Velarion · Company Intelligence
Compensation Brief
Fiscal year 2022 · Filings through 2023-10-10

Hallmark Financial Services (HALL)

Fiscal year 2022 executive and director compensation, incentive-plan design, equity activity, and governance — every figure in this brief is traceable to its exact location in the company’s SEC filing — the document, the section, the page, and the table, linked directly.

$1,407,570
Mark Schwarz total, FY2022
CEO pay percentile vs peers
CEO-to-median pay ratio
93.97%
Say-on-pay support, latest vote
Companies that benchmark against HALL
1 company names HALL as a compensation peer

Each company listed discloses HALL in its own benchmarking peer group, as disclosed in each company's most recent proxy statement within the last two proxy seasons. Two companies are therefore absent by design: one that named HALL in an earlier year and no longer does, and one whose own most recent disclosure is older than the last two seasons.

01

Summary Compensation Table — fiscal year 2022

Named executive officerSalaryBonusStock awardsOption awardsNon-equity incentivePension / NQDCAll otherTotal
Mark Schwarz$450,000$500,000$432,246$0$0$0$25,324$1,407,570
Executive Chairman
Christopher Kenney375,000175,000176,35500025,778752,133
President & Chief Executive Officer, Chief Financial Officer and Secretary

A dash means the company reported no figure in that column; 0 means it reported zero. Figures are as printed in the filing, without adjustment.

Three-year trend — total compensation per named executive

Named executive officerFY2022 totalFY2021 totalFY2020 totalΔ FY20212022
Mark Schwarz$1,407,570
Christopher Kenney752,133

Prior-year totals as disclosed in the corresponding proxy; deltas are computed values with the derivation shown in the register.

02

Equity transactions since the proxy statement was filed

No insider equity transactions reported since the proxy statement.

03

Grants of plan-based awards — fiscal year 2022

ExecutiveAwardGrant dateThresholdTargetGrantedMaximumGrant-date fair value
Mark SchwarzRSU$432,246
Christopher KenneyRSU176,355
03b

Vehicle mix — grant-date fair value by award type

Named executive officerTime-vested (RSU)Performance-vested (PSU)Options / SARs% performance-vested
Mark Schwarz$432,246$0$00.0%
Christopher Kenney176,355000.0%

% performance-vested = PSU grant-date fair value ÷ (RSU + PSU + Options), a computed value with the derivation shown in the register.

04

Outstanding equity awards at fiscal year-end 2022

ExecutiveAwardShares unvestedExercise priceMarket value unvested
Mark SchwarzPSU6,369$36,938
Christopher KenneyPSU2,58314,980
Christopher KenneyPSU2,28613,260
Mark SchwarzPSU6,18935,899
05

Incentive-plan design — the Compensation Discussion & Analysis

The Compensation Committee reviews, evaluates and recommends to the Board compensation policies with respect to directors, executive officers and senior management, with the Executive Chairman and CEO providing recommendations on most compensation decisions. The Company does not engage any external compensation consultant to assist in the review of director or executive officer compensation.

CEO STI target (% of salary)
CEO LTI target (% of salary)
Independent consultantNone. The proxy states: 'Neither the Company nor the Compensation Committee currently engages any consultant to assist in the review of director or executive officer compensation.'
Clawback policyNot disclosed. The proxy does not contain an explicit clawback/recoupment policy statement.
Anti-hedging
Anti-pledgingTrue
06

Say-on-pay — recent advisory votes

Meeting yearMeeting dateForAgainstAbstainSupportOutcome
20232023-10-051,190,17276,3983,83993.97%Passed
20222022-06-107,950,8891,261,49148,57786.31%Passed
20212021-05-279,352,039338,06865,05396.51%Passed
20202020-12-229,122,7401,004,929126,67790.08%Passed
20192019-05-3014,134,1821,547,86399,57990.13%Passed
20182018-05-3114,839,747519,69794,80696.62%Passed

Rows are labeled by annual-meeting year, with the meeting date beside each; the vote held in a given year acts on the prior fiscal year's compensation.

Say-on-pay — history, company's computation

Meeting yearMeeting dateApproval — company's computation
20232023-10-0593.97%a
20222022-06-1086.31%b
20212021-05-2796.51%c

a. Voting standard not stated in the filing.

b. Approved under the standard stated in the filing — “Pursuant to the Bylaws of the Company, abstentions and broker non-votes will not be counted in determining the number of shares voted on any matter.”.

c. Approved under the standard stated in the filing — “Pursuant to the Bylaws of the Company, abstentions and broker non-votes will not be counted in determining the number of shares voted on any matter.”.

Approval percentages are the company's own reported computations under its own stated standard, not recomputed by Velarion. Where a company does not state a standard, none is assumed.

