Anne Martinez
About Anne Martinez
Anne Martinez, 50, is Chief Risk Officer (CRO) of Southside Bancshares, Inc. and Southside Bank, appointed effective September 1, 2024, after serving as Executive Vice President and Senior Loan Review Officer from 2012–2024; she joined Southside in 1999 and holds a BBA in Finance and Accounting from Texas A&M University . She currently serves on Moody's Community Banking Advisory Board and is Vice Chairman of the Texas A&M University Commercial Banking Program Board . During 2024, company performance improved modestly: net income rose 2.1% year-over-year, diluted EPS increased 3.2%, loans grew 3.0%, deposits grew 1.6%, and nonperforming assets fell to 0.04% of total assets; ROATCE measured 15.25% for compensation purposes and 2024 TSR translated a $100 initial investment into $105.10 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Southside Bancshares / Southside Bank | Executive Vice President & Senior Loan Review Officer | 2012–2024 | Led independent loan review, credit risk oversight, and controls across portfolios . |
| Southside Bancshares / Southside Bank | Loan Review Officer; Risk Analyst; Municipal Analyst; Credit Analyst | 1999–2012 | Built foundational credit and risk analytics capabilities supporting enterprise risk management . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Moody’s Community Banking Advisory Board | Member | Current | Contributes practitioner perspective to community bank risk and credit topics . |
| Texas A&M University Commercial Banking Program Board | Vice Chairman | Current | Supports talent pipeline and curriculum for banking program leadership . |
Fixed Compensation
Not disclosed. Anne Martinez was not listed among Named Executive Officers (NEOs) in the 2025 proxy’s Summary Compensation Table, and no separate salary or bonus details for the CRO were provided .
Performance Compensation
- Annual Incentive Program (AIP) design for NEOs emphasizes EPS, ROATCE, Loan Growth, and a qualitative scorecard (quantitative 75%, qualitative 25%); 2024 participants included CEO, CFO, COO, President, and CCO. The CRO was not identified as a participant in 2024 AIP .
- Long-term equity program (since 2022) grants 50% PSUs and 50% RSUs to NEOs; RSUs vest in equal annual installments over three years; PSUs cliff-vest at year 3 based on ROATCE relative to the KRX regional bank index with 0–150% payout range .
- Company compensation governance: clawback policy aligned with NYSE Rule 10D-1 and SEC rules, awards subject to recoupment and forfeiture; minimum one-year vesting; double-trigger vesting on change in control; prohibition on repricing; no tax gross-ups .
2024 AIP Performance Outcomes (Company/NEO Program)
| Metric | Threshold | Target | Maximum | Actual 2024 | Payout Basis |
|---|---|---|---|---|---|
| EPS | $2.26 | $2.66 | $4.03 | $2.98 (adjusted) | 111.7% of target |
| Loan Growth | 4.00% | 5.00% | 7.00% | 3.00% | Below threshold (no payout) |
| NPAs / Total Assets | 0.12% | 0.05% | 0.03% | 0.04% | 125.0% of target |
| ROATCE | 11.70% | 13.77% | 22.13% | 15.25% (adjusted) | 108.9% of target |
| Qualitative Scorecard | — | — | — | Above Target | 130% for most NEOs; 120% for President |
Note: Anne Martinez’s individual incentive targets, weightings, and payouts were not disclosed for 2024 .
Equity Ownership & Alignment
- Stock ownership guidelines: CEO 3x salary; President/CFO 2x; Chief Lending Officer 2x; other executive officers 0.5x salary; encouraged timeline to comply is five years (CEO/CFO/President/CLO) and seven years for other executive officers; executives must retain 50% of shares from equity awards if out of compliance .
- Counting toward requirements includes shares owned directly/indirectly, vested ESOP/401(k)/IRA holdings, and outstanding RSUs; excludes unexercised options and unearned PSUs .
- Anti-hedging and anti-pledging: executives, directors, and equity grantees are prohibited from hedging, short sales, and pledging (including margin accounts) to prevent misalignment and short-term focus .
- Clawback policy: incentive-based compensation (and service-based where applicable) is subject to recovery in restatement and misconduct scenarios, and awards under incentive plans are explicitly subject to recoupment .
- Incentive plan features enhancing alignment include minimum vesting periods, double-trigger change-in-control treatment, and prohibition on option/SAR repricing; non-employee director awards capped at $250,000; no tax gross-ups .
Anne Martinez’s specific share ownership, vested/unvested breakdown, or pledge status were not disclosed in the proxy tables .
Employment Terms
- Appointed CRO of the Company and Bank effective September 1, 2024; prior role was EVP & Senior Loan Review Officer .
- Employment agreements with severance and change-in-control economics were disclosed for CEO, CFO, CCO, and COO (not CRO); these include single-trigger severance without cause and double-trigger severance in change-in-control with equity acceleration; CRO employment agreement details were not disclosed .
Investment Implications
- Alignment and governance: Strong safeguards (anti-hedging/pledging, clawback, minimum vesting, no repricing, double-trigger) reduce agency risks and discourage short-termism; although CRO-specific compensation details are not disclosed, company-wide equity design and policies apply to executive officers and support alignment .
- Retention: Recent promotion with 25+ years at Southside indicates institutional knowledge and continuity; absence of disclosed CRO severance terms suggests lower guaranteed exit economics relative to NEOs, but equity awards (if granted) typically vest over three years, supporting retention .
- Pay-for-performance signals: Company AIP linked to EPS and ROATCE delivered payouts above target in 2024 despite loan growth below threshold; continued emphasis on ROATCE and EPS should keep risk leadership focused on profitability and capital efficiency—relevant for CRO oversight of enterprise risk, credit quality, and capital allocation .
- Trading/flow considerations: Anti-pledging policy reduces forced selling risk; RSU/PSU vest schedules used for NEOs imply periodic tax withholding transactions around vest dates; monitor future proxies and Form 4 filings to assess CRO equity grants and any insider activity as disclosures evolve .
- Shareholder sentiment: Say-on-pay support of ~94% in 2024 indicates broad investor endorsement of the compensation framework, lowering governance overhang risk while Martinez integrates into the CRO role .