Ram Shankar
UMB FINANCIALAbout Ram Shankar
Ram Shankar (age 52) has served as Executive Vice President and Chief Financial Officer of UMB Financial Corporation since August 2016; prior roles include Managing Director heading FP&A and Investor Relations at First Niagara Financial Group, senior research analyst at FBR Capital Markets, and finance roles at M&T Bank . UMB’s 2024 performance was strong—annual net income of $441.2M, core PPNR of $622.3M, and net charge-offs at 0.10%—supporting high incentive payouts across NEOs . UMB’s cumulative shareholder return index rose from 100.00 in 2019 to 179.94 in 2024, reflecting robust TSR over the period .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| UMB Financial Corporation | EVP & Chief Financial Officer | 2016–Present | Corporate CFO overseeing accounting/financial reporting, advising CEO, and leading M&A planning/execution |
| First Niagara Financial Group | Managing Director; Head of FP&A & Investor Relations | 2011–2016 | Led enterprise FP&A and IR; capital markets and investor communications |
| FBR Capital Markets | Senior Research Analyst | Not disclosed | Sell-side equity research and bank/financials coverage |
| M&T Bank Corporation | FP&A and Corporate Finance/M&A Group | Not disclosed | Financial planning, measurement, and M&A support |
External Roles
No public company directorships or external board roles disclosed for Ram Shankar in UMBF’s filings .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 403,031 | 419,778 | 443,276 |
| Stock Awards ($ grant-date fair value) | 273,588 | 284,570 | 508,396 |
| Non-Equity Incentive Plan Compensation ($) | 414,773 | 237,685 | 791,883 (paid Feb 20, 2025) |
| All Other Compensation ($) | 13,783 | 3,483 | 8,150 |
| Total Compensation ($) | 1,105,175 | 945,516 | 1,751,705 |
Additional 2024 specifics:
- Base salary set at $449,142 effective March 18, 2024 .
- STIP target set at 90% of year-end salary for 2024; increased to 105% for 2025 .
- Actual cash incentive paid for 2024: $791,883 (195.9% of target) .
Performance Compensation
2024 STIP – Corporate Funding Mechanics
| Financial Metric | Threshold | Target | Maximum | Actual | Score | Payout % | Weight | Weighted % |
|---|---|---|---|---|---|---|---|---|
| Core PPNR ($ in millions) | 422.7 | 528.4 | 634.1 | 622.3 | 117.8% | 188.9% | 80% | 151.1% |
| Net Charge-Offs (NCOs) | 0.32% | 0.27% | 0.22% | 0.10% | >120% | 200.0% | 20% | 40.0% |
| Final Funding (pre-discretion) | 191.1% | |||||||
| Discretionary Adjustment | Operating leverage 2.7% → +4.8% | Final 195.9% |
2024 STIP – Individual Award (Ram Shankar)
| Item | Value |
|---|---|
| Target % of Salary (2024) | 90% |
| Annual Target Award ($) | $404,228 |
| Individual Performance Percentage (from Target) | 195.9% |
| Total Cash Incentive Award ($) | $791,883 |
2024 LTIP – Grants and Structure
| Award Type | LTIP % of Salary | Grant Date | Value ($) | Shares/Units | Vesting |
|---|---|---|---|---|---|
| RSUs (Service Units) | 120% total LTIP; 40% RSUs | 2/9/2024 | 203,358 | 2,490 | 1/3 each year on 2/9/2025, 2/9/2026, 2/9/2027 |
| PSUs (Performance Units) | 120% total LTIP; 60% PSUs | 2/9/2024 | 305,037 | Target 3,735 (Max 7,470) | 3-year performance (2024–2026): 50% 3-year EPS; 50% Avg Adjusted ROTCE; 80% threshold, 100% target, 130% max (pays 200%) |
PSU policy change post-HTLF acquisition:
- 2023 PSUs converted to time-based RSUs; performance frozen at 100.00%, service vest on 1/1/2026 .
- 2024 PSUs converted to time-based RSUs; performance frozen at 194.67%, service vest on 1/1/2027 .
