UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
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Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Appointment of Chief Executive Officer and President
PacWest Bancorp (the “Company”) today announced the appointment of Paul W. Taylor as Chief Executive Officer (“CEO”) and President of the Company and its wholly-owned subsidiary, Pacific Western Bank (the “Bank”), effective January 1, 2023. Mr. Taylor’s appointment follows the Company’s previously-announced plan to appoint him as the successor for Matthew P. Wagner, current CEO of the Company, upon Mr. Wagner’s retirement.
Mr. Taylor, 62, joined the Company on July 1, 2022 as President of the Company and the Bank. He joined the Company’s Board of Directors (the “Company Board”) and the Bank’s Board of Directors (the “Bank Board”) on January 29, 2021. Prior to joining the Company, Mr. Taylor served as chief executive officer, president and a director of Opus Bank from 2019 until its acquisition in 2020 and as chief executive officer, president and a director of Guaranty Bancorp and chief executive officer and chairman of the board of directors of Guaranty Bank and Trust Company, a banking subsidiary of Guaranty Bancorp, from 2011 through 2018. Prior to that, Mr. Taylor held various positions, including executive vice president, chief financial and operating officer and secretary of Guaranty Bancorp.
In connection with Mr. Taylor’s appointment as CEO and President, the Company Board approved the following compensation for Mr. Taylor, effective upon such appointment: (i) an annual base salary of $1,000,000; (ii) a target annual cash bonus opportunity equal to 150% of Mr. Taylor’s annual base salary, payable in accordance with the Company’s Executive Incentive Plan (the “EIP”); (iii) eligibility to participate in the Company’s long term incentive plan and to receive equity incentive awards valued at 250% of his annual base salary, comprised of time-based restricted stock awards (“TRSAs”) and performance-based restricted stock units (“PRSUs”); (iv) eligibility to participate in the Company’s Change in Control Severance Plan, which is described in the Company’s 2022 Proxy Statement (the “Proxy Statement”), with a potential change in control severance payment equal to 300% of the sum of Mr. Taylor’s annual base salary and target EIP award; and (v) eligibility to participate in the executive benefits as described in the Proxy Statement.
Transition of Company Board Leadership
Following Mr. Wagner’s retirement from the position of CEO, Mr. Wagner will transition to the role of Executive Chairman of the Company Board and the Bank Board for a one-year term, effective January 1, 2023. The Company Board approved the following compensation for Mr. Wagner for such service: (i) an annual base salary remaining at $1,000,000; (ii) a target annual cash bonus opportunity remaining at a level equal to 200% of Mr. Wagner’s annual base salary, payable in accordance with the EIP; (iii) continued eligibility to participate in the Company’s Change in Control Severance Plan as described in the Proxy Statement, with a potential change in control severance payment equal to 300% of the sum of Mr. Wagner’s annual base salary and target EIP award; (iv) eligibility to participate in the executive benefits as described in the Proxy Statement; and (v) continued access to limited personal use of corporate aircraft. Mr. Wagner will not receive further equity incentive awards in his role as Executive Chairman. In connection with Mr. Wagner’s transition to Executive Chairman of the Company Board, John M. Eggemeyer, III, current Chairman of the Company Board, will transition to the role of Lead Director of the Company Board, effective January 1, 2023.
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Departure of Chief Financial Officer
The Company also announced that Bart R. Olson’s employment as the Executive Vice President, Chief Financial Officer of the Company will terminate on November 27, 2022, at which time Mr. Olson will transition to the role of Executive Vice President, Finance, through February 28, 2023, retaining his current base salary through such date. In connection with his departure, Mr. Olson will be entitled to severance benefits equal to one year of base salary and twelve months of Company-paid medical, dental and vision coverage following his last day of employment, contingent upon Mr. Olson signing and not rescinding a release of claims in favor of the Company.
Appointment of Chief Financial Officer
In connection with Mr. Olson’s transition to Executive Vice President, Finance, the Company announced the appointment of Kevin L. Thompson as Executive Vice President, Chief Financial Officer of the Company, effective November 28, 2022.
