Sign in

Ronald K. Rich

Lead Independent Director at FIRST FINANCIAL CORP /IN/
Board

About Ronald K. Rich

Ronald K. Rich, age 87, has served on First Financial Corporation’s board since 2005 and is the long-tenured Lead Independent Director, a role he has held since 2005; he chairs the Governance & Nominating Committee and brings deep insurance/financial planning expertise through prior work as a financial representative at Northwestern Mutual, holding CLU and ChFC credentials from The American College of Financial Services . He is deemed independent under NASDAQ rules, and was renominated in 2025 for a term expiring in 2028, reflecting board confidence in his governance leadership .

Past Roles

OrganizationRoleTenureCommittees/Impact
Northwestern Mutual Financial NetworkFinancial RepresentativeFormer (dates not disclosed)Insurance/financial planning expertise; supports oversight of insurance matters at THFF

External Roles

OrganizationRoleTenureNotes
None disclosedNo public company directorships or external board roles disclosed for Mr. Rich in the proxy

Board Governance

  • Lead Independent Director: Presides at executive sessions; serves as liaison between the board, Chairman, and CEO; sets agendas for independent director sessions; in role since 2005 .
  • Committee assignments (Corporation): Chair, Governance & Nominating; Member, Compensation & Employee Benefits; Executive; Directors’ Enterprise Risk Management; Enterprise Risk Management .
  • Committee assignments (Bank): Member, Compensation & Employee Benefits; Executive; Directors’ Enterprise Risk Management; Enterprise Risk Management; Loan Committee .
  • Independence and engagement: Board met 17 times in 2024; each director attended ≥75% of board/committee meetings and all directors attended the 2024 Annual Meeting; independent directors met four times in 2024 .
CommitteeEntityRole2024 Meeting Count
Governance & NominatingCorporationChair2 meetings
Compensation & Employee BenefitsCorporationMember5 meetings
ExecutiveCorporationMemberNot disclosed
Directors’ Enterprise Risk ManagementCorporationMemberNot disclosed (quarterly or more via ERM framework)
Enterprise Risk ManagementCorporationMemberNot disclosed (quarterly or more via ERM framework)
Compensation & Employee BenefitsBankMemberNot disclosed
ExecutiveBankMemberNot disclosed
Directors’ Enterprise Risk ManagementBankMemberNot disclosed
Enterprise Risk ManagementBankMemberNot disclosed
LoanBankMemberNot disclosed

Fixed Compensation

  • Structure: Cash-only director pay with retainers and per-meeting fees; non-employee directors receive $40,000 Corporation retainer and $5,000 Bank retainer; $750 per Corporation/Bank board meeting; committee fees: Audit $1,000; Compensation & Employee Benefits $1,000; Governance & Nominating $1,000; Bank Loan Committee $500 .
  • 2024 cash received: $89,000 for Mr. Rich (director compensation table) .
ComponentAmountNotes
Corporation annual retainer (cash)$40,000Non-employee directors
Bank annual retainer (cash)$5,000Non-employee directors
Board meeting fee (Corp/Bank)$750 per meetingEach board meeting attended
Committee feesAudit $1,000; Comp $1,000; Governance $1,000; Bank Loan $500Per meeting
2024 Total—Rich$89,000Fees earned/paid in cash

Performance Compensation

  • Equity awards/variable pay for directors: None disclosed in the director compensation table (which reports only cash fees) .
Metric2024
Director equity grants (RSUs/PSUs/Options)None disclosed in director table

Other Directorships & Interlocks

CategoryDetail
Public company boardsNone disclosed for Mr. Rich
Interlocks/conflictsCompensation Committee interlocks: None; no insiders on Comp Committee; no interlocking board relationships disclosed

Expertise & Qualifications

  • Chartered Life Underwriter (CLU) and Chartered Financial Consultant (ChFC) designations; prior financial representative experience—insurance and financial planning expertise relevant to bank insurance matters .
  • Governance leadership as Lead Independent Director since 2005 and Chair of Governance & Nominating .
  • Risk oversight participation across ERM committees at Corporation and Bank .

Equity Ownership

  • Beneficial ownership: 4,050 shares; less than 1% of outstanding .
  • Shares outstanding: 11,853,489 (Feb 28, 2025) .
  • Ownership guidelines: Directors must hold stock equal to 3x Corporation retainer; all non-employee directors met guidelines except Ms. Jensen (still within compliance window), implying Mr. Rich meets guidelines .
  • Hedging/pledging: Prohibited for directors under Insider Trading Policy; anti-pledging and anti-hedging reaffirmed Feb 2025 .
ItemValue
Shares beneficially owned4,050; <1%
Shares outstanding11,853,489
Ownership guideline3x annual Corp retainer; Mr. Rich in compliance (all non-employee directors except Ms. Jensen)
Hedging/Pledging statusProhibited under policy

Governance Assessment

  • Strengths:

    • Long-tenured, independent Lead Director overseeing executive sessions and serving as liaison to management—supports independent board functioning and investor confidence .
    • Chair of Governance & Nominating; active on ERM committees at both Corporation and Bank; committee matrix confirms broad governance and risk coverage .
    • Strong attendance culture (≥75% for all directors), full Annual Meeting attendance, and active independent director executive sessions .
    • Shareholder-friendly policies: Anti-hedging/anti-pledging for directors; explicit clawback policy for executives; disciplined equity grant timing; and robust director stock ownership guidelines with compliance .
  • Pay and alignment signals:

    • Director compensation is modest, cash-based, and tied to meeting participation and committee service; Mr. Rich received $89,000 in 2024 .
    • Beneficial ownership supports alignment with shareholders; guidelines met .
  • Shareholder sentiment:

    • 2024 say-on-pay approval ~94% indicates broad support for compensation governance framework the board (including Mr. Rich) oversees .
  • Potential conflicts and related-party exposure:

    • Ordinary-course lending to directors/executives at market terms and risk; overseen by Loan Committee; no unfavorable features disclosed—no specific related-party transactions tied to Mr. Rich .
    • No delinquent Section 16 filings noted for Mr. Rich; only two other directors had late Form 4s in 2024 per disclosure .

RED FLAGS: None identified for Mr. Rich regarding conflicts, low attendance, hedging/pledging, or pay anomalies based on the 2025 proxy disclosures .