Daniel Hobbs
SIMMONS FIRST NATIONALAbout Daniel Hobbs
C. Daniel Hobbs, 51, has served as Executive Vice President and Chief Financial Officer of Simmons First National Corporation (SFNC) and Simmons Bank since December 4, 2023, after a 16-year finance leadership career at Regions Financial (Head of Finance; previously Consumer CFO) and earlier roles in financial planning at Saks, Inc. He holds a B.S. in Accounting from the University of Alabama at Birmingham and graduated with honors from the CBA Executive Banking School, where he serves on the faculty . In 2024, SFNC’s incentive scorecard exceeded targets on adjusted pre-provision net revenue less net charge-offs ($215.205M vs $214M target) and adjusted efficiency ratio (64.59% vs 65% target), contributing to Hobbs’ CIP payout slightly above target; by contrast, the company’s 2022 PSU cycle (2012–2024 performance period) paid 0% on all components, reflecting stringent relative metrics in that cycle .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Regions Financial (Regions Bank) | EVP & Head of Finance (enterprise) | 2019–2023 | Led finance for Consumer, Corporate, Wealth lines; support groups; strategic insights/analytics; financial systems . |
| Regions Financial | Consumer Chief Financial Officer | Prior to 2019 | Led full P&L finance for consumer bank; finance coverage of ops/tech, digital, marketing, procurement, corp real estate . |
| Regions Financial | Various finance leadership roles | 2007–2019 | Progressive finance responsibilities across the bank . |
| Saks, Incorporated | Director of Financial Planning & Decision Support | Pre-2007 | Financial planning and decision support for a national retailer . |
External Roles
| Organization | Position | Years | Notes |
|---|---|---|---|
| CBA Executive Banking School | Faculty (CFO perspective) | Ongoing | Teaches banking from the CFO perspective . |
Fixed Compensation
| Component | Detail | Amount | Notes |
|---|---|---|---|
| Base salary (approved) | Annual base at appointment | $475,000 | Per appointment 8-K . |
| Salary paid (2024) | Actual cash salary | $456,731 | Lower due to payroll timing change . |
| Executive stipend | Annual | $12,000 | Per appointment 8-K and 2024 “All Other” . |
| 401(k) company match | 2024 | $22,632 | Included in “All Other Compensation” . |
| NQDC plan | 2024 company contributions | $15,240 | Included in “All Other Compensation” . |
| Insurance premiums | 2024 | $13,116 | Included in “All Other Compensation” . |
| Relocation reimbursement | 2024 | $107,053 | Included in “All Other Compensation” . |
| All Other Compensation (total) | 2024 | $170,041 | Sum of items above . |
Performance Compensation
Cash Incentive Plan (CIP) – 2024 design, targets, and outcomes
| Metric | Weight | Target/Threshold/Max | 2024 actual | Payout vs target | Notes |
|---|---|---|---|---|---|
| Adjusted PPNR less net charge-offs | 35% | Threshold $192M; Target $214M; Max $235M | $215.204,867 | 102% | Within “landing zone,” above target . |
| Adjusted Efficiency Ratio (ER) | 35% | Threshold 69%; Target 65%; Max 61% | 64.59% | 104% | Within landing zone, better than target . |
| Strategic performance | 30% | 0–200% scale | Certified achieved | 100% | Company strategic goals achieved . |
Hobbs’ 2024 CIP payout detail:
| Component | Weighting factor | Targeted incentive ($) | Earned benefit level | Amount paid ($) |
|---|---|---|---|---|
| PPNR less net charge-offs | 35% | $124,688 | 102% | $127,181 |
| Adjusted ER | 35% | $124,688 | 104% | $129,800 |
| Strategic performance | 30% | $106,875 | 100% | $106,875 |
| Total CIP benefit | — | — | — | $363,856 |
CIP target opportunity = 75% of base salary (target $356,250); payout range 0–200% of target; components weighted uniformly for NEOs in 2024 (PPNR 35%, ER 35%, Strategic 30%) .
Equity incentives (LTIP) – structure and 2024 grants
- Target equity for 2024: 90% of salary; 50% RSUs (time-based), 50% PSUs (3-year performance) .
- 2024 stock awards grant-date fair value: $431,150 .
- PSU performance criteria (2024–2026 cycle): 50% tangible book value per share growth ranking vs compensation peer group; 50% TSR ranking vs KBW Regional Banking Index; threshold/target/max at 25th/50th/75th percentile (0%/100%/200% of target) .
