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Keith Suchodolski

Senior Executive Vice President, Chief Operating Officer at Kearny Financial
Executive

About Keith Suchodolski

Senior Executive Vice President and Chief Operating Officer (effective July 1, 2024), previously Senior EVP & CFO (promoted July 1, 2022) and EVP & CFO (since July 1, 2018). Joined Kearny in 2013 and progressed through Controller and Chief Accounting Officer roles; holds an MBA (Finance) from Fairleigh Dickinson University and a BS from Ramapo College of New Jersey . Annual incentive performance metrics emphasize PPNR per share, non-interest expense ratio, and individual strategic goals; FY2024 payout was 18.55% of base, vs. 22.60% in FY2023 and 23.53% in FY2025, reflecting lower target levels in 2024 and program changes . Stock ownership guidelines require 2x salary for NEOs; anti-hedging/pledging policy and clawback in event of restatement are in place .

Past Roles

OrganizationRoleYearsStrategic Impact
Kearny Financial Corp. / Kearny BankSenior EVP & COO2024–presentEnterprise operations leadership; execution on efficiency and digital strategy per incentive goals .
Kearny Financial Corp. / Kearny BankSenior EVP & CFO2022–2024Finance leadership; assumed COO responsibilities during transition .
Kearny Financial Corp. / Kearny BankEVP & CFO2018–2022Led finance; long-term equity incentives (2016 and 2021 plans) .
Kearny Financial Corp. / Kearny BankSVP, Corporate Finance & Chief Accounting Officer2018Strengthened financial reporting and control environment .
Kearny Financial Corp. / Kearny BankSVP / VP, Controller2013–2018Built controllership, reporting, SOX certifications .
Various Mid-Atlantic financial institutionsController2005–2013Multi-institution controllership; industry experience since 2001 .

External Roles

No public company directorships or external board roles disclosed .

Fixed Compensation

MetricFY 2022FY 2023FY 2024FY 2025
Base Salary ($)370,373 409,107 421,381 446,664
Target Bonus (%)30.00% 40.00% 22.50% 22.50%
Target Bonus ($)111,112 163,643 94,811 100,499
Actual Bonus Earned ($)130,260 92,441 78,161 105,116
Actual Bonus (% of Salary)35.17% 22.60% 18.55% 23.53%

Performance Compensation

Annual Incentive Structure (FY 2023–FY 2025)

CategoryFY 2023FY 2024FY 2025
Payout at Target (%)40.00% 22.50% 22.50%
Corporate Metric: PPNR per Share contribution (% of base)5.00% 8.57% 13.84%
Corporate Metric: Non-Interest Expense Ratio contribution (% of base)9.60% 5.48% 5.20%
Individual Metrics contribution (% of base)8.00% 4.50% 4.50%
Total Payout Earned (% of base)22.60% 18.55% 23.53%
Individual Goal ThemesOperating efficiency, technology enhancement, ESG Core deposit growth strategy, operational efficiency, digital strategy Not separately enumerated (program continued)

Notes:

  • FY2024 Amended Program removed Section 5(c) Performance Gate from the prior program .

Annual Incentive (FY 2022 program basis)

CategoryFY 2022
Payout at Target (%)30.00%
Corporate Metrics: Net Income contribution (% of base)8.46%
Corporate Metrics: EPS (Basic) contribution (% of base)8.38%
Corporate Metrics: Non-Interest Expense Ratio contribution (% of base)7.08%
Individual Metrics contribution (% of base)11.25%
Total Payout Earned (% of base)35.17%

Long-Term Equity Incentives (2021 Plan)

Grant DateInstrumentCountVesting / Performance Conditions
Jan 7, 2022Performance-Based RSUs9,860 3-year performance period (FY2022–FY2024); vest based on annual pre-tax, pre-provision EPS goals; NCO gate ≤0.50%; 0–150% payout .
Jan 7, 2022Time-Based RSUs9,860 33% per year over 3 years commencing Aug 7, 2022 .
Aug 7, 2022Performance-Based RSUs12,864 3-year performance period (FY2023–FY2025); EPS-based; NCO gate ≤0.50%; 0–150% payout .
Aug 7, 2022Time-Based RSUs12,864 33% per year over 3 years commencing Aug 7, 2023 .
Aug 7, 2024RSUs/PSUs (counts not itemized)Awards issued to all NEOs under 2021 Plan; PSUs (50%) and RSUs (50%); PSUs FY2025–FY2027 EPS and NCO gate; RSUs 33% annually from Aug 7, 2025 .

Stock Options and Outstanding Awards

TypeStrikeExpirationStatus / Count
Stock Options$15.3512/01/202675,000 options (exercisable) .
Stock Options$13.3801/07/202960,000 exercisable; 15,000 unexercisable; 6,300 restricted stock tied to this grant .
Stock Options$9.8204/01/20256,902 options (exercisable) .
Restricted Stock / RSUs (unvested as of 6/30/2023)12,864 RSUs (time-based); 12,864 PSUs; 6,573 RSUs (time-based); 9,860 PSUs; market values disclosed at $7.05/share .

