Peter Bakkala
About Peter Bakkala
Peter Bakkala, age 59, is Executive Vice President and Chief Risk Officer (CRO) of Needham Bank, a role he has held since 2016, overseeing enterprise risk management, fraud prevention, compliance (including BSA/CRA), and internal audit functions . His background includes leading a financial services advisory practice at KPMG for three years and holding several high-level risk roles over nine years at Citizens Bank; he also oversaw the build-out of risk related to Needham Bank’s cannabis portfolio acquisition in 2022, underscoring M&A integration experience within regulated banking . Company performance during the post-IPO period has been strong: share price up 43.3%, Operating EPS up 78.3%, NIM up 7.5%, and Operating ROAA up 28.3% through Q3 2025, providing a supportive backdrop for a risk-managed growth strategy .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Needham Bank | EVP & Chief Risk Officer | 2016–Present | Oversees ERM, fraud prevention, BSA/CRA compliance, and internal audit . |
| Needham Bank (Cannabis portfolio) | Risk integration lead | 2022 | Oversaw risk build-out for cannabis portfolio acquisition, demonstrating regulated portfolio integration capabilities . |
| KPMG | Leader, Financial Services Advisory Practice | ~3 years | Led advisory practice focused on financial services; risk and controls expertise . |
| Citizens Bank | Senior risk roles | 9+ years | Held high-level risk positions overseeing risk-related matters at a superregional bank . |
Performance Compensation
| Incentive Component | Design and Metrics | Vesting / Acceleration | Payout Mechanics |
|---|---|---|---|
| Short-Term Incentive (from 2025) | Compensation Committee implementing formula-based STI for CEO and other executives; ties payouts to Company performance to avoid outsized risk . | Standard annual STI; specific executive metric weightings not disclosed . | Committee-determined formula-based payouts; details by executive not disclosed . |
| Long-Term Incentive Plan (LTIP) | Annual post-year grants for select managers based on individual and bank performance; awards credited for appreciation in tangible book value . | Typically 3-year cliff vest; accelerated on change in control, death, disability, or involuntary separation; retirement vesting after age/tenure criteria . | Paid within 75 days of vest; deferral permitted under 409A; formulas based on tangible capital increases for existing grants . |
| 2025 Equity Incentive Plan | RSUs, restricted stock, ISOs/NQSOs; min 1-year vesting for ≥95% of awards; no below-market option grants; no repricing/cash buyouts of underwater options without shareholder approval . | Double-trigger on change in control: full vesting of RS/RSUs; stock options fully exercisable; performance awards vest at greater of target or annualized actual; 1-year post-termination option exercise window (subject to original term) . | Dividends on restricted stock/RSUs accrue and pay only at vest/settlement; no dividend equivalents on options . Awards subject to Company clawback, insider trading, and hedging/pledging restrictions . |
Equity Ownership & Alignment
| Item | Details |
|---|---|
| Beneficial Ownership – Principal holders | ESOP & 401(k) Plan: 4,050,826 shares (9.7%); BlackRock, Inc.: 3,274,939 (7.8%); The Vanguard Group: 2,086,825 (5.0%) . |
| Beneficial Ownership – Directors/Execs (group) | All directors and executive officers as a group (23 persons): 814,583 shares (1.9%) of outstanding . |
| Management Stock Ownership Guidelines | Effective Jan 2025: CEO must hold 5x base salary; other named executive officers 3x; 5-year compliance window; 1-year holding period for 50% of vested shares until compliant; counts direct holdings, ESOP/401(k), and unvested time-based restricted shares (not performance-based or options) . |
| Hedging/Pledging | Awards subject to Company insider trading policy restrictions and hedging/pledging policy restrictions; clawbacks per Dodd-Frank §954 . |
| Dividend Policy on Equity Awards | No dividends/dividend equivalents on unvested restricted stock/RSUs until vesting/settlement; none on options . |
| Option Repricing | Prohibited without prior shareholder approval; no below-market strike grants . |
| Change-in-Control Treatment (Equity) | Double-trigger vesting for RS/RSUs and options; performance awards vest at target or annualized actual; treatment also covers un-assumed awards by acquirer . |
Employment Terms
- Officer Plans: The Officers Non-Qualified Deferred Compensation Plan includes non-competition and non-solicitation provisions applicable upon separation (other than for cause, death, disability, or change in control); earnings credited at at-market rates (e.g., 5.25% in 2024), vesting per participation agreements; plan closed to new participants in Jan 2025 .
- Equity Plan Governance: Awards administered by an independent Compensation Committee; eligibility includes employees and non-employee directors; definitions and controls align with Nasdaq/SEC standards, with anti-repricing and double-trigger vested protections .
- Transaction Covenants: In pending/consummated merger contexts, compensation actions for “disqualified individuals” are constrained to mitigate excess parachute payments under IRC §280G; limitations on new hiring/promotions and related-party transactions prior to closing ensure discipline around compensation during integration .
Investment Implications
- Alignment: Formal stock ownership guidelines, clawbacks, and hedging/pledging restrictions strengthen pay-for-performance alignment and reduce misalignment risks; double-trigger equity vesting avoids single-trigger windfalls while protecting executives in true CIC/termination scenarios .
- Retention Risk: LTIP’s 3-year cliff vesting and CIC protections support retention and continuity in risk management; non-compete/non-solicit provisions in officer plans further mitigate immediate post-departure competitive risk .
- Execution Signal: Bakkala’s M&A risk-integration experience (e.g., cannabis portfolio) and broad ERM remit suggest operational discipline amid growth; post-IPO financial metrics indicate improving profitability context for risk-weighted expansion .
- Data Gaps: Individual compensation amounts, equity grant specifics, and personal ownership details for Bakkala are not disclosed, limiting precision on pay-performance calibration and “skin-in-the-game”; monitor future proxy filings and Form 4 activity for selling pressure and ownership changes .