MarcAurele gets pay boost during record-setting year at WashTrust

JOSEPH J. MARCAURELE, chairman and CEO of Washington Trust Bancorp, received a 30.2 percent increase in his total compensation package in 2015, a year in which the bank set a profit record. / COURTESY WASHINGTON TRUST BANCORP
JOSEPH J. MARCAURELE, chairman and CEO of Washington Trust Bancorp, received a 30.2 percent increase in his total compensation package in 2015, a year in which the bank set a profit record. / COURTESY WASHINGTON TRUST BANCORP

WESTERLY – Joseph J. MarcAurele, chairman and CEO of Washington Trust Bancorp Inc., last year received a 30.2 percent pay increase to his total compensation package, which totaled $1.48 million
MarcAurele led the bank to a record-breaking year for profit, totaling $43.5 million, or $2.54 per diluted share, which was a 6.5 percent increase compared with 2014.
MarcAurele’s pay increase was largely driven by growth in his stock awards, which more than doubled to $484,755. Other key increases include his base salary growing 8.8 percent to $560,000 and his non-equity incentive plan increasing 4.9 percent to $334,125, according to a federal filing released Monday.
The 64-year-old executive has held the position since 2010 after joining the bank a year earlier. Washington Trust Bancorp, with assets totaling $3.8 billion, is the parent company of Westerly-based The Washington Trust Co., the second largest Rhode Island-based bank. The bank has the third largest share of local deposits at 9.6 percent.
“The corporation had another year of exceptional performance in 2015, highlighted by record earnings and growth along key business lines. We continue to be a high-performing regional bank with a unique competitive business model that features revenue diversity, a proven growth strategy, lower risk profile and solid capital position,” according to the filing. “We believe the corporation is well position to continue our positive growth momentum into 2016 and beyond.”
The bank’s executive compensation strategy is designed to “reward the achievement of specific annual, long-term and strategic goals,” which align executive interests with shareholders. The philosophy is known better as pay-for-performance, which closely ties compensation rewards for executives with the overall performance of the bank. The strategy is designed to incentivize leaders to do well by the shareholders.
Last year’s awards were based on performance goals versus actual results, which the bank surpassed in its record-breaking year.
The bank exceeded its net income goal of $43.1 million, surpassed its earnings per share goal of $2.52 and beat its return on equity goal of 11.9 percent (ending the year at 12.3 percent).
Washington Trust Bancorp shareholders will be given the opportunity to vote on the company’s executive compensation package during its annual shareholders meeting scheduled for 11 a.m. on May 10 at the Westerly Library in Westerly.
On March 14 there were 17,023,451 shares of issued outstanding stock valued at $37.45 at the end of trading. Shareholders on March 14 will be able to vote on compensation packages at the annual meeting.
The company follows the say-on-pay voting method in which shareholders can cast an advisory vote to approve the compensation packages of company officers. Last year, 99 percent of the votes cast were in favor of the proposal, according to the filing.
The four next highest-paid Washington Trust executives include:

  • David V. Devault: $998,068 (vice chair, secretary and chief financial officer)
  • Edward O. “Ned” Handy III: $895,278 (president and chief operating officer)
  • Mark K. W. Gim: $674,114 (senior executive vice president, wealth management and treasurer)
  • James M. Hagerty: $536,062 (executive vice president and chief lending officer)

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