Lakhbir S. Lamba
About Lakhbir S. Lamba
Lakhbir S. Lamba was appointed President and Chief Executive Officer of Regional Management Corp. (NYSE: RM) and a member of the Board of Directors effective November 10, 2025; he is 51 and brings nearly 30 years of consumer lending experience, including leadership of PNC’s Consumer Lending & Analytics (team of ~2,000; ~$32B in assets under management). He holds a B.Tech. in Mechanical Engineering from the Indian Institute of Technology and an MBA (Finance & Strategy) from Purdue University’s Krannert School of Management . For context on incentive rigor at RM, 2024 annual bonuses paid at 112% of target on quantitative outperformance, while cumulative 2022–2024 TSR was -26.3%, driving a 64% payout for 2022 PRSUs; policies include double‑trigger CIC, clawbacks, and hedging/pledging prohibitions .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| PNC Financial Services Group, Inc. | EVP, Head of Consumer Lending & Analytics | Jun 2017 – Mar 2025 | Oversaw ~2,000 employees and managed a ~$32B portfolio of total assets . |
| PNC Financial Services Group, Inc. | EVP, Retail Lending, Asset Resolution Team & Analytics | Apr 2012 – Jun 2017 | Senior leadership across retail lending, analytics, and asset resolution . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| — | — | — | No other public company directorships disclosed in the company’s 8‑K biography or press releases reviewed . |
Board Service (RM)
- Appointed to RM’s Board effective Nov 10, 2025; the Board will nominate him for election at the 2026 annual meeting per the offer letter .
- Board leadership is separate: the Chair is Carlos Palomares; committees (e.g., Compensation) are composed of independent directors under NYSE criteria, mitigating dual‑role concerns .
- Employees serving as directors receive no separate director compensation at RM (no board or committee retainers/equity) .
Fixed Compensation
| Component | Terms | Effective/Timing | Source |
|---|---|---|---|
| Base Salary | $550,000 annually | Effective at commencement (on/about Nov 10, 2025) | |
| Signing Bonus (in lieu of 2025 STI) | $150,000 (less withholdings) | 2025 | |
| 2026 Target Annual Incentive | 150% of base salary | Plan year 2026 |
Performance Compensation
Long‑Term Equity (Inducement Awards under NYSE 303A.08)
| Award type | Grant timing | Grant value | Vesting schedule | Performance metric | Notes |
|---|---|---|---|---|---|
| Restricted Stock Award (RSA) | Granted Nov 10, 2025 | $350,000 | Vests in 3 equal annual installments on each of the first, second, and third anniversaries of grant (i.e., Nov 10, 2026/2027/2028) or per award agreement | Service-based | Inducement award in lieu of 2025 LTI . |
| Restricted Stock Award (RSA) | Expected during fiscal quarter ending Mar 31, 2026 | $1,250,000 | Vests in equal installments on Dec 31, 2026/Dec 31, 2027/Dec 31, 2028 | Service-based | Inducement component of 2026 LTI . |
| Performance RSU (PRSU) | Expected during fiscal quarter ending Mar 31, 2026 | $1,250,000 | Cliff vest Dec 31, 2028 (if earned) | Performance criteria established by HRCC prior to grant | Inducement component of 2026 LTI . |
Short‑Term Incentive Design (Company context)
| Plan | Metric design | Weighting/rigor | 2024 outcome |
|---|---|---|---|
| Annual cash incentive (company-wide program) | Metrics include pre‑provision net income, average finance receivables, net credit losses as % of AFR, pre‑provision ROA, G&A as % of total revenue, plus qualitative execution assessment | Program is entirely performance‑based; rigorous, primarily quantitative criteria | 2024 bonuses paid at 112% of target on quantitative outperformance . |
Equity Ownership & Alignment
| Policy/Status | Details |
|---|---|
| CEO Ownership Guideline | 5x annual base salary; others NEOs 2x salary; directors 5x annual cash retainer . |
| Holding Requirement | Must retain 50% of net shares from vesting/exercise for at least 12 months and until ownership guideline met . |
| Hedging/Pledging | Prohibited under Code of Ethics and Stock Ownership & Retention Policy . |
| Director Pay for Employees | Employees serving as directors receive no separate board/committee compensation . |
| Compliance (Company as of 12/31/24) | All directors (excluding newly appointed Ms. Booth in Mar 2025) and covered employees were in compliance with guidelines (context prior to Lamba’s start) . |
| Initial Section 16 Setup | Power of Attorney filed to facilitate Form 3/4/5 and related SEC filings (dated Oct 30, 2025; filed Nov 12, 2025) . |
Note: Lamba’s initial beneficial ownership (Form 3) and any pledge/hedge disclosures were not included in the filings reviewed here; update when Form 3/4s post .
