8-K: Landmark Bancorp Appoints Abigail Wendel as New CEO, Michael Scheopner to Retire

Landmark Bancorp has announced the appointment of Abigail Wendel as its new CEO, succeeding Michael Scheopner who will retire at the end of the year.

Summary

• Landmark Bancorp, Inc. has appointed Abigail M. Wendel as President and Chief Executive Officer, effective March 29, 2024.
• Michael E. Scheopner, the current President and CEO, will retire from those positions on the same date but will remain as a non-executive employee until December 31, 2024.
• Ms. Wendel has over 27 years of experience in the banking industry, most recently serving as President of Consumer Banking at UMB Bank, N.A.
• Ms. Wendel's employment agreement includes an annual base salary of $480,000, a $100,000 cash incentive award payable in early 2025, and a target annual incentive award opportunity of 35% of her base salary starting in 2025.
• She will also receive 40,000 non-qualified stock options with a strike price of $19.43 per share and 5,000 shares of restricted stock.
• Mr. Scheopner will receive his current annual base salary through June 30, 2024, and a salary of $10,000 per month from July 1, 2024, through December 31, 2024.
• All of Mr. Scheopner's outstanding and unvested stock awards will be fully vested on the transition date.
• Ms. Wendel will also join the boards of directors of Landmark Bancorp and Landmark National Bank.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the planned leadership transition, the appointment of a qualified new CEO, and the smooth handover process. The language used by management is optimistic about the future.

Positives

• The appointment of Abigail Wendel brings a seasoned banking executive with over 27 years of experience to lead Landmark Bancorp.
• Ms. Wendel's previous role as President of Consumer Banking at UMB Bank, with over $44 billion in assets, suggests she has experience managing large operations.
• The transition plan allows for a smooth handover of leadership, with Mr. Scheopner remaining in a non-executive role for a period.
• Ms. Wendel's compensation package includes a base salary, cash incentive, and equity awards, aligning her interests with the company's performance.
• The board conducted a thorough search process, indicating a commitment to finding the best candidate for the CEO role.

Negatives

• The departure of Michael Scheopner, who has been with the bank since 1996 and CEO since 2014, could create some uncertainty.
• The company will incur costs associated with the transition, including Mr. Scheopner's continued salary and benefits through the end of the year.

Risks

• The transition to a new CEO could pose operational risks if not managed effectively.
• There is a risk that Ms. Wendel's leadership style or strategic direction may not align with the company's existing culture or goals.
• The company may face challenges in maintaining its current performance during the leadership transition.
• There is a risk that the company may not be able to retain key employees during the transition period.

Future Outlook

The company anticipates continued growth and success under Abigail Wendel's leadership, with a focus on building relationships with current and future customers.

Management Comments

• Michael Scheopner stated that he is proud of the team's achievements and looks forward to Landmark's continued growth under Abby's leadership.
• Patrick Alexander, board chairman, expressed gratitude for Michael's leadership and excitement about welcoming Abby to the bank.
• Patrick Alexander noted that Abby's unique skill set blends results and experience, positioning Landmark National Bank for new growth.

Industry Context

The appointment of a new CEO is a significant event for any financial institution, and Landmark Bancorp's move reflects a strategic decision to bring in fresh leadership to drive growth and maintain competitiveness in the banking sector. The hiring of an executive from a larger regional bank like UMB suggests a desire to leverage experience from a more complex organization.

Comparison to Industry Standards

• The compensation package for Ms. Wendel, including a base salary of $480,000, a cash incentive, and equity awards, is within the typical range for CEOs of regional banks of similar size.
• The transition plan for Mr. Scheopner, including a non-executive role and continued salary, is a common practice to ensure a smooth handover of responsibilities.
• UMB Bank, where Ms. Wendel previously worked, has over $44 billion in assets, which is significantly larger than Landmark National Bank, suggesting that Ms. Wendel has experience in a more complex environment.
• The use of a nationally recognized executive recruiting firm to conduct the CEO search is a standard practice for companies seeking top-tier talent.

Management Changes

Stakeholder Impact

• Shareholders may react positively to the appointment of a new CEO with a strong track record.
• Employees may experience changes in leadership and management style.
• Customers may see changes in the bank's products and services.
• Suppliers may need to adjust to new management practices.
• Creditors may assess the impact of the leadership transition on the bank's financial stability.

Next Steps

• Abigail Wendel will assume her role as President and CEO on March 29, 2024.
• Michael Scheopner will transition to a non-executive role until his full retirement on December 31, 2024.
• Ms. Wendel will join the boards of directors of Landmark Bancorp and Landmark National Bank.
• The company will continue to implement its strategic plan under the new leadership.

Key Dates

Keywords

CEO, leadership transition, executive appointment, banking, financial services, Landmark Bancorp, Abigail Wendel, Michael Scheopner, executive compensation, stock options, restricted stock