical/dental; amounts reduced to avoid 280G tax |
| Estimated CoC payment (as of 6/30/2017) | $793,562 (includes estimated insurance continuation) |
| Accelerated vesting on CoC/death/disability | Unvested restricted stock becomes fully vested; value estimated $742,500 (as of 6/30/2017) |
| Non-compete/non-solicit | Six months post-termination (except following CoC) |
| Executive life insurance | Death benefit equals 2× highest annual base salary in prior 3 years + $100,000; capped at $1.5M |
| Clawback (recoupment) | Incentives forfeited/recouped for restated results; committee discretion |
| Tax gross-ups | None in employment/CoC agreements (best practice) |
| Pension (present value at 6/30/2017) | $309,000 under frozen defined benefit plan |
| ESOP/BEP (deferred comp) | Company contributions to ESOP/BEP; Parisi BEP contribution $98 and aggregate BEP balance $4,422 (latest disclosed) |
| Perquisites (2017 detail) | 401(k) contributions $9,315; bank-owned life insurance $549; ESOP/BEP contributions $32,794; long-term care premium $2,873; dividends on unvested stock $3,000 |
Compensation Structure Analysis
- Equity-heavy 2016 awards (RS + options) vest over five years with performance-vesting for 50% RS tied to ROAA; 2016 Plan explicitly prohibits single-trigger vesting and option repricing, aligning long-term incentives with multi-year performance and retention .
- Annual incentives emphasize “at-risk” pay using earnings/asset quality/IRR and qualitative goals; Parisi’s 2017 payout reflects mixed category contributions (Earnings 14.36% of base; Qualitative 12.50%) with bank EPS/ROAA above target and lending/deposit growth below target caps, indicating balanced funding gates .
- Governance safeguards include stock ownership requirements, anti-hedging/pledging, and a clawback policy; say-on-pay approval consistently >95% over recent years underscores investor support for compensation design .
Risk Indicators & Red Flags
- No hedging/pledging and double-trigger CoC (no single-trigger equity vesting) reduce misalignment or windfall risk .
- 280G cut-back provisions to avoid excise tax penalties are in place for executives including Parisi .
- 2016 options granted at $15.35 were underwater at FY2017 ($14.85), reducing near-term exercise/sale pressure; RS tranches vest annually, creating predictable supply rather than opportunistic selling .
- No legal proceedings or related-party transactions disclosed involving Parisi; compensation risk assessments did not identify material adverse risk .
Say-on-Pay & Shareholder Feedback
- 2016 say-on-pay approval: 96.9% .
- 2023 say-on-pay approval: 96.45%; company notes >95% for last five years .
Equity Ownership & Alignment Details (Breakdown)
| Category | Shares |
|---|---|
| 401(k) Plan | 11,609 |
| ESOP | 39,862 |
| BEP (ESOP equalization) | 295 |
| Total beneficial | 176,351 |
| % outstanding | <1% |
Performance Compensation – Long-Term Vesting Schedule (2016 Grants)
| Award | Tranche dates | Shares per tranche | Conditions |
|---|---|---|---|
| Time-based RS | Annually on June 30 (issuance Dec 1) | 5,000 (20% of 25,000) | Continued employment |
| Performance RS | Annually on June 30 (issuance Dec 1) | Up to 5,000 per year at target | ROAA threshold (0.36%) measured quarterly, averaged; scales around target |
| Options | Vest 20% per year from 12/1/2017 | 20,000 per year (20% of 100,000) | 10-year term; strike $15.35; expire 12/1/2026 |
Investment Implications
- Strong alignment: double-trigger CoC, anti-hedging/pledging, clawback, and ownership guidelines reduce agency risk and discourage short-termism; robust say-on-pay support suggests investors view pay as linked to performance .
- Retention cadence: multi-year RS/option vesting creates scheduled, predictable supply; options were originally underwater, implying limited near-term exercise pressure while RS tranches may periodically add float .
- Pay-for-performance: Annual scorecards tied to ROAA/EPS/efficiency gates foster operational discipline; Parisi’s payout mix (earnings + qualitative) indicates contribution to execution of administrative and CRM initiatives alongside financial outcomes .
- Change-in-control economics: 2× most recent-year total compensation and accelerated RS vesting (with no single-trigger) balance retention with shareholder protections; 280G cut-back mitigates parachute tax risk .