Pay-for-performance is a key element of BlueShore Financial’s compensation philosophy. In addition to base salary, the CEO’s compensation program includes cash incentive programs that tie pay to performance on both short- and long-term goals.
CEO and executive compensation is overseen by the Human Resources & Compensation Committee (HRCC) of the Board. The HRCC brings compensation matters to the full Board for information or approval as appropriate, and retains independent compensation expertise to provide advice on the elements, structure and amount of CEO compensation. The Board reserves the right to apply informed judgment to reduce or increase the amount of the CEO’s incentive payouts.
Components of CEO Compensation
| Base Salary | The CEO’s base salary earnings were $456,612 for 2022. |
| Short-Term Incentive Program | The CEO participates in a Short-Term Incentive (STI) program that rewards performance against pre-defined objectives. This is the same program that most other employees participate in, our Performance Rewards Program. Payments under the STI plan are contingent on achieving a threshold level of performance. For 2022 performance, the CEO’s STI was $196,347, which represents 43% of base salary. |
| Long-Term Incentive Program | The CEO participates in a Long-Term Incentive (LTI) program intended to align his interests with the long-term strategy of the organization. The LTI program is a rolling three-year plan. Every year, specific measures and targets are established for each of the next three years. The payout reflects the CEO’s performance over the previous three years. The CEO’s LTI payout for 2022—reflecting his performance in 2020, 2021 and 2022, was $398,502, which represents 87% of base salary. |
| Benefits and Perquisites | The CEO participates in BlueShore’s Flexible Benefits Program with the same terms offered to all employees. Additional benefits and perquisites are also provided, including an annual preventative health assessment, which benefits both BlueShore and the CEO. |
| Retirement Income Programs |
The CEO participates in a Defined Contribution Supplemental Executive Retirement Program (SERP). He receives 12.5% of earnings (current year base salary plus prior year STI, which is received in the current year) contributed to his pension each year. 2022 SERP contribution earned for 2022 was $98,490. The CEO also has a Defined Benefit Individual Pension Program (IPP). The CEO is personally responsible for funding the contributions related to his past service. The contribution for current service is funded through a transfer of funds from his SERP. |
| Termination Benefits |
The CEO’s employment contract stipulates that if his employment is terminated for cause, no notice, salary, bonuses or benefits are owed to him. If his employment is terminated without cause, a 24-month severance package (including salary, bonus and benefits) is owed to him. |
Summary Compensation Table - CEO
The following table presents target total cash compensation for BlueShore’s CEO for 2022 at target levels of performance.
2022 Target CEO Total Cash Compensation
| Base Salary | STI | LTI | Target Total cash |
|---|---|---|---|
| $456,612 | $205,475 | $251,137 |
$913,224 |
The following table presents actual total cash compensation for BlueShore’s CEO for actual 2022 performance. LTI compensation is above target, because the CEO exceeded objectives set by the Board.
2022 Actual CEO Total Cash Compensation
| Base Salary | STI | LTI | Target Total cash |
|---|---|---|---|
| $456,612 | $196,347 | $398,502 |
$1,051,461 |
CEO Performance in 2022
Chris Catliff has consistently met or exceeded objectives, and continues to demonstrate the fulfillment of his vision through BlueShore’s success.
In 2022, he led a team that achieved healthy results, including a 7.3% Return on Retained Earnings and organic growth of 1.3% in Assets Under Administration, to $6.9 billion. BlueShore enjoyed strong funding growth in 2022 alongside investment net sales.
While leading the organization to inclusively embrace flexible and hybrid work, both of which are key competencies in a digitally agile environment, Chris continued to focus on our strategic initiatives with a focus on our clients, our digital transformation, and ensuring employees and leaders sustain a thriving organization for the long term.
Under Chris’ leadership, BlueShore has grown to offer highly sophisticated services for our members. Client ratings of BlueShore’s service continue to significantly outpace the competition, evidence that BlueShore’s differentiated strategy is continuing to succeed. Members are benefitting from our financial expertise and dedication to an exceptional client experience.