Jon Ansari
About Jon Ansari
Jon R. Ansari, MBA, is Executive Vice President, Chief Financial Officer (CFO), and a director of Magyar Bancorp, Inc. and Magyar Bank; he joined the bank in 1999, became CFO in 2005, and has served as a director since 2017 . Age 50 in 2025 (49 in 2024); education referenced as MBA in company materials . Performance context: Net Income was $7.9M in FY2022, $7.7M in FY2023, and $7.8M in FY2024, while TSR grew from 110 (FY2022 baseline=100) to 84 (FY2023) and 123 (FY2024) .
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Net Income ($USD) | $7,919,000 | $7,709,000 | $7,783,000 |
| TSR (Value of $100) | 110 | 84 | 123 |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Magyar Bank / Magyar Bancorp | Executive Vice President & Chief Financial Officer | 2005–present | Led finance, accounting, and operations; long-tenured financial stewardship in core community banking markets |
| Magyar Bank | Vice President of Finance; Controller; Assistant Controller; Accountant | 1999–2005 | Built financial controls and reporting capacity; progressed through finance roles pre-CFO |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | — | — | Not disclosed in proxy statements |
Fixed Compensation
| Component | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | $367,096 | $384,808 | $403,418 |
| Director Retainer – Magyar Bancorp ($) | $16,000 | $16,000 | $16,000 |
| Current Employment Agreement Base Salary ($) | — | $390,000 (agreement as of 2021) | $410,000 (agreement as of 2021) |
Notes:
- Agreement terms: Ansari’s employment agreement had an initial 24-month term and auto-renews annually to maintain a 24-month remaining term; base salary may be increased, not decreased .
Performance Compensation
Annual Cash Bonus (Discretionary)
Bonuses are discretionary based on Company performance against budget and metrics including net interest margin, non-performing assets ratio, regulatory exam results, and return on assets .
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Annual Bonus Paid ($) | $200,000 | $240,000 | $240,000 |
| Structure | Discretionary; metrics considered include NIM, NPA/Assets, ROA, regulatory exams | Discretionary; same framework | Discretionary; same framework |
| Weighting | Not disclosed | Not disclosed | Not disclosed |
| Targets | Not disclosed | Not disclosed | Not disclosed |
| Vesting | Immediate cash | Immediate cash | Immediate cash |
Equity Awards (2022 Equity Incentive Plan)
Restricted stock vests in five equal installments; first installment vested September 22, 2023. Options carry a $12.70 strike and expire September 23, 2032 .
| Award Type | Grant/Plan | FY 2022 Grant Date Fair Value ($) | Vesting | Performance Link |
|---|---|---|---|---|
| Restricted Stock (RS) | 2022 Equity Incentive Plan | $317,500 | 5 equal installments; first on 9/22/2023 | Time-based; no performance metrics disclosed |
| Stock Options | 2022 Equity Incentive Plan | $182,000 | Per award agreement; $12.70 strike; 9/23/2032 expiration | Time-based; no performance metrics disclosed |
Outstanding and Unvested (Year-End)
| As of | Unvested RS (#) | Market Value of Unvested RS ($) | Options Exercisable (#) | Options Unexercisable (#) | Strike ($) | Expiration |
|---|---|---|---|---|---|---|
| 9/30/2023 | 20,000 | $205,000 | 8,000 | 32,000 | $12.70 | 09/23/2032 |
| 9/30/2024 | 15,000 | $184,800 | 16,000 | 24,000 | $12.70 | 09/23/2032 |
Equity Ownership & Alignment
| Date (Record) | Total Beneficial Ownership (shares) | % of Shares Outstanding | Breakdown (as disclosed) |
|---|---|---|---|
| Jan 3, 2024 | 122,252 | 1.8% | Includes 20,000 unvested RS; 24,461 shares via 401(k) Plan; 14,485 ESOP; 8,000 options exercisable within 60 days |
| Dec 31, 2024 | 132,946 | 2.0% | Includes 15,000 unvested RS; 25,027 shares via 401(k) Plan; 15,113 ESOP; 16,000 options exercisable within 60 days |
- Stock ownership guidelines: Executive Vice Presidents must hold at least $50,000 in common stock (original purchase value; excluding unexercised options); status: all directors and executive officers were compliant or within phase-in at FY-end 2024 .
- Hedging policy: The Company does not prohibit hedging transactions for directors, executive officers, or employees; hedging is permitted (potential alignment risk) .
- Pledging: No pledging disclosures identified in the proxies; not disclosed .
