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Gregory Sousa

Executive Vice President, Chief Lending Officer at Orange County Bancorp, Inc. /DE/
Executive

About Gregory Sousa

Executive Vice President and Chief Lending Officer at Orange County Bancorp (Orange Bank & Trust) since July 2024; joined in 2015 and progressed through leadership roles across commercial lending, business development, marketing, and product development. He has 20+ years in banking (Union State Bank; TD/Commerce Bank), a B.A. in Economics (SUNY Binghamton), ABA Stonier Graduate School of Banking alum with a Wharton Leadership Certificate (2015), and was named one of Rockland County’s “Forty Under 40.” Age 45; tenure at OBT ~10 years; individual TSR/revenue/EBITDA performance metrics by executive are not disclosed in the proxy.

Past Roles

OrganizationRoleYearsStrategic Impact
Orange Bank & TrustVP & Senior Relationship Manager2015–2017Developed deposit and lending businesses in Rockland & Westchester markets
Orange Bank & Trust1st Vice President2017–2018Led business development for all Orange & Rockland branches
Orange Bank & TrustSenior Vice President2018–2020Added Marketing and Product Development responsibility
Orange Bank & TrustEVP, Chief Commercial Banking Officer2020–2023Led commercial banking growth initiatives
Orange Bank & TrustDeputy Chief Lending Officer2023–Jul 2024Expanded lending oversight
Orange Bank & TrustEVP, Chief Lending OfficerJul 2024–presentExecutive leadership of lending function
Union State BankPrior role (unspecified)Pre-2015Banking experience prior to OBT
TD/Commerce BankPrior role (unspecified)Pre-2015Banking experience prior to OBT

External Roles

OrganizationRole/ProgramYearsNotes
ABA Stonier Graduate School of BankingGraduate; Wharton Leadership Certificate2015Wharton Leadership Certificate earned
Leadership RocklandGraduaten/aCommunity leadership program
Rockland County “Forty Under 40”Honoreen/aLocal recognition

Fixed Compensation

Metric ($)20232024
Base Salary315,000 330,000
Stock Awards (Grant-date fair value)90,471 118,144
Non-Equity Incentive (AIP)170,000 153,000
All Other Compensation57,609 69,263
Total633,080 670,407
Short-Term Bonus Detail20232024
AIP Payout (% of base pay)n/a disclosed46.36% of base pay

Notes:

  • 2024 “All Other Compensation” for Sousa includes perquisites $13,601, 401(k) $22,662, Performance-Based SERP employer contribution $33,000 .
  • AIP bank vs individual weighting for Sousa: 70% bank goals; 30% individual goals .

Performance Compensation

Cash AIP (Short-Term)WeightingTargetActualPayoutVesting/Payment Rule
Company/Bank measures: Pre-tax, pre-provision operating income; Efficiency ratio70% (bank) Threshold/Target/Max set annually Company measures achieved slightly above target 46.36% of base pay (2024) Must be employed on award payment date
Individual/Department goals30% (individual) Set annually Achieved Included in total above Must be employed on award payment date
Equity LTIP (RSUs)MetricGrant SizeVestingAcceleration
2024 LTIP RSUReturn on Average Assets (ROAA) and Net Interest Margin (NIM) relative to peers2,600 shares Ratable over 3 years (approx. 33% annually) Accelerates upon death, disability, or termination following Change in Control (under 2023 EIP)
Optionsn/an/an/aNo options granted to executive officers under 2023 EIP

Equity Ownership & Alignment

Ownership ItemAmount
Shares of Common Stock Beneficially Owned (as of Mar 31, 2025)7,703; includes 5,263 shares held in 401(k)
Restricted Stock Units (RSUs)13,901; includes 3,621 RSUs in Performance-Based SERP
Percent of Shares OutstandingLess than 1% (company total shares outstanding: 11,383,738)
Anti-hedging/Anti-pledgingHedging and pledging generally prohibited; no exceptions approved by Board
Stock Ownership GuidelinesEVP expected to own ≥1.5× base salary in stock; compliance by Jan 1, 2027 for those subject as of Jan 1, 2025

