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Matthew J. Macia

Executive Vice President, Chief Risk Officer at PEOPLES BANCORP
Executive

About Matthew J. Macia

Executive Vice President and Chief Risk Officer of Peoples Bancorp Inc. (PEBO) and Peoples Bank since August 2024; age 56. Prior roles include Head of Financial, Model and Investment Risk at Edward Jones (2022–2023), CRO at Bank of the Sierra (2019–2021), Bank CRO/Senior Managing Director at TIAA Bank (2014–2019), and senior risk roles at Bank of America, Wachovia/Wells Fargo (2003–2012). Education: BA in Economics from Fresno State University (disclosed in prior employer SEC filings). At the enterprise level, PEBO reported record net income of $117.2M in 2024 vs $113.4M in 2023, improved efficiency ratio to 58.0%, and pay-versus-performance analysis shows TSR and compensation alignment trends used in executive pay design .

Past Roles

OrganizationRoleYearsStrategic Impact
Edward JonesSenior Director, Head of Financial, Model & Investment Risk2022–2023Led risk oversight across financial, model, and investment risk domains .
Bank of the Sierra (Sierra Bancorp)Executive Vice President, Chief Risk Officer2019–2021Established and led bank-wide risk framework; employment agreement set CRO pay, options, severance/change-in-control terms .
TIAA BankBank Chief Risk Officer, Senior Managing Director2014–2019Directed enterprise risk at a national bank .
Bank of AmericaSVP, Deposit & Small Business Lending Risk Executive2012–2014Managed risk for deposits and small-business lending .
Wachovia/Wells FargoVarious risk roles2003–2012Progressively senior risk functions at large banks .

External Roles

OrganizationRoleYearsStrategic Impact
Fresno State UniversityBA, EconomicsFoundational training referenced in prior employer filing .

Fixed Compensation

No Macia-specific pay was itemized in PEBO’s 2025 proxy (not a named executive officer). Program-level structures for executive officers: base salaries benchmarked near median peers; notable 2024 adjustments for other NEOs (e.g., CEO base increased to $700k effective 1/1/2025) reflect market and performance alignment .

Performance Compensation

PEBO’s annual and long-term incentive framework for executives uses a balanced scorecard with defined thresholds/targets/maximums and payout potentials. “Other Executive Officers” (the tier applicable to EVP roles) have cash incentive payout potentials of 10%/40%/60% of base salary (threshold/target/maximum) and long-term equity payout potentials of 7.5%/30%/50% of base salary via restricted stock, subject to three-year cliff vesting and annual performance conditions (well-capitalized and positive net income each vest year). Macia-specific weightings/payouts were not disclosed; program-level metrics and 2024 results are below .

MetricProgram Weighting (EVP tier – indicative)2024 Target2024 Actual (Adjusted)Notes on Payout/Vesting
Pre-Tax/Pre-Provision ROAAProgram-level weighting varies by function; EVP tiers generally emphasize corporate metrics (examples: 25–50%) 2.04% 1.95% Between threshold and target; contributes to partial cash/equity pool .
Efficiency RatioAs above 57.32% 57.93% Between threshold and target; supports reduced payouts .
Pre-Tax/Pre-Provision Diluted EPSAs above $5.17 $5.03 Between threshold and target; supports reduced payouts .
Net Charge-Offs / Avg LoansAs above 0.20% 0.37% Below threshold; negative impact to payouts .
Long-Term Incentive (Restricted Shares)EVP tier threshold/target/max: 7.5%/30%/50% of base Three-year cliff vest; annual performance gates (well-capitalized and positive net income); 1/3 forfeiture if a gate is missed .

Absolute minimum “circuit breaker” for 2024 payouts required PTPP EPS ≥ $2.59 and nonperforming assets/total assets ≤ 2% (both achieved) .

Equity Ownership & Alignment

  • Stock holding requirement: executives must retain 50% of “net shares” from vested equity awards for the duration of employment .
  • Hedging/pledging: prohibited for directors, officers, and employees under PEBO’s Insider Trading Policy (no margin, shorting, options/derivatives, or pledging) .
  • Beneficial ownership: not itemized for Macia in the 2025 proxy (ownership table covers directors and named executive officers) .

Employment Terms

  • Change-in-control (CIC): PEBO uses double-trigger CIC agreements (termination without cause or resignation for good reason following a defined CIC). Severance for EVPs typically equals 2.00× “base annual compensation” (base salary plus average cash incentives over prior 3 years), 12 months of medical/dental/life continuation, confidentiality, and a 12-month non-compete; CEO receives 2.99× and 36 months of benefits with a 15-month non-compete. No excise tax gross-ups; Section 280G cutback as applicable .
  • Clawback: three-year lookback to recover erroneously awarded incentive pay (cash and equity) upon accounting restatement per SEC/Nasdaq rules .
  • Deferred compensation/benefits: executives eligible for 401(k) with 6% match, ESPP with up to 15% discount, split-dollar BOLI life benefits ($50k while employed; $25k post-retirement), and a nonqualified deferred compensation plan (NQDC) with elective deferrals and company matching credited as deemed investments .

Performance & Track Record

  • 2024 enterprise performance highlights: net income $117.2M, dividend consistency ($0.40/quarter in 2H24–Q1’25), efficiency ratio improved to 58.0%, NIM 4.21%, and increased loans/deposits—all factors underpinning performance goals used in executive pay .
  • Pay-versus-performance: cumulative TSR fell in 2024 vs 2023 ($100 initial investment value: $99.02 in 2024 vs $126.29 in 2023), consistent with reduced equity award value; the framework shows directional alignment between compensation actually paid and TSR/financial measures over most years .
  • Say-on-pay: 98% approval on 2023 NEO compensation (voted at 2024 meeting), sustaining shareholder support for pay design .

Compensation Committee Analysis

  • Committee composition: all independent directors; cross-committee risk oversight (Audit, Compensation, Risk) .
  • Independent consultant: Pay Governance engaged for market benchmarking, realizable pay vs TSR analysis, and incentive plan design; determined independent with no conflicts .
  • Peer group: 26 regional/community banks ($5.1B–$24.6B assets), with PEBO at median $9.3B assets; benchmarking drives target-setting and pay mix .

Risk Indicators & Red Flags

  • Positive: double-trigger CIC, clawback, no excise tax gross-ups, prohibitions on hedging/pledging, defined circuit breakers, balanced scorecard, and retention-focused cliff vesting reduce excessive risk-taking .
  • No disclosed legal proceedings for executive officers (including Macia) in the proxy .

Investment Implications

  • Alignment: Macia operates within a risk-aware incentive system emphasizing PTPP EPS, ROAA, efficiency, and credit quality, with equity holding and anti-hedging/pledging rules reinforcing long-term alignment .
  • Retention/pressure: vesting features (three-year cliff; annual performance gates) and stock-holding requirements slow sellable supply and reduce near-term selling pressure; CIC terms provide downside protection on change events without single-trigger acceleration .
  • Execution risk: 2024 underperformance on net charge-offs metric (0.37% vs 0.20% target) tempered payouts and highlights credit cycle sensitivity—a domain overseen by the CRO .
  • Pay confidence: strong say-on-pay support and independent oversight suggest low governance risk; TSR softness in 2024 vs 2023 sets a higher bar for 2025 incentives tied to the same metrics .