Bank of Hawaii Corporation filed a Form 8-K on February 27, 2025, reporting compensation decisions for its Named Executive Officers (NEOs). The Human Resources and Compensation Committee approved performance-based bonus awards and salary adjustments for 2025. Chairman and CEO Peter S. Ho received a $1,500,000 bonus and a base salary of $925,000. Other executives, including the CFO and Chief Risk Officer, also received bonuses and salary adjustments.

The company follows a pay-for-performance approach, where executive compensation is tied to pre-established performance goals under the 2024 Stock and Incentive Plan. Restricted Stock Unit (RSU) grants were awarded to certain executives, with Peter S. Ho receiving 33,581 RSUs, and other executives receiving smaller grants.

The filing also included exhibits related to the stock and incentive plan.

The Bank of Hawaii Corporation’s 2024 Stock and Incentive Plan includes a Restricted Stock Unit (RSU) Grant Agreement for eligible executives. Under this agreement, RSUs are awarded with a vesting schedule that requires continuous employment for full vesting. The units are subject to forfeiture if employment is terminated, except in cases of death, disability, or a qualifying termination following a change in control.

The agreement specifies that RSUs will be settled in company shares after vesting, with an option for deferral under the Bank of Hawaii Corporation Executive Base Salary Deferral Plan. During the restriction period, RSUs cannot be transferred or pledged. Dividend equivalents will be credited and paid in cash until the RSUs are settled.

The agreement ensures compliance with tax regulations, including Section 409A of the Internal Revenue Code. Any changes to the agreement due to legal requirements may be made by the company without participant consent, but material adverse changes require approval. The agreement also includes provisions for data privacy and administrative processing.

By accepting the grant, the participant agrees to all terms outlined in the agreement and the broader incentive plan. The document was executed by Patrick M. McGuirk, Vice Chair of the Bank of Hawaii Corporation.

Bank of Hawai‘i Corporation reported strong financial results for 2024, with diluted earnings per share of $3.46 for the year and $0.85 for the fourth quarter. Net income for the year was $150 million, a 12.4% decline from 2023, while fourth-quarter net income reached $39.2 million, reflecting a 28.8% increase year-over-year. Total assets were $23.6 billion at year-end, and total deposits stood at $20.6 billion, with noninterest-bearing deposits comprising 26.3% of the total. The company’s net interest margin for the fourth quarter increased to 2.19%, supported by higher earning asset yields and controlled deposit costs.

Asset quality remained strong, with non-performing assets at $19.3 million, representing 0.14% of total loans and leases. Provision for credit losses for the fourth quarter was $3.8 million, reflecting an increase from prior periods. The allowance for credit losses was $148.5 million, maintaining a ratio of 1.06% to total loans and leases. Meanwhile, total loans and leases grew modestly to $14.1 billion, with a notable 6.0% year-over-year increase in commercial loans, though consumer loans declined.

The company declared a quarterly dividend of $0.70 per common share, payable in March 2025. Capital ratios remained robust, with the Tier 1 Capital Ratio at 13.95%. No share repurchases occurred in the fourth quarter, leaving $126 million in buyback authority. Preferred stock dividends were also announced, reinforcing the company’s commitment to returning value to shareholders while maintaining strong capital and credit quality metrics.