Henry Kim
About Henry Kim
Henry Kim (age 58) is President & CEO of PCB Bancorp and PCB Bank since January 2018 and a director of both entities since 2018. He holds a B.S. in Applied Mathematics from UC Santa Barbara and is a graduate of Pacific Coast Banking School . Under his leadership, total assets grew organically from $1.44B at 12/31/2017 to $3.06B at 12/31/2024 and shareholders’ equity rose from $142.2M to $363.8M . Company TSR based on a $100 initial investment was $83.29 in 2022, $108.08 in 2023, and $113.73 in 2024, while reported net income was $34.99M (2022), $30.71M (2023), and $25.81M (2024) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| PCB Bank | Chief Credit Officer; Chief Operating Officer; Corporate Secretary | 2003–2018 | Led branch expansion across Southern California and into NYC metro; built loan production office network across seven states . |
| PCB Bancorp/Bank | President & CEO | 2018–present | Took company public in Aug 2018; expanded footprint into Dallas–Fort Worth; drove asset and equity growth cited above . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| PCB Bancorp | Director | 2018–present | Executive director; contributes operational and strategic insights . |
| PCB Bank (subsidiary) | Director | 2018–present | Aligns bank-level strategy with holding company . |
| Other public company boards | None disclosed | — | Company states none of directors serve on other registered public company boards . |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary (USD) | $498,077 | $500,000 |
| Short-Term Cash Incentive (Actual) | $450,000 | $350,000 |
| All Other Compensation (auto allowance, 401k match, dividends on unvested RSAs, cellphone, club dues) | $83,923 | $71,725 |
- CEO annual incentive formula: lesser of 1.5% of pre-tax profit or then-current base salary; plus discretionary bonus (Board) .
- CEO base salary for 2025 is $500,000 per employment agreement .
Performance Compensation
| Incentive Type | Metric | Target Structure | Actual Payout | Vesting/Timing |
|---|---|---|---|---|
| Annual Cash Bonus (CEO) | Pre-tax profit | Bonus = min(1.5% of pre-tax profit, base salary) + discretionary bonus | 2023: $450,000; 2024: $350,000 | Cash, annual |
| Equity Awards (RSAs) | Time-based vesting | 25,000 RSAs granted 1/1/2022; vest 20% annually over 5 years | 15,000 RSAs unvested as of 12/31/2024 (MV $303,600) | Annual tranches, five-year schedule |
| Stock Options | Time-based vesting | 2015: 10-year option; 2018: 10-year option; 2023: 10-year option vests in three equal annual installments | See schedule below | As per award agreements |
PEO pay-versus-performance indicates CAP aligned with TSR and net income trends in 2022–2024 .
Equity Ownership & Alignment
| Component | Detail |
|---|---|
| Total Beneficial Ownership | 332,627 shares (includes 265,963 common + 66,664 options exercisable within 60 days); 2.30% of shares outstanding . |
| Vested vs Unvested | Options exercisable within 60 days: 66,664; RSAs unvested: 10,000 counted in ownership note; separate awards table shows 15,000 unvested RSAs at year-end 2024 . |
| Breakdown of Holdings | Includes 59,992 shares held jointly with spouse; 22,785 in IRA; 24,713 in spouse’s IRA; 10,000 unvested RSAs included in beneficial ownership . |
| Pledging/Hedging | Code prohibits unlawful securities trading and hedging; no pledging disclosed for Henry Kim . |
| Ownership Guidelines | Not disclosed in proxy; equity plans and general philosophy described . |
Outstanding Equity Awards and Vesting Schedule (as of 12/31/2024)
| Grant | Expiration | Status | Exercise/Share Price | Quantity | Vesting Details |
|---|---|---|---|---|---|
| Stock Option 10/28/2015 | 10/28/2025 | Exercisable | $10.33 | 24,734 | Fully vested; 10-year term . |
| Stock Option 01/02/2018 | 01/02/2028 | Exercisable | $14.75 | 50,000 | Fully vested; 10-year term . |
| Stock Option 10/25/2023 | 10/25/2033 | 6,930 exercisable; 14,070 unexercisable | $15.04 | 21,000 | Vests in three equal annual installments on each anniversary . |
| RSAs 01/01/2022 | — | 15,000 unvested | — | 25,000 grant | Vest 20% annually over five years; 15,000 remained unvested at YE 2024 (MV $303,600) . |
Employment Terms
- Contract Term: Employment agreement effective 1/1/2018 (amended 12/28/2021), expires 12/31/2026 unless earlier terminated .
