William P. Taylor
About William P. Taylor
William P. Taylor, age 67, is Chief Executive Officer of SR Bancorp, Inc.’s subsidiary Somerset Regal Bank (CEO since 2013), Chairman of the Bank (since 2018), and a director of SR Bancorp and the Bank (director since 2007). He holds a B.S. in Accounting from Wake Forest University and joined Somerset Savings Bank in 1983 as Assistant VP and Controller, with deep operating experience through the Bank’s IPO and simultaneous Regal Bancorp merger in 2023 . Under his leadership, FY2025 net income was $3.7M (vs. FY2024 loss of $10.9M), assets rose to $1.08B, net loans reached $797.3M, and deposits were $846.0M, reflecting balance-sheet repositioning and integration of the 2023 merger .
Company performance context (fiscal year end June 30):
| Metric | FY 2024 | FY 2025 |
|---|---|---|
| Net Income ($) | $(10,860,000) | $3,747,000 |
| Total Assets ($) | $1,020,844,000 | $1,083,016,000 |
| Net Loans ($) | $731,859,000 | $797,324,000 |
| Total Deposits ($) | $807,100,000 | $846,022,000 |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Somerset Regal Bank / Somerset Savings Bank | CEO | 2013–Present | Led commercial-bank conversion, balance sheet repositioning, and 2023 merger integration . |
| Somerset Regal Bank / Somerset Savings Bank | Chairman (Bank) | 2018–Present | Combined Chairman/CEO at Bank to align execution with strategic plan . |
| Somerset Savings Bank | President | 2009–2013 | Oversaw operations ahead of eventual mutual-to-stock conversion . |
| Somerset Savings Bank | Assistant VP & Controller | From 1983 | Built core finance/controls foundation . |
| SR Bancorp, Inc. and Bank | Director | Since 2007 | Board oversight and strategic guidance . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Somerset County Business Partnership | Advisory Board Member | Current | Community and market connectivity in NJ footprint . |
| New Jersey Bankers Association | Board Member | As of 2024 filing | Industry advocacy and regulatory engagement (noted in 2024 proxy) . |
Fixed Compensation
| Year | Base Salary ($) | Target Bonus % | Actual Cash Bonus ($) | All Other Compensation ($) | Notes |
|---|---|---|---|---|---|
| 2025 | 475,000 | ≥25% of base (contract) | 115,000 | 47,421 (401k $10,800; ESOP $15,621; Auto $9,000; SERP $12,000) | SERP credits are discretionary; always 100% vested in account . |
| 2024 | 460,000 | ≥25% of base (contract) | 115,000 | 39,190 (401k $9,900; ESOP $13,567; Auto $15,723) | Pension plan frozen; new SERP adopted Apr-2024 . |
Performance Compensation
- Equity awards granted January 29, 2025:
- Restricted Stock: Grant-date fair value $570,475; vests in five approximately equal installments beginning January 29, 2026 .
- Stock Options: Grant-date fair value $550,109; vests in five approximately equal installments beginning January 29, 2026 .
- Grant-price reference for RSAs: $12.50 per share closing price on grant date .
| Incentive Type | Metric(s) | Weighting | Target | Actual/Payout | Vesting/Terms |
|---|---|---|---|---|---|
| Annual Cash Bonus | Not specifically disclosed; paid per plan/discretion | n/a | ≥25% of base opportunity | $115,000 paid in 2025 | Annual cash; plan participation per contract . |
| Restricted Stock (2025) | Time-based | n/a | n/a | $570,475 grant-date FV | 5 tranches; first on 1/29/2026 . |
| Stock Options (2025) | Time-based | n/a | n/a | $550,109 grant-date FV | 5 tranches; first on 1/29/2026 . |
Design/controls governing equity:
- 2024 Equity Plan minimum 1-year vesting (95%+ of awards), double-trigger change-in-control vesting (or vesting if awards not assumed), no repricing or cash buyouts of underwater options without shareholder approval, dividends on unvested awards accrued and paid only upon vesting; awards subject to clawback and trading policy (including hedging/pledging restrictions) .
