Mark Connolly
About Mark Connolly
Mark Connolly is Executive Vice President, Head of Credit Markets, and Chief Credit Officer at The Bancorp; he joined in June 2016, became Head of Credit Markets in February 2017, and Chief Credit Officer in December 2019. He is age 56 per the 2024 proxy biography, with prior senior roles at Tresata (CFO/Head of Ops/Head of Financial Services), Morgan Stanley Wealth Management (Managing Director—Private Bank Head of Products), Citi Global Wealth Management (Co-CEO/COO of U.S. Private Bank; Head of U.S. Lending/Mortgages/Banking/Trust Services), and Bank of America’s Corporate & Investment Bank . Company performance during his tenure included net income growth from $80.1M (2020) to $217.5M (2024) and ROE/ROA strength (2024 ROE 27%, ROA 2.7%); stock rose from $13.65 (12/31/2020) to $52.63 (12/31/2024) and management highlights a 286% increase over 2020–2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Tresata, Inc. (data analytics software) | CFO, Head of Operations, Head of Financial Services | 2013–2015 | Led finance/operations; senior leadership across analytics-driven services |
| Morgan Stanley Wealth Management | Managing Director – Private Bank Head of Products (U.S. Lending, Mortgages, Banking, Trust Services) | 2010–2012 | Oversaw lending/mortgages/banking/trust product suite for U.S. Private Bank |
| Citi Global Wealth Management | Co-CEO/COO – U.S. Private Bank; Head of U.S. Lending, Mortgages, Banking & Trust Services | 2005–2010; Co-CEO/COO 2009–2010 | Ran U.S. Private Bank operations; led lending/mortgage/banking/trust franchises |
| Bank of America – Corporate & Investment Bank | Senior management position | 1998–2005 | Senior leadership within corporate & investment banking |
External Roles
No current external public company directorships or committee roles disclosed in the proxy biography for Mr. Connolly .
Fixed Compensation
Multi-year fixed compensation from summary compensation tables (nearest available years when Connolly was an NEO):
| Component | 2018 | 2019 | 2020 |
|---|---|---|---|
| Base Salary ($) | 300,000 | 348,000 | 350,000 |
Performance Compensation
Cash Bonus (Actual Paid)
| Metric | 2018 | 2019 | 2020 |
|---|---|---|---|
| Annual Cash Bonus ($) | 225,000 | 300,000 | 412,500 |
| Bonus as % of Base Salary | 75% | 86% | 118% |
Equity Grants (RSUs)
| Metric | 2018 | 2019 | 2020 |
|---|---|---|---|
| Stock Awards ($) | 225,000 | 300,000 | 337,500 |
| Vesting Schedule (RSUs) | One-third annually; 2018/2020 grants: 1/3 each after years 1 and 2, balance after eight months | One-third annually | One-third annually; 2018/2020 grants have accelerated balance after eight months |
Performance Metrics, Targets, Actuals, Payout Linkage
| Year | Metric | Target | Actual | Payout Component | Weighting | Vesting/Timing |
|---|---|---|---|---|---|---|
| 2018 | Reduction in discontinued assets | 25% YoY reduction | 35% reduction to $197.8M from $304.3M | Bonus $225k; Stock awards $225k | Not disclosed | RSUs per schedule |
| 2019 | Reduction in discontinued assets | 25% YoY reduction | 29% reduction to $140.7M | Bonus $300k; Stock awards $300k | Not disclosed | RSUs per schedule |
| 2020 | Loan revenue and balances growth; disposition of discontinued ops | Sustained multi-year growth; discontinued ops disposition | Loan revenues $171M vs $127M (2019), $95M (2018); total loan balances +49% YoY | Bonus $412.5k; Stock awards $337.5k | Not disclosed | RSUs per schedule |
The Compensation Committee determines NEO equity awards and cash bonuses at its discretion based on sustained multi-year performance vs budgeted goals; specific weightings for Connolly are not disclosed .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Unvested RSUs (12/31/2020) | 79,239 units; market value $1,081,613 (at $13.65 per share) |
| Options | None disclosed for Connolly; option columns show “-” |
| Stock awards vested in 2020 | 13,361 shares vested; $265,951 realized value |
| Ownership guidelines | CEO 3x salary; other executive officers per Compensation Committee policy; 5 years to comply; all directors and executive officers in compliance as of proxy date |
| Hedging/Pledging | Hedging prohibited; insider trading policy bans puts/calls/derivatives and hedges; no pledging disclosure noted |
Employment Terms
| Term | Disclosure |
