Jose Collazo
About Jose Collazo
Jose M. Collazo is President (since January 2013) and Chief Operating Officer (since February 2012) of NorthEast Community Bancorp, Inc. and NorthEast Community Bank; he joined the Bank in 1985 and previously served as SVP & Chief Information Officer (2002–2012). He is age 59 and has been a director since 2013, with the Board citing his extensive institutional knowledge and strategic vision as qualifications . Executive pay is tied to company operating performance, including ROAA, pre-tax pre-provision net income (PTPP NI), and efficiency ratio; in 2024 NECB achieved ROAA of 2.50%, PTPP NI of $66.773 million, and a 37.00% efficiency ratio, resulting in maximum incentive payouts (200% of target) for NEOs, including Collazo .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| NorthEast Community Bancorp, Inc. / NorthEast Community Bank | President | Jan 2013–present | Institutional knowledge and strategic vision benefiting Board and operations |
| NorthEast Community Bancorp, Inc. / NorthEast Community Bank | Chief Operating Officer | Feb 2012–present | Oversees operations; Board cites deep knowledge of company history |
| NorthEast Community Bank | SVP & Chief Information Officer | 2002–Feb 2012 | Technology leadership; supports operating efficiency |
| NorthEast Community Bank | Various roles since joining | Jan 1985–2002 | Long-tenured executive; continuity and depth |
External Roles
- No external public company directorships or other external roles are mentioned in Collazo’s proxy biography; the Board profiles list no external positions for Collazo beyond his NECB roles .
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary ($) | $400,000 | $400,000 | $540,000 |
| Non-Equity Incentive Plan Compensation ($) | $200,000 | $200,000 | $270,000 |
| Stock Awards ($) | $771,457 | — | — |
| Option Awards ($) | $619,226 | — | — |
| All Other Compensation ($) | $58,405 | $60,053 | $87,724 |
| Total ($) | $2,049,088 | $660,053 | $897,724 |
Perquisites detail (2024):
- Automobile allowance: $12,000
- Life insurance (imputed income): $1,854
- Dividends/interest on restricted stock: $9,136
- ESOP allocations and other components are included within “All Other Compensation”; line-item ESOP dollar allocation is disclosed but aggregated by executive in the table .
Performance Compensation
Annual Incentive Plan Mechanics and Outcomes
| Item | FY 2023 | FY 2024 |
|---|---|---|
| Target Opportunity ($) | $100,000 | $135,000 |
| Payout (% of Target) | 128% | 200% |
| Target Bonus (% of Base) | — (disclosed in $ terms) | 25% |
| Actual Cash Incentive Paid ($) | $200,000 | $270,000 |
2024 performance metrics, weights, and actuals:
| Metric | Weight | Threshold | Target | Stretch | Actual |
|---|---|---|---|---|---|
| Return on Average Assets (ROAA) | 30% | 1.97% | 2.18% | 2.40% | 2.50% |
| Pre-Tax, Pre-Provision Net Income (PTPP NI) | 30% | $52.937M | $58.819M | $64.701M | $66.773M |
| Efficiency Ratio | 20% | 42.21% | 40.20% | 38.19% | 37.00% |
| Discretionary | 20% | 1 | 3 | 5 | 5 |
| Credit Quality Modifier (NPL/Total Loans) | Payout safeguard | — | — | — | 0.00% at 12/31/2024 (no reduction) |
Notes:
- Compensation Committee certified achievement of pre-established measures, producing maximum payouts (200% of target) for NEOs .
- No discretionary bonuses outside the plan for 2023–2024 .
Equity Ownership & Alignment
| Ownership Detail | As of Dec 31, 2024 | As of Apr 4, 2025 |
|---|---|---|
| Beneficially Owned Shares | — | 109,402 (includes ESOP & 401(k); includes 32,874 unvested restricted shares counted for voting, not investment power) |
| Options Exercisable within 60 Days | — | 59,790 |
| Percent of Common Shares Outstanding | — | 1.2% (based on 14,023,376 shares) |
| ESOP Shares (personal accounts) | — | 29,785 (plus spouse ESOP 12,768) |
| 401(k) Plan Shares (personal accounts) | — | 9,793 (plus spouse 401(k) 6,369) |
| Unvested Restricted Stock | 32,875 (MV $804,122 at $24.46 closing price) | 32,874 (counted for voting power in 2025 table) |
| Options Outstanding (Exercisable / Unexercisable) | 54,790 / 82,187; strike $14.08; expire 11/17/2032 | — |
| Pledging | None indicated (proxy notes “unless otherwise indicated, none of the shares listed are pledged”) | |
| Vesting Schedule | RS/Option awards vest in five approximately equal annual installments commencing 11/17/2023, contingent on continued employment |
Stock ownership guidelines: Not disclosed in the proxy; insider trading policy is in place and filed as an exhibit to the 2024 Form 10-K .
