Top officers at Five Star Bank’s parent company enjoyed robust increases in their total compensation in 2014.
Martin K. Birmingham, president and CEO of Warsaw-based Financial Institutions Inc., had a 58 percent increase in total compensation last year, to $851,677 last year. Birmingham’s salary increased 25 percent, to $420,000. He also benefited from increases in stock awards, non-equity incentive plan compensation, a change in pension value and other compensation, according to a regulatory filing by the bank.
The bank last year recorded net income of $29.4 million, up from $25.5 million, thanks in part to its acquisition of Scott Danahy Naylon, an Amherst-based insurance agency.
Five Star Bank has a limited presence in the Buffalo Niagara region, with only three branches, but has indicated it wants to make more inroads in the market. Its deposit market share was just 0.37 percent, according to the latest available figures, which ranked 11th among banks.
The board’s management development and compensation committee said it increased Birmingham’s base salary in 2014 by 25 percent, in order to bring the amount to the 25th percentile of a peer group “based on his individual performance.” The peer group consisted of 21 banks of similar asset size that were analyzed. For 2015, Birmingham’s salary was increased by 22.3 percent, to $514,000.
Birmingham’s 2014 compensation included a performance award of $235,957; the management development and compensation committee said his performance “exceeded expectations.”
Three other Financial Institutions executives saw their total compensation rise significantly last year: Richard J. Harrington, executive vice president and chief operating officer, $781,001, up 74 percent; Kevin B. Klotzbach, executive vice president, chief financial officer and treasurer, $574,096, up 68.5 percent; and Jeffrey P. Kenefick, executive vice president, commercial executive and regional president, $446,155, up 61 percent.
The bank’s annual meeting is scheduled for May 6 in Fairport.