Mr. Thompson, 49, previously served as executive vice president and chief financial officer of First Foundation Inc. and First Foundation Bank (collectively, “First Foundation”) from 2020 until his resignation in November 2022, and also served as interim president of First Foundation in November 2022. Prior to joining First Foundation, Mr. Thompson served as executive vice president, chief financial officer and treasurer of Opus Bank from 2017 to 2020, executive vice president and chief financial officer of Midland States Bancorp from 2016 to 2017, senior vice president, corporate finance of Zions Bancorporation from 2014 to 2016, and chief financial officer and treasurer from 2010 to 2014 and controller from 2006 to 2010 of American Express Centurion Bank. Prior to that, Mr. Thompson held various senior financial roles, including consultant, auditor, and international controller.
Pursuant to the Company’s offer letter with Mr. Thompson, he will be entitled to receive the following compensation: (i) an annual base salary of $500,000; (ii) a target annual cash bonus opportunity equal to 100% of Mr. Thompson’s annual base salary, payable in accordance with the EIP; provided that in lieu of Mr. Thompson’s participation in the EIP for fiscal 2022, he will receive a guaranteed cash payment of $400,000, payable in March 2023; (iii) TRSAs valued at $500,000, which will vest ratably over a three-year period and are subject to the terms of the Amended and Restated PacWest Bancorp 2017 Stock Incentive Plan; (iv) eligibility to participate in the Company’s long term incentive plan commencing in 2023 and to receive equity incentive awards valued at 150% of his annual base salary, comprised of TRSAs and PRSUs; (v) eligibility to participate in the Company’s Change in Control Severance Plan as described in the Proxy Statement, with a potential change in control severance payment equal to 200% of the sum of Mr. Thompson’s annual base salary and target EIP award; and (vi) eligibility to participate in the executive benefits as described in the Proxy Statement, including reimbursement of up to $100,000 of relocation expenses pursuant to the Company’s Relocation Policy.
Item 7.01 | Regulation FD Disclosure. |
A copy of the press release announcing these leadership transitions is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
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Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
Exhibit Number | Description | |
99.1 | Press Release dated November 21, 2022 | |
104 | Cover page interactive data file (embedded within the Inline XBRL document) |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PACWEST BANCORP | |||
Date: November 21, 2022 | By: | /s/ Angela M.W. Kelley | |
Name: | Angela M.W. Kelley | ||
Title: | Executive Vice President, General Counsel and Corporate Secretary |
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Exhibit 99.1
PACWEST BANCORP ANNOUNCES LEADERSHIP TRANSITIONS
Paul W. Taylor, Current PacWest Bancorp President,
Appointed Chief Executive Officer
Matthew P. Wagner to Transition to Executive Chairman
Kevin L. Thompson Named EVP, Chief Financial Officer
LOS ANGELES, November 21, 2022 — PacWest Bancorp (Nasdaq: PACW) (the “Company”) and Pacific Western Bank (the “Bank”), as part of their previously disclosed leadership transition plan, today announced the following changes to the Company’s Board of Directors (the “Board”) and executive team.
● | Paul W. Taylor, President of the Company and the Bank, has been appointed Chief Executive Officer of the Company and the Bank, effective January 1, 2023. Mr. Taylor will have full management, financial, and leadership responsibilities for the Company’s and the Bank’s operations. |
● | Matthew P. Wagner, Chief Executive Officer of the Company and the Bank, will transition to the role of Executive Chairman of the Boards of Directors for the Company and the Bank for a one-year term beginning January 1, 2023. In this role, Mr. Wagner will focus on customer relations, technology development, and supporting a seamless transition of duties to Mr. Taylor. |
● | John M. Eggemeyer, III, Chairman of the Company’s Board, will transition to the role of Lead Director, effective January 1, 2023. |
● | Kevin L. Thompson has been appointed Executive Vice President, Chief Financial Officer, effective November 28, 2022. Mr. Thompson has more than 20 years of experience in finance and has spent more than 15 years in senior finance roles in the banking sector, including as Chief Financial Officer of First Foundation Inc., Opus Bank, Midland States Bancorp, and American Express Centurion Bank. He succeeds Bart R. Olson, who will assume the role of Executive Vice President, Finance, through February 28, 2023, to assist with an orderly transition. |
“We are pleased to announce Paul’s appointment as CEO,” said Mr. Eggemeyer. “Having previously served as CEO of two publicly-traded banks, Paul has an outstanding track record of delivering for customers, employees, communities, and stockholders. He has a clear vision for the future of PacWest, in particular improving our capital, profitability, and operational effectiveness.”