08

Director compensation — fiscal year 2022

DirectorCash feesStock awardsOption awardsNon-equity incentiveAll otherTotal
James H. GravesIndependent · Audit (Chair) · Nomination and Governance · Compensation · Not standing for re-election$51,750$0$0$0$0$51,750
Mark E. PapeIndependent · Audit (Chair) · Compensation (Chair)44,250000044,250
Scott T. BerlinIndependent · Audit · Nomination and Governance (Chair) · Compensation44,250000044,250
Doug SlapeIndependent · Audit · Nominating/Governance · Compensation · Newly elected0000030,917
Mark E. SchwarzEmployee director · Board Chair00000
09

Board fee structure and ownership guideline

Annual cash retainer$30,000
Annual equity retainer$0
Per board meeting fee$1,500
Committee chair fees (audit / comp / nom-gov)
Stock ownership guideline
09b

Total cost of the board

ComponentFY2022
Cash retainers and fees$140,250
Equity awards (grant-date value)$0
All other compensation$0
Total cost of the board$140,250

Computed as the sum of the director compensation table rows above; inputs and formula shown in the register.

10b

Chief executive pay against the peer group

Most recent fiscal-year chief executive compensation at each disclosed peer, taken from that company's own proxy statement.

RankCompanyFYChief executiveSalaryStock awardsOption awardsNon-equity incentiveTotal
1Hallmark Financial Services2022Mark Schwarz$450,000$432,246$0$0$1,407,570

Each peer's compensation is from its most recently filed proxy; fiscal years differ by company. Each peer's figures come from its own filings; the subject company is highlighted. Peers whose chief executive compensation is outside our coverage universe are stated as such, never left blank.

11

Source register

Each figure's location is given both for the eye (section · page · table · row · column) and for a script (table/row/column index and exact character span in the filed document). Any figure can be independently confirmed against the source.

#SupportsDocumentFiledAccessionLocation in document
1Section 01, Mark SchwarzDEF 14A2023-07-210001104659-23-082963Section “Named Executive Officers”. As printed: 1,407,570. Filing ↗
2Section 01, Christopher KenneyDEF 14A2023-07-210001104659-23-082963Section “Named Executive Officers”. As printed: 752,133. Filing ↗
3Section 03, Mark Schwarz RSUDEF 14A2023-07-210001104659-23-082963Section “EXECUTIVE COMPENSATION &” · grants of plan-based awards table. Filing ↗machine: t23 · r1 · c8 · span 175687–175694
4Section 03, Christopher Kenney RSUDEF 14A2023-07-210001104659-23-082963Section “EXECUTIVE COMPENSATION &” · grants of plan-based awards table. Filing ↗machine: t23 · r2 · c8 · span 177345–177352
5Section 08, James H. GravesDEF 14A2022-05-250001104659-22-064526Section “Director Compensation”. As printed: 51,750. Filing ↗machine: t19 · r2 · c1 · span 82194–82200
6Section 08, Mark E. PapeDEF 14A2022-05-250001104659-22-064526Section “Director Compensation”. As printed: 44,250. Filing ↗
7Section 08, Scott T. BerlinDEF 14A2022-05-250001104659-22-064526Section “Director Compensation”. As printed: 44,250. Filing ↗machine: t19 · r1 · c1 · span 81063–81069
8Section 08, Doug SlapeDEF 14A2022-05-250001104659-22-064526Section “Director Compensation”. As printed: 30,917. Filing ↗
9Section 08, Mark E. SchwarzDEF 14A2022-05-250001104659-22-064526Section “Director Compensation”. As printed: 0. Filing ↗
10Section 06, 2023 voteForm 8-K2023-10-100001558370-23-016324Item 5.07 · say-on-pay result. As reported: 93.97% (votes for as printed: 1,190,172). Filing ↗
11Section 06, 2022 voteForm 8-K2022-06-210001104659-22-072592Item 5.07 · say-on-pay result. As reported: 86.31% (votes for as printed: 1,261,491). Filing ↗machine: span 4165–4174
12Section 06, 2021 voteForm 8-K2021-05-280001558370-21-007829Item 5.07 · say-on-pay result. As reported: 96.51% (votes for as printed: 338,068). Filing ↗machine: span 3467–3474
13Section 03b vehicle mix (computed)ComputedcomputedRSU / PSU / Options grant-date fair values summed per officer from the grants table; % performance-vested = PSU ÷ (RSU+PSU+Options).machine: formula: sums + PSU ratio
14Section 09b board cost (computed)ComputedcomputedCash 140,250 + equity 0 + all other 0 = 140,250, summed across the director compensation table rows.machine: formula: Σ = 140,250
15Hallmark Financial Services (subject), Section 10b CEO totalDEF 14A2023-07-210001104659-23-082963CEO total compensation as printed in Hallmark Financial Services's own proxy. As printed: 1,407,570. Filing ↗