Richard Gartelmann
About Richard Gartelmann
Executive Vice President and Head of Wealth Management at Old Second Bancorp (OSBC). Joined the company in 2011; EVP since 2018 and Head of Wealth Management since 2016. Age 52 as disclosed in the 2021 proxy; over 24 years of investment experience and 22 years of banking experience . Annual incentives for his role emphasize departmental performance (wealth management income and assets under management) with demonstrated above-target outcomes in 2023 and 2024, signaling execution in his domain .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Old Second Bancorp, Inc. | Senior Vice President, Head of Investments | 2011–2016 | Built investment function; background later tied to wealth management leadership |
| Old Second Bancorp, Inc. | Head of Wealth Management | 2016–present | Departmental metrics include growth of wealth management income and AUM driving compensation outcomes |
| Old Second Bancorp, Inc. | Executive Vice President | 2018–present | Senior executive accountability; 2024 base salary increase linked to WM income/AUM growth |
External Roles
No external directorships or outside roles disclosed for Gartelmann in the available proxy materials .
Fixed Compensation
Multi-year cash compensation (Summary Compensation Table):
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | 251,415 | 272,903 | 292,735 |
| Stock Awards – Grant-date fair value ($) | 59,035 | 89,079 | 96,812 |
| Non-Equity Incentive Plan Compensation ($) | 73,081 | 115,342 | 136,971 |
| All Other Compensation ($) | 31,833 | 37,372 | 38,608 |
| Total ($) | 415,364 | 514,696 | 565,126 |
Base salary schedule and target bonus (latest policy year):
| Item | 2023 | 2024 |
|---|---|---|
| Base Salary Rate ($) | 276,600 | 295,962 |
| Target Incentive (% of Base) | — | 40% |
| Target Incentive ($) | — | 118,385 |
Perquisites detail (illustrative recent years):
| Perquisite | 2021 ($) | 2023 ($) | 2024 ($) |
|---|---|---|---|
| 401(k) match | 11,600 | 13,200 | 13,800 |
| Life insurance | 474 | 474 | 539 |
| Car allowance | 6,000 | 9,600 | 9,600 |
| Country/Social club dues | 7,750 | 10,764 | 10,964 |
| TRSU dividend equivalents | 454 | 2,614 | 2,985 |
| Cell phone reimbursement | 720 | 720 | 720 |
| Total | 26,998 | 37,372 | 38,608 |
Performance Compensation
Annual incentive structure (2024 allocations):
| Metric | Weight (%) | Target | Actual | Payout |
|---|---|---|---|---|
| Adjusted Net Income Growth | 15 | Company goal per Incentive Plan | Achieved within overall award calculus | Included in 115.7% of target result |
| Department/Personal (Wealth Mgmt income & AUM) | 25 | 25% of base | 26.78% of base | Drives above-target payout |
| Adjusted Asset/Credit Quality | 0 | — | — | — |
| Adjusted Efficiency Ratio | 0 | — | — | — |
| Total Target Incentive | 40 | $118,385 | — | Actual cash incentive $136,971 |
Actual annual cash incentive outcomes:
| Year | Target Department Metric (% of Base) | Actual Department Earned (% of Base) | Actual Award ($) |
|---|---|---|---|
| 2021 | 15 | 14.6 | 81,696 |
| 2023 | 25 | 24.45 | 115,342 |
| 2024 | 25 | 26.78 | 136,971 |
Equity awards granted (counts and fair value):
| Year | TRSUs (#) | TRSUs FV ($) | PRSUs (#) | PRSUs FV ($) | Key Terms |
|---|---|---|---|---|---|
| 2022 | 4,063 | 59,035 | — | — | TRSUs cliff vest after 3 years |
| 2023 | 2,585 | 44,540 | 2,585 | 44,540 | PRSUs 2023–2025; metrics: relative ROATCE, BVPS growth; 0–175% payout vs 115-bank peer set |
