Douglas B. Ernest
UNITED BANKSHARES INC/WVAbout Douglas B. Ernest
Douglas B. Ernest is Executive Vice President and Chief Credit Officer of United Bankshares, Inc. (UBSI), a role he has held since 2015; he has been an EVP at UBSI since 2014 and joined United Bank in May 1993, progressing through senior lending and market leadership roles. He is Credit Risk Certified by the Risk Management Association and was age 60 as of the March 6, 2025 record date . UBSI’s 2024 performance underscored credit discipline and profitability: diluted EPS $2.75, ROAA 1.26% (88th percentile vs. proxy peers), net interest margin (FTE) 3.49%, efficiency ratio 52.67%, and non‑performing assets/total assets 0.25% (82nd percentile) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| United Bankshares, Inc. | Executive Vice President | 2014–present | Executive leadership at holding company; aligns credit and enterprise risk priorities . |
| United Bank (subsidiary) | Executive Vice President | 2014–present | Senior leadership at bank level supporting credit and lending execution . |
| United Bank / United Bank, Inc. | Chief Credit Officer | 2015–present | Enterprise credit risk oversight; underwriting standards and portfolio quality management . |
| United Bank, Inc. | Assistant VP, Commercial Lending; SVP; Market President; Regional President | 1993–2014 | Built and managed commercial portfolios; market leadership; RMA Credit Risk Certified . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Not disclosed in UBSI proxy filings for executive officers | — | — | No public board or external roles disclosed in executive officer biographies . |
Fixed Compensation
- Ernest is not a Named Executive Officer (NEO) in recent proxies; detailed salary/bonus figures are not disclosed. UBSI presents full compensation tables for NEOs only (Executive Chairman, CEO, President, CFO, Chief Risk & Information Officer) .
Performance Compensation
- UBSI’s Annual Incentive Plan (AIP) for named executives emphasizes pay-for-performance on earnings quality and risk with three metrics and standard weightings. While Ernest’s specific payout is not disclosed, these plan metrics define senior executive incentives firm‑wide.
| AIP Metric (2024) | Weight | Threshold | Target | Maximum | 2024 Actual | Achievement Level |
|---|---|---|---|---|---|---|
| Diluted EPS | 40% | $2.39 | $2.65 | $2.92 | $2.75 | Between Target and Maximum |
| ROAA (peer-relative) | 40% | 25th percentile | 50th percentile | 75th percentile | 88th percentile | Maximum |
| Non‑Performing Assets / Total Assets (peer-relative) | 20% | 25th percentile | 50th percentile | 75th percentile | 82nd percentile | Maximum |
- Long-term incentives are primarily RSUs with balanced time- and performance-based components; UBSI moved away from stock options.
| Award Type | Weight | Vesting Based On | Vesting Schedule |
|---|---|---|---|
| Performance‑based RSUs | 60% | 3-year relative TSR and ROATCE | 100% cliff vest after 3-year performance assessment (2027 for 2024 grants) |
| Time‑based RSUs | 40% | Continued service | 33% vest in 2025, 33% in 2026, 33% in 2027; 1‑year post‑vest holding applies |
- Performance RSU calibration (company-wide) uses 25th/50th/75th percentile thresholds with payouts at 50%/100%/150% of target respectively .
Equity Ownership & Alignment
- Stock ownership policy: executive officers (other than the CEO) must beneficially own at least 3x base salary in UBSI shares and options; the CEO must own 6x salary; outside directors must own at least 5,000 shares/options .
- Anti‑hedging and pledging: hedging of UBSI equity and pledging (including margin accounts) is prohibited for directors and executive officers (grandfathered legacy pledges only); pledged shares by board members and NEOs totaled ~0.15% of common shares outstanding as of March 3, 2025 .
- Plan‑level equity overhang and burn: options outstanding 902,289 at $38.28 with 3.21 years remaining; 953,412 shares available under prior plan (12/31/2024), with burn rate ~0.27% over 2022–2024 .
Employment Terms
- SERP coverage: UBSI’s 10‑K exhibits include a Supplemental Executive Retirement Agreement form for Douglas B. Ernest; specific benefit amounts for Ernest are not disclosed in the proxy .
- Clawback: NASDAQ‑compliant compensation recoupment policy adopted in November 2023 applies to incentive compensation in the event of an accounting restatement; covers executives and NEOs for awards received on or after October 2, 2023 .
- Equity plan safeguards (2025 Equity Incentive Plan): minimum 12‑month vesting (limited exceptions), double‑trigger acceleration on change in control, no repricing/cash buyouts of options/SARs, no discounted grants, no dividends/dividend equivalents on unvested awards, independent committee administration, $500k cap on annual director compensation .
Investment Implications
- Pay-for-performance alignment: Senior executive incentives tied to EPS, ROAA, and asset quality encourage balanced growth and credit discipline; 2024 results achieved between target and maximum, supporting above-target payouts for NEOs and reinforcing a performance culture in Ernest’s credit domain .
- Retention and selling pressure: Three‑year cliff performance RSUs and staggered time‑based RSU vesting with post‑vest holding periods reduce near‑term selling pressure and strengthen retention—particularly relevant for a control function leader like Ernest .
- Governance and risk: Strong anti‑hedging/pledging policy and clawback regime, coupled with equity plan guardrails (double‑trigger, minimum vesting), mitigate misalignment and excessive risk taking; positive say‑on‑pay history (97.58% approval in 2024) indicates shareholder support for the framework .
- Data gaps: As a non‑NEO, Ernest’s individual pay mix, ownership levels, and specific severance terms are not publicly quantified—monitor future proxies, 10‑K exhibits, and any Form 4 filings for changes in holdings or award vesting events .