Abdul Hersiburane
About Abdul Hersiburane
Abdul Hersiburane is President and a director of MainStreet Bank since July 2020; he began his banking career in Somalia in 1984, moved to the U.S. in 1995, worked at First Union/Wachovia (1996–2006), joined MainStreet in 2007 as a Business Banker, and led Business Banking from 2015 before becoming Bank President (age 61 as of the 2025 proxy) . Company performance during his tenure shows total shareholder return on a $100 initial investment of $111.85 (2022), $103.70 (2023), and $77.34 (2024), alongside net income of $24.518M (2022), $24.429M (2023), and $(12.136)M (2024) . The company adopted a formal clawback policy compliant with SEC/Nasdaq and prohibits pledging of company stock by Section 16 officers and directors .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Banking sector (Somalia) | Banker | 1984–1995 | Early banking experience; foundational operations background |
| First Union/Wachovia (U.S.) | Senior Financial Specialist & Financial Advisor | 1996–2006 | Retail/wealth client advisory; relationship management |
| MainStreet Bank | Business Banker | 2007–2015 | Commercial client acquisition; lending and deposit growth |
| MainStreet Bank | Head of Business Banking | 2015–2020 | Led business banking franchise; unit performance/accountability |
| MainStreet Bank | President & Bank Director | 2020–Present | Executive leadership; credit/liquidity/strategy execution |
External Roles
No external public company directorships or committee roles are disclosed for Mr. Hersiburane beyond his role as a director of MainStreet Bank .
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base salary ($) | $370,741 | $405,000 |
| Cash bonus ($) | $151,875 | $180,000 |
| Stock awards grant-date fair value ($) | $151,875 (6,984 sh) | $0 |
| All other compensation ($) | $21,574 | $22,569 |
| Total compensation ($) | $696,065 | $607,569 |
| Notes | Exec bonus program allows recipients to elect mix with cash capped at 50% of award | No 2024 restricted stock grants; equity awards vest one-third annually, accelerate on change of control |
Performance Compensation
| Incentive Type | Metric(s) | Weighting | Target | Actual/Payout | Vesting |
|---|---|---|---|---|---|
| Discretionary annual bonus (cash) | Not formulaic; Compensation Committee discretion | N/A | Not disclosed | $151,875 (2023); $180,000 (2024) | N/A |
| Restricted stock awards (RSAs) | Time-based; Committee may set performance targets but generally time-vested | N/A | Not disclosed | 6,984 sh (2023 grant, $151,875 FV) | One-third after 1 year; one-third annually thereafter; immediate vesting on change of control |
| Options | None outstanding; Board historically not granting options | N/A | N/A | $0 options; no options granted | N/A |
Notes:
- The 2019 Equity Incentive Plan permits performance-conditioned awards, but disclosures indicate NEO awards are primarily discretionary bonuses and time-vested restricted stock; Committee retains authority to modify performance measures .
Equity Ownership & Alignment
| Year | Beneficial Ownership (sh) | Unvested RSAs (sh) | Vested Shares (derived) | Ownership % of Common |
|---|---|---|---|---|
| 2024 (record date 3/28/2024; OS 7,614,090 sh) | 45,973 | 13,297 | 32,676 (45,973–13,297) | 0.60% (45,973 / 7,614,090) |
| 2025 (record date 4/4/2025; OS 7,703,197 sh) | 51,331 | 6,036 | 45,295 (51,331–6,036) | 0.67% (51,331 / 7,703,197) |
Additional alignment indicators:
- Company policy prohibits pledging or margin use of Company stock by Section 16 officers and directors (RED FLAG mitigant) .
- Outstanding unvested RSAs at 12/31/2024: 6,036 shares with $109,252 market value (@$18.10/sh) .
- Securities authorized for issuance under equity plans as of 4/4/2025: 251,042 unvested RSAs; 446,121 shares remaining available; no options outstanding .
