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In a recent filing with the Securities and Exchange Commission, Bank of Hawaii Corporation (NYSE:BOH) disclosed adjustments to executive compensation, including salary changes and performance-based bonus awards for the year 2025. The adjustments were approved by the Human Resources and Compensation Committee of the Board of Directors on February 27, 2025, and are part of the company’s commitment to a pay-for-performance philosophy. The $2.77 billion market cap regional bank has maintained a strong financial position, with InvestingPro data showing consistent profitability and a notable 3.89% dividend yield. The bank has impressively maintained dividend payments for 54 consecutive years, demonstrating long-term financial stability.
The filing detailed the 2024 Executive Incentive Plan (EIP) awards and the 2025 base salaries for its Named Executive Officers (NEOs). Chairman and CEO Peter S. Ho received a $1.5 million EIP award and a base salary of $925,000 for 2025. Vice Chairman and CFO Dean Y. Shigemura was awarded a $360,000 EIP award and his base salary was set at $448,050. Other executives also saw adjustments to their compensation based on the achievement of pre-established performance measures. According to InvestingPro analysis, the company trades at a P/E ratio of 20.34, with 4 analysts recently revising their earnings expectations upward for the upcoming period.
Additionally, the filing reported the awarding of performance-based Restricted Stock Unit Grants (RSUs) to certain NEOs under the shareholder-approved 2024 Stock and Incentive Plan. Chairman and CEO Peter S. Ho was granted 33,581 RSUs, while Vice Chair and Chief Risk Officer S. Bradley Shairson and Vice Chair and Chief Administrative Officer Patrick M. McGuirk each received 6,087 RSUs. The stock has shown resilience, gaining 24.71% over the past year, though current valuations suggest the stock may be trading above its Fair Value.
The company’s approach to executive compensation is designed to align with business strategy, operating performance, and shareholder values, with performance-based awards paying out only when predetermined results are achieved.
This information is based on a press release statement and aims to provide investors with an understanding of Bank of Hawaii’s executive compensation strategy and its adherence to a structured performance-based reward system.
In other recent news, Bank of Hawaii Corporation reported its fourth-quarter 2024 earnings, exceeding expectations with an adjusted earnings per share (EPS) of $0.90, surpassing the forecast of $0.84. Despite this positive earnings result, the company’s revenue fell slightly short of predictions, reaching $163.22 million against a forecast of $165.07 million. DA Davidson has raised its price target for Bank of Hawaii to $79.00, citing an improved outlook for net interest income and an increase in EPS estimates for 2025 and 2026. Piper Sandler also adjusted its price target to $68.00, maintaining an Underweight rating due to valuation concerns despite the improved margin outlook.
Additionally, Bank of Hawaii announced the award of Restricted Stock Unit Grants to certain executive officers as part of its long-term compensation strategy. These stock grants were disclosed in a recent SEC filing, emphasizing transparency in executive compensation. The bank continues to focus on enhancing its wealth management and commercial initiatives, supported by stable economic conditions in Hawaii. Analysts are closely monitoring the bank’s performance, particularly its loan growth and net interest margin management. As these developments unfold, investors will be watching Bank of Hawaii’s strategic moves and financial performance in the coming quarters.
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