Bradford Hu
Chief Risk Officer at STT
Executive
About Bradford Hu
Bradford Hu is Executive Vice President and Chief Risk Officer (CRO) of State Street, age 61 as of February 13, 2025, having joined in November 2021 and serving as CRO since January 2022 . He leads global enterprise risk management and oversees corporate compliance, with dual reporting to the CEO and the Board’s Risk Committee . His long-term incentives are tied to multi-year performance metrics including fee revenue growth and average pre-tax margin (core matrix), modified by relative TSR vs the KBW Bank Index and ROE; prior cycles earned outcomes such as 61.5% for awards granted for 2021 performance (measured 2022–2024) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Citigroup | Chief Risk Officer (Global) | 2013–2020 | Led enterprise-wide risk management at a global financial institution |
| Citigroup Asia-Pacific | Chief Risk Officer (APAC) | 2008–2012 | Regional CRO driving risk frameworks and oversight across APAC |
| Morgan Stanley | Senior leadership roles (Global Equity, Global Capital Markets, Investment Banking) | Not disclosed | Front-office risk/commercial roles informing holistic risk perspective |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| None disclosed in STT proxy/10-K for Hu | — | — | No public company directorships disclosed for Hu |
Fixed Compensation
| Year | Base Salary ($) | All Other Compensation ($) | Key “All Other” Components |
|---|---|---|---|
| 2024 | 700,000 | 134,924 | Company savings plan contributions $28,450; charitable + matching $55,000; parking $10,200; relocation $35,708 incl. $14,498 tax gross-up; personal liability $2,405; executive health screening $3,161 |
| 2023 | 700,000 | 116,542 | Composition per 2023 proxy; detailed 2024 component breakdown shown above |
Performance Compensation
2024 Incentive Award Structure and Outcome
| Component | Target ($) | Actual ($) | Payout vs Target | Vehicle Mix and Vesting |
|---|---|---|---|---|
| Immediate Cash | — | 2,016,000 | Included in total payout | Paid immediately |
| Deferred Stock Awards (DSAs) | — | 1,440,000 | Included in total payout | Vests ratably over four years from grant (for 2024 grants) |
| Performance-Based RSUs | — | 2,304,000 | Included in total payout | 3-year performance period; vest in one installment post-certification; modifiers by TSR and ROE |
| Total Incentive Compensation | 4,800,000 | 5,760,000 | 120% of target (corporate 115% + individual +5%) | 65% delivered in long-term deferred equity; 40% tied to PBRSU metrics for Other NEOs |
Performance metrics for PBRSUs (2024 grants covering 2024–2026): core matrix based on simple average pre-tax margin and fee revenue CAGR; modified by three-year relative TSR vs KBW Bank Index (±25%) and three-year ROE (downward-only up to -100%). Final payout range: 0–150% .
2024 Grants of Plan-Based Awards (Granted Feb 23, 2024 for 2023 performance)
| Award | Grant Date | Target (# or $) | Maximum (# or $) | Grant-Date Fair Value ($) |
|---|---|---|---|---|
| Cash-Based Incentive (2024) | — | 1,680,000 | 3,360,000 | — |
| Performance-Based RSUs | 2/23/2024 | 25,263 | 37,895 | 1,631,990 |
| Deferred Stock Awards (DSAs) | 2/23/2024 | 15,433 | — | 1,019,967 |
PBRSU Design Targets (2025–2027 cycle)
- Fee revenue growth target for 100% payout: 3.0% CAGR over three years .
- Average pre-tax margin target for 100% payout: 27.5% over three years .
- Relative TSR modifier vs KBW Bank Index: -25% to +25% .
