Donald Hom
Executive Vice President and Chief Financial Officer at NorthEast Community Bancorp, Inc./MD/
Executive
About Donald Hom
Donald S. Hom is Executive Vice President and Chief Financial Officer of NorthEast Community Bancorp, Inc. (NECB), a role he has held since 2013 after joining NECB in 2007; he previously served 23 years as a bank examiner/financial analyst at a federal banking regulator and six years as CEO of a New Jersey community bank. He is 70 years old as of December 31, 2024 . For 2024, NECB’s annual incentive plan tied to Return on Average Assets, Pre-Tax Pre-Provision Net Income, and Efficiency Ratio achieved maximum payout levels, reflecting strong operating performance used to determine executive bonuses . No equity grants were made to named executive officers in 2024, consistent with the company’s equity grant practices .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| NorthEast Community Bancorp/Bank | Chief Financial Officer | Since 2013 | Senior finance leadership overseeing reporting, planning, and performance management |
| Federal banking regulatory agency | Bank examiner and financial analyst | 23 years | Regulatory, supervision, and analytical expertise |
| New Jersey community bank | Chief Executive Officer | 6 years | Executive leadership of a community bank franchise |
External Roles
- No current public company directorships or committee roles disclosed in the proxy .
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | 285,000 | 350,000 |
| All Other Compensation ($) | 51,148 | 62,370 |
| Total Compensation ($) | 478,648 | 587,370 |
Details of 2024 “All Other Compensation” for Hom:
- ESOP allocations: $55,623
- Dividends/interest on restricted stock: $5,547
- Medical opt-out benefit: $1,200
- Automobile allowance and life insurance imputed income: not applicable
Performance Compensation
| Metric | Weighting | Threshold | Target | Stretch | 2024 Actual | Payout Result |
|---|---|---|---|---|---|---|
| Return on Average Assets | 30% | 1.97% | 2.18% | 2.40% | 2.50% | Max achieved; contributes to 200% payout |
| Pre-Tax, Pre-Provision Net Income ($, MM) | 30% | 52.937 | 58.819 | 64.701 | 66.773 | Max achieved; contributes to 200% payout |
| Efficiency Ratio | 20% | 42.21% | 40.20% | 38.19% | 37.00% | Max achieved; contributes to 200% payout |
| Discretionary (points) | 20% | 1 | 3 | 5 | 5 | Max achieved; contributes to 200% payout |
| Credit quality modifier (NPL/Total Loans) | Modifier | >3% reduces 30%; >5% eliminates formulaic payout | — | — | 0.00% | No reduction applied |
Incentive opportunity and payout:
- Target bonus opportunity: 25% of base salary; $87,500 for 2024
- Actual non-equity incentive paid: $175,000 (200% of target)
Equity Ownership & Alignment
| Item | Amount | Notes |
|---|---|---|
| Shares owned (beneficial) | 52,560 | Includes unvested restricted stock voting rights; see below |
| ESOP shares allocated | 12,889 | As of April 4, 2025 |
| Unvested restricted stock | 19,960 | Value $488,221 at $24.46 close on 12/31/24 |
| Stock options exercisable | 32,666 | Strike $14.08; expire 11/17/2032 |
| Stock options unexercisable | 50,198 | Strike $14.08; expire 11/17/2032 |
| Ownership % of outstanding | <1% | Based on 14,023,376 shares outstanding |
| Shares pledged as collateral | None indicated | “Unless otherwise indicated, none of the shares listed are pledged” |
| Vesting schedule (RS/Options) | 5 approx. equal annual installments starting 11/17/2023 | Subject to continued employment |
- Vesting cadence implies annual vesting dates through 2027 for 2022 awards, supporting ongoing alignment and potential scheduled liquidity events; no 2024 equity grants to NEOs .
- Approximate intrinsic value of options at 12/31/24 close ($24.46): exercisable ≈ $339k; unexercisable ≈ $521k, based on $24.46 − $14.08 = $10.38 per option and option counts above .
Employment Terms
- Agreement: 36‑month term, auto-extends 12 months annually unless non-renewed; eligible for short‑term and long‑term incentives; reimbursement of reasonable business expenses .
- Severance (non‑change‑in‑control): If terminated without cause or resigns for good reason, cash severance equal to 3×(base salary + target bonus), paid over 36 months; COBRA premium reimbursement net of active employee rate; unpaid prior-year bonus paid; equity per plan terms . For Hom, based on 2024 values: 3×($350,000 + $87,500) = $1,312,500 paid over 36 months .
- Change‑in‑control (double trigger within 24 months): Lump sum cash equal to 3×(base salary or higher at CIC + target bonus or higher at CIC), paid within 60 days, plus a sum equal to 3× prior year bonus (paid on the date the bonus would have been paid), plus lump sum for 36 months of medical/dental coverage net of active rates; equity per plan terms . For Hom (2024 basis): 3×($350,000 + $87,500) = $1,312,500 plus 3×$175,000 = $525,000; total cash ≈ $1,837,500 before healthcare benefit and equity treatment .
- Disability/Death: Disability — 1×(base salary + target bonus) less LTD benefits, paid over 12 months; Death — 1×(base salary + target bonus) to beneficiary .
- Restrictive covenants: One‑year non‑compete (except CIC or certain involuntary terminations), 12‑month non‑solicit of business, customers, and employees; confidentiality; fee reimbursement if successful in disputes; indemnification to fullest extent legally allowable .
- Good reason (resignation) includes: material base salary reduction (except proportionate reductions), material adverse change/demotion, relocation >30 miles from HQ, material breach by employer .
- 280G treatment: “Best net benefits” approach to minimize excise tax if beneficial .
Investment Implications
- Pay-for-performance alignment: Hom’s cash incentive is formulaically tied to ROAA, pre-tax pre-provision income, efficiency, and credit quality; 2024 metrics achieved stretch levels, yielding 200% of target bonus ($175k), indicating incentive pay directly linked to outperformance .
- Retention and exit economics: Robust severance (3× salary+target bonus) and enhanced change‑of‑control cash (including 3× prior‑year bonus) reduce near-term departure risk but increase potential CIC liabilities; one‑year non‑compete/non‑solicit protects franchise continuity .
- Equity alignment and liquidity: Material unvested RS (19,960 shares; $488k at 12/31/24) and 2022 options vest annually through 2027, creating steady alignment and predictable vesting cadence; no 2024 grants temper incremental equity overhang. No pledged shares disclosed, mitigating alignment red flags .
- Trading signal considerations: Section 16 compliance reported and insider trading policy in place; while scheduled vesting could create potential sale windows, no hedging/pledging concerns are indicated in the proxy .
Note: NECB’s proxy does not disclose stock ownership guidelines, clawback policy specifics, or say‑on‑pay outcomes for 2024; therefore, those items are omitted.