Director Compensation Policy for Board of Directors of East West Bank

Summary

This document outlines the compensation policy for outside directors of East West Bank. Outside directors receive an annual retainer of $25,000, with additional retainers for committee chairpersons and the non-executive Chairman of the Board of the bank's China subsidiary. Directors are also paid $1,000 per meeting attended and receive an annual grant of $40,000 in restricted stock with a three-year vesting period. Directors may opt to receive their retainer in stock at a premium if held for at least one year. Employee directors do not receive separate compensation.

EX-10.12 2 ex10_12.htm EXHIBIT 10.12 Unassociated Document

Exhibit 10.12
 
DIRECTOR COMPENSATION
 
The following compensation arrangements have been established for the Board of Directors of the Company: All outside directors will receive an annual retainer of $25,000. The chairpersons of the Audit Committee, the Compensation Committee, the Risk Oversight Committee, and the Nominating/Governance Committee will for this service receive retainers of $10,000, of $7,000, of $5,000, and of $5,000 respectively. In addition, the director representing the Board of the Company as the non-executive Chairman of the Board of East West Bank’s subsidiary East West Bank (China) Limited receives a retainer of $125,000 for such duties. Outside directors also receive a meeting fee of $1,000 for each Board and Committee meeting attended. Outside directors also receive an annual grant of $40,000 of restricted stock, which stock has 3-year cliff ves ting. Directors have the option to receive their $25,000 annual retainer in the form of stock at a 25% premium (i.e., $31,250 of stock) if they agree to hold the stock for at least one year. No separate compensation is paid to directors who are also employees of the Company.