2022 PSU Payout Certification (vesting in Jan 2025)
| Metric | Threshold | Target | Maximum | Actual | Payout % | Weight | Weighted % |
|---|---|---|---|---|---|---|---|
| 3-year EPS | $18.61 | $23.26 | $30.24 | $25.48 | 132.00% | 50% | 66.00% |
| Adjusted ROTCE | 8.64% | 10.80% | 14.04% | 15.27% | 200.00% | 50% | 100.00% |
| Final PSU Payout | 166.00% |
Ram Shankar earned 2,647 shares from the 2022 PSU award (certified January 2025) .
Equity Ownership & Alignment
Beneficial Ownership (as of Feb 28, 2025)
| Holder | Shares Beneficially Owned | % of Class |
|---|---|---|
| Ram Shankar | 19,250 | * (<1%) |
Stock ownership guidelines and compliance:
- NEO guideline: ≥3× base salary; counts include ESOP, unvested RSUs, and half of unvested PSUs; options excluded .
- All NEOs are in compliance with guidelines as of the proxy date .
Insider trading, hedging/pledging:
- Hedging/short selling prohibited for directors and Executive Officers; insider trading policy on file (10-K Exhibit) .
- No explicit disclosure of share pledging policy; none noted in filings .
Outstanding Equity Awards (12/31/2024) – Key Schedules (Ram Shankar)
| Award (footnote) | Units Not Vested (#) | Vesting Milestone | Market Value ($) |
|---|---|---|---|
| RSUs (2) | 371 | Vested 100% on 2/12/2025 | 41,860 |
| RSUs (3) | 561 | 50% vested 2/11/2025; 50% vests 2/11/2026 | 63,348 |
| PSUs (2022) (4) | 2,647 | Service vested 1/1/2025; payout certified 166% | 298,740 |
| RSUs (5) | 872 | 50% vested 2/10/2025; 50% vests 2/10/2026 | 98,391 |
| PSUs→RSUs (2023) (6) | 1,880 | Service vest 1/1/2026; performance frozen 100% | 212,177 |
| RSUs (7) | 2,523 | 33% vested 2/9/2025; next 2/9/2026; final 2/9/2027 | 284,701 |
| PSUs→RSUs (2024) (8) | 7,270 | Service vest 1/1/2027; performance frozen 194.67% | 820,492 |
Deferred compensation (nonqualified plan):
- Executive contributions (2024): $81,585; aggregate 2024 earnings: $168,900; balance at 12/31/2024: $1,227,258 .
Employment Terms
| Item | Disclosure |
|---|---|
| Employment agreement | None; NEOs are at-will . |
| Non-compete / non-solicit | Not disclosed in proxy . |
| Clawback policy | Mandatory recoupment for restatements; discretionary for misconduct; SEC/NASDAQ Rule 5608 compliant . |
| Hedging | Prohibited for directors/Executive Officers . |
| Change-in-control (CIC) – STIP | Single-trigger acceleration; prorated based on actual results if CIC before period end; no discretionary reductions . |
| CIC – Equity | If awards not assumed/substituted: RSUs fully vest at CIC; PSUs vest to extent performance met at CIC. If assumed: double-trigger (termination without cause/for good reason within 24 months) for RSU/PSU vesting as applicable . |
| CIC – Estimated payout (as of 12/31/2024) | Cash: $404,228; acceleration of unvested restricted units: $1,811,353; total: $2,215,581 (Ram Shankar) . |
Perquisites (illustrative, 2024):
- Executive physical: $4,250; financial consulting services: $1,250 (included in “All Other Compensation”) .
Compensation Structure Analysis
- Pay mix and at-risk balance: Material equity and variable cash components; LTIP at 120% of salary in 2024, split 40% RSUs and 60% PSUs, emphasizing multi-year EPS and ROTCE performance alignment .
- STIP design: 80% Core PPNR and 20% NCOs with formulaic funding and an operating leverage governor; 2024 outperformance and integration work led to 195.9% pool funding including a +4.8% discretionary adjustment .