Employment Terms
| Term | Detail |
|---|---|
| Agreement Term | Initial 24-month term (Ansari), auto-renews annually to maintain 24 months remaining unless non-renewal notice provided |
| Base Salary (Agreement) | $390,000 (2021 update) ; $410,000 (current per 2025 proxy) |
| Benefits/Perqs | Participation in employee plans; business use auto; medical/dental; life insurance; director retainer ($16,000) |
| Severance (No CIC) | 2× base salary; plus up to 24 months employer-paid life, medical, dental or cash equivalent if benefits cannot be provided |
| Estimated Severance (No CIC) | ~$780,000 (as of FY2023) ; ~$820,000 (as of FY2024) |
| CIC Severance (Double-Trigger) | 2× (highest base salary + higher of last year’s bonus or 3-year average bonuses) + up to 24 months life/medical/dental or cash equivalent |
| Estimated CIC Severance | ~$1,260,000 (as of FY2023) ; ~$1,300,000 (as of FY2024) |
| Restrictive Covenants | Non-compete: 1 year post-termination (non-CIC), with 25-mile geographic scope; non-solicit: 1 year post-termination |
Pension, SERPs, and Deferred Compensation
| Program | Participation | FY 2023 Activity | FY 2024 Activity | Benefit Design |
|---|---|---|---|---|
| Defined Benefit Pension (Retirement Plan; frozen) | Yes | Plan frozen; normal forms and minimum benefit structure disclosed; participants include Ansari and CEO | Plan frozen; same structure; participants include Ansari and CEO | Frozen accruals; life/joint annuity; minimum formula as disclosed |
| Executive Supplemental Retirement Income Agreement (2006 SERP) | Yes | $40,895 contributed to Ansari’s secular trust in FY2023 | $40,895 contributed in FY2024 | Designed to provide annual benefit at age 65 of $141,143 for Ansari |
| Supplemental Executive Retirement Plan (2019 SERP) | Yes | $27,473 accrued for Ansari in FY2023 | $23,693 accrued for Ansari in FY2024 | Designed to provide annual benefit at age 65 of $78,681 for 15 years |
| Director Supplemental Retirement Income & Deferred Compensation | Director peers only | Not applicable to Ansari (executives receive director retainer but not the director plan) | Not applicable to Ansari | N/A |
Director Service, Governance, and Compensation
- Board Service: Director since 2017; classified as not independent due to executive officer status .
- Committee Roles: As an officer-director, Ansari is not a member of Nominating, Audit, Compensation, or Executive Committees; committee membership lists exclude him .
- Attendance: No director attended fewer than 75% of aggregate Board and committee meetings in FY2024; independent director executive sessions are regularly scheduled .
- Board Leadership: Chairman and CEO roles are separated, mitigating CEO-Chair dual role concerns; oversight through independent committees .
- Director Compensation: Magyar Bank director fees are paid to non-executive directors; for Magyar Bancorp board service, all directors including Ansari receive $16,000 annual retainer .
Multi-Year Compensation (Named Executive Officer: Jon R. Ansari)
| Component | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary ($) | $367,096 | $384,808 | $403,418 |
| Bonus ($) | $200,000 | $240,000 | $240,000 |
| Stock Awards ($) | $317,500 | — | — |
| Option Awards ($) | $182,000 | — | — |
| All Other Compensation ($) | $124,282 | $121,559 | $122,260 |
| Total ($) | $1,190,878 | $746,367 | $765,678 |
All Other Compensation (FY 2024 detail): 401(k) $13,762; Executive Supplemental Retirement Income Agreement $64,858; Insurance $3,734; Director Fees $16,000; Medical & Dental $16,194; ESOP $7,712; Total $122,260 .
Compensation Structure Analysis
- Mix shift: Equity grants were concentrated in FY2022 (RS + Options); no new equity awards disclosed for FY2023–FY2024, implying reduced incremental equity in the last two years .
- Risk alignment: RS and options vest time-based without explicit performance metrics; annual bonus is discretionary with financial and regulatory metrics considered, but without disclosed weighting/targets .
- Clawback/tax gross-ups: Clawback policy not disclosed; no tax gross-up disclosures identified in proxies; not disclosed .
- Hedging: Company permits hedging by directors and officers, a potential alignment red flag relative to peer norms .
- Consultants/peer benchmarking: Committee uses ABA compensation surveys and periodically engages compensation consultants; specific peer group and target percentile not disclosed .
Equity Vesting and Insider Selling Pressure
- RS Vesting cadence: Five equal installments; first vested 9/22/2023; 15,000 unvested as of 9/30/2024 indicates remaining tranches continuing annually (potential calendar-driven sale windows as tranches vest) .
- Options: 16,000 exercisable and 24,000 unexercisable as of 9/30/2024; $12.70 strike; expiration 9/23/2032 — exercise decisions could align with stock price relative to strike .
Board Governance (Dual-Role Implications)
- Dual role: Ansari is both CFO and director; the Board explicitly deems him not independent due to his executive role; he does not sit on key committees, mitigating independence concerns .
- CEO/Chair separation: Separate CEO and Chair roles reduce concentration of power; independent oversight via committees and executive sessions .
- Attendance & oversight: Robust meeting cadence (12 meetings); no attendance shortfalls; independent sessions regularly scheduled .
Say-on-Pay & Shareholder Feedback
- FY2025 proxy includes advisory votes on frequency (Board recommends annual) and on executive compensation; historical approval percentages not disclosed in provided sections .
Performance & Track Record
- Achievements: Bank named to KBW Bank Honor Roll in 2025 (press release context); reflects operational consistency across cycles (press release listed, details beyond proxy scope) .
- Net income stability: ~$7.7–$7.9M range over FY2022–FY2024; TSR improvement in FY2024 suggests shareholder value recovery versus FY2023 .
Investment Implications
- Alignment: Material personal ownership (≈2.0% by Dec 31, 2024) and ongoing RS/option exposure support alignment, but permitted hedging is a governance red flag that may blunt incentives to maintain unhedged exposure .
- Retention and change-of-control economics: Double-trigger CIC at ~2× base+bonus and non-CIC severance of 2× base reduce exit risk while potentially elevating takeover costs; restrictive covenants are modest (1-year, 25 miles), lowering barriers to post-exit mobility .
- Near-term trading signals: Annual RS vesting events (post-9/22 each year) and option exercisability growth could create periodic selling pressure; monitor Form 4s around vest dates and windows .
- Pay-for-performance calibration: Discretionary bonuses tied to bank health metrics without disclosed weighting/targets suggest qualitative committee judgment; absence of PSUs or explicit performance hurdles on equity awards reduces direct linkage to TSR or ROA vs peers .
Data sources: 2025 and 2024 definitive proxy statements (DEF 14A) and related sections as cited above – –.