Vesting History and Realizations:

  • 2019: 6,332 shares vested ($87,340 value realized); options exercised with $113,248 value realized; shares from option exercise sold same day (indicative of near-term liquidity) .

Equity Ownership & Alignment

As of Proxy YearBeneficial Ownership (Total Shares)Ownership % of SOComponents and Notes
2021163,063 Includes options to acquire 96,902; 401(k) 7,196; ESOP 10,734; BEP 143 .
2022218,441 Includes options to acquire 126,902; 401(k) 8,413; ESOP 12,831; BEP 428 .
2025296,648 ~0.46% (296,648 / 64,744,523) Includes options to acquire 150,000; 401(k) 15,626; ESOP 20,614; BEP 1,837 .

Policies and Alignment:

  • Stock ownership guidelines: 2x annual base salary for NEOs; 3-year compliance window; 50% post-vest holding requirement until met; unvested performance shares and options excluded from calculation .
  • Anti-hedging and pledging policy disclosed; no pledging noted for Mr. Suchodolski in ownership footnotes (contrast: CEO Montanaro disclosed 8,748 shares pledged) .
  • Clawback: Forfeiture of incentive awards in excess of restated results at Compensation Committee discretion .

Employment Terms

  • Agreement: Employment Agreement dated June 15, 2022; Bank is party, Company guarantees performance; title amended to COO effective July 1, 2024 (no economic changes) .
  • Term and Auto-Renewal: 3-year term, with annual renewal to maintain 3-year remaining term upon Board evaluation .
  • Base Salary reference: $421,381 (FY2023); increased to $446,664 (FY2025) per proxy disclosures .
  • Severance (no CIC): Involuntary termination (other than cause/disability/death): lump sum equal to base salary for remaining term, plus continued medical/dental for remaining term; Good reason resignation: lump sum equal to one year base salary .
  • Change-in-Control (double-trigger within 24 months): 3x (base salary at termination or change in control, whichever higher) + 3x prior-year bonus; continued medical/dental for remaining term .
  • Restrictive Covenants: Non-compete and non-solicit for 6 months post-termination (except following a change in control) .
  • Governing Law: State of New Jersey .
  • Clawback: Applies to incentive payouts upon restatement .
  • Executive life insurance: Agreement exists; benefit ceases upon termination (for Suchodolski) under 2019/2020 disclosures .

Performance & Track Record

  • Role evolution: Elevated responsibilities across finance and operations culminating in COO promotion (July 2024) .
  • Incentive design migration: FY2022 corporate metrics included Net Income, Basic EPS, and Expense Ratio ; FY2023–FY2025 pivoted to PPNR per share and Expense Ratio . Program gate removed in 2024, slightly reducing structural payout hurdles .
  • Financial performance snapshot (annual revenues):
    MetricFY 2023FY 2024FY 2025
    Revenues ($USD Millions)***
    Values retrieved from S&P Global.

Compensation Structure Analysis

  • Shift in cash vs. equity mix: Continued issuance under 2021 Plan (50% PSUs/50% RSUs) indicates balanced at-risk equity; FY2024 grants continued (counts not itemized by NEO) .
  • Options vs. RSUs: Legacy options from 2016 Plan persist; new grants under 2021 Plan are RSUs/PSUs—lower risk profile vs. options, improving retention .
  • Program gate removal (FY2024): Removing section 5(c) performance gate could modestly reduce pay-for-performance rigidity; however, PSUs retain EPS/NCO hurdle framework .
  • Discretion: Individual milestones comprise a meaningful component (4.5–8% of base in recent years), allowing qualitative assessment .

Vesting Schedules and Insider Selling Pressure

  • RSUs (2021 Plan): 33% annual vesting from grant commencement (Aug 7, 2022 and Aug 7, 2023), with remaining tranches through Aug 7, 2025; PSUs cliff-vest at end of 3-year periods subject to EPS and NCO gate .
  • Options: 20% annual vesting for legacy 2016 Plan option grants; expirations in 2025, 2026, 2029 .
  • Historical selling: 2019 option exercise realized $113,248 with same-day sale of acquired shares; 6,332 shares vested with $87,340 value realized, signaling episodic liquidity events around vest/exercise .

Investment Implications

  • Pay-for-performance alignment remains anchored to bank-appropriate PPNR and expense discipline; PSUs add multi-year EPS rigor and NCO gate, while removal of the annual program gate in 2024 slightly increases payout flexibility .
  • Retention risk appears moderate: multi-year RSU/PSU schedules and sizable unexercised options support continued alignment; severance economics (3x salary+bonus under CIC) are protective but standard for regional banks, with a 6-month non-compete .
  • Ownership alignment: 296,648 shares/rights including options, plus 401(k)/ESOP/BEP holdings and no pledging disclosed for Suchodolski; guidelines require 2x salary—positive governance stance, though compliance status not explicitly disclosed .
  • Near-term trading signals: Watch scheduled RSU vesting dates (Aug 7 annually) and any Form 4 sales around vest/exercise windows; historical 2019 activity suggests potential liquidity around events .