Equity Ownership & Alignment
As of record date September 22, 2025:
| Item | Amount | Notes |
|---|---|---|
| Total Beneficial Ownership (shares) | 104,372 | 1.20% of outstanding (8,707,164 shares) . |
| Unvested Restricted Stock (included above) | 45,638 | Time-based RSA grants . |
| ESOP Allocated (included above) | 3,029 | Included in beneficial ownership . |
| 401(k) Shares (included above) | 23,505 | Held in trust in Bank 401(k) Plan . |
| Indirect (held by mother; included above) | 5,000 | Indirect beneficial ownership . |
Policy signals:
- Hedging/pledging: 2025 proxy states no anti-hedging policy (hedging not prohibited), but Insider Trading Policy prohibits short sales, put and call options; 2024 proxy states trading policy prohibits derivative/hedging transactions and awards are subject to hedging/pledging policy restrictions in the equity plan .
- Director pay: Taylor received no fees as a director (as an executive) .
Employment Terms
- Agreement term: Taylor’s employment agreement runs through September 19, 2026; Somerset Regal Bank may extend for 12 months on 30 days’ notice .
- Target cash bonus: At least 25% of base salary, plus discretionary plan participation .
- Severance (no change-in-control): Upon termination without cause or resignation for “good reason,” the greater of (i) remaining base salary plus total annual bonus opportunity for the remaining term, or (ii) 2x (base salary + average annual bonus over last 3 years); plus up to 18 months COBRA reimbursement .
- Change-in-control severance: If a qualifying termination occurs at or within 2 years post-CoC, severance equals 3x (base salary in effect or highest in last 3 years + average annual total incentive bonus over last 3 years or target for CoC year); plus a lump sum equal to 36 months of health care costs .
- Covenants: Non-compete and non-solicit (1 year post-termination; 6–24 months post-CoC as agreed); standard “good reason” includes material pay cut, authority reduction, failure to re-appoint to position/board, relocation >20 miles, or material breach .
- Deferred comp/SERP: Taylor participates in the Deferred Compensation Plan (credited with the higher of the top CD rate or the weighted average cost of deposits; distributions typically over 10 years) and SERP (Bank-discretionary annual credits; 2025 SERP credit $12,000 for Taylor) .
- Pension: Legacy pension plan frozen as of April 30, 2023 .
Board Governance
- Independence: Taylor is not independent (executive officer); Board determined only non-management directors, excluding Orbach, Pribula, Taylor, are independent .
- Leadership: SR Bancorp separates Chairman (David M. Orbach) and CEO (Taylor is not HoldCo Chairman). At the Bank, Chairman/CEO roles are combined in Taylor to maintain operational alignment; the Board explicitly reviewed and supported this combined role at Bank level .
- Committees: Taylor is not listed as a member of the Audit, Compensation, or Nominating/Governance committees as of September 22, 2025 .
- Meetings/attendance: In FY2025 the SR Bancorp Board held 12 meetings; no director attended fewer than 75% of meetings of the Board and committees on which they served .
- Director compensation: Executives (including Taylor) receive no separate director fees .
Related Party, Hedging/Pledging, and Controls
- Insider trading/hedging: 2025 proxy reports no anti-hedging policy; hedging transactions are not prohibited, though short sales, puts, and calls are prohibited under the Insider Trading Policy . The 2024 proxy/stated plan indicates equity awards are subject to clawbacks and hedging/pledging policy restrictions and prohibits derivative/hedging transactions in trading policy .
- Loans to insiders: Permitted on market terms in compliance with banking rules; at June 30, 2025, all such loans were on ordinary terms and performing .
- Other related parties: Disclosed branch leases with entities related to the Executive Chairman’s family; no Taylor-specific related-party transactions disclosed .
Compensation Structure Analysis
- Mix shift post-IPO/plan adoption: In FY2025, equity became a substantial portion of total comp (RSAs ~$570k; options ~$550k), with five-year vesting creating multi-year alignment and delayed realization .
- Pay-for-performance levers: Contract provides a defined target cash bonus opportunity, while the 2024 Equity Plan enables performance-conditioned equity; however, specific FY2025 bonus metrics/weights were not disclosed .
