James Nigro
PROVIDENT FINANCIAL SERVICESAbout James Nigro
James M. Nigro (age 57) is Executive Vice President and Chief Credit Officer of Provident Bank (PFS) since May 2024, following the Lakeland Bancorp merger; he previously served as EVP and Chief Risk Officer at Lakeland Bank from 2016–2024 . Context: in 2024 PFS reported net income of $115.5 million, ROAA of 0.57%, ROATE of 8.58%, and net interest margin of 3.26% as integration completed; a $100 initial investment in PFS stock was valued at $98.86 at year-end 2024 (company TSR) . His appointment aligned with the enlarged credit portfolio post-merger (assets $24.1B at 12/31/2024) and integration of Lakeland’s $7.91B loans and $8.62B deposits (net of purchase accounting) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Provident Financial Services, Inc. / Provident Bank | EVP & Chief Credit Officer | May 2024–present | Appointed post-merger to lead credit function during combined-bank integration |
| Lakeland Bank | EVP & Chief Risk Officer | 2016–May 2024 | Led enterprise risk/risk management; role cited in PFS proxy biography |
Fixed Compensation
PFS executive annual cash incentive plan target levels (role-based design; Nigro-specific targets not disclosed in proxy):
| Participant | Threshold (% of Base) | Target (% of Base) | Maximum (% of Base) |
|---|---|---|---|
| President & CEO; Executive Vice Chairman | 37.5% | 75% | 112.5% |
| CFO; Chief Administrative Officer; Chief Wealth Management Officer; Chief Digital & Innovation Officer | 25% | 50% | 75% |
Performance Compensation
PFS annual cash incentive plan metrics and outcomes for 2024 (company-level; plan design applicable across executives; Nigro’s individual payout not disclosed):
| Metric (weight) | 01/01–04/30 Threshold | Target | Maximum | Actual | 05/01–07/31 Threshold | Target | Maximum | Actual | 08/01–12/31 Threshold | Target | Maximum | Actual |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Income (40%) | 33.60 ($mm) | 39.50 ($mm) | 44.70 ($mm) | 43.80 ($mm) | — | 64.50 ($mm) | — | 64.50 ($mm) | 75.40 ($mm) | 88.70 ($mm) | 100.40 ($mm) | 100.50 ($mm) |
| EPS (40%) | $0.45 | $0.52 | $0.59 | $0.58 | — | $0.57 | — | $0.57 | $0.58 | $0.68 | $0.77 | $0.77 |
| Efficiency Ratio (20%) | 60.52% | 59.50% | 59.13% | 61.14% | — | 53.29% | — | 53.29% | 58.91% | 57.69% | 56.87% | 55.26% |
| Result vs Target | — | — | — | 112.8% (target plus) | — | 100.0% (target) | — | — | — | — | — | 150.0% (maximum) |
Long-term equity (company plan design; merger-related PSUs noted; Nigro-specific awards not disclosed):
| Performance Metric | Weight | Threshold | Target | Maximum |
|---|---|---|---|---|
| Core ROAA (multi-year, 2024–2026) | 60% | 78 bps | 92 bps | 97 bps |
| Core ROATE (multi-year, 2024–2026) | 40% | 8.41% | 10.58% | 11.40% |
| TSR Modifier (vs KBW Regional Bank Index) | — | −20% if <25th percentile | No change (25th–75th) | +20% if ≥75th percentile |
Design features:
- Annual plan metrics adjusted to add back CECL provision and subtract actual net charge-offs (net of tax) to reduce macro volatility impact .
- 2024 grants: 75% performance-vesting, 25% time-vesting; performance shares are three-year cliff; time-vest ratably over three years .
- Merger-related performance-vesting awards (two-year cliff; weighted 50% cost savings, 50% successful integration; dividends accrue and pay if vested; no voting rights until vesting) .
Equity Ownership & Alignment
| Policy | Details |
|---|---|
| Stock ownership guidelines | Directors: 5× cash annual retainer; Tier I executives (Executive Chairman, Executive Vice Chairman, President & CEO): 6× base salary; Tier II named executive officers: 1.5× base salary; unvested performance shares and options excluded from compliance; ESOP/401(k) shares and unvested time-vesting RSUs count . |
| Anti-hedging/pledging | Directors, officers, employees prohibited from hedging transactions designed to offset PFS stock risk; policy advises avoiding pledging shares as collateral . |
| Clawback policy | NYSE/SEC-compliant clawback of incentive-based compensation erroneously received after an accounting restatement, regardless of misconduct; cash and equity awards subject to recoupment/reduction for cause, policy violations, and detrimental conduct . |
| Equity grant practices | No stock options granted to executive officers in 2024; grants made only in open trading windows; no timing around MNPI disclosures . |
Employment Terms
No individual employment or change-of-control agreement for Nigro is disclosed in the 2025 proxy or the merger-related 8-K; his appointment as EVP & Chief Credit Officer was reported without contract terms . Company-wide: employment and change-in-control agreements are disclosed for certain named executives with severance multiples and benefit continuations; hedging/pledging prohibitions and clawback apply to executives broadly .
Investment Implications
- Limited disclosure on Nigro’s specific pay mix, targets, and equity grants constrains direct pay-for-performance and selling-pressure analysis; however, firm-wide incentive design is heavily performance-weighted (multi-year ROAA/ROATE with TSR modifier) and discourages hedging/pledging, reducing misalignment risk .
- As Chief Credit Officer post-merger, Nigro’s execution risk centers on credit quality in an enlarged portfolio; 2024 outcomes show ROAA 0.57%, ROATE 8.58%, with strong net interest margin and disciplined underwriting noted by management, aligning operational performance with incentive frameworks .
- Robust clawback and ownership guidelines support governance discipline; say‑on‑pay received ~97% approval in 2024, indicating broad shareholder support for the compensation program design (contextual signal for incentive alignment) .