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Robert Carney

Director at Sound Financial Bancorp
Board

About Robert F. Carney

Robert F. Carney, age 77, is an independent director of Sound Financial Bancorp (SFBC) and Sound Community Bank; he has served on the board since 1984 with his current term expiring at the 2028 annual meeting . He is retired; his background includes over 20 years in food retail management with budgeting and profit-responsibility, and he holds an MBA from the University of Southern California and an undergraduate degree in economics and business . He has 38 years of board experience with the institution, beginning when it was a $25 million‑in‑assets credit union, providing operational, budgeting, and financial management expertise to the board .

Past Roles

OrganizationRoleTenureCommittees/Impact
Scolaris Food & Drug Company (Reno, NV)Director of Meat & Seafood MerchandisingFeb 2008 – Jul 2017Managed merchandising; budgeting and profit generation responsibilities
Brown & Cole Stores (Bellingham, WA)Director of Meat & Seafood MerchandisingPrior to Feb 2008; six yearsManagement roles with budgeting/profit responsibilities

External Roles

OrganizationRoleTenureNotes
No other public company directorships disclosed in the 2025 proxy .

Board Governance

TopicDetail
IndependenceBoard has determined Carney is independent under Nasdaq rules .
Committee assignmentsAudit Committee member (current members: Jones–chair, Riojas, Porcelli, Carney, Haddad) .
Committee chair rolesNone (Audit chaired by Debra Jones; Compensation chaired by James Sweeney; Nominating chaired by David Haddad) .
Attendance and engagementNo incumbent director attended fewer than 75% of aggregate board and committee meetings in 2024; all directors attended last year’s annual meeting .
Board/committee activity levelsSFBC Board: 4 regular meetings; Bank Board: 10 regular; Compensation: 5; Audit: 4; Nominating: 1 (FY2024) .
Term and tenureDirector since 1984; term expires 2028 .
Board leadershipIndependent, non-executive Chairman (Tyler Myers); CEO and Chair roles separated .
Stock ownership guidelinesNon‑employee directors expected to own at least $50,000 in stock within two years; all current non‑employee directors meet the threshold .
Hedging/pledging policyProhibits hedging and pledging; limited pledge exceptions require financial capacity; margin accounts prohibited .

Fixed Compensation

ComponentDetail
Annual retainer (2024)$33,960 cash retainer for Bank Board service (no separate SFBC retainer) .
Meeting fees (2024)$1,500 per monthly Bank Board meeting attended; no additional committee or special meeting fees .
2024 actual cash paid (Carney)Fees earned/paid in cash: $48,960 .
All other compensation (2024)$304 (dividends on unvested restricted stock) .
Total 2024 director compensation (Carney)$62,239 .

Performance Compensation

Award TypeGrant DateQuantity/PriceGrant Date Fair ValueVestingNotes
Restricted StockJan 26, 2024250 shares at reference price $39.89$9,973Vests in 3 equal annual installments beginning Jan 26, 2025As of Dec 31, 2024, each director (ex- Porcelli) held 400 unvested shares .
Stock OptionsJan 26, 2024265 options; exercise price $39.89$3,002Vests in 3 equal annual installments beginning Jan 26, 2025As of Dec 31, 2024, Carney held total options on 1,875 shares .
  • No director performance metrics disclosed for equity; awards are time-vested and accelerate upon death, disability, or change in control; non‑vested awards are forfeited upon other terminations and vested option exercise windows shorten to 3 months .

Other Directorships & Interlocks

  • No other public company directorships disclosed for Carney in the 2025 proxy .
  • Board includes a representative of a significant shareholder (Stilwell Group) as a director (Corissa Porcelli); Board continues to deem her independent under Nasdaq rules .

Expertise & Qualifications

  • MBA (USC); undergraduate in economics and business .
  • 20+ years management experience in food retail; 12 years with budgeting and profit responsibility .
  • Extensive board experience (38 years) with the institution; knowledge of credit union/bank operations and governance .
  • Audit Committee member; Audit Committee financial expert designation resides with Debra Jones, CPA, not Carney .

Equity Ownership

As ofBeneficial Ownership (shares)% of OutstandingComponents/Notes
Mar 31, 202512,845<1%Includes options to acquire 1,318 shares and 217 restricted shares; 2,566,069 shares outstanding .
Dec 31, 2024 (position detail)Unvested restricted shares: 400; total options outstanding: 1,875 .
Policy contextHedging/pledging prohibited (limited pledge exceptions); all non‑employee directors meet $50,000 ownership guideline .

Related‑Party Transactions and Conflicts

  • No preferential loan or other related‑party transaction involving Carney was disclosed for 2023–2024; preferential‑rate mortgages were disclosed for other directors/executives (not Carney) consistent with Regulation O .
  • Insider trading policy prohibits hedging/pledging and margin accounts, mitigating alignment risks; no exceptions disclosed for Carney .

Say‑on‑Pay & Shareholder Feedback (Context)

  • Say‑on‑pay (2024 meeting) approved by approximately 94.7% of votes cast, indicating broad shareholder support for compensation practices overseen by the board .

Governance Assessment

  • Positives
    • Independent director with Audit Committee service; board separates CEO and Chair roles, and maintains robust anti‑hedging/pledging policies .
    • Meaningful equity element in director pay (restricted stock and options) with time‑based vesting; all directors meet stock ownership guideline, supporting alignment .
    • No Carney‑specific related‑party transactions; attendance at or above 75%, and annual meeting attendance by all directors .
  • Potential red flags (monitor)
    • Very long tenure (director since 1984) may raise independence/performance refresh concerns despite formal Nasdaq independence .
    • Equity awards to directors are time‑based rather than performance‑conditioned; while typical for banks of this size, they do not directly tie director equity to explicit performance metrics .

Overall: Carney brings substantial board and operating experience and serves on the Audit Committee with no disclosed conflicts or attendance issues; however, investors may scrutinize his multi‑decade tenure as a potential independence/refresh risk.