- Shareholder protections: 1-year minimum vesting, double-trigger CoC vesting, no option repricing/cash buyouts, and clawbacks are positive governance features; dividend deferral until vest mitigates windfalls .
- Potential red flag: 2025 disclosure indicating no anti-hedging policy (while still prohibiting short sales, puts, calls) could weaken alignment signals vs. peers with comprehensive anti-hedging/pledging policies .
Equity Vesting & Insider Selling Pressure
- Equity cadence: 2025 RSA and option awards begin vesting January 29, 2026 in five equal annual tranches, creating defined windows of potential supply each year from 2026–2030, subject to blackout windows and personal diversification needs .
- Ownership guideline: No explicit executive stock ownership guideline or compliance status disclosed; ESOP/401(k) holdings provide some embedded alignment .
Performance & Track Record
- Integration and repositioning: Completed mutual-to-stock conversion and Regal Bancorp merger (Sept 19, 2023), executed a balance sheet restructuring (2024) and delivered FY2025 profitability with asset and loan growth; repurchased 936,991 shares for $11.3M while maintaining tangible book at $18.67/share .
- Margin pressure: FY2025 NIM compressed to 2.93% (from 3.19%), reflecting higher deposit costs; credit quality remained strong (no non-performing loans at 6/30/25; ACL/loans 0.65%) .
Compensation Peer Group, Say-on-Pay, Shareholder Feedback
- Peer group/percentiles: Not disclosed in the proxies; 2024 Equity Plan share pool aligned with typical mutual-to-stock conversion best practices (4% RS/RSU; 10% options, fungible) .
- Say-on-pay: As an Emerging Growth Company, reduced executive compensation disclosures and advisory votes may apply; no historical SOP results disclosed .
Employment Terms (Severance & CoC Economics) – Summary Table
| Provision | Base Case | Change-in-Control (within 2 years) |
|---|---|---|
| Severance Multiple | Greater of (i) remaining term pay + bonus opportunity or (ii) 2x (base + 3-yr avg bonus) | 3x (base + 3-yr avg total incentive or target for CoC year) |
| Health Benefits | COBRA reimbursement up to 18 months | Lump sum equal to 36 months of health care cost |
| Triggers | Without cause or for “good reason” | Qualifying termination (double trigger) |
| Restrictive Covenants | Non-compete & non-solicit (1 year; 6–24 months post-CoC by agreement) | Same |
Board Service and Dual-Role Implications
- Taylor serves on the SR Bancorp board but is not independent; SR Bancorp separates the Chair and CEO roles (Chair: Orbach), while at the Bank level, Taylor is both Chairman and CEO for continuity and strategy alignment—explicitly reviewed by the Board .
- Committee roles: None (as an executive director), reducing conflicts in committee oversight .
- Implication: HoldCo separation supports governance independence; Bank-level combination concentrates authority, which can be mitigated by independent HoldCo board/committees and clear reporting/oversight .
Investment Implications
- Alignment improving via multi-year vesting: The five-year vesting of 2025 RSAs/options, dividend deferral until vesting, clawback coverage, and prohibition of option repricing are favorable alignment features; double-trigger CoC vesting reduces windfall risk in a sale .
- Retention risk appears moderated: Contractual severance, SERP/Deferred Comp, and staggered vesting support retention through integration and margin normalization cycles .
- Selling pressure timing: First equity tranche vests Jan 29, 2026; subsequent annual tranches through 2030 could create periodic supply depending on windows and personal diversification, though Taylor’s embedded ESOP/401(k) and sizable unvested RSAs signal continued alignment .
- Policy watch item: The 2025 disclosure of no anti-hedging policy (despite bans on shorts/puts/calls) lags best practice and could be a governance red flag for some investors; balance this against the equity plan’s explicit clawback and anti-repricing protections .
Key data sources: 2025 DEF 14A (executive pay, ownership, governance, contracts) ; 2025 8-K earnings release (results, capital actions) ; 2024 DEF 14A and 2024 10-K (equity plan terms, policy details, background) .