Compensation Discussion and Analysis
consumer mortgage. Through Mr. Gormans guidance and support, in 2020 Key was a national leader in PPP lending, processing over 43,000 loan
applications and $8 billion in critical funding (in Phase 1 alone). In addition, Mr. Gorman articulated a strategy that reinforced our approach to targeted scale, acted decisively to exit or
de-emphasize activities that did not align with this strategy, and implemented a number of changes to enhance our risk practices.
Mr. Kimble
In 2020, Mr. Kimble became Keys Chief Administrative Officer, a role that includes oversight for Keys Human Resources and Law Group, in
addition to his role as Chief Financial Officer. Mr. Kimbles target total pay opportunity for 2020 was set at $5,000,000, in consideration of his expanded scope of responsibility, tenure and experience within our Peer Group, and the
critical role he played in the CEO transition process. In addition, under Mr. Kimbles leadership, Key delivered on its risk management goals and achieved strong financial performance in 2020 despite the economic headwinds generated by the
pandemic. Based on these factors, the Compensation Committee approved actual 2020 pay for Mr. Kimble of $5,500,000.
Mr. Paine
Mr. Paines 2020 target total pay opportunity was $4,500,000. The Compensation Committee approved actual total pay for 2020 of $4,450,000.
Mr. Paines pay reflects the Compensation Committees recognition of his success in leading our Institutional Bank, which included a record year of revenues for our investment banking arm, KeyBanc Capital Markets, despite the economic
challenges of the second and third quarters of the year. Keys investment banking capabilities are distinctive within our Peer Group and among regional banks, which the Compensation Committee took into consideration when establishing
Mr. Paines pay opportunity and setting his actual pay.
Ms. Brady
Ms. Bradys target
total pay opportunity for 2020 was $3,400,000, and the Compensation Committee approved actual total pay for 2020 of $3,275,000. Ms. Brady leads Keys technology, operations, and servicing groups and is leading our efforts to digitize the
enterprise. In 2020, Ms. Brady oversaw Keys technology investments, including information security and managed much of our consumer and commercial loan servicing activities. Ms. Brady also managed our business risk and controls and
call centers, after adding Keys contact center to her responsibilities in 2020. In addition, Ms. Brady played a critical role in 2020, as we implemented our business continuity plans, resulting in thousands of teammates pivoting to
full-time remote work within a matter of days, and established our return to office approach. Under Ms. Bradys leadership, her organization played an integral role in supporting our successful PPP lending, working quickly and efficiently
to establish the systems needed to process PPP loan applications. Ms. Bradys pay in 2020 reflects these contributions.
Ms. Mago
Ms. Magos 2020 target total pay opportunity was $3,400,000. Ms. Mago leads both our commercial and middle market real estate businesses.
Key is a leader in both commercial mortgage and third-party servicing, which are distinctive businesses among our Peer Group. Under Ms. Magos leadership, we have been thoughtful about managing our exposure to commercial real estate,
where our focus areas performed in-line or better than expectations in 2020. Key continues to selectively invest in areas with strong outlooks, such as affordable multifamily lending where we had a record year
for originations. Despite a challenging environment, our commercial mortgage business placed more originations in 2020 than in the prior year. In addition, Key remains a leader in commercial servicing, including named special servicing, which is
another area of growth. The Compensation Committee considered Ms. Magos balanced approach and overall leadership through the challenges of 2020 in approving actual pay of $3,250,000 for 2020.
CEO Transition
On May 1,
2020, and as previously disclosed on Form 8-K filed the same day, Ms. Mooney retired as our Chief Executive Officer and Chairman, and the same day, Mr. Gorman was appointed as our CEO. In connection
with his promotion to CEO, the Compensation Committee approved an increase to Mr. Gormans base salary to $1,000,000, an increase to his short-term incentive target to $2,000,000, and an increase to his long-term incentive target to
$4,500,000, resulting in target total pay opportunity for Mr. Gorman as CEO of $7,500,000. The Compensation Committee elected to prorate Mr. Gormans targets for the year, reflecting the portion of the year he served as our President
and Chief Operating Officer and the portion of the year he served as our Chairman and CEO. As a result, for 2020, Mr. Gormans base salary was $933,000, his short-term incentive target was $1,900,000, and his long-term incentive target was
$4,067,000, bringing his target prorated total pay opportunity for 2020 to $6,900,000.
In connection with her retirement and in recognition of her
performance in 2020, including with respect to the successful transition of the CEO role to Mr. Gorman, and as previously disclosed, the Compensation Committee approved a payment of
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