Ravi Vakacherla
Executive Vice President and Chief Digital and Innovation Officer at 
PROVIDENT FINANCIAL SERVICES
PROVIDENT FINANCIAL SERVICESExecutive
About Ravi Vakacherla
Executive Vice President and Chief Digital and Innovation Officer at Provident Financial Services (PFS), age 52, serving since July 2022; previously EVP and Chief Transformation Officer at People’s United Bank . Company performance context during his tenure: 2024 net income of $115.5 million with net interest margin of 3.26% and adjusted returns in Q4 2024 of ROAA 1.05% and ROATE 15.39% ; Q2 2025 net income was $72.0 million with record quarterly revenue of $214.0 million . PFS’s 2024 total shareholder return (TSR) implied value of a fixed $100 investment was $98.86 versus peer group $132.44; ROAA was 0.57% for 2024 (company-selected compensation metric) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| People’s United Bank | EVP, Chief Transformation Officer | Not disclosed | Transformation leadership prior to joining PFS |
External Roles
No public company directorships or external roles disclosed for Vakacherla in the 2025 proxy. Skip.
Fixed Compensation
| Component | 2024 | Notes |
|---|---|---|
| Base Salary | $458,000 | 3.0% increase year over year |
| Target Bonus % of Base | 50% | Chief Digital & Innovation Officer tier (Threshold 25%, Max 75%) |
| Actual Bonus Paid | $286,500; 62.5% of salary; 125% of target | Driven by corporate performance proration across merger periods |
| Stock Awards (Grant-Date Fair Value) | $412,540 | Performance- and time-vesting mix; plus merger-related grant; see details below |
| Perquisites (Total) | $23,000 (Car allowance $12,000; Executive health $11,000) | Limited perqs policy |
| Deferred Compensation (Company Contribution) | $13,433 | Aggregate balance $15,220; earnings $68 |
Performance Compensation
Annual Cash Incentive Framework (Corporate Metrics and 2024 Achievement)
| Period (2024) | Metric | Weight | Threshold | Target | Maximum | Actual | Result vs Target |
|---|---|---|---|---|---|---|---|
| Jan 1 – Apr 30 | Net Income | 40% | 33.60 | 39.50 | 44.70 | 43.80 | 112.8% (period result) |
| Jan 1 – Apr 30 | EPS | 40% | 0.45 | 0.52 | 0.59 | 0.58 | 112.8% (period result) |
| Jan 1 – Apr 30 | Efficiency Ratio | 20% | 60.52% | 59.50% | 59.13% | 61.14% | 112.8% (period result) |
| May 1 – Jul 31 | Net Income | 40% | — | 64.50 | — | 64.50 | Target (100%) |
| May 1 – Jul 31 | EPS | 40% | — | 0.57 | — | 0.57 | Target (100%) |
| May 1 – Jul 31 | Efficiency Ratio | 20% | — | 53.29% | — | 53.29% | Target (100%) |
| Aug 1 – Dec 31 | Net Income | 40% | 75.40 | 88.70 | 100.40 | 100.50 | Maximum (150%) |
| Aug 1 – Dec 31 | EPS | 40% | 0.58 | 0.68 | 0.77 | 0.77 | Maximum (150%) |
| Aug 1 – Dec 31 | Efficiency Ratio | 20% | 58.91% | 57.69% | 56.87% | 55.26% | Maximum (150%) |
- Plan definitions modified to add back CECL provision and subtract actual net charge-offs (net of tax) to reduce macro volatility effect on incentive outcomes .
- Vakacherla’s final 2024 cash incentive payout: $286,500 (62.5% of salary), representing 125% of target .
Long-Term Incentives – Design and 2024 Grants
| Award Type | Grant Date | Shares (Target) | Grant-Date Value | Performance Metrics / Vesting |
|---|---|---|---|---|
| Performance-Vesting RS | 3/4/2024 | 14,195 | $206,280 | 2024–2026: Core ROAA (60%) and Core ROATE (40%) with TSR modifier vs KBW Regional Banking Index; payout 50–150% of target; 3-year cliff |
| Time-Vesting RS | 3/4/2024 | 4,710 | $68,760 | Ratably over 3 years |
| Merger-Related Performance RS | 5/20/2024 | 8,803 | $137,500 | 2-year cliff; 50% cost savings achievement, 50% successful integration; dividends accumulated and paid if vested |
- 2022–2024 performance cycle vested at 138% of target following downward TSR modifier (TSR 17th percentile), reflecting maximum outcome on ROAA and ROATE goals; dividends of $2.88 per share paid on vested shares (company-wide disclosure) .
