Company: BOH
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0000950170-25-039381
Chunk: 28

Company: BANK OF HAWAII CORP
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 28
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 long-term vesting schedules to help ensure that executives have significant value tie to long-term performance. In addition to the Human Resources & Compensation Committee's annual comprehensive review, the Company's People Services Division provides the Audit Committee an analysis of potential “red flag” indicators including the existence, nature and extent of any customer complaints, regulatory complaints, legal actions, and employee feedback to determine if the variable pay plan design or implementation resulted in employee wrongdoing or customer abuse. Compensation Program Enhancements The Company meets with our stockholders throughout the year as part of our investor outreach, and we seek to integrate shareholder feedback into our executive compensation program design. In 2024, 94% of the votes cast by stockholders supported our Say-on-Pay proposal, expressing strong support for our executive compensation program. This follows 74% shareholder support in 2023 and 80% support in 2022. We believe that the significant increase in support for our compensation program was the result of a redesign for performance year 2024 that created a balanced scorecard that equally measures profitability, asset quality, financial returns, a strategic metric and individual performance. The program redesign was the direct result of feedback received from shareholders, as shown below:

| Feedback                                                                                                                                                                                                                                                                                           | Company Response                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| · The CEO's target value of equity appeared to be higher than bank peers · Pay versus performance seems misaligned, even though 100% of Short-Term Incentive ("STI") and Long-Term Incentive ("LTI") compensation is performance-based · The metrics used for STI and LTI appear to be overlapping | ·  In 2024 and beyond, all NEO target equity value has been reduced, with a potential for higher payouts in return for superior performance· More comprehensive performance assessment introduced for 2024, including a balanced STI scorecard and Total Shareholder Return influencing LTI· For LTI and STI, Price-to-Book ratio metric has been eliminated; introduced new profitability, asset quality, strategic and shareholder value metrics to mitigate overlap |

Cybersecurity and Information Security Risk Oversight Management of cybersecurity risks is the responsibility of the full Board. The Company, the Board, and the Risk Management Committee continue to strengthen the management and oversight of cybersecurity risks through new security system enhancements, policies, testing, identification and reporting. The Company continued its program of third-party penetration testing and ongoing analysis to identify potential vulnerabilities and need for additional enhancements. The Company also continued to support remote work that has been more prevalent as a result of the