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Cheryl M. VanAllen

Executive Vice President, Chief People Officer at REPUBLIC BANCORP INC /KY/
Executive

About Cheryl M. VanAllen

Cheryl M. VanAllen is Executive Vice President and Chief People Officer at Republic Bank & Trust Company (RBCAA), age 45, appointed in 2024 after leading talent strategy and people analytics for KFC U.S. at Yum! Brands and earlier holding various Human Resources roles at UPS . Her tenure has coincided with strong company-level performance metrics used in executive incentive plans: in Q1 2025 Republic reported net income of $47.3M, diluted EPS of $2.42, ROAA of 2.61%, ROE of 18.74%, and an efficiency ratio of 40.3% . Republic’s compensation program emphasizes gross operating profit (GOP), ROAA, and efficiency ratio, aligning executive pay with operational outcomes .

Past Roles

OrganizationRoleYearsStrategic Impact
Yum! Brands (KFC U.S.)Led talent strategy & people analytics for KFC U.S.2013–2024Drove enterprise talent strategy and analytics supporting large-scale U.S. operations
UPSVarious Human Resources rolesNot disclosedBroad HR experience across roles prior to Yum! Brands

External Roles

  • Not disclosed.

Fixed Compensation

  • Ms. VanAllen’s individual base salary, bonus, and equity grant values are not disclosed (not a Named Executive Officer in 2024) .
  • Republic’s executive pay structure comprises Base Salary, Annual Bonus (primarily GOP-based), Stock Incentive (restricted stock, PSUs, stock options), and Deferred Compensation matching for designated key employees .

2024 compensation mix (for context – NEOs):

ComponentChair/CEO MixAvg. NEO Mix (excl. Chair/CEO)
Base Salary51% 45%
Annual Bonus44% 26%
Stock Incentives25%
Deferred Compensation Match2%
Other (perquisites/benefits)5% 2%

Performance Compensation

Republic ties bonus and PSU outcomes to quantifiable operating metrics:

  • Annual Bonus (2024 goals – Total Company GOP): | Level | Payout Potential (% of Target) | GOP Goal ($MM) | Actual 2024 Outcome | |---|---|---|---| | Entry | 70% | $120 | Achieved Maximum | | Mid | 85% | $124 | Achieved Maximum | | Maximum | 100% | $128 | Achieved Maximum |

  • PSU Framework (2024 cycle): | Metric | Threshold (50% payout) | Target (100%) | Max (150%) | Actual (Company vs peers) | Settlement/Hold Requirements | |---|---|---|---|---|---| | ROAA | 1.47% & 3rd quartile vs peers | 1.47% & 2nd quartile | 1.47% & 1st quartile | ROAA in 1st quartile | Settled early 2025 into restricted stock; hold 2 years after Jan 1, 2027 vesting | | Efficiency Ratio | 54.50% & 3rd quartile vs peers | 54.50% & 2nd quartile | 54.50% & 1st quartile | Efficiency in 3rd quartile | As above |

  • Vesting schedules and holding requirements (indicative, from NEO awards):

    • Restricted stock: typical vesting Jan 1, 2027; mandatory 2-year holding post vest .
    • NQSOs: vesting/exercisability tranches from Jan 1, 2027 to Jan 1, 2030; mandatory 2-year holding on shares post exercise .
    • 2025 PSU cycle: scheduled to vest/settle in early 2026 to restricted stock; 2-year holding post vest .

Equity Ownership & Alignment

  • Anti-hedging policy prohibits hedging transactions for all employees and Directors (e.g., swaps/collars/exchange funds) to preserve alignment with shareholders .
  • Pledging/margin accounts are not permitted for NEOs and Directors (explicit “what we do not do”) .
  • Stock ownership guidelines apply to CEO/Bank, CFO, Pres/RPG, and CIOO (minimum 2× base salary within five years from January 2021); no guideline disclosed for Chief People Officer .
  • Beneficial ownership concentration: Directors and Executive Officers as a group control ~73% of combined voting power (approx. 56% of total shares outstanding), reflecting a controlled company structure and high insider alignment/influence . Company affirms controlled company status under NASDAQ rules .

Employment Terms

  • The Company does not offer employment agreements to NEOs; compensation is determined annually by the Compensation Committee .
  • Change-in-Control Severance Agreements for NEOs include:
    • Severance: 2× base salary + average bonus (prior 3 years), paid over 24 months (12 months for CIOO) .
    • Benefit continuation (health/dental/life/LTD) for two years (one year for CIOO) .
    • Accelerated vesting of stock options and stock awards; vesting of deferred compensation match upon CIC .
    • Two-year non-compete, non-solicit, and confidentiality covenants; definitions of “cause” and “good reason” provided .
  • Ms. VanAllen’s individual severance/CIC terms are not disclosed; above applies to Named Executive Officers .

Performance & Pay Context (Company-level indicators tied to incentives)

MetricQ1 2024Q1 2025
Net Income ($MM)$30.6 $47.3
Diluted EPS (Class A)$1.58 $2.42
ROAA (%)1.70 2.61
ROE (%)13.12 18.74
Efficiency Ratio (%)42.3 40.3

Additional governance/sentiment:

  • Say-on-Pay (April 20, 2023): over 99% approval, indicating broad shareholder support for NEO pay practices .
  • Compensation peer group includes regional banks and fintech-aligned institutions (e.g., MCB, GDOT, CASH, TBBK, SYBT, SBCF), updated in 2024 .

Investment Implications

  • Human capital leverage: As Chief People Officer, Ms. VanAllen’s remit (talent strategy/analytics) aligns with Republic’s incentive focus on sustained GOP, ROAA, and efficiency, supporting operational execution and bonus/PSU outcomes .
  • Alignment safeguards: Company-wide anti-hedging, explicit no-pledging for NEOs/Directors, and post-vesting/exercise holding periods reduce misalignment and dampen near-term insider selling pressure tied to vest dates .
  • Disclosure gaps: Absence of individual pay/CIC detail for Ms. VanAllen limits precision on retention risk and event-driven payout modeling; monitoring future proxies or 8-K 5.02 filings is warranted .
  • Governance concentration: Controlled company status and ~73% insider voting power can insulate strategic HR initiatives but also lower external pressure; investors should weigh this in governance risk assessments and event outcomes .