Yeong Gwon Pak
About Yeong Gwon Pak
Executive Vice President and Chief Credit Officer (effective December 30, 2024), age 54; B.A. in Molecular & Cellular Biology from the University of California, Berkeley . Appointed to lead credit risk and underwriting after senior roles at Bank of Hope (SVP & District Manager) and Commonwealth Business Bank (EVP & Chief Lending Officer), with more than 20 years of community banking experience in the greater Los Angeles area . Company performance metrics tied to executive incentives showed 2024 ROA 0.92% vs 1.01% target, ROE 10.68% vs 11.30% target, and efficiency ratio 61.19% vs 57.35% target; OPBK’s SEC “pay vs performance” table shows TSR index at 144 in 2024, 98 in 2023, and 87 in 2022 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| OP Bancorp / Open Bank | EVP & Chief Credit Officer | Dec 30, 2024 – present | Leads credit risk, underwriting, and portfolio quality in support of succession plan execution . |
| Bank of Hope | SVP & District Manager | Jul 2022 – Dec 2024 | District leadership across branch network; lending and operations oversight . |
| Commonwealth Business Bank | EVP & Chief Lending Officer | Jun 2020 – Jun 2022 | Led lending strategy and production for CBB; portfolio growth and credit standards . |
| Commonwealth Business Bank | Various executive roles | Jun 2015 – Jun 2020 | Progressive leadership roles culminating in CL0 responsibilities . |
External Roles
No public-company directorships or external board posts disclosed in filings reviewed .
Fixed Compensation
| Component | Terms |
|---|---|
| Base Salary | $250,000 initial gross annual salary (effective at commencement) . |
| PTO | Five weeks per year . |
| Perquisites | Cell phone allowance $200/month . |
| Equity (RSUs) | Board-contingent grant with cash value equal to 40% of annual salary (implies ~$100,000), vesting equally over five years on grant anniversary . |
| Annual Bonus Eligibility | Eligible to participate in the Company’s Management Incentive Plan starting in 2025; discretionary cash incentive tied to Company performance and individual goals . |
Performance Compensation
Company’s Management Incentive Plan framework (used for CEO and other executive officers) emphasizes bank financial targets and individual goals; for 2024, other executive officers’ weights were 60% Bank Goals / 40% Individual Goals (CEO: 70%/30%) .
| Metric | Weighting (Other Execs) | Target (2024) | Actual (2024) |
|---|---|---|---|
| ROA | Part of Bank Goals (60% aggregate with ROE and Efficiency) | 1.01% | 0.92% |
| ROE | Part of Bank Goals (see above) | 11.30% | 10.68% |
| Efficiency Ratio | Part of Bank Goals (see above) | 57.35% | 61.19% |
| Individual Goals | 40% (custom to role) | Role-specific | Role-specific |
Notes:
- The 2024 plan determined CEO and NEO cash bonus payouts based on the above targets and individual goals; Pak’s 2025 participation is disclosed but individual targets/weights for him are not yet specified in filings .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 2025 proxy individually lists directors and NEOs; Mr. Pak is not individually itemized in the April 30, 2025 beneficial ownership table (list covers nominees to the Board and NEOs) . |
| RSU Grant Terms | Cash value equal to 40% of salary; vests equally over five years on grant anniversary (i.e., 20% per year) . |
| Stock Options | Company disclosed no stock options granted under the 2021 plan as of Dec 31, 2024 . |
| Clawback | Company’s clawback policy covers the Chief Credit Officer; requires recovery of cash/equity incentive comp if a restatement changes financial reporting measures underpinning awards . |
| Insider Trading / Pledging | Company maintains an Insider Trading Policy; no specific pledging by Pak disclosed in filings reviewed . |
Attempted to retrieve Form 4 transactions for Pak to assess near-term selling/ownership changes; insider-trades tool returned an authorization error, so no Form 4 data could be analyzed within this session (HTTP 401) [insider-trades tool error].
Employment Terms
| Term | Detail |
|---|---|
| Appointment Effective Date | December 30, 2024 . |
| Role | EVP & Chief Credit Officer (Company and Bank) . |
| Bonus Plan Participation | Eligible beginning 2025; discretionary bonus linked to Company performance and individual goals . |
| RSU Vesting | Equal annual tranches over five years, on grant anniversary . |
| Change-in-Control / Severance | Company’s Executive Change in Control Plan excludes the CEO and names specific participants (e.g., CFO); Pak’s participation is not disclosed; definitions of Cause/Good Reason/Change in Control outlined in CEO agreement for context . |
| Clawback Coverage | Covered under Company clawback policy (Chief Credit Officer listed among covered roles) . |
Performance & Track Record
- Credit leadership: Prior roles at Bank of Hope and Commonwealth Business Bank indicate deep credit and lending experience aligned with OPBK’s community bank focus .
- Company TSR context: SEC “pay vs performance” table shows TSR index values of 87 (2022), 98 (2023), 144 (2024), providing backdrop to incentive alignment during recent cycles .
- Operating performance: 2024 ROA 0.92%, ROE 10.68%, efficiency ratio 61.19% versus targets of 1.01%, 11.30%, and 57.35%, respectively; these are core levers in the Management Incentive Plan used for executive payouts .
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| TSR Index (Initial $100) | 87 | 98 | 144 |
| Net Income ($000s) | 33,310 | 23,918 | 21,069 |
| ROA (%) | 1.74 | 1.13 | 0.92 |
| ROE (%) | 19.57 | 13.05 | 10.68 |
| Efficiency Ratio (%) | 47.42 | 57.59 | 61.19 |
| Target ROA (%) | 1.70 | 1.17 | 1.01 |
| Target ROE (%) | 18.00 | 13.52 | 11.30 |
| Target Efficiency (%) | 46.00 | 56.64 | 57.35 |
Board Governance (Context)
- HRCC responsibilities include review of compensation strategy, CEO/management succession, and incentive plan administration; HRCC met six times in 2024 .
- Audit Committee and BRCC oversee financial reporting controls and enterprise risk (including cybersecurity); BRCC met four times in 2024 .
Say-on-Pay & Shareholder Feedback (2025)
| Proposal | For | Against | Abstain | Broker Non-Votes |
|---|---|---|---|---|
| Advisory vote on executive compensation (2024 pay) | 8,574,990 | 296,287 | 58,115 | 2,133,450 |
| Frequency of advisory vote | “One Year” received most votes (8,535,724) | 2 Years: 2,472 | 3 Years: 377,840 | Abstain: 13,356; Broker Non-Votes: 2,133,450 |
Investment Implications
- Retention and alignment: A five-year equal-tranche RSU schedule (40% of salary grant value) creates long-term vesting that supports retention and aligns Pak’s incentives to sustained performance; cash bonus eligibility ties payouts to ROA/ROE/efficiency targets and role-specific objectives .
- Risk controls: Clawback coverage for the Chief Credit Officer adds downside protection for shareholders in the event of financial restatements impacting incentive metrics; strong committee oversight (HRCC, Audit, BRCC) underpins governance quality .
- Near-term selling pressure: Without accessible Form 4 data here, we cannot assess recent insider transactions; however, annual RSU vesting may produce periodic sell-to-cover events typical for tax withholding around vest dates [insider-trades tool error] .
- Pay sentiment: 2025 say-on-pay support and “one year” frequency preference signal shareholder acceptance of the compensation framework guiding executive incentives, supportive of stable governance through succession .