Mr. Taylor said, “I am honored to take the helm of PacWest following the retirement of our long-time leader and CEO, Matt. I am excited to build upon PacWest’s strengths as we sharpen our strategic focus on our core relationship-based commercial business and strengthening capital. ”
Mr. Taylor continued, “As we enter this new chapter, we are also pleased to have someone of Kevin’s caliber join PacWest as CFO. Kevin and I have a great working relationship, and he is a high-integrity leader who shares PacWest’s commitment to accountability, profitability, discipline, and execution. He will be integral to PacWest’s efforts in this next chapter.”
Mr. Eggemeyer added, “We are grateful for Matt’s more than two decades of leadership as CEO of PacWest. During his tenure, PacWest has grown substantially, today standing with over $41 billion in assets. We look forward to continuing to benefit from his experience, insights, and customer relationships in his role as Executive Chairman. Finally, on behalf of the Board, I would also like to thank Bart for his service and dedication to PacWest.”
“I am grateful for the many years I have spent at PacWest and am proud of the organization we have built,” said Mr. Wagner. “I believe the time is right to transition leadership and am confident that Paul is the ideal person to lead PacWest into the future as we focus on delivering value to our stockholders. I am excited to continue working with him and the Board in my new role.”
About Paul W. Taylor
Paul W. Taylor is President and a Director of PacWest Bancorp and has over 35 years of experience in the banking industry. Mr. Taylor previously served as Chief Executive Officer, President, and Director of Opus Bank, a publicly-traded California-chartered bank, from 2019 until it was acquired in 2020. Prior to that, he held the same positions at Guaranty Bancorp, a publicly-traded financial institution headquartered in Colorado, from 2011 through 2018.
About Kevin L. Thompson
Kevin L. Thompson has more than 20 years of finance experience, including senior roles within the banking industry. Mr. Thompson previously served as Executive Vice President and Chief Financial Officer of First Foundation Inc. from 2020 until his resignation in November 2022 and served as interim President in November 2022. Prior to First Foundation, he held the position of Chief Financial Officer at numerous banks including Opus Bank, Midland States Bancorp, and American Express Centurion Bank.
About PacWest Bancorp
PacWest Bancorp is a bank holding company with over $41 billion in assets. Pacific Western Bank is focused on relationship-based business banking and treasury management services to small, middle-market, and venture-backed businesses nationwide. Pacific Western Bank offers a broad range of loan and lease and deposit products and services through full-service branches throughout California and in Durham, North Carolina and Denver, Colorado, and loan production offices around the country. For more information about PacWest Bancorp or Pacific Western Bank, visit www.pacwest.com.
Caution Concerning Forward-Looking Statements
This release contains certain “forward-looking statements” about PacWest Bancorp and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, strategies, goals, and projections and including statements about our expectations regarding our capital, capital ratios, profitability, and operational effectiveness. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “assume,” “intend,” “believe,” “forecast,” “expect,” “estimate,” “plan,” “continue,” “will,” “should,” “look forward,” “target” and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements due to a variety of factors, including the risk factors described in documents filed by PacWest Bancorp with the U.S. Securities and Exchange Commission. All forward-looking statements in this release are based on information available at the time the statement is made. PacWest Bancorp is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contact:
Paul W. Taylor
President
303.802.8965
Matthew P. Wagner
Chief Executive Officer
303.802.8900
William J. Black
Executive Vice President,
Strategy and Corporate Development
919.597.7466
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