- Severance (no cause): Continuation of base salary then in effect; up to one year if ≥6 months remain in term; six months if <6 months remain .
- Change-of-Control: If terminated without cause or for good reason while a change-of-control is pending or within 12 months after, entitlement equals base salary paid through end of contract term; subject to Section 280G cutback .
- Equity Acceleration: Under 2023 Equity Plan and form award agreements, upon notice of a change-in-control where the Company is not the survivor, outstanding options become exercisable and restricted stock restrictions lapse, unless the Compensation Committee provides for continuation/assumption/substitution .
- Clawback: Equity and cash incentive compensation subject to clawback to comply with SEC/Nasdaq rules; applies to RSAs and options per award agreement .
- Perquisites: Auto allowance; club dues for customer entertainment; standard benefits (401k match, health) .
Board Governance
- Board Service: Director since 2018; executive director (non-independent) under Nasdaq rules .
- Committee Roles: None; committee memberships are entirely independent directors (Audit, Compensation, Nominating & Governance) .
- Leadership Structure: Separate CEO and Chairman; Chairman is independent; rationale to preserve oversight independence .
- Attendance: In 2024, Board held 4 regular and 2 special meetings; each director standing for re-election attended ≥75% of Board and committee meetings; all but one director attended the 2024 annual shareholders’ meeting .
Director Compensation
- Non-Employee Directors (2024): Cash retainers only; e.g., Chairman $114,000; ranges $84,000–$114,000 by role and committee service; PCB Bank director retainers $8,000/month ($9,500 for Chairman), plus specific committee retainers .
- Henry Kim: As CEO and employee director, he does not receive non-employee director fees; his compensation is reported in executive compensation tables .
Performance & TSR
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (USD) | $34,987,000 | $30,705,000 | $25,810,000 |
| Value of $100 Investment (TSR) | $83.29 | $108.08 | $113.73 |
Related Party Transactions and Risks
- Related Party Transactions: None in 2024 above lesser of $120,000 or 1% of assets; routine banking transactions at market terms; no loans to executive officers outstanding as of 12/31/2024 .
- Risk Indicators: Clawback policy in place; hedging prohibited; independence structure maintained (independent Chair); no disclosed pledging; ordinary-course transactions reviewed by Audit Committee .
Compensation Structure Analysis
- Mix: CEO cash bonus formula directly tied to pre-tax profit; RSAs time-based vesting (reduced risk vs options); options remain part of long-term incentives .
- 2023–2024 Trends: CEO cash bonus down from $450k to $350k alongside net income decline; no new CEO equity grants disclosed in 2024; continued vesting from prior awards .
- Equity Acceleration: Full vesting possible on change-in-control unless committee provides otherwise—potentially increases deal incentive but introduces payout acceleration risk .
Compensation & Ownership Tables
CEO Compensation (Multi-Year)
| Component | 2023 | 2024 |
|---|---|---|
| Salary (USD) | $498,077 | $500,000 |
| Cash Bonus (USD) | $450,000 | $350,000 |
| RSAs Granted (USD) | $0 | $0 |
| Stock Options Award (USD) | $66,156 | $0 |
| All Other Compensation (USD) | $83,923 | $71,725 |
| Total (USD) | $1,098,156 | $921,725 |
CEO Beneficial Ownership Detail (as of 3/31/2025)
| Shares | Options (exercisable ≤60 days) | Total Beneficial | % of Class |
|---|---|---|---|
| 265,963 | 66,664 | 332,627 | 2.30% |
Investment Implications
- Pay-for-performance alignment: CEO cash incentive formula linked to pre-tax profit; actual payouts declined with net income, indicating discipline; equity awards vest over time, aligning multi-year retention with performance .
- Retention and selling pressure: Significant vested options and RSAs outstanding; 2015 options expire in 2025, possibly creating near-term exercise/sale decisions; unvested RSAs through 2026 support retention .
- Governance quality: Separation of Chair/CEO, independent committees, clawback and hedging prohibition reduce governance risk; no related-party transactions above materiality threshold in 2024 .
- M&A/change-of-control economics: Equity acceleration and salary-through-term severance on double-trigger may increase CEO’s deal certainty; investors should weigh potential payout acceleration against transaction value creation .
- Ownership alignment: 2.30% beneficial stake signals meaningful alignment, with no pledging disclosed; monitoring Form 4 filings around award vest dates and the 2025 option expiry is advisable for trading signals .