- ROE modifier (downward only): 0% to -100% based on ROE bands .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 12,250 shares as of March 3, 2025; each named executive owned less than 1% of outstanding shares; shares outstanding 288,590,984 |
| Stock Ownership Guideline | 5x base salary; Hu exceeds ratable guideline but not full guideline; subject to holding requirement (must hold 50% of net shares during phase-in) |
| Pledging/Hedging | Directors and executive officers prohibited from short selling, pledging, options trading, hedging and speculative transactions in State Street securities |
| 2024 Shares Vested | 5,805 shares acquired on vesting; value realized $423,939 (DSAs; CRSUs not applicable for Hu) |
Outstanding Equity Awards at Dec 31, 2024 (Unvested/Unearned)
| Grant Date | Unvested Shares/Units (#) | Market Value ($) | Type |
|---|---|---|---|
| 12/17/2021 | 2,945 | 289,052 | Stock awards (service-based) |
| 02/25/2022 | 1,183 | 116,111 | Stock awards (service-based) |
| 02/25/2022 | 2,363 | 231,928 | Stock awards (service-based) |
| 02/24/2023 | 11,228 | 1,102,028 | DSAs (service-based) |
| 02/24/2023 | 24,384 (unearned) | 2,393,290 | PBRSUs (performance-based) |
| 02/23/2024 | 15,433 | 1,514,749 | DSAs (service-based) |
| 02/23/2024 | 37,895 (unearned) | 3,719,394 | PBRSUs (performance-based) |
DSAs granted in 2024 vest ratably over four years from grant; performance-based RSUs earned 0–150% based on core metrics and modifiers, vest in one installment post-certification .
Employment Terms
- Start date and role: Offer acceptance dated November 8, 2021; EVP since November 2021; CRO since January 2022 .
- Non-compete / Non-solicit: U.S. NEO deferred incentive awards include non-competition and non-solicitation provisions; all incentive compensation subject to clawback, forfeiture and ex-ante adjustments .
- Nonqualified deferred compensation (MSSP): Executive contributions $14,000; company contributions $7,750; aggregate earnings $4,208; aggregate balance $49,957 (2024) .
Severance and Change-of-Control Economics (Estimated values at 12/31/2024)
| Scenario | Cash Severance ($) | DSAs (Accel/Cont.) ($) | PBRSUs (Accel/Cont.) ($) | DVAs (Accel/Cont.) ($) | Other Benefits ($) | Total ($) |
|---|---|---|---|---|---|---|
| Death | — | 3,021,940 (accelerated) | — | 1,003,265 (accelerated) | Health $2,267 | 9,699,953 |
| Disability | — | 3,021,940 (accelerated) | — | 1,003,265 (accelerated) | — | 9,697,686 |
| Involuntary Termination without Cause | 161,538 | 3,021,940 (continued vest) | 5,672,481 (continued vest) | 1,003,265 (continued vest) | Current-year incentive $1,020,000; health $1,099; outplacement $40,000 | 10,920,323 |
| Termination in Connection with Change of Control | 4,256,000 | 3,021,940 (accelerated) | 4,858,274 (accelerated) | 1,003,265 (accelerated) | Current-year incentive $1,428,000; retirement cash eq. $56,900; health $9,527; outplacement $40,000 | 14,673,906 |
Policy highlights in a change of control: cash severance equals two times the sum of base salary and prior year cash-based incentive (subject to $10 million cap); service-based restrictions lapse/accelerate for DSAs/CRSUs; unearned PBRSUs valued per specified target/actual assumptions; values generally based on closing price $98.15 (or 30-day average $98.16 for certain CRSUs) .
Investment Implications
- Pay-for-performance alignment: 65% of Other NEO incentives in long-term equity and 40% explicitly tied to fee revenue growth and margin via PBRSUs, with relative TSR and ROE modifiers; 2024 payout at 120% suggests solid corporate performance and “At Expectations” individual assessment for Hu .
- Retention and selling pressure: Significant unvested DSAs and unearned PBRSUs, coupled with a 5x salary ownership guideline and mandatory holding requirements during phase-in, limit near-term selling and align long-term incentives with shareholder outcomes .
- Governance safeguards: Strict prohibitions on pledging/hedging and robust clawback/forfeiture provisions reduce risk of misalignment; non-compete/non-solicit in deferred awards enhance retention and protect franchise .
- Execution risk levers: Long-term compensation outcomes depend on delivering fee revenue CAGR and sustaining target-level pre-tax margin while competing on TSR against KBW banks—areas where Hu’s enhancements to risk frameworks, stress testing and regulatory engagement support operating resilience but require continued execution .