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Shares Owned (Direct/Indirect) | 9,737; beneficial ownership less than 1% of outstanding |
| Unvested Stock Awards Included in Beneficial Ownership | 9,121 |
| Outstanding Unvested Awards at 12/31/2024 | Time-vesting 4,710 (MV $88,878); Equity incentive plan awards 14,195 (MV $267,860); Merger-related performance RS 8,803 (MV $116,113) |
| Stock Ownership Guideline | 1.5× base salary for Tier II executives |
| Compliance Status | Not yet met due to July 2022 onboarding; counts vested RS, unvested time RS, ESOP/401(k) toward compliance (performance RS and options excluded) |
| Hedging/Pledging | Hedging prohibited; directors/officers should avoid pledging company stock |
| Options | Company did not grant stock options in 2024; options not part of design |
Employment Terms
| Provision | Terms |
|---|---|
| Change-in-Control Agreement (Pre-Plan) | Two-year term for Vakacherla; CIC severance equals 2× highest annualized base + cash comp over year of termination or prior two years; life/health/dental/disability coverage for two years |
| Executive Severance Plan (Adopted 7/24/2025) | Executives (incl. Ravi) eligible only if they waive existing CIC agreements and avoid duplicative benefits . Without cause termination: 1× base salary + 1× target cash incentive, up to 12 months health coverage via COBRA and 6 months outplacement; CIC within two years (double trigger): 2× multiple of base salary (greater of CIC date or termination date) + target cash incentive; 12× multiple for COBRA cash equivalent and 6 months outplacement . No excise-tax gross-ups; “best net benefit” reduction applies to avoid 4999 excise tax . |
| Good Reason / Release | Good Reason per LTIP with 90-day notice and 30-day cure; severance contingent on signed non-revocable general release; restrictive covenant agreement required . |
| Potential Payments (as of 12/31/2024) | After CIC termination w/o cause or for Good Reason: Salary $916,800; Incentive $573,000; Benefits $70,260; Total $1,560,060; Unvested awards $763,367; Total $2,323,427 . |
| Clawbacks | NYSE/SEC-compliant clawback policy covering cash and equity incentives, restatement-based recovery, and conduct-based forfeiture/recoupment . |
Performance Compensation – Metric Calibration
| Metric | Weight | Threshold | Target | Maximum | Notes |
|---|---|---|---|---|---|
| Core ROAA (Multi-Year) | 60% | 78 bps | 92 bps | 97 bps | 2024–2026 plan; CECL add-back and net charge-off subtraction (net of tax) applied |
| Core ROATE (Multi-Year) | 40% | 8.41% | 10.58% | 11.40% | TSR modifier: -20% below 25th percentile; +20% at/above 75th percentile vs KBW Index |
Compensation Committee, Peer Benchmarks, and Say-on-Pay
- Compensation and Human Capital Committee: Chair Matthew K. Harding; independent members Dunigan, Hanson, Leppert, McCracken; FW Cook as independent consultant .
- Benchmarking: Targets generally set around peer median; 2024 pre-merger peer group of 17 Northeast banks; revised 2025 peer group post-merger to align asset size with 18 regional banks .
- Say-on-Pay: 2024 advisory approval approximately 97% of votes cast .
Investment Implications
- Pay-for-performance alignment: Vakacherla’s variable pay is tightly linked to ROAA/ROATE and EPS/efficiency outcomes, with multi-period calibration and a TSR modifier, and merger KPIs on special grants—supporting incentives for sustainable returns and integration execution .
- Retention and severance economics: New Executive Severance Plan enforces double-trigger CIC protections at 2× and standard severance at 1× salary+target bonus, with restrictive covenants and no tax gross-ups—balanced retention with shareholder-friendly terms .
- Insider selling pressure: Ownership is modest (<1% of class) with meaningful unvested equity and 3-year/2-year cliffs creating periodic vesting supply; hedging prohibited and pledging discouraged, reducing misalignment risk .
- Execution risk: Corporate metrics were adjusted for CECL volatility, and 2024 cash incentives reflected strong post-merger outcomes; continued delivery on ROAA/ROATE and TSR relative to peers is key for vesting and payouts, indicating high linkage to operational performance .