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Charles Martinek

About Charles Martinek

Charles A. Martinek is Senior Vice President and Chief Compliance Officer of NorthEast Community Bank and a long‑tenured director of NorthEast Community Bancorp; he has served on the board since 2002 and was 64 years old as of December 31, 2024 . He is not independent under Nasdaq standards due to his executive role at the Bank and is the brother of CEO/Chairman Kenneth A. Martinek . His attendance was strong—no director attended fewer than 100% of board and committee meetings in FY 2024 .

Past Roles

OrganizationRoleTenureCommittees/Impact
NorthEast Community BankSenior Vice President & Chief Compliance OfficerSince Sep 2013 Compliance leadership supporting board oversight
NorthEast Community BankInternal Loan Review & Community Reinvestment OfficerSince May 2007 CRA and loan review expertise
NorthEast Community BankCommercial Loan Officer; Assistant Vice PresidentSince 2001; AVP since 2002 Commercial lending experience
C. Cowles & Co.Quality Control AnalystPrior to NE Community BankAnalytical background

External Roles

OrganizationRoleTenure/Notes
Martinek Investment Properties, LLCOwnerDisclosed as outside business interest

Board Governance

  • Independence status: Not independent (employee director) .
  • Family interlock: Brother of CEO/Chairman Kenneth A. Martinek (potential conflict signal) .
  • Board meetings: NECB board held 7 regular meetings in FY 2024; Bank board held 12; no director attended less than 100% of their meetings .
  • Annual meeting attendance: All directors attended the 2024 annual meeting .
Governance ItemDetail
Audit CommitteeNot listed as a member (committee members: Cirillo, Magier, McKenzie; Cirillo Chair)
Compensation CommitteeNot listed as a member (members: Cavanaugh Chair, Magier, McKenzie)
Nominating/Corporate Governance CommitteeNot listed as a member (members: Cavanaugh, Cirillo, Thomas Chair)
Director Since2002
IndependenceNot independent
Attendance100% of board/committee meetings in FY 2024

Fixed Compensation

  • As an employee director, he is not included in the non‑employee “Director Compensation” fee table, which covers only non‑employee directors . NECB’s disclosed director cash fee schedule (for non‑employee directors) is below.
Fee ComponentAmount
Bank board quarterly retainer (non‑employee)$5,375
Bank board per meeting (non‑employee)$1,525
Holding company board quarterly retainer (non‑employee)$1,000
Holding company board per meeting (non‑employee)$750
Audit Chair quarterly retainer$4,000
Audit Committee member per meeting$1,000; $1,500 audit scope meeting
Compensation Chair quarterly retainer$1,250; members $500 per meeting
Nominating/Governance Chair quarterly retainer$1,250; members $500 per meeting
Strategic planning meeting fee$1,000 per day

Note: This fee schedule applies to non‑employee directors; Charles A. Martinek is an employee director (SVP & CCO) .

Performance Compensation

  • Company practice: No equity awards were made to non‑employee directors in 2024; equity awards for executives and employees are under the 2022 Equity Incentive Plan, which typically vests in five equal annual installments commencing 11/17/2023, subject to continued service .
  • Charles A. Martinek holds unvested restricted stock and options; the year‑over‑year change in unvested restricted shares is consistent with annual vesting cadence.
Metric2024 (as of Apr 4, 2024)2025 (as of Apr 4, 2025)
Unvested restricted stock (shares)6,400 4,800
Options exercisable within 60 days (shares)8,000
Plan vesting framework (typical for 2022 EIP)Five equal annual tranches starting 11/17/2023 Five equal annual tranches starting 11/17/2023

Other Directorships & Interlocks

CategoryEntityNature
Family interlockKenneth A. MartinekBrother; CEO/Chairman of NECB/Bank; not independent
Public company boardsNone disclosed for Charles A. Martinek
Private/other boardsMartinek Investment Properties, LLCOwner

Expertise & Qualifications

  • Compliance and risk: Senior Compliance Officer experience and prior roles in internal loan review and CRA indicate strong regulatory and compliance expertise .
  • Credit and operations: Commercial lending and quality control background provide operational understanding of core banking activities .

Equity Ownership

Item2024 (as of Apr 4, 2024)2025 (as of Apr 4, 2025)
Total shares owned30,484 30,219
Ownership % of outstanding<1% (“*”) <1% (“*”)
ESOP shares17,538 18,811
401(k) Plan shares6,337 6,533
Unvested restricted stock6,400 4,800
Options exercisable within 60 days8,000
Shares pledgedNone indicated (“Unless otherwise indicated, none of the shares listed are pledged”)

Governance Assessment

  • Strengths:

    • 100% attendance and long tenure add continuity and institutional knowledge .
    • Deep compliance and CRA background supports regulatory oversight at a construction‑lending‑focused bank .
  • Concerns/RED FLAGS:

    • Not independent and is the CEO’s brother, creating potential conflicts and perceived entrenchment risk; he is also not on any independent board committees, limiting direct influence over compensation, audit, or governance processes .
    • Outside business interest (Martinek Investment Properties, LLC) should be monitored for related‑party exposure, though no transactions involving him are disclosed; NECB reports no loans to related parties at year‑end and applies a rigorous related‑party policy .
  • Compensation alignment:

    • As an employee director, he is not paid standard non‑employee director fees; his equity holdings (unvested RSUs and options) indicate alignment via ownership, with unvested shares declining consistent with scheduled vesting under the 2022 plan .
  • Related‑party controls:

    • NECB’s policy requires Audit Committee approval for related‑party transactions and the bank reports no related‑party loans outstanding; 2024 “other transactions” disclosure relates to another director’s affiliated law firm, not Charles A. Martinek .