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GLENS FALLS, NY - Arrow Financial Corporation (NASDAQ:AROW), a commercial banking institution with a market capitalization of $444 million, announced significant changes to its executive team and board of directors in a recent 8-K filing. The company’s stock has declined over 6% year-to-date, though InvestingPro analysis suggests it’s currently undervalued. The company disclosed that Gary L. Dake will retire from the Board after a 23-year tenure, effective at the 2025 Annual Meeting. Arrow Financial has maintained a strong track record of shareholder returns, with 32 consecutive years of dividend increases, according to InvestingPro data.
The filing also detailed new employment agreements for several top executives, including President and CEO David S. DeMarco. Effective February 1, 2025, DeMarco’s renewed three-year contract includes an annual base salary of $718,850 and a 50% cash incentive target. His agreement will automatically renew annually unless either party provides a non-renewal notice.
In parallel, new two-year agreements for other senior executives were established. Senior Executive Vice Presidents David D. Kaiser (Chief Credit Officer), Penko K. Ivanov (Treasurer and CFO), Andrew J. Wise (LON:WISEa) (Chief Risk Officer), and Marc J. Yrsha (Chief Banking Officer) have had their contracts renewed with base salaries ranging from $375,950 to $422,300, alongside a 40% cash incentive target.
These agreements, which supersede the executives’ 2024 contracts, include standard executive provisions such as benefits, change of control, and non-compete clauses. They will also automatically extend each year unless a non-renewal notice is issued.
Arrow Financial’s decisions on executive compensation and leadership transitions are based on the company’s commitment to maintaining a strong governance structure and ensuring continuity in its strategic direction. The company maintains healthy financial metrics with a P/E ratio of 15.04 and analysts expect profitability to continue this year. (InvestingPro subscribers have access to over 30 additional financial metrics and insights about Arrow Financial’s future prospects.)
The information provided in this article is based on a press release statement from Arrow Financial Corporation.
In other recent news, Arrow Financial Corporation has broadened its board of directors with the addition of four new members. The recent appointments include James M. Dawsey, Dr. Kristine D. Duffy, Philip Morris (NYSE:PM), and Daniel J. White. Dawsey, with over four decades of experience in construction management, brings financial and operational expertise. Dr. Duffy, with her extensive experience in higher education administration in New York, will contribute to strategic planning and board governance. Morris, CEO of Proctors Collaborative, brings successful fundraising and strategic planning skills, while White, a Certified Public Accountant, offers his expertise in community bank auditing and accounting. These developments are part of Arrow Financial’s ongoing efforts to strengthen its governance and support its strategic objectives. This information comes from a recent press release statement.
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