2024 grants and vesting (Hobbs):
| Instrument | Grant date | Target shares | Vesting schedule / performance window | Notes |
|---|---|---|---|---|
| PSUs (2024–2026) | 02/28/2024 | 11,382 | 3-year perf. period; payable early 2027 upon certification | TBV growth rank 50%, TSR rank 50% . |
| RSUs (annual) | 02/28/2024 | 11,382 | 1/3 each on Feb 28, 2025–2027 | Time-based RSUs . |
| RSUs (sign-on) | 11/28/2023 | 21,000 | Pro rata over five years (4,200 per Dec 4, 2025–2028; plus first tranche vested in 2024) | From appointment 8-K; “pro-rata over five years” . |
PSU 2022 cycle (2014–2024 performance period under legacy design) paid 0% on Core ROAA, Core ROTCE, and TSR (all <25th percentile), underlining stringent relative hurdles; note Hobbs joined in late 2023 .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 2,547 SFNC shares (beneficially owned), <1% of shares outstanding . |
| Shares outstanding (context) | 125,918,825 as of March 5, 2025 . |
| Unvested RSUs (12/31/2024) | 16,800 (4,200 vesting each Dec 4, 2025–2028) and 11,382 (3,794 vesting each Feb 28, 2025–2027) . |
| Unearned PSUs (max) | 22,764 (2024–2026 performance cycle; actual payout 0–200% of target) . |
| Options | None outstanding for Hobbs (no exercisable or unexercisable options listed) . |
| 2024 vesting realized | 4,200 shares vested in 2024; value realized $102,816 . |
| Ownership/pledging policy | Anti-hedging and anti-pledging policy for directors and senior officers; exceptions require NCGC approval . |
| Stock ownership guidelines | EVP-and-above must hold 3x base salary; 5-year compliance window; includes unvested RSUs and PSUs at 100% for guideline calculation . |
| Split-dollar life benefit | Participant death benefit (Company BOLI plan): $950,000 for Hobbs (effective Aug 1, 2025) . |
Implication for selling pressure: The scheduled RSU vesting cadence (3,794 shares each Feb 28, 2025–2027; 4,200 shares each Dec 4, 2025–2028) creates predictable windows when shares may be withheld/sold for taxes or liquidity; PSUs (2024–2026) settle early 2027 subject to performance, potentially adding to supply depending on attainment .
Employment Terms
- Appointment terms: EVP & CFO of SFNC and Simmons Bank effective December 4, 2023; serves until successor appointed or earlier termination; reports to the President .
- Initial compensation: $475,000 base salary; $225,000 cash sign-on bonus (repayable if resigns within two years); 21,000 RSUs (5-year pro-rata vesting); annual stipend $12,000; eligible in 2024 for target equity 90% of salary (up to 150% of target) and target cash incentive 75% (up to 200% of target); relocation reimbursements; expected to enter CIC and supplemental retirement agreements .
- Change-in-control (CIC): Double-trigger. Upon CIC plus qualifying termination, severance equals 2x (Hobbs) the sum of highest base salary in prior 12 months and the greater of target CIP or average of last two years’ actual CIP; equity awards vest per plan (options and restricted stock; RSUs vest upon termination within one year of CIC; PSUs vest at target if CIC occurs after first nine months of the performance period); CIP becomes payable at target, pro-rated; supplemental retirement benefit vesting accelerated .
- Estimated CIC economics (as of 12/31/2024, price $22.18): Cash $1,662,500; accelerated incentive vesting $877,530; retirement plan value $1,493,610; other benefits $0 .
- Clawback: Comprehensive incentive compensation clawback policy applies across cash and equity, aligned to SEC/NYSE rules .
- Insider trading policy: Enforced with blackout/trading-window controls; policy filed with 10-K .
- Supplemental retirement (Hobbs Plan): Non-qualified defined benefit; normal vest at age 60; monthly benefit equals 1/12 of 30% of final average compensation (5-year average), paid for 180 months; compensation measure includes salary only; fully vests on CIC .
- Deferred compensation: Eligible for NQDC excess plan (up to 90% deferral of plan compensation; 4% company match on “Excess Compensation” if 5% deferral elected; 2.56% discretionary contribution for 2024, paid Q1’25) .
Investment Implications
- Pay-for-performance alignment: Hobbs’ variable pay is tightly tied to bank profitability and efficiency (PPNR and ER), with 2024 payouts slightly above target; long-term equity is split between time-based RSUs and three-year PSUs against demanding relative TBV and TSR hurdles, capping total LTIP leverage and limiting windfalls .
- Retention vs. selling pressure: Multi-year RSU schedules (through 2028) and PSU performance gates support retention but create predictable vesting windows that can generate 10b5‑1 or tax‑withholding sells; total personal ownership is modest (<1%), limiting alignment via outright stock but supplemented by corporate ownership guidelines and anti-pledging rules .
- Downside protection and CIC economics: Double-trigger CIC at 2x salary+bonus plus accelerated equity and SERP vesting provide meaningful protection; no tax gross-up for Hobbs (Company policy restricts new gross-ups), which is governance-friendly and reduces shareholder optics risk .
- Execution track record context: Company-wide 2022 PSU cycle paid 0% on all components (stringent relative hurdles), while 2024 short-term metrics exceeded targets (PPNR and ER), suggesting improving execution under the current team while long-term relative hurdles remain demanding—a constructive but not complacent signal for investors .