First Foundation Announces CEO Retirement and Succession Plan

First Foundation Inc. (NASDAQ: FFWM) recently disclosed the retirement of Scott F. Kavanaugh, the Chief Executive Officer (CEO) and Board member of the company, and its wholly-owned subsidiary, First Foundation Bank. The retirement, effective immediately, follows Kavanaugh’s 17-year career with the organization. According to the 8-K filing with the Securities and Exchange Commission (SEC) on November 21, 2024, Kavanaugh’s decision to retire was not due to any disagreements with the company’s operations or policies.

Following Kavanaugh’s retirement, Thomas C. Shafer was appointed as the new Chief Executive Officer of First Foundation Inc. and First Foundation Bank, as well as a member of both companies’ Boards of Directors. Shafer, aged 66, brings over 40 years of experience in the banking sector. Previously, he held key positions at Huntington Bancshares Incorporated and TCF Financial Corporation, serving in various executive roles.

As part of his appointment, Shafer will receive an annual base salary of $1,090,000, subject to review, and will be eligible for an annual bonus of up to 1.5 times his base salary based on performance targets set by the Board of Directors. Additionally, he has been granted 500,000 restricted stock units, with half vesting on the second anniversary and the remainder on the third anniversary, subject to continued service.

The company also issued a press release on November 22, 2024, confirming Shafer’s appointment as the new CEO and announcing Kavanaugh’s retirement. The press release highlighted Shafer’s extensive experience and expressed confidence in his ability to lead First Foundation in its next chapter.

The information contained in the press release and the attached 8-K filing, as well as the terms of Shafer’s appointment and compensation, indicate a smooth transition in leadership at First Foundation. The company looks forward to Shafer’s leadership as it progresses towards its strategic objectives.

It is noteworthy that the appointment of Shafer represents a pivotal moment in the history of First Foundation, marking the beginning of a new era under his leadership. The company expressed gratitude to Kavanaugh for his contributions and wished him well in his retirement.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read First Foundation’s 8K filing here.

About First Foundation

First Foundation Inc, through its subsidiaries, provides banking services, investment advisory, wealth management, and trust services to individuals, businesses, and other organizations in the United States. The company operates in two segments, Banking and Wealth Management. It offers a range of deposit products, including personal and business checking accounts, savings accounts, interest-bearing demand deposit accounts, money market accounts, and time certificate of deposits; and loan products consisting of multifamily and single family residential real estate loans, commercial real estate loans, commercial term loans, and line of credits, as well as consumer loans, such as personal installment loans and line of credits, and home equity line of credits.