Farid Tan
About Farid Tan
Farid Tan, age 67, is President of MetroCity Bankshares, Inc. and Chief Executive Officer of Metro City Bank; he is also a director (Class III) who has served on the board since 2006 . He has over 40 years of banking experience, including foreign exchange, audit, lending, and executive leadership; he previously served as CFO of the Company and Bank from July 2019 to October 2021 and holds a diploma in accounting from Polytechnic Ungku Omar, Malaysia . Pay-versus-performance disclosures show 2024 net income of $64.5 million and return on average equity (ROAE) of 16.16%, with cumulative TSR since a $100 starting base measured at 137.12, evidencing strong profitability and shareholder returns in recent years . The Company exceeded its 2024 ROAE target (≥15%), enabling maximum annual incentive pool funding tied to net income, linking Mr. Tan’s pay closely to shareholder value creation .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Bank Bumiputra Malaysia (Malaysia/New York) | Senior Account Officer; Senior Internal Audit Supervisor; Senior FX Dealer; Assistant GM | 1981–1999 | Built foundational expertise across audit, FX trading, and financial operations . |
| Global Commerce Bank (Doraville, GA) | Senior Credit Officer; President & CEO | 1999–2005 | Led a community bank, enhancing credit oversight and executive leadership experience . |
| Metro City Bank | President & CEO | 2006–present | Founding leadership and growth of an MDI-focused regional community bank . |
| MetroCity Bankshares, Inc. | CFO (Company & Bank) | 2019–2021 | Strengthened public company finance, SEC reporting, and capital markets readiness . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| FDIC | MDI Subcommittee of the Advisory Committee on Community Banking | Current | Contributes minority depository institution perspectives to national policy . |
| CFPB | Community Bank Advisory Council | 2013–2015 | Advises on community bank issues and consumer finance policy . |
| ICBA | Minority Bank Council | 2015–2016 | Industry engagement on minority bank priorities . |
| ACI / Financial Markets Association | Member (Malaysia & USA) | Prior | Professional networks in markets/trading . |
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | 425,000 | 455,000 | 470,000 |
| Non-Equity Incentive Plan Compensation ($) | 850,000 | 705,000 | 940,000 |
| Stock Awards – Grant Date Fair Value ($) | 1,001,019 | 1,028,058 | 843,400 |
| All Other Compensation ($) | 18,300 | 19,800 | 20,700 |
| Total Compensation ($) | 2,294,319 | 2,207,858 | 2,274,100 |
- Base salaries for Messrs. Paek, Tan, and Kim are reviewed biennially, last adjusted effective April 1, 2023; no 2024 salary adjustment .
Performance Compensation
Annual STI Framework and 2024 Outcomes
| Element | 2024 Plan | Target | Actual | Payout Mechanics | Vesting |
|---|---|---|---|---|---|
| Performance Metric | ROAE (Return on Average Equity) | ≥15.0% | 16.2% | Bonus pool up to 10% of Bank net after-tax income; Tan allocation 30% | RSUs vest 25% grant date; 25% annually over 3 years; accelerated upon CoC/death/disability |
| Cash STI | % of base salary | Committee discretion | 200% of base salary paid Dec 2024 ($940,000) | Approved by Compensation Committee | N/A |
| Equity STI (2024 earned on 2024 metrics; granted 2025) | Restricted Stock | Residual of bonus pool after cash awards | Grant scheduled June 1, 2025 (allocation 30% of pool) | Allocation mirrors cash STI shares | 25% grant, 25% annually for 3 years; CoC/death/disability acceleration |
2024 Grants (for 2023 performance)
| Grant | Grant Date | Shares | Grant Date FV ($) | Notes |
|---|---|---|---|---|
| RSUs (Tan) | 6/1/2024 | 34,215 | 843,400 | Granted for 2023 STI earned >150% of base salary; vest 25% grant date, 25% annually x3 . |
Option/Equity Activity in 2024
| Metric | Value/Count |
|---|---|
| Options Exercised (Shares; Value Realized) | 23,622; $504,802 (at $34.07 vs $12.70 strike) |
| RSUs Vested (Shares; Value Realized) | 41,747; $1,029,064 (at $24.65) |
Equity Ownership & Alignment
| Ownership Component | Detail |
|---|---|
| Beneficial Ownership | 869,242 shares; 3.42% of outstanding |
| Options Outstanding | 56,378 exercisable; strike $12.70; expiry 7/18/2028 |
| In-the-Money Option Value (12/31/2024) | ~$1,085,282 (= (31.95−12.70)×56,378) using $31.95 close |
| Unvested RSUs | 12,321 (vest 6/1/2025); 31,286 (vest 50% 6/1/2025 & 6/1/2026); 25,661 (vest ~33.3% annually 6/1/2025–2027) |
| Market Value of Unvested RSUs (12/31/2024) | $393,656; $999,588; $819,869 respectively, at $31.95 |
| Hedging/Pledging | Prohibited: no hedging, shorting, derivatives, margin purchases, or using Company securities as collateral |
| Trading Controls | Pre-clearance required; blackout periods enforced |