Employment Terms
| Provision | Summary |
|---|---|
| Employment Agreement Term | 36-month term with automatic 12-month renewals annually unless either party declines; eligibility for short- and long-term incentives; fringe benefits; expense reimbursement |
| Severance (no CoC) | If terminated without cause or for good reason (excluding cause, death, disability, retirement, or following CoC): 3x (base salary + target annual bonus) paid as salary continuation over 36 months; COBRA reimbursement (net of active employee premium) during eligibility or severance period; unpaid annual bonus paid per plan; equity per plan terms |
| Change-in-Control (double trigger) | If terminated without cause or for good reason within 24 months post-CoC: lump sum 3x (greater of current or pre-CoC base salary) + 3x (greater of current or pre-CoC target bonus); plus a lump sum equal to 3x prior-year bonus; 36 months of medical/dental coverage less active employee charges; equity per plan terms |
| 280G Treatment | “Best net benefits” cutback to avoid excise tax if it yields greater after-tax benefits to the executive; otherwise full benefits subject to excise tax |
| Disability/Death Benefits | Disability: 1x (base + target bonus) less expected LTD benefits, paid over 12 months; Death: 1x (base + target bonus) to beneficiary |
| Non-Compete / Non-Solicit | Non-compete of 1 year and non-solicitation of 12 months post-termination (other than termination following a change in control); confidentiality obligations |
| Legal Fee Reimbursement & Indemnification | Reimbursement of reasonable costs/legal fees if successful on the merits; indemnification to fullest extent allowed |
| Supplemental Executive Retirement Plan (SERP) | For Kenneth Martinek and Jose Collazo: normal retirement benefit equals 50% of average base salary over three years preceding termination; early retirement (≥ age 60, ≥ 20 yrs service) reduced 0.25% per month before age 65; CoC termination yields actuarial-equivalent lump sum; detailed disability/death beneficiary payments |
Deferred compensation: 2021 Stock-Based Deferral Plan permits eligible officers and directors to defer compensation into NECB common stock; initial elections allowed during second-step conversion; director retirement plan also described (for participating directors) .
Board Governance (Collazo as Director)
- Board service: Director since 2013, term ending 2026; attends Board meetings; no director attended fewer than 100% of meetings in 2024 .
- Committee roles: Current committee membership comprises independent directors; Audit Chair: Charles M. Cirillo; Compensation Chair: Diane B. Cavanaugh; Nominating/Governance Chair: Kenneth H. Thomas; Collazo is not listed as a member of these committees .
- Independence: Board affirms independence of all directors except Kenneth A. Martinek (CEO & Chair), Jose Collazo (President & COO), and Charles A. Martinek (Bank SVP & Chief Compliance Officer) .
- Dual-role implications: NECB combines CEO and Chairman roles (Kenneth A. Martinek); Board cites efficiency and independent committee oversight; the presence of three non-independent directors (including Collazo) can raise typical governance scrutiny around independence, but independent committees oversee compensation, audit, and nominations .
Compensation Committee Analysis
- Composition and independence: Compensation Committee is independent; chaired by Diane B. Cavanaugh; members include independent directors with 4 meetings in 2024 .
- Consultant usage: Committee retained an independent compensation consultant when designing the 2024 Annual Incentive Plan .
- Pay-for-performance alignment: Plan tied to ROAA, PTPP NI, efficiency ratio, and a discretionary metric; credit-quality modifier (NPL/Loans) prevents payout above thresholds; 2024 outcomes certified to maximum .
Related Party Transactions & Other Governance Notes
- Law firm services: Appointment of Joel L. Morgenthau as director in 2024; his law firm provides services to the Bank and borrowers (fee amounts disclosed); no committee appointment; Board disclosure under Item 404(a) .
- Ownership concentration: BlackRock and NECB ESOP are significant holders; detailed in stock ownership section .
Investment Implications
- Strong incentive alignment to operating metrics: Collazo’s cash incentive target equals 25% of base with payout strictly formulaic and subject to credit-quality modifiers; 2024 plan paid at 200% due to above-target ROAA, PTPP NI, and superior efficiency ratio, reinforcing alignment to profitability and credit outcomes .
- Equity-based retention and potential selling pressure timing: Significant 2022 option and restricted stock grants vest over five annual installments from 11/17/2023; Collazo held 82,187 unexercisable options and 32,875 unvested shares at YE 2024, suggesting recurring November vesting events that may create periodic liquidity considerations if sales occur post-vesting (no pledging disclosed) .
- Change-in-control economics: Robust double-trigger parachute (3x base + 3x target bonus plus 3x prior-year bonus in lump sums) and medical coverage benefits could create incentives to support strategic alternatives if shareholder value is compelling; 280G “best net benefits” mitigates excise-tax inefficiency .
- Skin-in-the-game: Collazo beneficially owns ~1.2% of shares with options exercisable within 60 days; combined with ESOP/401(k) stakes and unvested equity, ownership is meaningful for a community bank executive, with no pledging reported—generally positive for alignment .
- Governance: Non-independence as an executive director is standard for community banks; independent committees and documented policies (e.g., insider trading, related party review) provide guardrails; CEO dual-role persists but is offset by committee structure and attendance .