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Bradley Ruppert

Chief Investment Officer at LCNB
Executive

About Bradley Ruppert

Bradley A. Ruppert is Executive Vice President, Trust Officer, and Chief Investment Officer at LCNB; he was age 47 in the 2023 proxy and has 16 years of credited service under LCNB’s defined benefit plan as of fiscal 2024, indicating long-tenured institutional knowledge in trust and investment management . Pay-versus-performance disclosures show company net income of $13.5M in 2024, $12.6M in 2023, and $22.1M in 2022, with the value of a fixed $100 TSR stake at $103.00 (2024), $107.35 (2023), and $122.53 (2022), framing the operating and shareholder return context during his recent tenure . His compensation mix combines fixed salary ($264,000 in 2024) with annual cash incentives tied to company/individual goals and long-term restricted stock that vests over five years, aligning retention with performance outcomes .

Past Roles

No prior external employment roles beyond current LCNB executive capacities were disclosed in reviewed DEF 14A filings .

External Roles

No external public company directorships or outside board roles were disclosed for Bradley Ruppert in reviewed DEF 14A filings .

Fixed Compensation

Multi-year Summary Compensation Table for Bradley A. Ruppert:

Metric202220232024
Base Salary ($)232,000 250,000 264,000
Restricted Stock Awards – Grant Date Fair Value ($)42,000 60,320 32,500
Non-Equity Incentive Plan Compensation ($)30,791 36,250 13,200
Non-Qualified Deferred Compensation Earnings ($)1,089 52,245 1,379
All Other Compensation ($)26,371 27,502 28,676
Total ($)332,251 426,318 339,756

Notes:

  • “Non-Qualified Deferred Compensation Earnings” include above-market interest on the NQDC plan and changes in the actuarial present value of defined benefit pensions when applicable .

Performance Compensation

Annual Cash Incentive Outcomes (Company and Individual Goals)

Metric202120222023
Adjusted ROAA (Actual)1.13% 1.16% 0.95%
Individual Goals Payout (% of Salary)6.0% 6.0% 5.0%
Total Cash Incentive (% of Salary)12.5% 13.0% 14.5%
  • Cash incentives consist of a company performance component (primarily ROAA) plus individual executive goals; historical target payout was 11.5% of salary with a 20% maximum opportunity (design described in prior CD&A) .

Equity Grants Determination (Plan-Linked Performance Metrics)

Metric2021202220232024
EPS (Actual)$1.66 (adjusted) $1.93 (adjusted) $1.10; ex-merger costs $1.56 $0.88
Efficiency Ratio (Actual)63.7% 75.7%; ex-merger costs 69.1% 77.77%
ROAA (Actual)1.16% 0.63%; ex-merger 0.95% 0.57%
Assets Under Management Growth (Actual)7.62% −1.5% 25.48% 8.94%
Equity Award (% of Base Compensation)20% (maximum) 26% 13% (NEOs) 12%
Vesting Schedule5 equal annual installments starting 1st anniversary 5 equal annual installments starting 1st anniversary 5 equal annual installments starting 1st anniversary 5 equal annual installments; 2024 awards vest starting Mar 4, 2025
  • Equity awards are calculated as a percentage of salary based on performance versus Board-approved budget for EPS, efficiency ratio, ROAA, and AUM growth; targets are typically 20% with 40% maximum for NEOs .

Grants of Plan-Based Awards (Ruppert – Details)

Grant Detail20222023
Cash Incentive – Target ($)27,840 32,500
Cash Incentive – Maximum ($)50,000 75,000
Equity Incentive – Target (# of shares)2,601 3,605
Equity Incentive – Maximum (# of shares)5,202 7,729
All Other Stock Awards – Grant Date2/22/22 1/22/23
All Other Stock Awards – Number of Shares (#)2,182 3,381
Grant Date Fair Value ($)42,000 60,320

Equity Ownership & Alignment

Beneficial Ownership

Metric2022 (as of Mar 1)2023 (as of Dec 31)
Shares Beneficially Owned (#)9,203 12,584
Percent of Shares Outstanding (%)0.08% 0.10%
  • Stock ownership guidelines: no strict numerical targets; executives are encouraged to own stock; all equity awards carry multi-year vesting requirements .
  • Hedging/pledging: The company states it does not currently have a hedging policy; pledging provisions are not specified in the reviewed filings .