Upcoming Vesting Schedule (Supply Consideration)
| Date | Shares Scheduled to Vest |
|---|---|
| June 1, 2025 | 12,321 + 50% of 31,286 + 33.3% of 25,661 |
| June 1, 2026 | 50% of 31,286 + 33.3% of 25,661 |
| June 1, 2027 | 33.3% of 25,661 |
| June 1, 2025 (anticipated) | Additional RSUs from 2024 STI grant (allocation 30% of pool) |
Employment Terms
| Term | Key Provisions |
|---|---|
| Agreement | Initial 3-year term (expired Aug 21, 2022) with automatic one-year renewals unless 60 days’ notice; includes base salary and participation in incentive/benefit plans . |
| Severance (No CoC) | If terminated other than for cause outside CoC window: 1× base salary over 12 months + COBRA reimbursement (employer portion) . |
| Severance (CoC Window; Double Trigger) | If terminated other than for cause or resigns for good reason within 6 months before or 1 year after CoC: 2× base salary over 12 months + COBRA reimbursement; 280G cutback to avoid excise tax . |
| Equity Acceleration | Unvested restricted stock accelerates upon change of control, death, or disability . |
| Restrictive Covenants | Confidentiality, non-compete, and employee non-solicit during employment and for one year post-termination . |
Summary of Potential Payments (as of 12/31/2024)
| Scenario | Salary ($) | COBRA ($) | Equity Acceleration ($) | Total ($) |
|---|---|---|---|---|
| Death/Disability | 470,000 | 39,659 | 2,313,113 | 2,822,772 |
| Change of Control (Termination/Good Reason in Window) | 940,000 | 59,485 | 2,313,113 | 3,312,598 |
| Termination Without Cause (No CoC) | 470,000 | 59,485 | — | 529,485 |
| Termination Without Cause (With CoC) | 940,000 | 59,485 | 2,313,113 | 3,312,598 |
Board Governance
- Board Service: Director since 2006 (Class III), concurrent with executive roles as President of the Company and CEO of the Bank . Independence: Not independent due to executive status .
- Committee Roles: Mr. Tan is not listed as a member of the Audit & Compliance, Compensation, or Nominating & Governance Committees; those committees are fully independent .
- Attendance: Each director attended ≥75% of board and committee meetings in 2024; nine directors attended the 2024 annual meeting .
- Board Leadership Structure: The Company combines Chairman and CEO roles at the holding company (Nack Y. Paek) and has not designated an independent lead director; outside directors hold regular executive sessions (four in 2024) .
- Dual-Role Implications: As an executive director, Mr. Tan’s non-independence warrants reliance on independent committees and executive sessions for oversight; the board maintains a majority of independent directors (7 of 12) .
Performance & Track Record
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Net Income ($) | 62,602,000 | 51,613,000 | 64,504,000 |
| ROAE (%) | 19.55 | 14.10 | 16.16 |
| Total Shareholder Return (TSR; $100 base) | 80.75 | 115.36 | 137.12 |
- 2024 EIBP outcome reflects ROAE of 16.2% exceeding the ≥15% target, aligning incentives with capital efficiency .
Investment Implications
- Pay-for-Performance Alignment: STI driven by ROAE with maximum pool funding tied to net income and large at-risk cash (200% of base) plus multi-year RSU vesting; strong linkage to profitability and shareholder returns mitigates windfall risk, but scale of cash stimuli increases fixed-year payout sensitivity .
- Insider Selling Pressure: Upcoming RSU vesting tranches on June 1, 2025–2027 and anticipated 2025 STI grant may add technical supply; options expiring 2028 are deeply in-the-money, though pledging/hedging is prohibited and trading requires pre-clearance/blackouts which may dampen opportunistic selling .
- Retention/Change-of-Control Economics: Double-trigger severance (2× base) with equity acceleration on CoC/death/disability supports retention through potential strategic events; one-year non-compete/non-solicit provides limited post-departure protection, suggesting manageable but non-zero transition risk .
- Governance: Executive director status and combined Chair/CEO at the parent heighten independence concerns; mitigants include majority-independent board, fully independent key committees, and regular executive sessions; no compensation consultant engaged in 2024 indicates cost control but may limit benchmarking rigor .
- Ownership Alignment: Significant personal stake (3.42%) and prohibition on pledging/hedging align incentives; in-the-money options and unvested RSUs augment alignment while creating scheduled supply events to monitor near vest dates .
Overall, Mr. Tan’s package is materially performance-tied (ROAE/net income), with meaningful equity and ownership alignment; watch for June vesting supply, board independence optics, and cash/equity mix shifts in future proxies as indicators of confidence vs. risk posture .