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First Foundation Inc . (NYSE:FFWM), a prominent state commercial bank with a market capitalization of $427 million, has solidified its executive team with new employment agreements for two key leaders, as disclosed in a recent SEC filing. The company’s stock has faced challenges, declining nearly 32% over the past year, though InvestingPro analysis suggests potential improvement ahead with net income expected to grow this year. Thomas C. Shafer, who was appointed as Chief Executive Officer on November 21, 2024, entered into an employment agreement effective February 11, 2025, with a term ending on March 15, 2028. This agreement includes provisions for automatic renewal for single one-year terms unless non-renewal notice is given.
Under the terms of the agreement, Shafer will receive an annual base salary of $1,090,000, which is subject to annual review and potential increase but not reduction. This leadership transition comes at a crucial time, as InvestingPro data shows the company currently maintains a WEAK financial health score, with analysts setting price targets ranging from $6 to $9 per share. Additionally, he is entitled to an annual discretionary incentive opportunity equal to 150% of his base salary, split evenly between cash bonuses and performance restricted stock units, contingent on the achievement of performance metrics set by the Board of Directors. For the fiscal year 2025, Shafer is guaranteed a minimum cash bonus of $500,000. He will also have access to the company’s executive benefit programs.
In the event of termination without cause or resignation for good reason, Shafer will receive a lump sum equivalent to the lesser of 12 months of his base salary or the remaining salary for the term’s duration if less than 12 months. If terminated for cause or at the term’s end, he will not receive severance pay. In case of death, his beneficiaries will receive an amount equal to 100% of his base salary.
Simone Lagomarsino, who was appointed as President of the Bank on July 8, 2024, and of the Company on September 3, 2024, also entered into an employment agreement on February 11, 2025, which will conclude on December 31, 2026. Lagomarsino’s agreement stipulates an $800,000 annual base salary, with similar provisions for annual adjustments and executive benefits as Shafer’s agreement.
Lagomarsino’s severance conditions mirror Shafer’s, with a lump sum payment upon termination without cause or resignation for good reason, and no severance upon termination for cause or expiration of the agreement term. Her beneficiaries will also receive 100% of her base salary in the event of her death.
The details of these agreements were included in exhibits attached to the SEC filing, which is the source of this information. The establishment of these agreements ensures continuity in First Foundation Inc.’s leadership structure and provides clear compensation and severance frameworks for these top executives. For investors seeking deeper insights, InvestingPro offers comprehensive analysis through its Pro Research Report, featuring detailed financial metrics and expert analysis of FFWM among 1,400+ top US stocks. InvestingPro subscribers can access additional ProTips and advanced metrics to better understand the company’s financial trajectory.
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