Employment Terms
| Provision | Key Terms |
|---|---|
| Agreement term | Two-year term; auto-renews for successive two-year terms unless terminated/not extended |
| Current base salary | $405,000 (as of agreement terms in 2024/2025 proxies) |
| Bonus eligibility | Discretionary annual cash bonus or performance-based incentive bonus plan; recipient may elect equity mix per plan rules |
| Severance (no change in control) | Lump sum equal to greater of: (i) 1× current base salary + average of last two years’ annual bonus, or (ii) remaining term base salary + average of last two years’ annual bonus |
| Severance (change in control) | Double-trigger: if terminated without cause or for good reason within 1 year post-CoC, lump sum equals 299% of “annualized includible compensation for the base period” (IRC §280G) in lieu of other severance; all unvested equity immediately vests |
| Equity vesting on CoC | Immediate vesting of all outstanding RSAs for NEOs under plan and agreements |
| Clawback | Company-wide clawback policy under Exchange Act Rule 10D-1 and Nasdaq; agreements subject to clawback for incentive compensation |
| Non-compete | 12 months post-employment; prohibits competitive employment within 35-mile radius of any Bank office |
| Non-solicit | 12 months; prohibits solicitation of depositors/customers and inducing employees to leave |
| Confidentiality | Prohibits use/disclosure of confidential information; violations forfeit/recoup post-termination pay and equity |
| Indemnification | Separate indemnification agreement: fullest lawful indemnification with expense advancement, subject to exceptions/repayment if not entitled |
| Insider trading & pledging | Insider trading policy in place; strict prohibition on pledging/margin accounts for officers/directors |
Performance & Track Record
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Total Shareholder Return ($100 initial) | $111.85 | $103.70 | $77.34 |
| Net Income ($000) | $24,518 | $24,429 | $(12,136) |
Context:
- Board acknowledged 2024 was challenging, with actions to address credit quality issues and to reduce 2025 funding costs via wholesale deposit restructuring; Avenu performance objectives set for 2025 to determine its future viability .
- Excess liquidity and expense management noted as levers for improved results in 2025 .
Compensation Structure Analysis
- Year-over-year mix shift: 2024 total compensation declined to $607,569 from $696,065 in 2023, with no 2024 stock awards; 2023 included time-vested RSAs (6,984 sh) alongside cash bonus, indicating higher cash mix in 2024 amid withheld equity grants .
- Options absent: The Company has not granted stock options to NEOs; outstanding options are zero, reducing “repricing” risk; the Plan explicitly prohibits repricing and cash-outs of underwater options without shareholder approval .
- Governance protections: Formal clawback policy adopted; absolute prohibition on pledging; non-compete/non-solicit provisions with equity/compensation forfeiture on violations .
Equity Ownership & Alignment – Additional Detail
- Voting rights on unvested RSAs: Unvested restricted shares may be voted; Abdul had 13,297 such shares (2024) and 6,036 (2025) counted in beneficial ownership .
- 401(k) alignment: Executives eligible for company 401(k) with dollar-for-dollar match up to 5%; total company match $901,514 (2023) and $616,721 (2022) .
- Director ownership guidelines exist, but no executive ownership guideline disclosures were provided; directors must meet a $100,000 stock ownership threshold within three years .
Related Party & Risk Indicators
- Related party lending: Insider loans outstanding totaled $42,000 at 12/31/2024; standard terms consistent with public policy and Regulation O; no unfavorable features .
- Policy safeguards: Audit & Risk Committee oversight; independent directors; insider trading policy; clawback policy; no reported legal proceedings regarding Abdul .
Investment Implications
- Retention risk appears moderated by a two-year auto-renew agreement, double-trigger 280G-limited CoC severance, and non-compete/non-solicit provisions; however, immediate RSU vesting at change-in-control could add near-term selling pressure upon corporate events .
- Alignment is supported by meaningful personal share ownership (~0.67% of common) and a no-pledging policy; with 6,036 unvested RSAs at YE 2024, scheduled vesting implies modest recurring supply absent a CoC .
- Compensation is predominantly cash and time-based RSAs without disclosed formulaic performance metrics; pay decreased in 2024 and equity grants were withheld amid a difficult year, signaling discipline by the Compensation Committee, but limited pay-for-performance transparency persists .
- Company TSR and net income volatility (2024 loss) warrant monitoring of incentive design changes and any 2025 equity grant resumption; governance protections (clawback, no repricing, no pledging) mitigate red flags .