|---|---|
| Employment start date | Joined The Bancorp June 2016; Head of Credit Markets since Feb 2017; Chief Credit Officer since Dec 2019 |
| Employment agreements | Company does not have formal employment agreements with NEOs; severance benefits, if any, negotiated individually |
| Change-in-control/termination economics | As of 12/31/2020: $1,081,612, representing value of unvested RSUs at $13.65; same amount for death/disability/retirement; awards accelerate under double-trigger following change in control |
| Award plan terms (vesting on triggers) | Unvested RSUs vest on one-year anniversary of death/disability/retirement; fully vest on involuntary termination following change in control; forfeited on termination for cause |
| Clawbacks | Mandatory clawback for erroneously awarded incentive-based compensation upon accounting restatement (effective Dec 1, 2023); discretionary clawback for misconduct (effective Dec 18, 2024) |
Multi‑Year Compensation Summary (Connolly)
| Metric | 2018 | 2019 | 2020 |
|---|---|---|---|
| Salary ($) | 300,000 | 348,000 | 350,000 |
| Bonus ($) | 225,000 | 300,000 | 412,500 |
| Stock Awards ($) | 225,000 | 300,000 | 337,500 |
| Option Awards ($) | — | — | — |
| All Other Compensation ($) | 8,862 | 9,424 | 9,354 |
| Total ($) | 758,862 | 957,424 | 1,109,354 |
Performance & Track Record
- Business execution: Under Connolly’s leadership, loan revenues rose to $171M in 2020 from $127M in 2019 and $95M in 2018; total loan balances increased 49% in 2020. He exceeded targeted discontinued asset reductions (29% in 2019; 35% in 2018) and continued disposition to maximize shareholder value .
- Company outcomes: Net income progressed 2019–2024 and reached $217.5M in 2024; ROE 27%, ROA 2.7%; stock increased 36% in 2024 (from $38.56 to $52.63) and 286% from 12/31/2020 to 12/31/2024 per management commentary .
Compensation Structure Analysis
- Mix and risk: For Connolly’s NEO years, compensation balanced cash bonus and RSUs without options, emphasizing multi-year pay-for-performance (rising variable pay linked to lending performance and asset disposition goals) .
- Metric rigor: Targets specified for discontinued assets (25% reduction) and demonstrated outsized actuals; loan revenue and balance growth targets described as sustained multi-year goals versus budget, assessed quarterly by the Compensation Committee .
- Governance enhancements: Adoption of mandatory and discretionary clawbacks and reaffirmed stock ownership and anti-hedging policies reduce risk of misaligned incentives and hedging .
Compensation Peer Group and Process
- Methodology: Committee determines NEO awards annually at discretion, tracking sustained multi-year performance and budgets; CEO provides performance input for NEOs (excluding CEO himself) .
- Peer benchmarking: Pay Governance engaged; 20-company peer group used in 2023 to confirm alignment; peer data benchmarked for NEOs other than CEO .
Risk Indicators & Red Flags
- Hedging/derivatives prohibited; no pledging disclosure noted .
- No formal employment contracts—severance negotiated individually—implies limited guaranteed cash severance risk; equity acceleration applies under specific triggers .
Investment Implications
- Incentive alignment: Connolly’s incentives have been tied to concrete business drivers—loan revenue growth and discontinuation asset reduction—with equity-heavy grants and no options, aligning with long-term shareholder outcomes .
- Selling pressure timing: RSUs vest on annual schedules (with 2018/2020 accelerated balance after eight months); expect episodic Form 4 activity near vest dates, though hedging is prohibited and ownership guidelines apply, mitigating misalignment risk .
- Retention and change-in-control economics: Absence of fixed employment agreements and primarily equity-linked termination value ($1.08M as of 12/31/2020) point to moderate contractual retention risk but meaningful unvested equity creates stickiness; double-trigger vesting in change-in-control reduces windfall risk .
- Governance comfort: Dual clawbacks and compliance with ownership guidelines are positives; no pledging disclosed. Continued execution in credit markets is central—watch loan growth quality, credit performance, and discontinued asset run-off pacing as leading indicators for incentive outcomes .