Outstanding Equity Awards (Unvested at FY-end):

Grant DateUnvested UnitsMarket Value ($)
2/15/20221,028 28,568 (at $27.79/share; split-adjusted)
3/10/20232,276 63,250
3/21/20245,200 144,508
Notes: All RSU awards vest ~33% on the 1st, 2nd, and 3rd anniversaries of grant, subject to continued employment . Market value uses $27.79 closing price on Dec 31, 2024 (split-adjusted) .

Insider Selling Pressure Signals

  • Near-term vesting windows: RSUs vest annually on grant anniversaries (e.g., 3/10 for 2023 awards; 3/21 for 2024 awards), creating potential supply from net-share settlements/tax withholdings; 2022 grant’s final tranche vests around 2/15/2025 per 3-year schedule .
  • Hedging/pledging prohibited, reducing forced-selling risk from margin activity .

Employment Terms

TopicKey Terms
Change-in-Control Severance (CIC Plan)Double-trigger: upon involuntary termination other than for cause or voluntary termination for good reason during the covered period surrounding a change in control, benefits include (a) lump-sum pro-rata bonus for year of termination, (b) lump sum equal to the greater of 2× base salary (immediately before CoC) or base salary at termination, and (c) lump sum equal to 18× monthly COBRA; benefits capped at IRC §280G limit .
SERP (Performance-Based)Sousa receives employer contributions equal to 10% of base salary each year through Dec 31, 2026; each contribution vests 10 years from the contribution date; 2024 cash-credited accounts earned 3.00% interest; vested portions generally paid in five equal annual installments upon separation (non-cause); lump sum if termination within 12 months of a change in control .
AIP EligibilityMust be actively employed on the payment date to receive short-term incentive .

Compensation Structure Analysis

  • Cash vs equity mix: 2024 total $670K with salary $330K (49%), AIP $153K (23%), stock awards $118K (18%), other comp $69K (10%) — balanced but meaningfully at-risk via AIP and RSUs .
  • Shift to RSUs vs options: No options are granted to executive officers under the 2023 plan; equity incentives are RSUs with 3-year ratable vesting, lowering risk vs options but increasing predictable vesting supply .
  • Performance linkage: AIP tied to pre-tax, pre-provision operating income and efficiency ratio; LTIP RSUs tied to ROAA and NIM vs peers — direct alignment with banking profitability and efficiency .
  • CIC economics: Two-times salary plus pro-rata bonus and COBRA suggests moderate protection; double-trigger structure avoids windfalls without termination .
  • Clawback/tax gross-ups: Not disclosed for Sousa; no option repricing disclosed; anti-hedging/anti-pledging policy in place .

Investment Implications

  • Alignment and retention: Multi-year RSU vesting and 10-year SERP vesting horizon anchor retention; ownership guidelines (≥1.5× salary for EVP by Jan 1, 2027) push further alignment with shareholders .
  • Trading signals: Annual RSU vesting events (March windows) may introduce supply via tax withholdings; monitor Form 4 filings around vest dates (3/10, 3/21) for Sousa .
  • Change-in-control outcomes: Double-trigger severance at 2× base salary plus pro-rata bonus and COBRA, capped at 280G, limits excess parachute risk while protecting continuity — neutral to slightly shareholder-friendly .
  • Pay-for-performance: 2024 AIP payout at 46.36% of base with company measures “slightly above target” indicates moderation in cash incentive outcomes; LTIP granted off ROAA/NIM relative performance underscores focus on core banking profitability over mere growth .
  • Risk flags: Pledging/hedging prohibited (mitigates misalignment); no options/out-of-cycle repricing; limited disclosure on clawbacks — continue to monitor policy updates and any 8-Ks impacting executive arrangements .