Outstanding and Vested Equity

Outstanding unvested restricted shares (as of 12/31/2022):

Award DateFeb 2018Feb 2019Feb 2020Feb 2021Feb 2022
Unvested Shares (#)306 506 1,139 1,861 2,182

Stock vested (shares and value realized):

Metric2020202120222024
Shares Acquired on Vesting (#)559 939 1,404 2,003
Value Realized on Vesting ($)9,573 15,653 27,501 30,305

Change-of-Control (CIC) Accelerated Vesting Potential

Metric2022 (as of Dec 31)2023 (as of Dec 31)2024 (as of Dec 31)
Unvested Shares that Would Vest (#)5,994 7,535 7,667
Value of These Shares ($)$118,824 $116,005

Employment Terms

  • Employment agreements: None; all NEOs are at-will employees, and termination as of each year-end did not trigger contractual severance obligations (outside of plan benefits) .
  • CIC protection: Double-trigger acceleration under the 2015 Ownership Incentive Plan—100% vesting of ownership incentives outstanding ≥6 months if terminated without cause or resign for “good reason” from 3 months before to 1 year after a change in control .
  • Restricted shares vesting: Five equal annual installments starting one year post grant; accelerated vesting upon death, incapacity, or retirement (age ≥65) .
  • NQDC plan: Executives may defer cash incentives; balances accrue at 8% with above-market portions disclosed; distribution in lump sum or 10 annual payments after termination or CIC, at executive’s election .
  • Clawback: Amended & Restated Clawback Policy requires recovery of erroneously awarded incentive compensation in the event of restatements or fraudulent behavior; applies to cash incentives and equity awards .
  • Stock trading policy: Company states it does not currently have a hedging policy; pledging not specified in the reviewed documents .
  • Option plan terms: Options (if any) are non-transferable; early termination/retirement rules apply; immediate vesting upon death/incapacity/retirement; maximum 10-year term; no options awarded to Ruppert in reviewed periods .

Deferred Compensation and Pension

Non-Qualified Deferred Compensation (NQDC)

Metric2021202220232024
Executive Contributions ($)12,545 13,125 7,698 9,063
Aggregate Earnings ($)3,539 4,927 6,006 7,263
Aggregate Balance at Year-End ($)46,791 64,843 78,547 94,873

Defined Benefit Pension

Metric20202024
Present Value of Accumulated Benefits ($)136,129 166,415
Years Credited Service (#)12 16

Compensation Committee and Benchmarking

  • Independent consultant: The Committee engages BCG (banking-focused) for market benchmarking; BCG is hired by and reports directly to the Committee; no conflicts identified under Rule 10C-1 .
  • Benchmark posture: Prior reviews indicated conservative total cash compensation vs peers and competitive equity awards; design alternates executive and Board compensation reviews year-to-year .

Investment Implications

  • Pay-for-performance calibration: Equity grant outcomes dropped to 12% of salary in 2024 (vs. 13% in 2023 and 26% in 2022) consistent with weaker EPS/ROAA/efficiency metrics—evidence of performance-linked equity variability .
  • Retention vs. selling pressure: Five-year ratable RSU vesting and 8% NQDC accruals foster retention; expect predictable vesting-related selling near annual vest dates (e.g., 2,003 shares vested for Ruppert in 2024; 2024 awards start vesting Mar 4, 2025) .
  • Alignment and “skin in the game”: Beneficial ownership of 12,584 shares (0.10% outstanding) suggests modest direct alignment; however, ongoing RSU grants and pension/NQDC balances add deferred exposure to company outcomes .
  • Governance and downside protection: No individual employment agreements (limited severance risk); double-trigger CIC with measured acceleration ($116k value for Ruppert as of 2024) reduces windfall risk; expanded clawback increases recourse in restatement or misconduct scenarios .
  • Risk flags: Absence of a formal hedging policy (pledging not specified) is a governance gap; above-market NQDC interest creates non-operational compensation inflation but is disclosed and capped by policy .