| 2024 | 3,575 | 48,406 | 3,575 | 48,406 | PRSUs 2024–2026; metrics: relative ROATCE, BVPS growth vs 111-bank peer set |
Outstanding unvested equity at year-end:
| As of | TRSUs (#) | TRSUs MV ($) | PRSUs (#) | PRSUs MV ($) |
|---|---|---|---|---|
| 12/31/2023 | 11,602 | 179,135 | 2,585 | 39,912 |
| 12/31/2024 | 10,223 | 181,765 | 6,160 | 109,525 |
Known vesting schedule (TRSUs):
| Vest Date | Units |
|---|---|
| Feb 16, 2024 | 4,954 |
| Feb 15, 2025 | 4,063 |
| Feb 21, 2026 | 2,585 |
| Feb 20, 2027 | 3,575 |
Stock vested:
| Year | Shares Acquired on Vesting (#) | Value Realized ($) |
|---|---|---|
| 2021 | 3,486 | 39,949 |
| 2023 | 4,423 | 76,739 |
Notable PRSU results:
- 2021 PRSU cycle paid at 150% of target for both metrics (company-program level); payout schedule required service through issuance of 2023 audited financials .
Equity Ownership & Alignment
| Date (Outstanding Shares Reference) | Shares Beneficially Owned | Notes |
|---|---|---|
| Mar 24, 2023 (44,665,127 shares O/S) | 32,272 (<1%) | Direct brokerage and 401(k) holdings; excludes unvested RSUs |
| Mar 22, 2024 (44,845,629 shares O/S) | 35,909 (<1%) | Group ownership disclosure; excludes unvested RSUs (general policy) |
| Mar 21, 2025 (45,047,151 shares O/S) | 39,299 (<1%) | Footnote excludes 17,828 unvested RSUs from beneficial count |
Policies:
- Hedging and pledging prohibited for directors, officers, and employees (no margin accounts; no pledges) .
- CEO-specific stock ownership guidelines; no disclosed executive-wide ownership multiple for other NEOs .
Employment Terms
Change-in-control and termination economics (as measured for 12/31/2020 baseline in 2021 proxy):
| Scenario | Cash Severance ($) | Continuation of Insurance ($) | Acceleration of Stock Awards ($) | Outplacement ($) |
|---|---|---|---|---|
| Involuntary Termination following Change in Control | 466,069 | 29,462 | 120,666 | 20,000 |
- Payments subject to 280G cutback to avoid excess parachute payments .
- Structure implies double-trigger for change-in-control table (“involuntary termination following a change in control”) .
Deferred compensation (Executive Deferred Compensation Plan):
- 2023: Contribution $3,654; aggregate gains $1,342; year-end balance $17,673; plan has no above-market earnings and no company match; elections permitted into mutual fund separate accounts .
Investment Implications
- Alignment and execution: Consistent bonus realization tied to WM income/AUM growth (104–116% of target across 2023–2024; near-target in 2021), indicating stable performance delivery in a fee-based business line .
- Vesting and selling pressure: Small, staggered TRSU cliffs over 2025–2027 (4,063/2,585/3,575 units) reduce acute near-term selling pressure risk; PRSU outcomes depend on relative ROATCE and BVPS performance vs bank peers (0–175% payout) .
- Ownership trend: Beneficial ownership increased from 32,272 (2023) to 39,299 (2025); unvested RSUs excluded (17,828 in 2025), reinforcing skin-in-the-game while avoiding leverage risk (pledging prohibited) .
- Cash vs equity mix: Equity grants expanded with the introduction of PRSUs in 2023–2024; incentives increasingly at-risk and levered to multi-year relative performance rather than guaranteed cash, a positive pay-for-performance signal .
- Retention risk: Moderate CIC package with double-trigger framing and equity acceleration; ongoing unvested TRSUs/PRSUs and departmental metric linkage support retention and alignment .