James Klein

About James Klein

James D. Klein (age 51) is President of Cedar Rapids Bank and Trust (CRBT) since 2019 and will become CRBT’s Chief Executive Officer immediately following QCR Holdings’ May 22, 2025 annual meeting; he previously served as CRBT’s Chief Lending Officer (2014–2019) and Senior Vice President, Retail Banking (2010–2014) . QCR Holdings delivered record 2024 results—net income $113.9M, diluted EPS $6.71, loan growth 10%, deposit growth 8%, and nonperforming assets at 0.50% of total assets—providing a strong performance backdrop for CRBT leadership transitions . Over 2020–2024, QCRH’s total shareholder return rose from $91 to $188 per $100 initial investment (KBW NASDAQ Bank Index peer value $132 in 2024) .

Past Roles

Fixed Compensation

• QCRH’s executive compensation program emphasizes pay-for-performance with three core elements: base salary, annual cash incentive, and long-term equity awards .
• Annual bonuses require company net income to exceed 25% of budget, use measurable goals (primarily net income and other financial/operational metrics), and are capped to discourage excessive risk-taking; for 2024, corporate goals were weighted 100% for NEOs .
• Mr. Klein’s individual base salary and annual bonus details were not disclosed in the 2025 proxy; program-level features above reflect QCRH practice (NEO examples) .

Performance Compensation

Company-level metrics used in 2024 annual bonus design (applied to NEOs; Mr. Klein’s specific metrics not disclosed):

• In 2024, these outcomes drove maximum corporate-goal payouts for the CEO (135% of salary) and President/CFO (120% of salary) under the annual plan (illustrative of plan mechanics) .
• Long-term incentives: 2024 RSUs granted to NEOs vest equally over four years (beginning one year from grant); RSUs may be settled in cash upon vesting for NEOs .

Equity Ownership & Alignment

• Anti-hedging policy: prohibits all employees and directors from hedging QCRH securities (e.g., collars, swaps, prepaid forwards); no violations noted .
• Anti-pledging policy: prohibits directors and executive officers from pledging QCRH stock without prior approval of the Nomination and Governance Committee; no violations noted .
• Clawback policy: adopted August 2023, Nasdaq-compliant; requires recoupment of incentive compensation after an accounting restatement if awards would not have been granted under restated results .
• Share ownership guidelines: defined for non-employee directors (5× annual cash retainer) and NEOs (e.g., 30,000 shares for CEO/CFO; other NEOs 3,626 shares); all directors and NEOs were in compliance as of 2025; specific guideline thresholds for Mr. Klein were not disclosed .

Employment Terms

• Appointment: Mr. Klein to become Chief Executive Officer of CRBT immediately following the May 22, 2025 annual meeting (transition previously announced by QCRH) .
• QCRH employment agreements (NEO examples) include confidentiality, non-competition, and non-solicitation covenants; severance generally equals 100% of base salary (non-CIC) or 200% of base plus most recent cash incentive (with double-trigger in change-in-control periods), subject to releases and regulatory constraints .
• Equity plans use double-trigger vesting on change-in-control: acceleration if awards are not assumed; if assumed, vesting accelerates upon termination without cause or resignation for good reason; vesting also accelerates on death or disability .
• No CRBT-specific employment agreement for Mr. Klein was filed in the reviewed 8-Ks; terms above reflect company-wide plan mechanics and NEO contracts –.

Investment Implications

• Alignment: Company-wide design features—performance-weighted bonuses, multi-year RSU vesting, double-trigger equity vesting, anti-hedging/pledging, and a clawback—support long-term alignment and risk management for executives, including CRBT’s incoming CEO .
• Performance backdrop: Strong 2024 profitability (net income $113.9M; diluted EPS $6.71), healthy growth (loans +10%, deposits +8%), and low NPAs (0.50% of assets) underpin CRBT leadership transition; TSR outperformance vs peers further signals value creation .
• Monitoring gaps: Mr. Klein’s individual compensation terms, equity grant sizes, ownership levels, and severance specifics were not disclosed in the 2025 proxy/8-Ks; monitor future filings (e.g., Item 5.02 updates) for CRBT CEO contract economics and any subsequent equity grants that could affect retention and selling pressure .