Employment Terms
| Term | Summary |
|---|---|
| Employment Start/At‑Will | Commences on/about Nov 10, 2025; employment is at‑will . |
| Severance & CIC Participation | Eligible under RM Executive Severance and Change in Control Plan with Severance Multiple and CIC Multiple of 2.0 (definitions per plan) . |
| CIC Vesting Mechanics | Company and award agreements include double‑trigger change‑in‑control provisions (no single‑trigger equity vesting) . |
| Restrictive Covenants | Subject to confidentiality, non‑competition, non‑solicitation, non‑disparagement and other covenants per Severance Plan/agreements . |
| Governing Law/Forum | Delaware law; disputes tried without jury in SC state courts or U.S. District Court in Greenville, SC . |
| Board Appointment/Nomination | Appointed to Board effective ~Nov 10, 2025; to be nominated for stockholder election at 2026 annual meeting . |
Governance, Say‑on‑Pay, and Compensation Committee Context
| Item | Detail |
|---|---|
| 2024 Say‑on‑Pay support | ~68% support in 2024 (vs. >94% each of prior three years); Board/Comp Committee engaged holders and increased rigor of 2024 PRSU TSR thresholds . |
| Committee independence | HR & Compensation Committee consists solely of NYSE‑independent directors (Chair: Steven J. Freiberg) and uses an independent consultant (FW Cook) . |
Performance & Track Record
- Background achievements: At PNC, Lamba oversaw a team of ~2,000 and a ~$32B consumer lending portfolio, with emphasis in consumer credit, digital/tech platform development, branch sales/service, analytics, and product management .
- Company performance context: RM’s 2024 annual incentive metrics were exceeded (112% of target payout), while 2022–2024 absolute TSR was -26.3% leading to a 64% payout on 2022 PRSUs; 2024/2025 compensation changes reflected investor feedback for higher rigor .
Risk Indicators & Red Flags
- 2024 say‑on‑pay at 68% signals shareholder scrutiny of pay design; Board responded by enhancing PRSU TSR thresholds and continued outreach .
- Hedging/pledging prohibited; clawback policies in place; no excise tax gross‑ups; double‑trigger CIC—generally supportive of alignment and risk controls .
- 8‑K states no related‑party transactions involving Lamba reportable under Item 404(a); no family relationships disclosed .
Compensation Structure Analysis (signals)
- 2025 compensation tilts toward equity via inducement RSAs and PRSUs; 2026 design includes a high at‑risk cash incentive (150% of salary target) plus sizable performance‑based equity, strengthening pay‑for‑performance alignment .
- PRSU cliff vest on 12/31/2028 introduces multi‑year performance horizon; RSA tranches on 12/31/26–12/31/28 smooth potential selling pressure but are further moderated by 12‑month 50% post‑vest holding and ownership guidelines .
Investment Implications
- Alignment: High at‑risk pay (150% STI target; 50% PRSU in 2026 LTI) and prohibitions on hedging/pledging, plus ownership/holding requirements, support long‑term alignment; double‑trigger CIC and clawbacks add governance protection .
- Retention/selling pressure: Three‑year RSA vesting (2025–2028) and PRSU cliff in 2028 create meaningful unvested equity; the 12‑month post‑vest hold on 50% of shares should dampen near‑term selling pressure post‑vest .
- Governance watch items: The 2024 say‑on‑pay dip (68%) elevates ongoing scrutiny; the Board’s response (higher PRSU TSR hurdles, investor outreach) is constructive—monitor 2026 program specifics and subsequent say‑on‑pay results .
- Execution focus: Lamba’s deep consumer lending/analytics background and scaled PNC experience are well‑matched to RM’s model; early indicators of performance will be design/targets for 2026 STI/PRSU, credit quality management, and technology leverage for profitable growth .