- PSU modification (red flag to monitor): 2023 and 2024 PSUs converted to time-based RSUs due to the HTLF acquisition impact on metrics; performance frozen at 100% (2023) and 194.67% (2024), reducing future performance contingency and potentially increasing near-term vesting certainty .
- Ownership alignment: 3× salary stock ownership guideline for NEOs; all NEOs in compliance; hedging prohibited; pledging not disclosed .
Compensation & Ownership Tables (Additional Detail)
2024 Grants of Plan-Based Awards
| Grant | Date | PSU Threshold (#) | PSU Target (#) | PSU Max (#) | RSUs (#) | Grant-Date Fair Value ($) |
|---|---|---|---|---|---|---|
| Ram Shankar PSUs | 2/9/2024 | 1,868 | 3,735 | 7,470 | — | 305,037 |
| Ram Shankar RSUs | 2/9/2024 | — | — | — | 2,490 | 203,358 |
2024 Summary Compensation (Multi-year)
| Component | 2022 ($) | 2023 ($) | 2024 ($) |
|---|---|---|---|
| Salary | 403,031 | 419,778 | 443,276 |
| Stock Awards | 273,588 | 284,570 | 508,396 |
| Non-Equity Incentive | 414,773 | 237,685 | 791,883 |
| All Other Compensation | 13,783 | 3,483 | 8,150 |
| Total | 1,105,175 | 945,516 | 1,751,705 |
Performance & Track Record
- 2024 highlights: Average loans +$1.88B to $24.2B (+8.4% YoY); average deposits +$3.5B to $35.3B (+11.1% YoY); net income $441.2M; net interest income >$1.0B; noninterest income $628.1M; NCOs 0.10% .
- Corporate TSR index trajectory (cumulative total shareholder return with dividends, base=100 at 12/31/2019): 2019: 100.00; 2020: 102.64; 2021: 160.16; 2022: 128.18; 2023: 131.02; 2024: 179.94 .
Compensation Peer Group (Benchmarking)
- 2024 peer group (15 companies): ASB, BOKF, CADE, COLB, CBSH, CFR, FNB, FULT, HWC, ONB, PNFP, PB, SNV, TRMK, WBS .
- 2025 revised peer group (post-HTLF; 15 companies): BOKF, CMA, CFR, FHN, HBAN, KEY, ONB, RF, SNV, SSB, VLY, WBS, WTFC, ZION, COLB .
Say-On-Pay & Shareholder Feedback
- Say-on-pay approval in 2024: 97.1% support; Compensation Committee maintained program principles .
Risk Indicators & Red Flags
- PSU-to-RSU conversion reduces pay-for-performance rigor for 2023/2024 awards; monitor dilution/overhang and potential sell pressure around service-vesting dates in 2026–2027 .
- STIP single-trigger CIC acceleration could front-load cash payouts in a transaction scenario .
- Clawback policy robust; hedging prohibited; no employment agreements (limits guaranteed pay/entitlements) .
Equity Ownership Pressure & Vesting Timeline (Insider Selling Watch)
- Notable service-vesting dates: 2/11/2026 (RSUs), 1/1/2026 (converted 2023 PSUs), 2/9/2026 & 2/9/2027 (RSUs), 1/1/2027 (converted 2024 PSUs)—monitor for potential discretionary sales around these windows .
Investment Implications
- Strong 2024 operating performance drove near-max STIP funding; Ram’s award at 195.9% aligns with robust Core PPNR and pristine credit .
- The conversion of PSUs to RSUs (assumed performance) adds retention certainty but dilutes performance-contingent exposure; equity overhang and discrete vest dates in 2026–2027 may present incremental selling pressure risk .
- Alignment is supported by 3× salary ownership guidelines and hedging bans; no employment agreement and clear CIC mechanics limit entitlements, with estimated CIC exposure of ~$2.22M for Ram largely tied to unvested equity .
- High say-on-pay support (97.1%) and independent consultant oversight indicate low governance friction, but the PSU conversion is a practice to monitor for pay-for-performance integrity going forward .